172100
29500
172100
29500
2013-10-31
2013-06-20
2013-06-20
P2Y
P18M
0.08
0.08
600000
625217
625
36888
-37513
425000
425000
245221
2000000
2013-01-20
2000-04-30
1000000
P3Y
P3Y
P3Y
P3Y
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">n.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Interim Financial Statements</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments which include only normal recurring adjustments, necessary to present fairly the Company's financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The unaudited financial statements should be read in conjunction with the Company's audited financial statements and notes for the year ended December 31, 2011, which are included in the Company's Annual Report on Form 10-K.</p> <!--EndFragment--></div> </div>
421.45
4276.03
4036.00
4273.03
5000.00
1068.72
750.55
1128.08
6656.20
6756.00
5651.98
4914.18
316498
316498
1
135000000
0.16
0.05
2011-10-11
2011-11-24
2012-01-13
2012-04-10
2011-10-11
2011-11-24
2012-01-13
2012-04-10
2500000
2011-10-11
2011-11-24
2012-01-13
2012-04-10
0.1
50000000
5000000
1
1
false
2013-01-04
S-1
0001037049
Smaller Reporting Company
AURORA GOLD CORP
354755
400644
14454
254974
17264
240419
-93057
-70525
-69703
20938292
22040994
22346349
1560
1560
393557
55660
454295
393557
55660
454295
4842
110000
25600
48000
1200000
9650000
8000000
3532696
237426
1241
599345
237426
1241
2933351
2757511
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">a.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Basis of Preparation</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company follows accounting standards set by the Financial Accounting Standards Board (FASB). The FASB sets accounting principles generally accepted (GAAP) in the United States that the Company follows to ensure they consistently report their financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (ASC) or also referred to as Codification.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> These interim consolidated financial statements have been prepared in accordance with GAAP and include the accounts of the Company and its wholly owned subsidiaries, Aurora Gold Mineração Ltda ("Aurora Gold Mineração") and AGC Resources LLC ("AGC") (through to date of disposition of AGC, June 14, 2011). Collectively, they are referred to herein as "the Company". Significant inter-company accounts and transactions have been eliminated.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such Securities and Exchange Commission (SEC) rules and regulations. The interim period consolidated financial statements should be read together with the audited consolidated financial statements and accompanying notes included in the Company's audited consolidated financial statements for the year ended December 31, 2011. In the opinion of the management of the Company, the unaudited consolidated financial statements contained herein contain all adjustments (consisting of a normal recurring nature) necessary to present a fair statement of the results of the interim periods presented.</p> <!--EndFragment--></div> </div>
556957
579191
93302
237426
1241
93302
1241
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">c.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Cash Equivalents</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Cash equivalents comprise certain highly liquid instruments with a maturity date of three months or less when purchased. The Company has cash equivalents of $1,241 and $93,302 at September 30, 2012 and 2011 respectively. Amounts paid for income taxes during the periods ended September 30, 2012 and 2011 were nil; and for interest paid nil respectively.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="WIDTH: 0.25in"><strong>9.</strong></td> <td><strong>Non-Cash Investing and Financing Activities</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In September 2011, 150,000 shares were issued to a company for services rendered at $0.16 per share. The shares were issued to a company who resides outside the United States of America.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In April 2011, as an incentive to assist with future private placements, the Company authorized the payment of a non cash finder's fee of 450,000 shares of common stock of the Company in connection with the private placement completed in April 2010. The shares were issued in May 2011. The issuance of these shares had no net effect on total shareholders' equity or results of operations as they related to fees associated with issuance of shares.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In September 2010 the Company issued 685,900 shares of common stock of the Company in settlement of indebtedness amounting to $205,770; paid a non cash finder's fee of 1,126,111 shares of common stock of the Company in connection with the private placement of 12,983,335 shares at $0.30 per share completed in April 2010; and paid a non cash finder's fee of 500,000 shares in connection with a property acquisition valued at $0.30 per share. The shares were issued to individuals and companies who reside outside the United States of America.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In June 2010, pursuant to an Asset Purchase Agreement, the Company issued 5 million shares of its common stock, which were authorized for issuance at $0.40 per share for the acquisition of assets further discussed in Note 3, and acquired Global Minerals Ltd. 50% participating interest in the joint venture agreement dated December 18, 2002 between Consolidated Global Minerals Ltd and the property owners of the Front Range Gold JV property.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 18pt"> </td> <td style="COLOR: black; WIDTH: 24.55pt">8.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Non-Cash Investing and Financing Activities</td> </tr> </table> <p style="COLOR: black; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 42.55pt; TEXT-ALIGN: justify; TEXT-INDENT: -24.55pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> In September 2011, 150,000 shares were issued to a company for services rendered at $0.16 per share. The shares were issued to a company who resides outside the United States of America.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> In April 2011, as an incentive to assist with future private placements, the Company authorized the payment of a non-cash finder's fee of 450,000 shares of common stock of the Company in connection with the private placement completed in April 2010. The shares were issued in May 2011. The issuance of these shares had no net effect on total shareholders' equity or results of operations as they related to fees associated with issuance of shares.</p> <!--EndFragment--></div> </div>
22234
-485889
-341765
-236185
1241
237426
2011-11-01
2011-12-20
0.2
0.08
0.08
1
800000
0.001
0.001
0.001
300000000
300000000
300000000
88703868
109912589
114144706
88703868
109912589
114144706
20000
37513
88704
109913
114145
-3780178
-446394
-565522
-72987
-483846
-1839648
-2302281
-4604806
-361208
-615880
-1151604
-855391
-677705
-13383
4599
-96404
-223763
-5462933
-3324987
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">j.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Concentration of Credit Risk</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash with high credit quality financial institutions in Brazil and Canada. The Company occasionally has cash deposits in excess of federally insured limits. The Company had funds deposited in banks beyond the insured limits as of September 30, 2012 and 2011 respectively. The Company has not experienced any losses related to these balances, and management believes the credit risk to be minimal.</p> <!--EndFragment--></div> </div>
2302083
1025177
1869827
201764
661204
164972
19254323
18593119
10937721
1990900
300000
218754
119454
18000
0.12
0.05
0.05
0.065
43681
11979
5 years
5 years
5 years
5 years
17738
22001
27897
6538
145126
145126
17773262
22400600
22966943
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="WIDTH: 0.25in"><strong>7.</strong></td> <td><strong>Stock Options and Warrants</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In 2007, the Company's Board of Directors approved the 2007 Stock Option Plan (amended September 29, 2008) ("the Plan") to offer an incentive to obtain services of key employees, directors and consultants of the Company. The Plan provides for the reservation for awards of an aggregate of 10% of the total shares of Common Stock outstanding from time to time. No Plan participant may receive stock options exercisable for more than 2,500,000 shares of Common Stock in any one calendar year. Under the Plan, the exercise price of an incentive stock option must be at least equal to 100% of the fair market value of the common stock on the date of grant (110% of fair market value in the case of options granted to employees who hold more than 10% of the Company's capital stock on the date of grant). The term of stock options granted under the Plan is not to exceed ten years and the stock options vest immediately upon granting.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The following is a summary of stock option activity for the years ended December 31, 2011 and 2010, and the status of stock options outstanding and exercisable at December 31, 2011:</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: center" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Stock<br /> Options<br /> #</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Weighted<br /> Average Exercise<br /> Price<br /> $</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Remaining<br /> Contractual<br /> Life (years)<br /> 12/31/2011</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Aggregate<br /> Intrinsic value at<br /> 12/31/2011</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; WIDTH: 48%">Outstanding and exercisable at December 31, 2009</td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">2,200,000</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">0.26</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt">Forfeited</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (500,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 0.26</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">Outstanding and exercisable at December 31, 2010</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,700,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">0.26</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">Forfeited during year</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(500,000</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">0.26</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">Granted during year</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 7,850,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 0.09</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">Outstanding and exercisable at December 31, 2011</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">9,050,000</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">0.11</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">4.28</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">36,500</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The aggregate intrinsic value in the table above represents the total pretax intrinsic value for all "in-the-money" options (i.e. the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on December 31, 2011.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On June 15, 2011 Michael Montgomery resigned from the board of directors, an exercise notice for the 500,000 options held were not lodged and consequently the options lapsed on July 15, 2011.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Effective October 11, 2011, the Company's board of directors granted 4,200,000 stock purchase options pursuant to the Company's 2007 Stock Option Plan. Each of the Options has an issue date, effective date and vesting date of October 11, 2011, with an exercise price of $0.12 per share. The term of these Options are five years. The Options are exercisable at any time from the grant date up to and including the 10<sup>th</sup> day of October, 2016.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Effective November 24, 2011, the Company's board of directors granted 3,650,000 stock purchase options pursuant to the Company's 2007 Stock Option Plan. Each of the Options has an issue date, effective date and vesting date of November 24, 2011, with an exercise price of $0.05 per share. The term of these Options are five years. The Options are exercisable at any time from the grant date up to and including the 23<sup>rd</sup> day of November, 2016.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The total fair value of options granted for the year ended December 31 2011 (2010: nil) was $393,557 and expensed in full as options were vested in full on grant. The fair value of options are determined using the Black Scholes option pricing model that takes into account the exercise price, the expected life of the option, the share price at grant date (October 11, 2011 and November 24, 2011) and expected price volatility of the underlying share, the expected dividend yield (nil assumed) and the risk free interest rate (4.50% used) for the term of the option. Management determined 2.50 years to be the average expected likely life of the options and utilized the simplified method due to the fact that the Company has not had significant options granted to develop historical data to provide a reasonable basis to estimate option lives. Volatility rates were calculated at the grant date of each option tranche and rates of 116.95% and 120.89% respectively were used.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> As of December 31, 2011, there are outstanding Warrants to purchase 8,000,000 shares of common stock with an exercise price of $0.08 expiring June 2013.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 18pt"> </td> <td style="COLOR: black; WIDTH: 24.55pt">6.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Stock Options</td> </tr> </table> <p style="COLOR: black; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 42.55pt; TEXT-ALIGN: justify; TEXT-INDENT: -24.55pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In 2007, the Company's Board of Directors approved the 2007 Stock Option Plan (amended September 29, 2008) ("the Plan") to offer an incentive to obtain services of key employees, directors and consultants of the Company. The Plan provides for the reservation for awards of an aggregate of 10% of the total shares of Common Stock outstanding from time to time. No Plan participant may receive stock options exercisable for more than 2,500,000 shares of Common Stock in any one calendar year. Under the Plan, the exercise price of an incentive stock option must be at least equal to 100% of the fair market value of the common stock on the date of grant (110% of fair market value in the case of options granted to employees who hold more than 10% of the Company's capital stock on the date of grant). The term of stock options granted under the Plan is not to exceed ten years and the stock options vest immediately upon granting.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The following is a summary of stock option activity and the status of stock options outstanding and exercisable at September 30, 2012:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: center; COLOR: black" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; COLOR: black" colspan="2" nowrap="nowrap">Stock<br /> Options<br /> <br /> #</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; COLOR: black" colspan="2" nowrap="nowrap">Weighted<br /> Average<br /> Exercise Price<br /> $</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; COLOR: black" colspan="2" nowrap="nowrap">Remaining<br /> Contractual<br /> Life (years)<br /> As At</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; COLOR: black" colspan="2" nowrap="nowrap">Aggregate<br /> Intrinsic value<br /> <br /> As At</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 48%; COLOR: black"> Outstanding and exercisable at December 31, 2011</td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%; COLOR: black"> 9,050,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%; COLOR: black"> 0.110</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%; COLOR: black"> 4.28</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%; COLOR: black"> 36,500</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="COLOR: black">Forfeited during quarter March 31, 2012</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">(200,000</td> <td style="TEXT-ALIGN: left; COLOR: black">)</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">0.260</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt; COLOR: black">Granted during quarter March 31, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 1,600,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 0.050</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> Outstanding and exercisable at March, 31, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 10,450,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 0.090</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 4.21</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 42,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="COLOR: black">Granted during quarter June 30, 2012</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">200,000</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">0.065</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> Outstanding and exercisable at June, 30, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 10,650,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 0.097</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 3.97</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 34,125</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="COLOR: black">Forfeited during quarter September 30, 2012</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">(1,000,000</td> <td style="TEXT-ALIGN: left; COLOR: black">)</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">0.260</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt; COLOR: black">Granted during quarter September 30, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> Outstanding and exercisable at September, 30, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 9,650,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 0.080</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 3.74</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 52,500</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> </table> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value for all "in-the-money" options (i.e. the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on September 30, 2012.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> During the quarter ended September 30, 2012, Lars Pearl's 1,000,000 options lapsed on August 6, 2012.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Effective April 10, 2012, the Company's board of directors granted 200,000 stock purchase options pursuant to the Company's 2007 Stock Option Plan. Each of the Options has an issue date, effective date and vesting date of April 10, 2012, with an exercise price of $0.065 per share. The term of these Options are five years. The Options are exercisable at any time from the grant date up to and including April 9, 2017.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> During the quarter ended March 31, 2012, Cameron Richardson departed the Company, an exercise notice for the 200,000 options held was not lodged and consequently the options lapsed during the quarter.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Effective January 13, 2012, the Company's board of directors granted 1,600,000 stock purchase options pursuant to the Company's 2007 Stock Option Plan. Each of the Options has an issue date, effective date and vesting date of January 13, 2012, with an exercise price of $0.05 per share. The term of these Options are five years. The Options are exercisable at any time from the grant date up to and including January 12, 2017.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Effective November 24, 2011, the Company's board of directors granted 3,650,000 stock purchase options pursuant to the Company's 2007 Stock Option Plan. Each of the Options has an issue date, effective date and vesting date of November 24, 2011, with an exercise price of $0.05 per share. The term of these Options are five years. The Options are exercisable at any time from the grant date up to and including November 23, 2016.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Effective October 11, 2011, the Company's board of directors granted 4,200,000 stock purchase options pursuant to the Company's 2007 Stock Option Plan. Each of the Options has an issue date, effective date and vesting date of October 11, 2011, with an exercise price of $0.12 per share. The term of these Options are five years. The Options are exercisable at any time from the grant date up to and including October 10, 2016.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> On June 15, 2011 Michael Montgomery resigned from the board of directors, an exercise notice for the 500,000 options held was not lodged and consequently the options lapsed on July 15, 2011.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The total fair value of options granted during the three months ended June 30, 2012 was $11,979 (June 30, 2011: nil) and expensed in full as options were vested in full on grant. The fair value of options are determined using the Black Scholes option pricing model that takes into account the exercise price, the expected life of the option, the share price at grant date (April 10, 2012) and expected price volatility of the underlying share, the expected dividend yield (nil assumed) and the risk free interest rate (4.50% used) for the term of the option. Management determined 2.50 years to be the average expected likely life of the options and utilized the simplified method due to the fact that the Company has not had significant options granted to develop historical data to provide a reasonable basis to estimate option lives. Volatility rates were calculated at the grant date of the option tranche and a rate of 161.04% was used.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The total fair value of options granted for the three months ended March 31, 2012 was $43,681 (March 31, 2011: nil) and expensed in full as options were vested in full on grant. The fair value of options are determined using the Black Scholes option pricing model that takes into account the exercise price, the expected life of the option, the share price at grant date (January 13, 2012) and expected price volatility of the underlying share, the expected dividend yield (nil assumed) and the risk free interest rate (4.50% used) for the term of the option. Management determined 2.50 years to be the average expected likely life of the options and utilized the simplified method due to the fact that the Company has not had significant options granted to develop historical data to provide a reasonable basis to estimate option lives. Volatility rates were calculated at the grant date of the option tranche and a rate of 120.89% was used.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> As of September 30, 2012, there are outstanding Warrants to purchase 8,000,000 shares of common stock with an exercise price of $0.08 expiring June 20, 2013.</p> <!--EndFragment--></div> </div>
