| RELATED PARTY TRANSACTIONS [Text Block] |
8. RELATED PARTY TRANSACTIONS
Nine months ended August 31, 2011
The Company expensed a total of $61,000 as Management fee for payment to its two directors for the nine month period ended August 31, 2011.
The Company expensed $12,000 for services provided by the CFO of the Company and $75,000 for services provided by COO of the Company.
Nine months ended August 31, 2010
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a)
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A Company Director has charged the Company a total amount of $1,500 for providing office space during the nine month period ended August 31, 2010.
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b)
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The directors were compensated from January 1, 2010 as per their consulting agreements with the Company. During the quarter ended February 28, 2010, one director was paid $21,500 as consulting fee and $3,000 as automobile allowance; one director was paid $17,750 as consulting fee and $2,000 as automobile allowance; one director was paid $16,500 as consulting fee and $2,000 as automobile allowance. During the quarter ended May 31, 2010, the Company expensed $58,500 being remuneration for directors, including a director who resigned May 30, 2010. During the quarter ended August 31, 2010, the Company expensed $39,000 being remuneration for directors. As of August 31, 2010, $37,489 was owed to the existing directors.
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c)
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On December 4, 2009 the board of directors approved extension of the expiration of outstanding options from their initial expiry date to a new expiration date of June 30, 2014 with all other terms of the original grant remaining the same.
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1.
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Extension of the expiration of 1,150,000 outstanding options already issued to three directors from their initial expiry date to a new expiration date of June 30, 2014;
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2.
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Extension of the expiration of 300,000 outstanding options already issued to an officer from their initial expiry date to a new expiration date of June 30, 2014.
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Stock based compensation cost relating to the extension in the expiry date of the outstanding options issued to three directors and an officer, as above, amounting to $30,213 has been expensed to general and administration expense.
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d)
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On January 4, 2010, the board of directors granted options to a director to acquire 100,000 common shares at an exercise price of $0.25 per share. All of these options vested immediately and have an expiry of five years. The Company expensed stock based compensation cost of $23,677.
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e)
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On June 15, 2010, the board of directors granted options to a director to acquire 350,000 common shares and to two directors to acquire 50,000 common shares each. All these 450,000 options were issued at an exercise price of $0.20 per share and vest immediately with an expiry term of five years. The Company expensed stock based compensation cost of $110,754 for these 450,000 options.
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