Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
 9 Months Ended
Aug. 31, 2013
RELATED PARTY TRANSACTIONS [Text Block]
8.

RELATED PARTY TRANSACTIONS
   
 

The following transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.
   
 

Nine months ended August 31, 2013

   
 

The directors were compensated as per their consulting agreements with the Company. The Company expensed a total of $233,400 as management fees to its three directors and expensed a total of $5,400 as automobile allowance.

   
 

The Company expensed $34,730 for services provided by the CFO of the Company and $180,000 for services provided by a corporation in which the Chief Operating Officer has an interest.

   
 

The Company reimbursed $92,735 to directors and officers for travel and entertainment expenses incurred for the Company.

   
 

On March 4, the board of directors granted 100,000 warrants as an incentive to a director who provided a working capital loan of $94,970 (CAD $100,000). These warrants were issued at an exercise price of $0.50 per share and vest immediately with an expiry term of two years. The Company expensed $15,637 as compensation expense. In addition the Company has accrued interest of $8,811 till August 31, 2013.

   
 

Nine months ended August 31, 2012

   
 

The directors were compensated as per their consulting agreements with the Company. The Company expensed a total of $198,000 as Management fees for payment to its three directors and expensed a total of $4,800 as automobile allowance.

On January 4, 2012, the board of directors granted options to three directors to acquire a total of 775,000 common shares and one officer to acquire 20,000 common shares. All these 795,000 options were issued at an exercise price of $0.13 per share and vest immediately with an expiry term of four years. The Company expensed stock based compensation cost of $99,522 for these options.

On January 4, 2012, the board of directors issued warrants to a Company in which the Chief Operating officer has an interest in, to acquire a total of 800,000 common shares. These warrants were issued at an exercise price of $0.13 per share with an expiry term of four years. The Company expensed stock based compensation cost of $100,148.

On August 9, 2012, the board of directors issued warrants to a Company owned and controlled by a director, to acquire a total of 400,000 common shares. These warrants were issued at an exercise price of $0.20 per share with an expiry term of four years. The Company expensed stock based compensation cost of $75,013.

The Company expensed $18,050 for services provided by the CFO of the Company and $151,600 for services provided by a Company in which the Chief Operating Officer has an interest.