1758685
753605
-2757511
-2757511
-2757511
-2757511
92000
82000
322419
-0.03
-0.04
-0.05
0.0
-0.01
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">m.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Basic and Diluted Net Income (Loss) Per Share</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the reporting period including common stock issued effective the date committed. Common stock issuable is considered outstanding as of the original approval date for the purposes of earnings per share computations. Diluted earnings (loss) per common share is computed by dividing net earnings (loss) by the sum of (a) the basic weighted average number of shares of common stock outstanding during the period and (b) additional shares that would have been issued and potentially dilutive securities. During the nine months ended September 30, 2012 and 2011 the diluted earnings (loss) per share was equivalent to the basic earnings (loss) per share because all potentially dilutive securities were anti-dilutive due to the net losses incurred. Potentially dilutive securities consist of stock options and warrants outstanding at the end of the reporting period. Stock options outstanding as at September 30, 2012 were 9,650,000 (September 30, 2011:1,200,000). Warrants outstanding as at September 30, 2012 were 8,000,000 (September 30, 2011: Nil).</p> <!--EndFragment--></div> </div>
-6633
-3565
-3790
-1177
189987
191164
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">e.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Mineral Property Reclamation Bonds and Other Related Refundable Costs</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Costs paid for the purchase of reclamation bonds and other related costs that are refundable are capitalized. If amounts paid are not to be refunded then they will be expensed when it is determined they will not be refunded.</p> <!--EndFragment--></div> </div>
2007-08-31
2007-09-30
2008-07-31
2008-12-31
2009-12-31
2010-04-30
2010-06-30
2011-05-31
2012-04-30
1997-03-31
1998-05-31
1998-11-30
1998-12-31
1999-02-28
2000-06-30
2003-12-31
2004-01-31
2005-07-31
2006-02-28
2007-07-31
2007-03-31
1999-03-31
2009-09-30
2009-11-30
2010-06-30
2011-09-30
2011-12-31
2012-03-31
2012-04-30
2000-03-31
2006-12-31
2009-09-30
2009-11-30
2010-09-30
2011-09-30
2011-12-31
2012-03-31
2012-04-30
2000-03-31
2006-12-31
2009-09-30
2010-09-30
2011-12-31
0.2
0.2
0.1
0.06
0.3
0.3
0.4
0.042
0.16
0.02
0.04
0.06
0.06
0.06
0.06
0.001
1.0
1.25
0.75
0.75
0.81
0.25
0.25
0.05
0.5
0.25
0.5
0.656
0.15
0.18
0.3
0.1
0.02
0.06
0.06
0.5
0.7
0.1
0.24
0.3
0.16
0.04
0.06
0.06
0.455
0.5
0.1
0.3
0.04
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">f.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Mineral Properties and Exploration Expenses</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company accounts for its mineral properties on a cost basis whereby all direct costs, net of pre-production revenue, relative to the acquisition of the properties are capitalized. All sales and option proceeds received are first credited against the costs of the related property, with any excess credited to earnings. Once commercial production has commenced, the net costs of the applicable property will be charged to operations using the unit-of-production method based on estimated proven and probable recoverable reserves. The net costs related to abandoned properties are charged to operations.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Exploration costs are charged to operations as incurred until such time that proven reserves are discovered. From that time forward, the Company will capitalize all costs to the extent that future cash flow from mineral reserves equals or exceeds the costs deferred. The deferred costs will be amortized over the recoverable reserves when a property reaches commercial production. As at September 30, 2012 and 2011, the Company does not have proven reserves. Exploration activities conducted jointly with others are reflected at the Company's proportionate interest in such activities.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company reviews the carrying values of its mineral properties on a regular basis by reference to the project economics including the timing of the exploration or development work, the program of works and the exploration results experienced by the Company and others. The review of the carrying value of any producing property will be made by reference to the estimated future operating results and net cash flows. When the carrying value of a property exceeds its estimated net recoverable amount, provision is made for the decline in value.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The recoverability of the amounts recorded for mineral properties is dependent on the confirmation of economically recoverable reserves, confirmation of the Company's interest in the underlying mineral claims, the ability of the Company to obtain the necessary financing to successfully complete their development and the attainment of future profitable operations or proceeds from disposal.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Estimated costs related to site restoration programs during the commercial development stage of the property are accrued over the life of the project.</p> <!--EndFragment--></div> </div>
644313
261304
307613
23055
131724
7772
9863063
9731339
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">k.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Fair Value of Financial Instruments and Risks</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The carrying value of cash, accounts payable, accrued expenses and advances payable (including related parties) approximate their fair value because of the short-term nature of these instruments.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The Company operates outside of the United States of America (primarily in Brazil) and is exposed to foreign currency risk due to the fluctuation between the currency in which the Company operates in and the USD.</p> <!--EndFragment--></div> </div>
0.55330
0.49290
-7778
-486
1613
3702
-1563
13756
15319
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">i.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Foreign Currency Translation and Transactions</td> </tr> </table> <p style="COLOR: black; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.25in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company's reporting currency is the United States Dollar (USD). Aurora Gold Mineração Ltda is a foreign operation and its functional currency is the Brazilian Real (Real). Certain contractual obligations in these consolidated financial statements are stated in Brazilian Real's. At the periods ended September 30, 2012 and 2011 the Brazilian Real exchange rate to the USD was $0.49290 to 1 Real (September 30, 2011: USD $0.55330 to 1 Real).</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company translates foreign assets and liabilities of its subsidiaries, other than those denominated in USD, at the rate of exchange at the balance sheet date. Income and expenses of these subsidiaries are translated at the average rate of exchange throughout the reporting period. Gains or losses from these translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in foreign exchange (gain) loss in the consolidated statements of operations.</p> <!--EndFragment--></div> </div>
80237
80237
-37971
-37971
-2757511
-37971
-37971
-2757511
-2757511
-245221
-2541037
-2541037
94860
94860
-919605
-1014465
397848
139250
550655
54095
218587
27995
2555501
2336914
245221
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"> </td> <td style="WIDTH: 0.25in"><strong>10.</strong></td> <td><strong>Income Taxes</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.25in">a.</td> <td style="TEXT-ALIGN: justify">The Company and its subsidiary operate in several tax jurisdictions, and its income is subject to various rates of taxation. The Company has net losses for tax purposes in the United States and Brazil totaling approximately $12,067,183 and $7,169,598, respectively, which may be applied against future taxable income. Accordingly, there is no tax expense for the years ended December 31, 2011 and 2010. The potential tax benefits arising from these losses have not been recorded in the consolidated financial statements as a full valuation allowance has been recorded against them. The Company evaluates its valuation allowance requirements on an annual basis based on projected future operations. When circumstances change and this causes a change in management's judgment about the recoverability of deferred tax assets, the impact of the change on the valuation allowance is reflected in current operations. The right to claim the tax losses in the United States expire according to the following table:</td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" nowrap="nowrap">Fiscal Year of Expiry</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Amount $</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; WIDTH: 82%">2012</td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 15%">564,000</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2018</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">331,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2019</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">795,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2020</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">550,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2022</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">138,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2023</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">90,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2024</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">222,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2025</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">457,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2026</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,094,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2027</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">800,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2028</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">561,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2029</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">479,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">2030</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">2,065,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">2031</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 3,921,183</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">12,067,183</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Tax losses carried forward in Brazil have no expiration date and are available to offset up to 30% of annual income before tax in any year.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.25in">b.</td> <td>The tax effects of temporary differences that give rise to the Company's net deferred tax asset are as follows:</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2011<br /> $</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2010<br /> $</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; WIDTH: 74%">Tax loss carry forwards</td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">6,540,506</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">5,180,000</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">Valuation allowance</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(6,754,903</td> <td style="TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">(5,294,000</td> <td style="TEXT-ALIGN: left">)</td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">Stock compensation expense</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 214,397</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 114,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.25in">c.</td> <td>The reconciliation of income tax computed at the federal statutory rate to income tax expense is as follows:</td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2011<br /> $</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">2010<br /> $</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; WIDTH: 74%">Tax at statutory rate</td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">(1,573,295</td> <td style="TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">(783,000</td> <td style="TEXT-ALIGN: left; WIDTH: 1%">)</td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify">Movement in deferred tax asset</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">212,349</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">743,000</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify">Change in valuation allowance for deferred tax asset</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">1,460,903</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt">Other</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (99,957</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">)</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 40,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">Income tax expense</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">l.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Income Taxes</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company has adopted ASC 740, <em>Accounting for Income Taxes</em>, which requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns using the liability method. Under this method, deferred tax liabilities and assets are determined based on the differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In July 2006, the FASB issued an interpretation, which clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements in accordance with GAAP. This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Estimated interest and penalties related to recording uncertain tax positions when recorded are included as a component of income tax expense on the consolidated statement of operations. The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties. The Company's tax returns are open to audit for the years ending December 31, 2008 to 2011 respectively.</p> <!--EndFragment--></div> </div>
-403216
-732
55343
224063
1331114
1107051
206978
206978
-54449
7016
-20344
20459
20459
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">h.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Interest Expense</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Interest expense for the periods ended September 30, 2012 and 2011 were nil.</p> <!--EndFragment--></div> </div>
1560
1560
-26148
-6540
-7867
-1461
-1173
-584
-395430
-394257
22353
22353
210000
24500
243254
1202054
1202054
629715
406398
668926
95098
227707
80947
3698880
3471173
3532696
237426
1241
372019
537644
577393
