Related Party Transactions [Text Block] |
9.
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Related Party Transactions
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(a) |
For the nine months ended July 31, 2012, the Company paid / accrued $72,000
to CAB (2011: $72,000), Tom Ihrke, the VP of business development, $7,878
(2011: $28,269), and BKB Management Ltd. (“BKB”) CAD$49,500
(2011: CAD$47,500) for management, consulting and accounting services. CAB is owned by the president of the Company and BKB is owned by the CFO of the Company.
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The related party transactions are recorded at the exchange amount established and agreed to between the related parties.
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(b) |
On October 27, 2008 the Company entered a secured loan agreement in the amount of CAD$300,000
with CAB (See Note 8). On July 10, 2009 $40,000
of the debt was converted to equity. On October 21, 2010, the Company settled a portion of the debt, namely US$1,625
with CAB by converting
65,000
warrants into
32,500
common shares of the Company as per Purchase Agreement dated October 27, 2008 at a price of $0.05
per share. On June 28, 2011, the Company paid down CAD $100,000
of the debt. For the nine months ended July 31, 2012, the Company paid interest expenses of CAD $20,456
(2011: CAD$33,206).
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(c) |
On October 27, 2008 the Company entered a secured loan agreement in the amount of CAD$400,000
with Christopher Bunka. (See Note 8). On October 21, 2010, the Company settled a portion of the debt, namely $2,166.65
with Christopher Bunka by converting
86,667
warrants into
43,333
common shares of the Company as per Purchase Agreement dated October 27, 2008 at a price of $0.05
per share. For the nine months ended July 31, 2012, the Company paid interest expenses of CAD $53,708
(2011: CAD$53,708).
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(d) |
See Note 5, 6, 7 and 8.
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(e) |
On April 1, 2010, the Company entered a non-secured loan agreement in the amount of US$75,000
with CAB (See Note 7a). For the nine months ended July 31, 2012, the Company paid interest expenses of $10,125
(2011: $10,125).
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(f) |
On March 30, 2012 and July 20, 2012, the Company entered two non-secured loan agreements in the total amount of US$100,000
with Chris Bunka (refer to Note 7 (c) & (d). For the nine months ended July 31, 2012, the Company incurred interest expenses of $2,181
(2011: $nil).
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(g) |
Included in accounts payable, $103,589
(October 31, 2011: $94,696) was payable to companies controlled by the president, key management personnel and directors of the Company.
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(h) |
For the nine months ended July 31, 2012, the Company has paid/accrued $33,119
(2011: $83,900) to Kelowna Resources Group formerly known as 0743608 BC Ltd., $22,777
(2011:$35,268) to Emerald Atlantic LLC, and $3,475
to Tom Ihrke (2011: $9,941) for their respective Non-consent Interests in Belmont Lake. Kelowna Resources Group formerly known as 0743608 BC Ltd. is owned by the president of the Company and Emerald Atlantic LLC is owned by a Director of the Company.
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