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong>3. Mineral Properties and Exploration Expenses</strong></p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 57px"> </td> <td style="WIDTH: 47px; FONT-WEIGHT: bold">(a)</td> <td style="TEXT-ALIGN: justify; FONT-WEIGHT: bold">São Domingos Project - DNPM Processes 850.684/06 and 850.782/05:</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 72px"> </td> <td style="WIDTH: 24px">i.</td> <td style="TEXT-ALIGN: justify">DNPM Processes 850.684/06:</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Aurora has good title over the mineral rights which were granted as DNPM Process number 850.684/06 and which is valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes. The São Domingos mineral rights are located at the Municipality of Itaituba, State of Pará, and are registered in the name of Aurora. On September 13, 2006 the Company applied to the DNPM for the conversion of the Application to an Exploration Permit covering an area of 4,914.18 hectares. No payments or royalties are due regarding DNPM Process 850.384/06.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 72px"> </td> <td style="WIDTH: 24px">ii.</td> <td style="TEXT-ALIGN: justify">DNPM Processes 850.782/05:</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Aurora has good title over the mineral rights object of the DNPM Process No. 850.782/05, which is valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes. On November 8, 2005 it was submitted to DNPM the Exploration Claim for gold in the Municipality of Itaituba, State of Pará. The Exploration Permit was granted on November 28, 2006 for a 3 (three) years period. The transfer to Aurora was approved on March 24, 2009 and on September 28, 2009 it was requested the renewal of the Exploration Permit.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> This area was reduced from 6,756 ha to 5,651.98 ha due to the overlapping with Garimpeira (alluvial) Mining properties held by Mr. Celio Paranhos. However the DNPM´s general attorney in Brasilia agreed with Aurora's legal thesis and nullified all applications filed by Mr. Paranhos (about to 1,900 applications).</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif">A new Exploration Permit rectifying the previous one was granted on August 20, 2010 for a 3 (three) years period, for an area of 6,656.20 hectares.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> No payments or royalties are due regarding the DNPM Process 850.782/05 since it was acquired through a permutation agreement with Altoro Mineração Ltda.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 72px"> </td> <td style="TEXT-ALIGN: left; WIDTH: 24px">iii.</td> <td style="TEXT-ALIGN: justify">DNPM Process 850.400/07:</td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On July 8, 2011 Aurora allowed the Exploration Permit was granted on July 09<sup>th</sup> 2008 and covering an area of 9,832.26 ha, to lapse.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 72px"> </td> <td style="TEXT-ALIGN: left; WIDTH: 24px">iv.</td> <td style="TEXT-ALIGN: justify">DNPM Processes 850.012/06 and 850.013/06:</td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The exploration claims were submitted to DNPM on January 19th 2006, for gold covering an area of 1,128.08 ha and 750.55 ha respectively, in the Municipality of Itaituba, State of Pará. According to information obtained such claims were correctly prepared and the required documents are in place.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The tenements 850.012/06 and 850.013/06 are held by Mr. Antonio Oliveira Ferreira and were submitted to DNPM on January 19th 2006. The tenements are located at Itaituba, State of Pará and are valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes, but the area was blocked since it is inside of a Garimpeira Reserve.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The transfer to Aurora will be submitted after the Exploration Permits are granted.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> There are no payments or royalties related to the tenements according to the agreement entered into with the previous owner.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 72px"> </td> <td style="TEXT-ALIGN: left; WIDTH: 24px">v.</td> <td style="TEXT-ALIGN: justify">DNPM Process 850.119/06:</td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The exploration claim was submitted to DNPM on March 07th, 2006, for gold covering an area of 1,068.72 ha, in the Municipality of Itaituba, State of Pará.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Aurora has good title over the mineral rights object of the DNPM Process No. 850.119/06, which is valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes. Aurora is the sole registered and beneficial holder of and owns and possesses good title to the referred mineral rights. The Exploration Permit has not been granted yet.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The above mentioned area is not related to any payments or royalties to third parties since they were claimed by Aurora directly.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 72px"> </td> <td style="TEXT-ALIGN: left; WIDTH: 24px">vi.</td> <td style="TEXT-ALIGN: justify">DNPM Process 859.587/95:</td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The tenement, which is held by Vera Lucia Lopes, is valid and in force, and is free and clear of any judicial and extrajudicial encumbrances and taxes. It is located at the Municipality of Itaituba, State of Pará. On November 27, 1995, it was submitted to DNPM the Exploration Claim for gold. The Exploration Permit was granted on September 15, 2006, for a three year period covering an area of 5,000 ha, and it was valid until September 15, 2009. On July 15, 2009, it was requested the renewal of the Exploration Permit but it hasn't been analyzed by the DNPM yet. The transfer to Aurora was submitted on November 23, 2006, but it hasn't been approved yet.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> There are no payments or royalties related to the tenements since all payments due under the terms of the agreement entered into with the previous owner have been already made.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong>(b) Gold properties in the Municipality of Itaituba, in the Tapajos gold province of the State of Para, Brazil</strong></p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 72px"> </td> <td style="WIDTH: 24px">vii.</td> <td style="TEXT-ALIGN: justify">Comandante Araras Project - DNPM Processes 853.785/93 to 853.839/93 inclusive:</td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Aurora has good title over the mineral rights object of the DNPM Processes number 853.785/93 to 853.839/93, which are valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes. The Comandante Arara Mineral Rights are located at the Municipality of Itaituba, State of Pará, and are registered in the name of the previous holder since it has not been granted an Exploration Permit yet. The Comandante Arara Mineral Rights are comprised by 55 Applications for Alluvial Mine of 50 hectares each (2747.22 ha), presented to DNPM on October 05th, 1993. The conversion to the Authorization Regime was applied on December 11st, 2008 and has not been analyzed yet, so that the Exploration Permit will be granted only after this analysis.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On October 17, 2011 the Company terminated this licence and Option Agreement by providing written notice to Samba. The Company is free of all and any future payment commitments. The interest in the properties will be formally relinquished in fiscal 2012.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Comandante Araras Option Agreement dated July 2, 2007, and amendments dated June 2, 2008, November 10, 2008, and September 18, 2009, allows the Company to perform geological surveys and assessment work necessary to ascertain the existence of possible mineral deposits which may be economically mined and to earn a 100% interest in the Comandante Araras property mineral rights via structured cash payments. The total option agreement payments for the mineral rights are structured as follows: November 1, 2006 R$20,000 (paid); November 15, 2006 - R$40,000 (paid); December 15, 2006 R$40,000 (paid); May 18, 2007 - R$15,000 (paid); May 29, 2007 - R$50,000 (paid); June 25, 2008 - USD $80,000 (paid by Samba Minerals Limited as part of the agreement with them discussed in note 3; November 30, 2008 - USD $20,000 or 100,000 shares of Samba Minerals Limited at a deemed issue price of $0.20 per Samba share (paid by Samba Minerals Limited as part of the agreement with them discussed in note 3; November 30, 2008 - 400,000 shares of Samba Minerals Limited at a deemed issue price of $0.20 per Samba share (to be issued by Samba when the Exploration Permit is granted and transferred to Aurora). The vendor will have a 1.5% Net Smelter Royalty. The Royalty payment can be purchased at any time upon written notice to the vendor and payment in Reals (Brazilian currency) of the equivalent of USD $1,000,000. The option agreement can be terminated at any time upon written notice to the vendor and the Company will be free of any and all payment commitments yet to be due.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif"> viii. São João Project - DNPM Processes 851.533/94 to 851.592/94 inclusive:</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On October 17, 2011 the Company terminated this licence and Option Agreement by providing written notice to Samba. The Company is free of all and any future payment commitments. The interest in the properties will be formally relinquished in fiscal 2012.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Aurora has good title over the mineral rights which were granted as DNPM Process numbers 851.533/94 to 851.592/94 inclusive and which are valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes. The São João mineral rights are located at the Municipality of Itaituba, State of Pará, and are registered in the name of the previous holder since an Exploration Permit has not yet been granted. The São João mineral rights comprise 60 Applications for Alluvial Mine of 50 hectares each (2687.66 ha) which was presented to DNPM on May 16, 1994. On August 30, 2006 the previous holder of the Applications applied for the conversion of the Applications to Exploration Permits. When the conversion request is approved by the Authorities, the previous holder will be granted the Exploration Permit for an area of 3000 ha. The assignment of the São João mineral rights to Aurora can only be done after the approval of the Applications and the actual granting of an Exploration Permit to the previous Holder.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The São João Option Agreement dated January 20, 2006 and amendments dated June 2, 2008 and December 2, 2008, allows the Company to perform geological surveys and assessment work necessary to ascertain the existence of possible mineral deposits which may be economically mined and to earn a 100% interest in the São João property mineral rights. Under the terms of the Option Agreement and amendments, a total amount of USD $1,435,000 (one million four hundred and thirty five thousand dollars) is due by Aurora for the acquisition of the São João mineral rights. The total option agreement payments for the mineral rights are structured as follows: April 12, 2006 - USD $20,000 (paid); September 12, 2006 - USD $25,000 (paid); September 12, 2007 - USD $60,000 (paid); June 25, 2008 - $100,000 (paid by Samba Minerals Limited as part of the agreement with them discussed in note 3; December 5, 2008 - USD $40,000 (paid by Samba Minerals Limited as part of the agreement with them discussed in note 3; January 15, 2009 - USD $30,000 (paid by Samba Minerals Limited as part of the agreement with them discussed in note 3; February 15, 2009 - USD $30,000 (paid by Samba Minerals Limited as part of the agreement with them discussed in note 3; April 30, 2009 to March 30, 2011 - USD $8,333.33 per month (April 30, 2009 to December 31, 2010 paid by Samba Minerals Limited as part of the agreement with them discussed in note 3); July 30, 2011 - USD $950,000.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The vendor will have a 1.5% Net Smelter Royalty. The Royalty payment can be purchased at any time upon written notice to the vendor and payment in Reals (Brazilian currency) of the equivalent of USD $1,000,000. The option agreement can be terminated at any time upon written notice to the vendor and the Company will be free of any and all payment commitments yet to be due.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px 0pt 1in; FONT: 10pt Times New Roman, Times, Serif"> ix. DNPM Processes 850.014/06, 850.581/06 and 850.256/07:</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company has the right to acquire good title over the mineral rights object of the Tenements. The Tenements are registered in the name of Antonio Oliveira Ferreira. The exploration claims were submitted to DNPM respectively on January 19th 2006, August 8th 2006 and April 17th 2007 for gold covering the areas of 421.45 ha, 4276.03 ha and 4036.00 ha, in the Municipality of Itaituba and Jacareacanga, State of Pará. According to information obtained such claims were correctly prepared and the required documents are in place. The tenement 850.014/06 has not been transferred to Samba yet since the Exploration Permit has not been granted so far.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Exploration Permit for the Process 850.581/06 was granted on February 15th, 2011 for a three years period, for an area of 4273.03 hectares. The transfer to Samba Brasil Mineração Ltda has not been presented yet.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Exploration Permit for the Process 850.256/07 was granted on November 30th 2007 for a three years period but it was cancelled on May 21st 2008 because the holder didn't pay the annual fees on time. On June 10th 2008 it was presented an appeal to have the annulment dismissed which hasn't been analyzed yet. However, if the appeal is not approved, Samba Brasil's rights over this tenement are guaranteed since only Samba Brasil has presented a Bid application for this process on July 18th 2008.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> According to the Agreement signed between Samba Brasil and Antonio Oliveira Ferreira on June 5th 2008, a total amount of R$ 120.000,00 (one hundred and twenty thousand reais) has already been paid by Samba Brasil for the acquisition of the Tenements.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong>(c) Boulder County, Colorado, U.S.A. - Front Range Gold Project</strong></p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On June 15, 2010, pursuant to the Asset Purchase Agreement between Global Minerals Ltd. ("GML") and Mount Royale Ventures, LLC ("MRV"), as Sellers, and the Company and AGC Resources LLC, the Company's wholly-owned subsidiary ("AGC"), as Buyers, AGC acquired 50% interest in the Front Range Gold Project joint venture ("JV"), and title to the Gold Hill Mill and related equipment, and became a joint venture partner with Gold Reef Mining Company, Mi Vida Enterprises, Inc., Gold Hill Mines, Inc. and Southern Cross Prospecting Company ("Property Owners"). The purchase price consisted of $600,000 in cash and 5,000,000 shares of common stock of the Company.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Of the $600,000 in cash payments, $100,000 was expensed as a non-refundable deposit in a previous period. The fair value of the 5 million shares issued was based on a market value of $0.40 per share on the date of the purchase, or $2,000,000. Therefore, the total consideration paid for the asset purchase was determined to be $2,500,000.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company allocated the consideration paid of $2,500,000 among the assets acquired resulting in $1,758,685 being allocated to the participating interest in the mineral property and $741,315 to depreciable mining and other equipment.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On March 10, 2011, Mi Vida Enterprises, Inc., Gold Hill Mines, Inc. and Southern Cross Prospecting Company intervened in a preexisting lawsuit commenced by MRV against Gold Reef Mining Company in Boulder County District Court (the "Action"). Among other things, they have alleged that GML was in material default of the JV agreement prior to the assignment by GML of its rights in the JV to AGC in June of 2010, that GML wrongfully assigned its rights in the JV without permission of the Property Owners, and have asked the court to declare the JV terminated. The Property Owners also alleged that the transfer of title to the Gold Hill Mill was subject to a right of first refusal in favor of Gold Hill Mines, Inc., and that MRV conveyed its title to the Gold Hill Mill to AGC without giving proper notice to Gold Hill Mines Inc. and in violation of a right of first refusal in favor of Gold Hill Mines, Inc., and requested the court to enter an order granting Gold Hill Mines Inc. an option to purchase the Gold Hill Mill for $10,000, the amount set in the right of first refusal.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> A court decision in favor of the Property Owners may have a material adverse affect on the Company's ability to collect the purchase price, plus royalty from the sale of AGC to Devtec Management Ltd. discussed below since an unfavorable court decision may result in AGC losing its 50% interest in the JV as well as its interest in and to the Gold Hill Mill.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <u>Sale of AGC Resources LLC</u></p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On June 14, 2011, the Company, entered into an Asset Purchase Agreement with Devtec Management Ltd. ("Devtec"), pursuant to which the Company sold its subsidiary, AGC, which as discussed previously owns certain properties in Boulder, Colorado (see note 3 for a discussion of the specific assets purchased by AGC in June 2010), to Devtec for a total of $2 million, plus royalty. Under the terms of the agreement, Devtec will pay the Company $1 million upon production of the cumulative total of 1,000 ounces of gold and/or silver, and a further $1 million on the nine month anniversary of the payment of the first $1 million. Additionally, Devtec will pay the Company a 5% royalty from the start of production.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company is unable to reasonably estimate the amount of minerals the properties will produce, if any, and thus there is uncertainty as to whether the purchase price will be collected. Further, the collection of any purchase price is also contingent on the outcome of the court case described in the notes. Given these factors, collection of the purchase price is not considered reasonably possible at the time of these consolidated financial statements given the current uncertain status of exploration work on the Boulder, Colorado properties and the uncertainties of the related legal action and thus no purchase price has been recorded as of December 31, 2011. Once collection of the purchase price becomes assured and the aforementioned uncertainties resolved, the purchase price will be recorded in the Consolidated Statements of Operations.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Therefore, the Company is recognizing a loss on the sale of its subsidiary of $2,757,511 for the year ended December 31, 2011, which represents the net book value of the assets transferred to Devtec on June 14, 2011 (no liabilities were assumed by Devtec) as follows:</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; WIDTH: 87%">Reclamation bonds</td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="TEXT-ALIGN: right; WIDTH: 10%">245,221</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">Buildings and equipment</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">753,605</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">Participating interest in mineral property</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">$</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 1,758,685</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td>Total</td> <td> </td> <td style="TEXT-ALIGN: left">$</td> <td style="TEXT-ALIGN: right">2,757,511</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.5in"><strong>(d)</strong></td> <td><strong>British Columbia, Canada - Kumealon Property</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In February 1999, the Company acquired, by staking, a 741 acre limestone property located on the north shore of Kumealon Inlet, southeast of Prince Rupert, British Columbia, Canada. A finder's fee of 25,000 shares of common stock of the Company was issued in connection with these claims.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In fiscal year 2000, there were no proven mineral reserves discovered and the Company continuously operated with a working capital deficiency. These conditions raised substantial doubt regarding the recovering of the capitalized acquisition cost. Pursuant to GAAP the Company wrote off the capitalized acquisition cost of $23,630 to operations. The Company's ownership interest in this property was in good standing at December 31, 2011.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On January 20, 2012 the Company relinquished the licence.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.5in"><strong>(e)</strong></td> <td><strong>Joint Venture with Samba Minerals Limited</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On October 17, 2011 the Company terminated this Joint Venture Agreement by providing written notice to Samba. The Company is free of all and any future payment commitments.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"> </td> <td style="COLOR: black; WIDTH: 28.35pt">3.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Mineral Properties and Exploration Expenses</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 70.9pt; TEXT-ALIGN: justify; TEXT-INDENT: -34.9pt"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 36pt"> </td> <td style="COLOR: black; WIDTH: 34.9pt"><strong>(a)</strong></td> <td style="COLOR: black; TEXT-ALIGN: justify"><strong>São Domingos Project in the Municipality of Itaituba, in the Tapajos gold province of the State of Para, Brazil, Department of National Production Minerals (DNPM) Processes 850.684/06 and 850.782/05:</strong></td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 1in; TEXT-ALIGN: justify; TEXT-INDENT: -15.3pt"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.95pt"> </td> <td style="COLOR: black; WIDTH: 15.3pt">i.</td> <td style="COLOR: black; TEXT-ALIGN: justify">DNPM Processes 850.684/06:</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> Aurora has good title over the mineral rights, which were granted as DNPM Process number 850.684/06 and which is valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes. The São Domingos mineral rights are located at the Municipality of Itaituba, State of Pará, and are registered in the name of Aurora. On September 13, 2006 the Company applied to the DNPM for the conversion of the Application to an Exploration Permit covering an area of 4,914.18 hectares. No payments or royalties are due regarding DNPM Process 850.384/06.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.95pt"> </td> <td style="COLOR: black; WIDTH: 15.3pt">ii.</td> <td style="COLOR: black; TEXT-ALIGN: justify">DNPM Processes 850.782/05:</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> Aurora has good title over the mineral rights object of the DNPM Process No. 850.782/05, which is valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes. On November 8, 2005 it was submitted to DNPM the Exploration Claim for gold in the Municipality of Itaituba, State of Pará. The Exploration Permit was granted on November 28, 2006 for a three-year period. The transfer to Aurora was approved on March 24, 2009 and on September 28, 2009 it was requested the renewal of the Exploration Permit. This area was reduced from 6,756 hectares to 5,651.98 hectares due to the overlapping with Garimpeira (alluvial) Mining properties held by Mr Celio Paranhos. However the DNPM´s general attorney in Brasilia agreed with Aurora's legal thesis and nullified all applications filed by Mr Paranhos (about to 1,900 applications). A new Exploration Permit rectifying the previous one was granted on August 20, 2010 for a three-year period, for an area of 6,656.20 hectares. No payments or royalties are due regarding the DNPM Process 850.782/05 since it was acquired through a permutation agreement with Altoro Mineração Ltda.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.95pt"> </td> <td style="COLOR: black; WIDTH: 15.3pt">iii.</td> <td style="COLOR: black; TEXT-ALIGN: justify">DNPM Processes 850.012/06 and 850.013/06:</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 1in; TEXT-ALIGN: justify; TEXT-INDENT: -15.3pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> The exploration claims were submitted to DNPM on January 19, 2006, for gold covering an area of 1,128.08 hectares and 750.55 hectares respectively, in the Municipality of Itaituba, State of Pará. According to information obtained such claims were correctly prepared and the required documents are in place. The tenements 850.012/06 and 850.013/06 are held by Mr Antonio Oliveira Ferreira and were submitted to DNPM on January 19, 2006. The tenements are located at Itaituba, State of Pará and are valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes, but the area was blocked since it is inside of a Garimpeira Reserve. The transfer to Aurora will be submitted after the Exploration Permits are granted. There are no payments or royalties related to the tenements according to the agreement entered into with the previous owner.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 1in; TEXT-ALIGN: justify; TEXT-INDENT: -15.3pt"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.95pt"> </td> <td style="COLOR: black; WIDTH: 15.3pt">iv.</td> <td style="COLOR: black; TEXT-ALIGN: justify">DNPM Process 850.119/06:</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 1in; TEXT-ALIGN: justify; TEXT-INDENT: -15.3pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> The exploration claim was submitted to DNPM on March 7, 2006, for gold covering an area of 1,068.72 hectares, in the Municipality of Itaituba, State of Pará. Aurora has good title over the mineral rights object of the DNPM Process No. 850.119/06, which is valid and in force, free and clear of any judicial and extrajudicial encumbrances and taxes. Aurora is the sole registered and beneficial holder of and owns and possesses good title to the referred mineral rights. The Exploration Permit has not been granted yet. The above-mentioned area is not related to any payments or royalties to third parties since Aurora claimed them directly.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 1in; TEXT-ALIGN: justify; TEXT-INDENT: -15.3pt"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.95pt"> </td> <td style="COLOR: black; WIDTH: 15.3pt">v.</td> <td style="COLOR: black; TEXT-ALIGN: justify">DNPM Process 859.587/95:</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> The tenement, was held by Vera Lucia Lopes, and is valid and in force, and is free and clear of any judicial and extrajudicial encumbrances and taxes. It is located at the Municipality of Itaituba, State of Pará. On November 27, 1995, it was submitted to DNPM the Exploration Claim for gold. The Exploration Permit was granted on September 15, 2006, for a three-year period covering an area of 5,000 hectares, and it was valid until September 15, 2009. On July 15, 2009, it was requested the renewal of the Exploration Permit which was granted and transferred to Aurora and published on June 29, 2012. There are no payments or royalties related to the tenements since all payments due under the terms of the agreement entered into with the previous owner have been already made.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 36pt"> </td> <td style="COLOR: black; WIDTH: 34.9pt"><strong>(b)</strong></td> <td style="COLOR: black; TEXT-ALIGN: justify"><strong>Gold properties in the Municipality of Itaituba, in the Tapajos gold province of the State of Para, Brazil, Department of National Production Minerals (DNPM) Processes</strong></td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 1in; TEXT-ALIGN: justify; TEXT-INDENT: -15.3pt"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.95pt"> </td> <td style="COLOR: black; WIDTH: 15.3pt">vi.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Comandante Araras Project - DNPM Processes 853.785/93 to 853.839/93 inclusive (relinquished):</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> On October 17, 2011 the Company terminated this licence and Option Agreement by providing written notice to Samba. The Company is free of all and any future payment commitments. The interest in the properties was formally relinquished in January 2012.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 56.95pt"> </td> <td style="COLOR: black; WIDTH: 15.3pt">vii.</td> <td style="COLOR: black; TEXT-ALIGN: justify">São João Project - DNPM Processes 851.533/94 to 851.592/94 inclusive (relinquished):</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> On October 17, 2011 the Company terminated this licence and Option Agreement by providing written notice to Samba. The Company is free of all and any future payment commitments. The interest in the properties was formally relinquished in January 2012.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.75in"> </td> <td style="COLOR: black; WIDTH: 0.25in">viii.</td> <td style="COLOR: black; TEXT-ALIGN: justify">DNPM Processes 850.014/06, 850.581/06 and 850.256/07:</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> The Company has the right to acquire good title over the mineral rights object of the Tenements. The Tenements are registered in the name of Antonio Oliveira Ferreira. The exploration claims were submitted to DNPM respectively on January 19, 2006, August 8, 2006 and April 17, 2007 for gold covering the areas of 421.45 hectares, 4276.03 hectares and 4036.00 hectares, in the Municipality of Itaituba and Jacareacanga, State of Pará. According to information obtained such claims were correctly prepared and the required documents are in place. The tenement 850.014/06 has not been transferred to Samba yet since the Exploration Permit has not been granted so far. The Exploration Permit for the Process 850.581/06 was granted on February 15, 2011 for a three-year period, for an area of 4273.03 hectares. The transfer to Samba Brazil Mineração Ltda has not been presented yet. The Exploration Permit for the Process 850.256/07 was granted on November 30, 2007 for a three-year period but it was cancelled on May 21, 2008 because the holder didn't pay the annual fees on time. On June 10, 2008 it was presented an appeal to have the annulment dismissed, which hasn't been analyzed yet. However, if the appeal is not approved, Samba Brazil's rights over this tenement are guaranteed since only Samba Brazil has presented a Bid application for this process on July 18 2008. According to the Agreement signed between Samba Brazil and Antonio Oliveira Ferreira on June 5, 2008, a total amount of 120,000 Brazilian Real's has already been paid by Samba Brazil for the acquisition of the Tenements.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 36pt"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 34.9pt"> <strong>(c)</strong></td> <td style="COLOR: black; TEXT-ALIGN: justify"><strong>British Columbia, Canada - Kumealon Property (relinquished)</strong></td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> On January 20, 2012 the Company's Kumealon claim over the property was relinquished.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 36pt"> </td> <td style="COLOR: black; WIDTH: 34.9pt"><strong>(d)</strong></td> <td style="COLOR: black; TEXT-ALIGN: justify"><strong>Sale of AGC Resources</strong></td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> On June 14, 2011, the Company, entered into an Asset Purchase Agreement with Devtec Management Ltd. ("Devtec"), pursuant to which the Company sold its subsidiary, AGC, which owns certain properties in Boulder, Colorado (see note 3(b) for a discussion of the specific assets purchased by AGC in June 2010), to Devtec for a total of $2 million, plus royalty. Under the terms of the agreement, Devtec will pay the Company $1 million upon production of the cumulative total of 1,000 ounces of gold and/or silver, and a further $1 million on the six-month anniversary of the payment of the first $ 1 million. Additionally, Devtec will pay the Company a 5% royalty from the start of production.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> The Company was unable to reasonably estimate the amount of minerals the properties will produce, if any, and thus there was uncertainty as to whether the purchase price will be collected. Given this, collection of the purchase price is not considered reasonably possible at the time of these consolidated financial statements given the current uncertain status of exploration work on the Boulder, Colorado properties and thus no purchase price has been recorded as of September 30, 2012. Therefore, the Company recognized a loss on the sale of its subsidiary of $2,757,511 for the nine months ended September 30, 2011, which represented the net book value of the assets transferred to Devtec on June 14, 2011 (no liabilities were assumed by Devtec) as follows:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify"> </p> <table style="WIDTH: 70%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.5in" cellspacing="0" cellpadding="0"> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; WIDTH: 90%; COLOR: black"> Reclamation bonds</td> <td style="WIDTH: 1%; COLOR: black"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%; COLOR: black">$</td> <td style="TEXT-ALIGN: right; WIDTH: 7%; COLOR: black">245,221</td> <td style="TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; COLOR: black">Buildings and equipment</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black">$</td> <td style="TEXT-ALIGN: right; COLOR: black">753,605</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; PADDING-BOTTOM: 1pt; COLOR: black"> Participating interest in mineral property</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> $</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 1,758,685</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black">$</td> <td style="TEXT-ALIGN: right; COLOR: black">2,757,511</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Subsequent to the sale of AGC, the Company determined it would not retain ownership to the reclamation bonds asset associated with the properties. A loss of $245,221, the carrying value of the bonds, was recorded during the three months ended September 30, 2011. The disclosed total loss from the sale of AGC was adjusted to include the loss on the disposition of the reclamation bonds.</p> <!--EndFragment--></div> </div>
1758685
0.54
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong>1. Nature of Business and Going Concern</strong></p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Aurora Gold Corporation ("the Company") was formed on October 10, 1995 under the laws of the State of Delaware and is in the business of location, acquisition, exploration and, if warranted, development of mineral properties. The Company's focus is on the exploration and development of its exploration properties located in the Tapajos Gold Province, State of Pará, Brazil (see Note 3). The Company has not yet determined whether its properties contain mineral reserves that may be economically recoverable and has not generated any operating revenues to date.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The general business strategy of the Company is to acquire mineral properties either directly or through the acquisition of operating entities. The Company has incurred recurring operating losses since inception, has not generated any operating revenues to date and during 2011 operating activities used cash of $1,062,075 (2010: $2,423,112). The Company requires additional funds to meet its obligations and maintain its operations.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in this regard are to raise equity financing through private or public equity investment in order to support existing operations and expand its business. There is no assurance that such additional funds will be available to the Company when required or on terms acceptable to the Company. In the event that the Company cannot obtain additional funds, on a timely basis, or the operations do not generate sufficient cash flow, the Company may be forced to curtail development or cease activities. These consolidated financial statements do not include any adjustments that might result from this uncertainty.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"> </td> <td style="COLOR: black; WIDTH: 28.35pt">1.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Organization, Nature of Business, Going Concern and Management's Plans</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Aurora Gold Corporation ("the Company") was formed on October 10, 1995 under the laws of the State of Delaware and is in the business of location, acquisition, exploration and, if warranted, development of mineral properties. The Company's focus is on the exploration and development of its exploration properties located in the Tapajos Gold Province, State of Pará, Brazil (see Note 3). The Company has not yet determined whether its properties contain mineral reserves that may be economically recoverable and has not generated any operating revenues to date.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> These interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The general business strategy of the Company is to acquire mineral properties either directly or through the acquisition of operating entities. The Company has incurred recurring operating losses since inception, has not generated any operating revenues to date and during the period ended September 30, 2012, operating activities used cash of $381,481 (September 30, 2011: $986,424). The Company requires additional funds to meet its obligations and maintain its operations.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in this regard are to raise equity financing through private or public equity investment in order to support existing operations and expand its business. The Company currently has a Prospectus out on offer and these details are included in further detail in these notes. There is however no assurance that such additional funding will be available to the Company when required, or on terms acceptable to the Company. In the event that the Company cannot obtain additional funds, on a timely basis, or the operations do not generate sufficient cash flow, the Company may be forced to curtail development or cease activities. These consolidated financial statements do not include any adjustments that might result from this uncertainty.</p> <!--EndFragment--></div> </div>
3295000
424100
644100
146473
15586164
15439691
-843021
80000
80000
-1085450
-1085450
-2423112
-986424
-1062075
-381481
-14689460
-14307979
-520105
-1779477
-2302083
-3782688
-4627338
-446985
-566344
-70112
-22966944
-361208
-615880
-1151604
-855391
-677705
128545
-137329
-96404
-223763
-457271
-5463855
-3259732
-22400600
-520105
-1779477
-2302083
-4627338
-566344
-361208
-615880
-1151604
-855391
-677705
128545
-137329
-96404
-223763
-457271
-5463855
-3259732
-520105
-1779477
-2302083
-4627338
-361208
-615880
-1151604
-855391
-677705
128545
-137329
-96404
-223763
-5463855
-3259732
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">o.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Recent Accounting Pronouncements</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company considers the effects of new accounting pronouncements on the accounting, presentation and disclosure of its consolidated financial statements, as such pronouncements become known. In June 2011, the FASB issued Accounting Standards Update ("ASU") No. 2011-05, Comprehensive Income or ASU 2011-05. The guidance in ASU 2011-05 revises the manner in which entities present comprehensive income in their financial statements. An entity is required to report the components of comprehensive income in either one or two consecutive financial statements:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> - A single, continuous statement must present the components of net income and total net income, the components of other comprehensive income and total other comprehensive income, and a total for comprehensive income.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> - In a two-statement approach, an entity must present the components of net income and total net income in the first statement. That statement must be immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income, and a total for comprehensive income.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> ASU 2011-05 does not change the items that must be reported in other comprehensive income. The amendments in ASU 2011-05 are effective for fiscal years beginning after December 15, 2011 and the Company adopted this guidance effective January 1, 2012. In the consolidated statements of comprehensive income (loss) the Company has presented comprehensive income in a single continuous statement.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> At present, there are no other such pronouncements not yet effective that the Company expects will have a material impact on these consolidated financial statements.</p> <!--EndFragment--></div> </div>
-33903
-33903
-2757511
-2757511
-245221
94860
94860
-3712621
-3807481
1657770
1494857
8621442
325221
36259
-60171
-198
22532
822
-3692
-65255
36259
-60171
-198
2510
22532
591
822
-2875
-3692
-65255
36259
-60171
-198
22532
-3692
-65255
4614
4614
4614
-141928
141928
-4614
-141928
141928
-4614
-141928
141928
150000
479695
479695
24534
24534
316598
316598
8800
325221
-80000
-80000
245221
245221
11511
11511
500000
672981
672981
17800
205348
205348
120000
20154
3895000
167100
507100
96473
14140912
14044439
289000
289000
-500000
969252
969252
-50000
92000
50000
142000
92000
-50000
257000
45000
45000
45000
32850
32850
16761
16761
50000
105000
67357
240338
240338
428543
189198
241125
25219
80450
47674
1888486
1808036
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="WIDTH: 0.25in"><strong>4.</strong></td> <td><strong>Buildings and Equipment, Net</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: center" nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> 2011</td> <td nowrap="nowrap"> </td> <td nowrap="nowrap"> </td> <td style="TEXT-ALIGN: center" colspan="2" nowrap="nowrap"> 2010</td> <td nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid" nowrap="nowrap">Year Ending December 31</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">($)</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">($)</td> <td style="PADDING-BOTTOM: 1pt" nowrap="nowrap"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="WIDTH: 74%">Vehicles</td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">-</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 1%"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">107,589</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">Office equipment</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">66,159</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">Furniture and fixtures</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 21,995</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td>Subtotal</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">195,743</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">Accumulated depreciation</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (87,613</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">)</td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">108,130</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left">Gold Hill mill equipment</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">558,440</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt">Gold Hill buildings</td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> <td style="PADDING-BOTTOM: 1pt"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 182,875</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td>Closing Value</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right">849,445</td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> During the year ended December 31, 2011 management reviewed the net carrying values of the equipment to determine whether circumstances indicated that the net carrying values may not be recoverable. An impairment is considered to exist if the total estimated future cash flows, or probability-weighted cash flows on an undiscounted basis, are less than the carrying value of the assets. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable future cash flows that are largely independent of cash flows from other asset groups. Generally, in estimating future cash flows, all assets are grouped at a particular property for which identifiable cash flows exist.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Management assessed the cash flows from each asset group currently on the consolidated balance sheet in December 2011 and determined an impairment of $67,357 necessary to reflect the carrying value of the assets as December 31, 2011.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The breakdown of the net book values of the buildings and equipment by location as at fiscal year-end is Colorado $nil (2010: $756,055), and Brazil $nil (2010: $93,390).</p> <!--EndFragment--></div> </div>
849445
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">d.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Buildings and Equipment</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Buildings and equipment are carried at cost (including development and preproduction costs, capitalized interest, other financing costs and all direct administrative support costs incurred during the construction period, net of cost recoveries and incidental revenues), less accumulated depletion and depreciation including write-downs. Following the construction period, interest, other financing costs and administrative costs are expensed as incurred. On the commencement of commercial production, depletion of each mining property is provided on the unit-of-production basis, using estimated proven and probable reserves as the depletion basis. Buildings and equipment utilized directly in commercial mining activities are depreciated, following the commencement of commercial production, over their expected economic lives using either the unit-of-production method or the straight-line method. Depreciation for non-mining equipment is provided over the following useful lives:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; WIDTH: 0.5in">-</td> <td style="COLOR: black; WIDTH: 3in">Vehicles</td> <td style="COLOR: black">10 years</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black">-</td> <td style="COLOR: black">Office equipment, furniture and fixtures</td> <td style="COLOR: black">2 to 10 years</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company reviews the carrying values of its buildings and equipment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. An impairment is considered to exist if total estimated future cash flows, or probability-weighted cash flows on an undiscounted basis, are less than the carrying value of the assets. An impairment loss is measured and recorded based on discounted estimated future cash flows associated with values beyond proven and probable reserves and resources. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable future cash flows that are largely independent of cash flows from other asset groups. Generally, in estimating future cash flows, all assets are grouped at a particular property for which there are identifiable cash flows. Buildings and equipment utilized directly in commercial mining activities are depreciated, following the commencement of commercial production, over their expected economic lives using either the unit-of-production method or the straight-line method.</p> <!--EndFragment--></div> </div>
P10Y
P2Y
P10Y
191742
297190
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="WIDTH: 0.25in"><strong>8.</strong></td> <td><strong>Related Party Transactions</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Related party transactions not disclosed elsewhere in these consolidated financial statements include:</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.25in">a.</td> <td style="TEXT-ALIGN: justify">During the fiscal year 2011, consulting fees of $295,701 (2010: $339,591) were incurred to directors and officers of the Company. The transactions were recorded at the exchange amount, being the value established and agreed to by the related parties.</td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.25in">b.</td> <td style="TEXT-ALIGN: justify">Included in accounts payable and accrued expenses (related parties) at December 31, 2011 is nil (2010: $17,264) payable to an officer and director of the Company for consulting fees and various expenses incurred on behalf of the Company.</td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 18pt"> </td> <td style="COLOR: black; WIDTH: 24.55pt">7.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Related Party Transactions</td> </tr> </table> <p style="COLOR: black; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 42.55pt; TEXT-ALIGN: justify; TEXT-INDENT: -24.55pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Related party transactions not disclosed elsewhere in these consolidated financial statements include:</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <table style="BACKGROUND-COLOR: white; MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">a)</td> <td style="COLOR: black; TEXT-ALIGN: justify">During the nine-month period ended September 30, 2012 consulting fees of $297,190 (September 30, 2011: $191,742) were incurred to directors and officers (or companies of the officers and directors) of the Company. The transactions were recorded at the exchange amount, being the value established and agreed to by the related parties.</td> </tr> </table> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <table style="BACKGROUND-COLOR: white; MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">b)</td> <td style="COLOR: black; TEXT-ALIGN: justify">Included in accounts payable and accrued expenses and advances payable (related parties) at September 30, 2012 and December 31, 2011 were $322,419 and $Nil respectively payable to officers and directors of the Company for consulting fees and various expenses incurred on behalf of the Company.</td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="WIDTH: 70%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; MARGIN-LEFT: 0.5in" cellspacing="0" cellpadding="0"> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; WIDTH: 90%; COLOR: black"> Reclamation bonds</td> <td style="WIDTH: 1%; COLOR: black"> </td> <td style="TEXT-ALIGN: left; WIDTH: 1%; COLOR: black">$</td> <td style="TEXT-ALIGN: right; WIDTH: 7%; COLOR: black">245,221</td> <td style="TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; COLOR: black">Buildings and equipment</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black">$</td> <td style="TEXT-ALIGN: right; COLOR: black">753,605</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; PADDING-BOTTOM: 1pt; COLOR: black"> Participating interest in mineral property</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> $</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 1,758,685</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: justify; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black">$</td> <td style="TEXT-ALIGN: right; COLOR: black">2,757,511</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="WIDTH: 90%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0" align="center"> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: center; COLOR: black" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; COLOR: black" colspan="2" nowrap="nowrap">Stock<br /> Options<br /> <br /> #</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; COLOR: black" colspan="2" nowrap="nowrap">Weighted<br /> Average<br /> Exercise Price<br /> $</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; COLOR: black" colspan="2" nowrap="nowrap">Remaining<br /> Contractual<br /> Life (years)<br /> As At</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; COLOR: black" colspan="2" nowrap="nowrap">Aggregate<br /> Intrinsic value<br /> <br /> As At</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black" nowrap="nowrap"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 48%; COLOR: black"> Outstanding and exercisable at December 31, 2011</td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%; COLOR: black"> 9,050,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%; COLOR: black"> 0.110</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%; COLOR: black"> 4.28</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 10%; COLOR: black"> 36,500</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; WIDTH: 1%; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="COLOR: black">Forfeited during quarter March 31, 2012</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">(200,000</td> <td style="TEXT-ALIGN: left; COLOR: black">)</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">0.260</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt; COLOR: black">Granted during quarter March 31, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 1,600,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 0.050</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> Outstanding and exercisable at March, 31, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 10,450,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 0.090</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 4.21</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 42,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="COLOR: black">Granted during quarter June 30, 2012</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">200,000</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">0.065</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> Outstanding and exercisable at June, 30, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 10,650,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 0.097</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 3.97</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 34,125</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="COLOR: black">Forfeited during quarter September 30, 2012</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">(1,000,000</td> <td style="TEXT-ALIGN: left; COLOR: black">)</td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">0.260</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="COLOR: black"> </td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> <td style="TEXT-ALIGN: right; COLOR: black">-</td> <td style="TEXT-ALIGN: left; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: white; VERTICAL-ALIGN: bottom"> <td style="PADDING-BOTTOM: 1pt; COLOR: black">Granted during quarter September 30, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> -</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> <tr style="BACKGROUND-COLOR: rgb(204,255,204); VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> Outstanding and exercisable at September, 30, 2012</td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 9,650,000</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 0.080</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 3.74</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="PADDING-BOTTOM: 1pt; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; COLOR: black"> 52,500</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 1pt; COLOR: black"> </td> </tr> </table> <!--EndFragment--></div> </div>
2016-10-10
2016-11-23
2017-01-12
2017-04-09
P2Y6M
P2Y6M
1.2089
1.6104
0.045
0.045
200000
1000000
1600000
200000
4200000
3650000
1600000
200000
36500
42000
34125
52500
9050000
10450000
1650000
9650000
0.11
0.09
0.097
0.08
P4Y3M11D
P4Y2M16D
P3Y11M19D
P3Y8M27D
0.1
1.1
1
0.26
0.26
0.05
0.065
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">g.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Stock-Based Compensation</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company accounts for share-based payments under the fair value method of accounting for stock-based compensation consistent with GAAP. Under the fair value method, stock-based compensation cost is measured at the grant date based on the fair value of the award using the Black-Sholes option pricing model and is recognized to expense on a straight-line basis over the requisite service period, which is generally the vesting period. Where upon grant the options vest immediately the stock-based costs are expensed immediately.</p> <!--EndFragment--></div> </div>
450000
150000
11461153
9920387
10670387
11181492
11460649
12873943
12873943
16581981
19434431
19534431
36218522
45468522
55218522
58071855
68408522
88703868
109912589
114144706
45000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="WIDTH: 0.25in"><strong>5.</strong></td> <td><strong>Advances Payable</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> During the year ended December 31, 2011 the Company received funds from advances from individuals and a company, totaling $257,000, that were non-interest bearing, were due on demand and were unsecured. As at the end of the year this total amount was reduced to $137,000 (of which $92,000 is due to a related party) due to $120,000 of this advance being converted to common stock for settlement of this indebtedness in December 2011 at $0.04 per share.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 18pt"> </td> <td style="COLOR: black; WIDTH: 24.55pt">4.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Advances Payable</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> During March 2012, the Company entered into debt settlement agreements for $105,000 of advances received from a director of the Company and a company during fiscal 2011. During August 2012, the Company received $50,000 from a director and officer as an advance, which is non-interest bearing and due on successful capital raising. As at September 30, 2012 advances payable were $82,000.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong>1. Significant Accounting Policies</strong></p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 48px"> </td> <td style="WIDTH: 47px">(a)</td> <td style="TEXT-ALIGN: justify">Principles of Consolidation</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company follows accounting standards set by the Financial Accounting Standards Board, referred to as the "FASB". The FASB sets accounting principles generally accepted in the United States ("GAAP") that the Company follows to ensure they consistently report their financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification, referred to as Codification or "ASC".</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> These consolidated financial statements have been prepared in accordance with GAAP and include the accounts of the Company and its wholly-owned subsidiaries, Aurora Gold Mineração Ltda ("Aurora Gold Mineracao") and AGC Resources LLC ("AGC") (through to date of disposition of AGC, June 14, 2011, see Note 3). Collectively, they are referred to herein as "the Company". Significant inter-company accounts and transactions have been eliminated. Aurora Gold Mineração was incorporated on October 27, 2005. AGC was formed as a Limited Liability company on April 21, 2010 under the law of Colorado USA to hold the assets purchased from Global Minerals Ltd as discussed in Note 3.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 48px"> </td> <td style="WIDTH: 47px">(b)</td> <td style="TEXT-ALIGN: justify">Accounting Estimates</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 48px"> </td> <td style="WIDTH: 47px">(c)</td> <td style="TEXT-ALIGN: justify">Cash Equivalents</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Cash equivalents comprise certain highly liquid instruments with a maturity of three months or less when purchased. The Company did not have any cash equivalents at December 31, 2011 and 2010. No amounts were paid for income taxes in 2011 or 2010 and cash paid for interest was nil in 2011 (2010: $45,065).</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 48px"> </td> <td style="WIDTH: 47px">(d)</td> <td style="TEXT-ALIGN: justify">Buildings and equipment</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Buildings and equipment are carried at cost (including development and preproduction costs, capitalized interest, other financing costs and all direct administrative support costs incurred during the construction period, net of cost recoveries and incidental revenues), less accumulated depletion and depreciation including write-downs. Following the construction period, interest, other financing costs and administrative costs are expensed as incurred.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On the commencement of commercial production, depletion of each mining property is provided on the unit-of-production basis, using estimated proven and probable reserves as the depletion basis.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Buildings and equipment utilized directly in commercial mining activities are depreciated, following the commencement of commercial production, over their expected economic lives using either the unit-of-production method or the straight-line method.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Depreciation for non-mining equipment is provided over the following useful lives:</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 17%">-</td> <td style="WIDTH: 43%">Vehicles</td> <td style="WIDTH: 40%">10 years</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td>-</td> <td>Office equipment, furniture and fixtures</td> <td>2 to 10 years</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company reviews the carrying values of its buildings and equipment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. An impairment is considered to exist if total estimated future cash flows, or probability-weighted cash flows on an undiscounted basis, are less than the carrying value of the assets. An impairment loss is measured and recorded based on discounted estimated future cash flows associated with values beyond proven and probable reserves and resources. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable future cash flows that are largely independent of cash flows from other asset groups. Generally, in estimating future cash flows, all assets are grouped at a particular property for which there are identifiable cash flows. Buildings and equipment utilized directly in commercial mining activities are depreciated, following the commencement of commercial production, over their expected economic lives using either the unit-of-production method or the straight-line method.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 48px"> </td> <td style="WIDTH: 47px">(e)</td> <td style="TEXT-ALIGN: justify">Mineral property reclamation bonds and other related refundable costs</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Costs paid for the purchase of reclamation bonds and other related costs that are refundable are capitalized. If amounts paid are not to be refunded then they will be expensed when it is determined they will not be refunded.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 48px"> </td> <td style="WIDTH: 47px">(f)</td> <td style="TEXT-ALIGN: justify">Mineral properties and exploration expenses</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company accounts for its mineral properties on a cost basis whereby all direct costs, net of pre-production revenue, relative to the acquisition of the properties are capitalized. All sales and option proceeds received are first credited against the costs of the related property, with any excess credited to earnings. Once commercial production has commenced, the net costs of the applicable property will be charged to operations using the unit-of-production method based on estimated proven and probable recoverable reserves. The net costs related to abandoned properties are charged to operations.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Exploration costs are charged to operations as incurred until such time that proven reserves are discovered. From that time forward, the Company will capitalize all costs to the extent that future cash flow from mineral reserves equals or exceeds the costs deferred. The deferred costs will be amortized over the recoverable reserves when a property reaches commercial production. As at December 31, 2011 and 2010, the Company does not have proven reserves. Exploration activities conducted jointly with others are reflected at the Company's proportionate interest in such activities.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company reviews the carrying values of its mineral properties on a regular basis by reference to the project economics including the timing of the exploration and/or development work, the work programs and the exploration results experienced by the Company and others. The review of the carrying value of any producing property will be made by reference to the estimated future operating results and net cash flows. When the carrying value of a property exceeds its estimated net recoverable amount, provision is made for the decline in value.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The recoverability of the amounts recorded for mineral properties is dependent on the confirmation of economically recoverable reserves, confirmation of the Company's interest in the underlying mineral claims, the ability of the Company to obtain the necessary financing to successfully complete their development and the attainment of future profitable operations or proceeds from disposition.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Estimated costs related to site restoration programs during the commercial development stage of the property are accrued over the life of the project.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 48px"> </td> <td style="WIDTH: 47px">(g)</td> <td style="TEXT-ALIGN: justify">Stock-based compensation</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company accounts for share-based payments under the fair value method of accounting for stock-based compensation consistent with GAAP. Under the fair value method, stock-based compensation cost is measured at the grant date based on the fair value of the award using the Black-Sholes option pricing model and is recognized to expense on a straight-line basis over the requisite service period, which is generally the vesting period.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 48px"> </td> <td style="TEXT-ALIGN: left; WIDTH: 47px">(h)</td> <td style="TEXT-ALIGN: justify">Interest expense</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Interest expense was $0 in 2011 (2010: $14,150).</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 48px"> </td> <td style="TEXT-ALIGN: left; WIDTH: 47px">(i)</td> <td style="TEXT-ALIGN: justify">Foreign currency translations and transactions</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company's reporting currency is the U.S. Dollar. Aurora Gold Mineracao Ltda is a foreign operation and its functional currency is the Brazilian Real (Real). Certain contractual obligations in these consolidated financial statements are stated in Brazilian Reals. The Brazilian Real to U.S. dollar exchange rate at December 31, 2011 was U.S. $0.5357 to 1 Real (2010: U.S. $0.5966 to 1 Real).</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company translates foreign assets and liabilities of its subsidiaries, other than those denominated in U.S. dollars, at the rate of exchange at the balance sheet date. Income and expenses of these subsidiaries are translated at the average rate of exchange throughout the year. Gains or losses from these translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in foreign exchange (gain) loss in the consolidated statements of operations.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 48px"> </td> <td style="TEXT-ALIGN: left; WIDTH: 47px">(j)</td> <td style="TEXT-ALIGN: justify">Concentration of credit risk</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash with high credit quality financial institutions in Brazil and the Canada. The Company occasionally has cash deposits in excess of federally insured limits. The Company had funds deposited in banks beyond the insured limits as of December 31, 2011 and 2010. The Company has not experienced any losses related to these balances, and management believes its credit risk to be minimal.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 48px"> </td> <td style="WIDTH: 47px">(k)</td> <td style="TEXT-ALIGN: justify">Comprehensive income</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company has adopted FASB ASC 220, <em>Reporting Comprehensive Income</em>, which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. The Company is disclosing this information on its Consolidated Statement of Stockholders' Equity (Deficiency) and Comprehensive Income (loss). Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. Accumulated other comprehensive income consists entirely of foreign currency translation adjustments at December 31, 2011 and 2010.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 48px"> </td> <td style="WIDTH: 47px">(l)</td> <td style="TEXT-ALIGN: justify">Fair value of financial instruments and risks</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The carrying value of cash, accounts payable, accrued expenses and advances payable (including related parties) approximate their fair value because of the short-term nature of these instruments.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company operates outside of the United States of America (primarily in Brazil) and is exposed to foreign currency risk due to the fluctuation between the currency in which the Company operates in and the U.S. dollar.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 48px"> </td> <td style="WIDTH: 47px">(m)</td> <td style="TEXT-ALIGN: justify">Income taxes</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company has adopted ASC 740, <em>Accounting for Income Taxes</em>, which requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns using the liability method. Under this method, deferred tax liabilities and assets are determined based on the differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In July 2006, the FASB issued an interpretation which clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements in accordance with GAAP. This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Estimated interest and penalties related to recording uncertain tax positions when recorded are included as a component of income tax expense on the consolidated statement of operations. The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties. The Company's tax returns are open to audit for the years ending December 31, 2008 to 2011.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 48px"> </td> <td style="WIDTH: 47px">(n)</td> <td style="TEXT-ALIGN: justify">Earnings (loss) per share</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Earnings (loss) per share is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding during the year including common stock issued effective the date committed. Common stock issuable is considered outstanding as of the original approval date for the purposes of earnings per share computations. Diluted loss per common share is computed by dividing net loss by the sum of (a) the basic weighted average number of shares of common stock outstanding during the period and (b) additional shares that would have been issued and potentially dilutive securities and is equivalent to basic loss per share for 2011 and 2010 because potentially dilutive securities were anti-dilutive due to the net losses incurred in each year. Potentially dilutive securities outstanding consist of stock options outstanding as at December 31, 2011 of 9,050,000 (2010:1,700,000) and warrants outstanding at December 31, 2011 of 8,000,000 (2010: nil).</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="WIDTH: 100%; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 48px"> </td> <td style="WIDTH: 47px">(o)</td> <td style="TEXT-ALIGN: justify">New Accounting Pronouncements</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company considers the effects of new accounting pronouncements on the accounting, presentation and disclosure of its consolidated financial statements as such pronouncements become known. . In June 2011, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2011-05, Comprehensive Income or</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> ASU 2011-05. The guidance in ASU 2011-05 revises the manner in which entities present comprehensive income in their financial statements. An entity is required to report the components of comprehensive income in either one or two consecutive financial statements:</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="FONT-FAMILY: Symbol; WIDTH: 0.25in">·</td> <td>A single, continuous statement must present the components of net income and total net income, the components of other comprehensive income and total other comprehensive income, and a total for comprehensive income.</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="FONT-FAMILY: Symbol; WIDTH: 0.25in">·</td> <td>In a two-statement approach, an entity must present the components of net income and total net income in the first statement. That statement must be immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income, and a total for comprehensive income.</td> </tr> </table> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> ASU 2011-05 does not change the items that must be reported in other comprehensive income. The amendments in ASU 2011-05 are effective for fiscal years beginning after December 15, 2011. The Company does not believe the adoption of ASU 2011-05 will have a material impact on the presentation of information in its financial statements.</p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> At present, there are no other such pronouncements that the Company expects will have a material impact on these consolidated financial statements.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"> </td> <td style="COLOR: black; WIDTH: 28.35pt">2.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Summary of Significant Accounting Policies</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">a.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Basis of Preparation</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company follows accounting standards set by the Financial Accounting Standards Board (FASB). The FASB sets accounting principles generally accepted (GAAP) in the United States that the Company follows to ensure they consistently report their financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (ASC) or also referred to as Codification.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> These interim consolidated financial statements have been prepared in accordance with GAAP and include the accounts of the Company and its wholly owned subsidiaries, Aurora Gold Mineração Ltda ("Aurora Gold Mineração") and AGC Resources LLC ("AGC") (through to date of disposition of AGC, June 14, 2011). Collectively, they are referred to herein as "the Company". Significant inter-company accounts and transactions have been eliminated.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such Securities and Exchange Commission (SEC) rules and regulations. The interim period consolidated financial statements should be read together with the audited consolidated financial statements and accompanying notes included in the Company's audited consolidated financial statements for the year ended December 31, 2011. In the opinion of the management of the Company, the unaudited consolidated financial statements contained herein contain all adjustments (consisting of a normal recurring nature) necessary to present a fair statement of the results of the interim periods presented.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">b.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Use of Estimates</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">c.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Cash Equivalents</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Cash equivalents comprise certain highly liquid instruments with a maturity date of three months or less when purchased. The Company has cash equivalents of $1,241 and $93,302 at September 30, 2012 and 2011 respectively. Amounts paid for income taxes during the periods ended September 30, 2012 and 2011 were nil; and for interest paid nil respectively.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">d.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Buildings and Equipment</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Buildings and equipment are carried at cost (including development and preproduction costs, capitalized interest, other financing costs and all direct administrative support costs incurred during the construction period, net of cost recoveries and incidental revenues), less accumulated depletion and depreciation including write-downs. Following the construction period, interest, other financing costs and administrative costs are expensed as incurred. On the commencement of commercial production, depletion of each mining property is provided on the unit-of-production basis, using estimated proven and probable reserves as the depletion basis. Buildings and equipment utilized directly in commercial mining activities are depreciated, following the commencement of commercial production, over their expected economic lives using either the unit-of-production method or the straight-line method. Depreciation for non-mining equipment is provided over the following useful lives:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <table style="WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; WIDTH: 0.5in">-</td> <td style="COLOR: black; WIDTH: 3in">Vehicles</td> <td style="COLOR: black">10 years</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black">-</td> <td style="COLOR: black">Office equipment, furniture and fixtures</td> <td style="COLOR: black">2 to 10 years</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company reviews the carrying values of its buildings and equipment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. An impairment is considered to exist if total estimated future cash flows, or probability-weighted cash flows on an undiscounted basis, are less than the carrying value of the assets. An impairment loss is measured and recorded based on discounted estimated future cash flows associated with values beyond proven and probable reserves and resources. In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable future cash flows that are largely independent of cash flows from other asset groups. Generally, in estimating future cash flows, all assets are grouped at a particular property for which there are identifiable cash flows. Buildings and equipment utilized directly in commercial mining activities are depreciated, following the commencement of commercial production, over their expected economic lives using either the unit-of-production method or the straight-line method.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">e.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Mineral Property Reclamation Bonds and Other Related Refundable Costs</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Costs paid for the purchase of reclamation bonds and other related costs that are refundable are capitalized. If amounts paid are not to be refunded then they will be expensed when it is determined they will not be refunded.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">f.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Mineral Properties and Exploration Expenses</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company accounts for its mineral properties on a cost basis whereby all direct costs, net of pre-production revenue, relative to the acquisition of the properties are capitalized. All sales and option proceeds received are first credited against the costs of the related property, with any excess credited to earnings. Once commercial production has commenced, the net costs of the applicable property will be charged to operations using the unit-of-production method based on estimated proven and probable recoverable reserves. The net costs related to abandoned properties are charged to operations.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Exploration costs are charged to operations as incurred until such time that proven reserves are discovered. From that time forward, the Company will capitalize all costs to the extent that future cash flow from mineral reserves equals or exceeds the costs deferred. The deferred costs will be amortized over the recoverable reserves when a property reaches commercial production. As at September 30, 2012 and 2011, the Company does not have proven reserves. Exploration activities conducted jointly with others are reflected at the Company's proportionate interest in such activities.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company reviews the carrying values of its mineral properties on a regular basis by reference to the project economics including the timing of the exploration or development work, the program of works and the exploration results experienced by the Company and others. The review of the carrying value of any producing property will be made by reference to the estimated future operating results and net cash flows. When the carrying value of a property exceeds its estimated net recoverable amount, provision is made for the decline in value.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The recoverability of the amounts recorded for mineral properties is dependent on the confirmation of economically recoverable reserves, confirmation of the Company's interest in the underlying mineral claims, the ability of the Company to obtain the necessary financing to successfully complete their development and the attainment of future profitable operations or proceeds from disposal.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Estimated costs related to site restoration programs during the commercial development stage of the property are accrued over the life of the project.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">g.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Stock-Based Compensation</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company accounts for share-based payments under the fair value method of accounting for stock-based compensation consistent with GAAP. Under the fair value method, stock-based compensation cost is measured at the grant date based on the fair value of the award using the Black-Sholes option pricing model and is recognized to expense on a straight-line basis over the requisite service period, which is generally the vesting period. Where upon grant the options vest immediately the stock-based costs are expensed immediately.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">h.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Interest Expense</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Interest expense for the periods ended September 30, 2012 and 2011 were nil.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">i.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Foreign Currency Translation and Transactions</td> </tr> </table> <p style="COLOR: black; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.25in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company's reporting currency is the United States Dollar (USD). Aurora Gold Mineração Ltda is a foreign operation and its functional currency is the Brazilian Real (Real). Certain contractual obligations in these consolidated financial statements are stated in Brazilian Real's. At the periods ended September 30, 2012 and 2011 the Brazilian Real exchange rate to the USD was $0.49290 to 1 Real (September 30, 2011: USD $0.55330 to 1 Real).</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company translates foreign assets and liabilities of its subsidiaries, other than those denominated in USD, at the rate of exchange at the balance sheet date. Income and expenses of these subsidiaries are translated at the average rate of exchange throughout the reporting period. Gains or losses from these translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in foreign exchange (gain) loss in the consolidated statements of operations.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">j.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Concentration of Credit Risk</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash with high credit quality financial institutions in Brazil and Canada. The Company occasionally has cash deposits in excess of federally insured limits. The Company had funds deposited in banks beyond the insured limits as of September 30, 2012 and 2011 respectively. The Company has not experienced any losses related to these balances, and management believes the credit risk to be minimal.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">k.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Fair Value of Financial Instruments and Risks</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The carrying value of cash, accounts payable, accrued expenses and advances payable (including related parties) approximate their fair value because of the short-term nature of these instruments.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The Company operates outside of the United States of America (primarily in Brazil) and is exposed to foreign currency risk due to the fluctuation between the currency in which the Company operates in and the USD.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">l.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Income Taxes</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company has adopted ASC 740, <em>Accounting for Income Taxes</em>, which requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns using the liability method. Under this method, deferred tax liabilities and assets are determined based on the differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In July 2006, the FASB issued an interpretation, which clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements in accordance with GAAP. This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Estimated interest and penalties related to recording uncertain tax positions when recorded are included as a component of income tax expense on the consolidated statement of operations. The Company has not recorded any liabilities for uncertain tax positions or any related interest and penalties. The Company's tax returns are open to audit for the years ending December 31, 2008 to 2011 respectively.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in; TEXT-ALIGN: justify; TEXT-INDENT: -0.25in"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">m.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Basic and Diluted Net Income (Loss) Per Share</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the reporting period including common stock issued effective the date committed. Common stock issuable is considered outstanding as of the original approval date for the purposes of earnings per share computations. Diluted earnings (loss) per common share is computed by dividing net earnings (loss) by the sum of (a) the basic weighted average number of shares of common stock outstanding during the period and (b) additional shares that would have been issued and potentially dilutive securities. During the nine months ended September 30, 2012 and 2011 the diluted earnings (loss) per share was equivalent to the basic earnings (loss) per share because all potentially dilutive securities were anti-dilutive due to the net losses incurred. Potentially dilutive securities consist of stock options and warrants outstanding at the end of the reporting period. Stock options outstanding as at September 30, 2012 were 9,650,000 (September 30, 2011:1,200,000). Warrants outstanding as at September 30, 2012 were 8,000,000 (September 30, 2011: Nil).</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">n.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Interim Financial Statements</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments which include only normal recurring adjustments, necessary to present fairly the Company's financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The unaudited financial statements should be read in conjunction with the Company's audited financial statements and notes for the year ended December 31, 2011, which are included in the Company's Annual Report on Form 10-K.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">o.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Recent Accounting Pronouncements</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company considers the effects of new accounting pronouncements on the accounting, presentation and disclosure of its consolidated financial statements, as such pronouncements become known. In June 2011, the FASB issued Accounting Standards Update ("ASU") No. 2011-05, Comprehensive Income or ASU 2011-05. The guidance in ASU 2011-05 revises the manner in which entities present comprehensive income in their financial statements. An entity is required to report the components of comprehensive income in either one or two consecutive financial statements:</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> - A single, continuous statement must present the components of net income and total net income, the components of other comprehensive income and total other comprehensive income, and a total for comprehensive income.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> - In a two-statement approach, an entity must present the components of net income and total net income in the first statement. That statement must be immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income, and a total for comprehensive income.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 35.45pt"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> ASU 2011-05 does not change the items that must be reported in other comprehensive income. The amendments in ASU 2011-05 are effective for fiscal years beginning after December 15, 2011 and the Company adopted this guidance effective January 1, 2012. In the consolidated statements of comprehensive income (loss) the Company has presented comprehensive income in a single continuous statement.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> At present, there are no other such pronouncements not yet effective that the Company expects will have a material impact on these consolidated financial statements.</p> <!--EndFragment--></div> </div>
518900
518900
11461
-6827
122451
141794
-63403
-377751
-391134
-31335
14819
-184884
165731
-732202
-1252894
-1555540
-787812
3160677
-300218
-576152
11461
9920
10670
11181
11461
12874
12874
16582
19434
19534
36218
45468
55218
58071
68408
88704
109913
114145
344461
1088869
2259304
2484219
3271163
3271163
3622655
3762361
3786321
4582137
9137887
11932432
12110779
14707818
20938292
22040994
22346349
-361208
-977088
-2128692
-2984083
-3661788
-3533243
-3670572
-3766976
-3990739
-448010
-9911865
-13171597
-13691702
-15471179
-17773262
-22400600
-22966944
-141928
-4614
-3692
-68947
-32688
-92859
-93057
-70525
-69703
425000
20000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="WIDTH: 0.25in"><strong>6.</strong></td> <td><strong>Common Stock</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company intends to finance activities by raising capital through the equity markets. In October 2011, the Company filed a Registration Statement on Form S-1 offering up to a maximum of 50,000,000 units of the Company's securities at an offering price of $0.10 per Unit in a direct public offering, without any involvement of underwriters or broker-dealers. Each Unit consists of one (1) share of common stock at a $0.001 par value per share and one (1) Stock Purchase Warrant. Each full Warrant entitles the holder to purchase one additional share of common stock at a price of $0.20 for a period of two years commencing November 1, 2011 through October 31, 2013. The Units will be sold by the Chief Executive Officer and President. To date, no funds have been obtained from this offering.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On December 20, 2011, the Company entered into subscription agreements for 8,000,000 shares of common stock at a purchase price of $0.04 per share for a gross aggregate price of $320,000. Attached to each unit of common stock is one (1) series A stock purchase warrant. Each full Series A warrant entitles the holder to purchase an additional share of the Company's common stock at an exercise price of $0.08 per share for a period of eighteen months commencing on December 20, 2011 and expiring on June 20, 2013. Pursuant to the subscription agreements, each of the Investors has represented that they are not a U.S. person, as such term is defined in Regulation S. In connection with the offering, the Company has agreed to pay a cash commission equal to 8% of all funds received or an aggregate of up $25,600.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> On December 15, 2011, the Company entered into debt settlement agreements with creditors and related parties in consideration for the issue of the Company's common stock at a per share price of $0.02 per share. $218,754 was settled for 10,937,721 shares of common stock.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In September 2011, 1,671,000 shares were issued to an individual for cash at $0.10 per share. In September 2011, 150,000 shares were issued to a company for services rendered at $0.16 per share.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> In April 2011, as an incentive to assist with future private placements, the Company authorized the payment of a non cash finder's fee of 450,000 shares of common stock of the Company in connection with the private placement completed in April 2010. The shares were issued in May 2011. All shares issued were to individuals and companies who reside outside the United States of America. The issuance of the shares was exempt from the registration requirements of Securities Act by virtue of Section 4(2) thereof as well as the exemption from registration requirements afforded by Regulation S.</p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> During the period January 1 to December 31, 2010, the Company received cash of $3,895,000 from a private placement of 12,983,335 common shares at $0.30 per share, paid non cash finder's fees of 1,126,111 shares in connection with the private placement, issued 685,900 shares in settlement of indebtedness and expenses amounting to $205,770 and paid a non cash finder's fee of 500,000 shares in connection with a property acquisition valued at $0.30 per share. The shares were issued to individuals and companies who reside outside the USA. The issuance of the shares were exempt from the registration requirements of Securities Act by virtue of Section 4(2) thereof as well as the exemption from registration requirements afforded by Regulation S.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 18pt"> </td> <td style="COLOR: black; WIDTH: 24.55pt">5.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Common Stock</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> On September 21, 2012, Aurora Gold Corporation (the "Company"), entered into a subscription agreement (the "Subscription Agreement ") with Alltech Capital Limited ("Investor"), pursuant to which the Company agreed to sell, and the Investor agreed to purchase, 135,000,000 shares of the Company's common stock for a purchase price of $5,000,000. The closing of the transaction contemplated by the Subscription Agreement occurred in October, 2012 (see Note 9), subject to each of the Company and Investor satisfactorily meeting or waiving the closing conditions contained in the Subscription Agreement. A copy of the Subscription Agreement was lodged with the SEC on September 27, 2012.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The Company intends to finance activities by raising capital through the equity markets. In October 2011 the Company filed a Registration Statement on Form S-1 offering up to a maximum of 50,000,000 units of the Company's securities at an offering price of $0.10 per Unit in a direct public offering, without any involvement of underwriters or broker-dealers. Each Unit consists of one (1) share of common stock at a $0.001 par value per share and one (1) Stock Purchase Warrant. Each full Warrant entitles the holder to purchase one additional share of common stock at a price of $0.20 for a period of two years commencing November 1, 2011 through October 31, 2013. The Units will be sold by the Chief Executive Officer and Chief Financial Officer. A Notice of Effectiveness was issued April 25, 2012. The offer will expire January 20, 2013. To date, no funds have been obtained from this offering.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> On April 16, 2012, the Company entered into subscription agreements for 1,316,000 shares of common stock at a purchase price of $0.06 per share for a gross aggregate price of $78,960. Pursuant to the subscription agreements, each of the Investors has represented that they are not a U.S. person; as such term is defined in Regulation S. In connection with the offering, the Company has agreed to pay a cash commission equal to 8% of all funds received or an aggregate of up $48,000 on the total maximum $600,000 subscription.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> During April 2012, the Company entered into a debt settlement agreement for $18,000 in accounts payable which was settled for 300,000 shares of common stock at an issue price of $0.06 per share.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> During March 2012, the Company entered into debt settlement agreements for advances received from a director of the Company and a company during fiscal 2011 as well as $14,454 of amounts in accounts payable and accrued expenses. $119,454 was settled for 1,990,900 shares of common stock at an issue price of $0.06 per share. As at March 31, 2012 advances on stock subscriptions were $37,513 and received during that quarter.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In March 2012, the Company entered into subscription agreements for 625,217 shares of common stock at a purchase price of $0.06 per share for a gross aggregate price of $37,513. Share certificates were not issued as at March 31, 2012 and they were treated as an Advance for Stock Subscriptions. The share certificates were issued in April 2012. Pursuant to the subscription agreements, each of the Investors has represented that they are not a U.S. person; as such term is defined in Regulation S. In connection with the offering, the Company has agreed to pay a cash commission equal to 8% of all funds received or an aggregate of up $48,000 on the total maximum $600,000 subscription that is being offered.</p> <p style="COLOR: black; FONT: 10pt Courier; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> On December 20, 2011, the Company entered into subscription agreements for 8,000,000 shares of common stock at a purchase price of $0.04 per share for a gross aggregate price of $320,000. Attached to each unit of common stock is one (1) series A stock purchase warrant. Each full Series A warrant entitles the holder to purchase an additional share of the Company's common stock at an exercise price of $0.08 per share for a period of eighteen months commencing on December 20, 2011 and expiring on June 20, 2013. Pursuant to the subscription agreements, each of the Investors has represented that they are not a U.S. person; as such term is defined in Regulation S. In connection with the offering, the Company has agreed to pay a cash commission equal to 8% of all funds received or an aggregate of up $25,600. The actual amount included in creditors for the period ended March 31, 2012 was $8,800. It is anticipated this will be the total amount of commission paid. On December 15, 2011, the Company entered into debt settlement agreements with creditors and related parties in consideration for the issue of the Company's common stock at a per share price of $0.02 per share. $218,754 was settled for 10,937,721 shares of common stock.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In September 2011, 1,671,000 shares were issued to an individual for cash at $0.10 per share. In September 2011, 150,000 shares were issued to a company for services rendered at $0.16 per share.</p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> In April 2011, as an incentive to assist with future private placements, the Company authorized the payment of a non-cash finder's fee of 450,000 shares of common stock of the Company in connection with the private placement completed in April 2010. The shares were issued in May 2011. All shares issued were to individuals and companies who reside outside the United States of America. The issuance of the shares was exempt from the registration requirements of Securities Act by virtue of Section 4(2) thereof as well as the exemption from registration requirements afforded by Regulation S.</p> <!--EndFragment--></div> </div>
316498
316498
7641
7641
-7640766
450000
150000
5000000
14109446
5800000
750000
22871
100000
100000
13000000
3000000
1671000
200000
350000
8000000
500000
1666667
8000000
1316000
71667
550000
1000000
5000000
143333
4000000
2603333
11461153
96105
231286
199000
3708038
2752450
3684091
250000
5000000
160500
150000
1990900
100000
325400
10937721
300000
150000
250000
420000
450000
25000
250000
200000
500000
1126111
135000000
1671000
8000000
625217
1316000
300000
405000
5000
1995000
2000000
3895000
347561
745158
15000
25000
22500
650000
14110
5800
750
23
100
100
13000
3880890
341761
744408
14977
24900
22400
637000
258000
167100
17513
250000
3890000
250000
255000
165429
249800
174650
3882000
249500
498333
312000
77644
53678
249450
499000
1245000
500000
320000
78960
53750
500000
1250000
3000
1671
200
350
8000
500
17513
-175000
1667
8000
1316
72
550
1000
5000
-250000
143
4000
107357
796000
20000
20000
107500
800000
2603
11461
96
231
199
3708
2752
3684
250
153597
68601
160151
99301
351492
114806
158816
49750
156200
11461
68697
160382
99500
355200
117558
162500
50000
1753616
48150
24500
119454
17999
97620
218754
18000
5000
161
150
1991
100
325
10938
300
1748616
47989
24350
117463
17899
97295
207816
17700
35761
150
35611
250
420
450
25
250
24750
41580
-450
20287
174750
25000
42000
20312
175000
60000
150000
200
500
59800
149500
5000000
320000
37513
78960
300
2700
3000
405
3645
4050
393557
55660
1624012
1568352
90706
91
56600
56691
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"> </td> <td style="WIDTH: 0.25in"><strong>11.</strong></td> <td><strong>Subsequent events</strong></td> </tr> </table> <p style="TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> </p> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.5in">(a)</td> <td style="TEXT-ALIGN: justify">Effective January 13, 2012, the Company's board of directors granted 1,600,000 stock purchase options pursuant to the Company's 2007 Stock Option Plan. Each of the Options has an issue date, effective date and vesting date of January 13, 2012, with an exercise price of $0.05 per share. The term of these Options are five years. The Options are exercisable at any time from the grant date up to and including the 12<sup>th</sup> day of January 2017.</td> </tr> </table> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.5in"> </td> <td style="WIDTH: 0.5in">(b)</td> <td style="TEXT-ALIGN: justify">On 20<sup>th</sup> January 2012 the Company's Kumealon claim over the property was relinquished.</td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: bold 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 18pt"> </td> <td style="COLOR: black; WIDTH: 24.55pt">9.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Subsequent Events</td> </tr> </table> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> On September 21, 2012, Aurora Gold Corporation (the "Company"), entered into a subscription agreement (the "Subscription Agreement ") with Alltech Capital Limited ("Investor"), pursuant to which the Company agreed to sell, and the Investor agreed to purchase, 135,000,000 shares of the Company's common stock for a purchase price of $5,000,000. The closing of the transaction contemplated by the Subscription Agreement occurred in October 2012, subject to each of the Company and Investor satisfactorily meeting or waiving the closing conditions contained in the Subscription Agreement. A copy of the Subscription Agreement was lodged with the SEC on September 27, 2012.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> On October 5, 2012, the Company, completed the sale of 135,000,000 shares of the Company's common stock for a purchase price of $5,000,000, to Alltech Capital Limited pursuant to the terms of a subscription agreement entered into between the Company and the Alltech Capital Limited dated September 21, 2012. As a result of the sale of 135,000,000 shares of the Company's common stock of approximately 54%, a change in control of the Company has occurred. As a condition to the closing of the transaction, the Company agreed to increase the size of its board of directors to five (5) members and to appoint two board members selected by the Investor. The board of directors appointed each of Messrs. Vladimir Bernshtein and Andrey Ratsko to serve as directors of the Company. Additionally, Mr. Bernshtein has been named as the Company's Chief Business Development Director.</p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="BACKGROUND-COLOR: white; COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> Other than the aforementioned there were no subsequent events at the date of filing.</p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<div> <div><!--StartFragment--> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> </td> <td style="COLOR: black; WIDTH: 0.25in">b.</td> <td style="COLOR: black; TEXT-ALIGN: justify">Use of Estimates</td> </tr> </table> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> </p> <p style="COLOR: black; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-ALIGN: justify"> The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions.</p> <!--EndFragment--></div> </div>
81069047
89036372
90537439
89540183
112726318
114144706
iso4217:USD
iso4217:BRL
xbrli:pure
xbrli:shares
utreg:ha
iso4217:USD
xbrli:shares
iso4217:USD
arxg:warrant
iso4217:USD
iso4217:BRL
0001037049
us-gaap:IssuanceOfEquityMember
us-gaap:SubsequentEventMember
2012-10-01
2012-10-05
0001037049
us-gaap:IssuanceOfEquityMember
us-gaap:CommonStockMember
us-gaap:SubsequentEventMember
2012-10-01
2012-10-05
0001037049
us-gaap:CommonStockMember
2012-09-20
2012-09-21
0001037049
2012-09-20
2012-09-21
0001037049
2012-08-01
2012-08-31
0001037049
arxg:AgcResourceLimitedLiabilityCompanyMember
2012-07-01
2012-09-30
0001037049
2012-07-01
2012-09-30
0001037049
us-gaap:CommonStockMember
2012-04-15
2012-04-16
0001037049
2012-04-15
2012-04-16
0001037049
arxg:StockOptionPlanTwentyZeroSevenMember
2012-04-09
2012-04-10
0001037049
arxg:StockOptionPlanTwentyZeroSevenMember
2012-04-01
2012-06-30
0001037049
2012-04-01
2012-06-30
0001037049
arxg:SecondEquityIssuanceMember
2012-04-01
2012-04-30
0001037049
arxg:FirstEquityIssuanceMember
2012-04-01
2012-04-30
0001037049
2012-04-01
2012-04-30
0001037049
arxg:SecondEquityIssuanceMember
2012-03-01
2012-03-31
0001037049
arxg:FirstEquityIssuanceMember
2012-03-01
2012-03-31
0001037049
2012-03-01
2012-03-31
0001037049
arxg:StockOptionPlanTwentyZeroSevenMember
2012-01-12
2012-01-13
0001037049
us-gaap:WarrantMember
2012-01-01
2012-09-30
0001037049
us-gaap:VehiclesMember
2012-01-01
2012-09-30
0001037049
us-gaap:StockOptionsMember
2012-01-01
2012-09-30
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:SecondEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:FirstEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
us-gaap:AdditionalPaidInCapitalMember
2012-01-01
2012-09-30
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:SecondEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:FirstEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2012-01-01
2012-09-30
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:SecondEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2012-01-01
2012-09-30
0001037049
arxg:IndividualWhoHoldsMoreThanTenPercentOfOutstandingStockMember
arxg:StockOptionPlanTwentyZeroSevenMember
2012-01-01
2012-09-30
0001037049
arxg:StockOptionPlanTwentyZeroSevenMember
2012-01-01
2012-09-30
0001037049
arxg:AgcResourceLimitedLiabilityCompanyMember
2012-01-01
2012-09-30
0001037049
arxg:FurnitureFixturesAndOfficeEquipmentMember
us-gaap:MinimumMember
2012-01-01
2012-09-30
0001037049
arxg:FurnitureFixturesAndOfficeEquipmentMember
us-gaap:MaximumMember
2012-01-01
2012-09-30
0001037049
arxg:SecondEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
arxg:FirstEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
arxg:SubscriptionsReceivablesMember
arxg:SecondEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
arxg:SubscriptionsReceivablesMember
arxg:FirstEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
arxg:SubscriptionsReceivablesMember
2012-01-01
2012-09-30
0001037049
us-gaap:MaximumMember
2012-01-01
2012-09-30
0001037049
us-gaap:ManagementMember
2012-01-01
2012-09-30
0001037049
us-gaap:CommonStockMember
arxg:SecondEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
us-gaap:CommonStockMember
arxg:FirstEquityIssuanceMember
2012-01-01
2012-09-30
0001037049
us-gaap:CommonStockMember
2012-01-01
2012-09-30
0001037049
2012-01-01
2012-09-30
0001037049
arxg:StockOptionPlanTwentyZeroSevenMember
2012-01-01
2012-03-31
0001037049
us-gaap:CommonStockMember
2012-01-01
2012-03-31
0001037049
2012-01-01
2012-03-31
0001037049
us-gaap:MaximumMember
2011-12-19
2011-12-20
0001037049
us-gaap:CommonStockMember
2011-12-19
2011-12-20
0001037049
2011-12-19
2011-12-20
0001037049
2011-12-14
2011-12-15
0001037049
arxg:ThirdEquityIssuanceMember
2011-12-01
2011-12-31
0001037049
arxg:SecondEquityIssuanceMember
2011-12-01
2011-12-31
0001037049
arxg:FirstEquityIssuanceMember
2011-12-01
2011-12-31
0001037049
arxg:StockOptionPlanTwentyZeroSevenMember
2011-11-23
2011-11-24
0001037049
arxg:StockOptionPlanTwentyZeroSevenMember
2011-10-10
2011-10-11
0001037049
2011-10-01
2011-10-31
0001037049
arxg:OutsideServicesMember
2011-09-02
2011-09-30
0001037049
arxg:SecondEquityIssuanceMember
2011-09-02
2011-09-30
0001037049
arxg:FirstEquityIssuanceMember
2011-09-02
2011-09-30
0001037049
us-gaap:CommonStockMember
2011-09-02
2011-09-30
0001037049
2011-09-02
2011-09-30
0001037049
2011-07-01
2011-09-30
0001037049
2011-05-01
2011-05-31
0001037049
arxg:FindersFeeMember
2011-04-01
2011-04-30
0001037049
2011-04-01
2011-04-30
0001037049
arxg:ExplorationRightsMember
arxg:ProcessesSevenMember
2011-02-14
2011-02-15
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:ThirdEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:SecondEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:FirstEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2011-01-01
2011-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:ThirdEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:SecondEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:FirstEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2011-01-01
2011-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:ThirdEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:SecondEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2011-01-01
2011-12-31
0001037049
arxg:ThirdEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
arxg:SecondEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
arxg:FirstEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:ThirdEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:SecondEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:FirstEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2011-01-01
2011-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2011-01-01
2011-12-31
0001037049
us-gaap:CommonStockMember
arxg:ThirdEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:CommonStockMember
arxg:SecondEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:CommonStockMember
arxg:FirstEquityIssuanceMember
2011-01-01
2011-12-31
0001037049
us-gaap:CommonStockMember
2011-01-01
2011-12-31
0001037049
2011-01-01
2011-12-31
0001037049
us-gaap:WarrantMember
2011-01-01
2011-09-30
0001037049
us-gaap:StockOptionsMember
2011-01-01
2011-09-30
0001037049
us-gaap:ManagementMember
2011-01-01
2011-09-30
0001037049
2011-01-01
2011-09-30
0001037049
arxg:ThirdEquityIssuanceMember
2010-09-01
2010-09-30
0001037049
arxg:SecondEquityIssuanceMember
2010-09-01
2010-09-30
0001037049
arxg:FirstEquityIssuanceMember
2010-09-01
2010-09-30
0001037049
arxg:MineralClaimsMember
arxg:ProcessesTwoMember
arxg:RenewalRightsMember
2010-08-19
2010-08-20
0001037049
2010-06-01
2010-06-30
0001037049
2010-04-01
2010-04-30
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:SecondEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:FirstEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2010-01-01
2010-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:SecondEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:FirstEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2010-01-01
2010-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:SecondEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2010-01-01
2010-12-31
0001037049
arxg:SecondEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
arxg:FirstEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:SecondEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:FirstEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2010-01-01
2010-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
arxg:SecondEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2010-01-01
2010-12-31
0001037049
us-gaap:CommonStockMember
arxg:SecondEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:CommonStockMember
arxg:FirstEquityIssuanceMember
2010-01-01
2010-12-31
0001037049
us-gaap:CommonStockMember
2010-01-01
2010-12-31
0001037049
2010-01-01
2010-12-31
0001037049
2009-12-01
2009-12-31
0001037049
arxg:SecondEquityIssuanceMember
2009-11-01
2009-11-30
0001037049
arxg:FirstEquityIssuanceMember
2009-11-01
2009-11-30
0001037049
arxg:ThirdEquityIssuanceMember
2009-09-01
2009-09-30
0001037049
arxg:SecondEquityIssuanceMember
2009-09-01
2009-09-30
0001037049
arxg:FirstEquityIssuanceMember
2009-09-01
2009-09-30
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:ThirdEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:SecondEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:FirstEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2009-01-01
2009-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:ThirdEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:SecondEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:FirstEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2009-01-01
2009-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:ThirdEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:SecondEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-01-01
2009-12-31
0001037049
arxg:ThirdEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
arxg:SecondEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
arxg:FirstEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:ThirdEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:SecondEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:FirstEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2009-01-01
2009-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2009-01-01
2009-12-31
0001037049
us-gaap:CommonStockMember
arxg:ThirdEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:CommonStockMember
arxg:SecondEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:CommonStockMember
arxg:FirstEquityIssuanceMember
2009-01-01
2009-12-31
0001037049
us-gaap:CommonStockMember
2009-01-01
2009-12-31
0001037049
2009-01-01
2009-12-31
0001037049
2008-12-01
2008-12-31
0001037049
2008-07-01
2008-07-31
0001037049
2008-06-01
2008-06-30
0001037049
us-gaap:AdditionalPaidInCapitalMember
2008-01-01
2008-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2008-01-01
2008-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-01-01
2008-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2008-01-01
2008-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2008-01-01
2008-12-31
0001037049
us-gaap:CommonStockMember
2008-01-01
2008-12-31
0001037049
2008-01-01
2008-12-31
0001037049
2007-09-01
2007-09-30
0001037049
2007-08-01
2007-08-31
0001037049
2007-07-01
2007-07-31
0001037049
2007-03-01
2007-03-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:ThirdEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:SecondEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:FirstEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2007-01-01
2007-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:ThirdEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:SecondEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:FirstEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2007-01-01
2007-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:ThirdEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:SecondEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2007-01-01
2007-12-31
0001037049
arxg:ThirdEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
arxg:SecondEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
arxg:FirstEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:ThirdEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:SecondEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:FirstEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2007-01-01
2007-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2007-01-01
2007-12-31
0001037049
us-gaap:CommonStockMember
arxg:ThirdEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:CommonStockMember
arxg:SecondEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:CommonStockMember
arxg:FirstEquityIssuanceMember
2007-01-01
2007-12-31
0001037049
us-gaap:CommonStockMember
2007-01-01
2007-12-31
0001037049
2007-01-01
2007-12-31
0001037049
arxg:SecondEquityIssuanceMember
2006-12-01
2006-12-31
0001037049
arxg:FirstEquityIssuanceMember
2006-12-01
2006-12-31
0001037049
arxg:MineralClaimsMember
arxg:ProcessesTwoMember
2006-11-01
2006-11-30
0001037049
arxg:MineralClaimsMember
arxg:ProcessesSixMember
2006-09-14
2006-09-15
0001037049
2006-02-01
2006-02-28
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:SecondEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:FirstEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2006-01-01
2006-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:SecondEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:FirstEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2006-01-01
2006-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:SecondEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2006-01-01
2006-12-31
0001037049
arxg:SecondEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
arxg:FirstEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:SecondEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:FirstEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2006-01-01
2006-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2006-01-01
2006-12-31
0001037049
us-gaap:CommonStockMember
arxg:SecondEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
us-gaap:CommonStockMember
arxg:FirstEquityIssuanceMember
2006-01-01
2006-12-31
0001037049
us-gaap:CommonStockMember
2006-01-01
2006-12-31
0001037049
2006-01-01
2006-12-31
0001037049
2005-07-01
2005-07-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2005-01-01
2005-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2005-01-01
2005-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2005-01-01
2005-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2005-01-01
2005-12-31
0001037049
us-gaap:CommonStockMember
2005-01-01
2005-12-31
0001037049
2005-01-01
2005-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2004-01-01
2004-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2004-01-01
2004-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2004-01-01
2004-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2004-01-01
2004-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2004-01-01
2004-12-31
0001037049
us-gaap:CommonStockMember
2004-01-01
2004-12-31
0001037049
2004-01-01
2004-12-31
0001037049
2004-01-01
2004-01-31
0001037049
2003-12-01
2003-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2003-01-01
2003-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2003-01-01
2003-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2003-01-01
2003-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2003-01-01
2003-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2003-01-01
2003-12-31
0001037049
us-gaap:CommonStockMember
2003-01-01
2003-12-31
0001037049
2003-01-01
2003-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2002-01-01
2002-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2002-01-01
2002-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2002-01-01
2002-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2002-01-01
2002-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2002-01-01
2002-12-31
0001037049
us-gaap:CommonStockMember
2002-01-01
2002-12-31
0001037049
2002-01-01
2002-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2001-01-01
2001-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2001-01-01
2001-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2001-01-01
2001-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2001-01-01
2001-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2001-01-01
2001-12-31
0001037049
us-gaap:CommonStockMember
2001-01-01
2001-12-31
0001037049
2001-01-01
2001-12-31
0001037049
2000-06-01
2000-06-30
0001037049
2000-04-01
2000-04-30
0001037049
arxg:SecondEquityIssuanceMember
2000-03-01
2000-03-31
0001037049
arxg:FirstEquityIssuanceMember
2000-03-01
2000-03-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:SecondEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:FirstEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2000-01-01
2000-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:FirstEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2000-01-01
2000-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2000-01-01
2000-12-31
0001037049
arxg:SecondEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
arxg:FirstEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:SecondEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:FirstEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2000-01-01
2000-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
2000-01-01
2000-12-31
0001037049
us-gaap:CommonStockMember
arxg:SecondEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
us-gaap:CommonStockMember
arxg:FirstEquityIssuanceMember
2000-01-01
2000-12-31
0001037049
us-gaap:CommonStockMember
2000-01-01
2000-12-31
0001037049
2000-01-01
2000-12-31
0001037049
1999-03-01
1999-03-31
0001037049
1999-02-01
1999-02-28
0001037049
us-gaap:AdditionalPaidInCapitalMember
1999-01-01
1999-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1999-01-01
1999-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1999-01-01
1999-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1999-01-01
1999-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
1999-01-01
1999-12-31
0001037049
us-gaap:CommonStockMember
1999-01-01
1999-12-31
0001037049
1999-01-01
1999-12-31
0001037049
1998-12-01
1998-12-31
0001037049
1998-11-01
1998-11-30
0001037049
1998-05-01
1998-05-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:ThirdEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:SecondEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
arxg:FirstEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1998-01-01
1998-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:ThirdEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:SecondEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
arxg:FirstEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1998-01-01
1998-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:ThirdEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:SecondEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
arxg:FirstEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1998-01-01
1998-12-31
0001037049
arxg:ThirdEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
arxg:SecondEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
arxg:FirstEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:ThirdEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:SecondEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
arxg:SubscriptionsReceivablesMember
arxg:FirstEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1998-01-01
1998-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
1998-01-01
1998-12-31
0001037049
us-gaap:CommonStockMember
arxg:ThirdEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:CommonStockMember
arxg:SecondEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:CommonStockMember
arxg:FirstEquityIssuanceMember
1998-01-01
1998-12-31
0001037049
us-gaap:CommonStockMember
1998-01-01
1998-12-31
0001037049
1998-01-01
1998-12-31
0001037049
1997-03-01
1997-03-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1997-01-01
1997-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1997-01-01
1997-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1997-01-01
1997-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1997-01-01
1997-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
1997-01-01
1997-12-31
0001037049
us-gaap:CommonStockMember
1997-01-01
1997-12-31
0001037049
1997-01-01
1997-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1996-01-01
1996-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1996-01-01
1996-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1996-01-01
1996-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1996-01-01
1996-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
1996-01-01
1996-12-31
0001037049
us-gaap:CommonStockMember
1996-01-01
1996-12-31
0001037049
1996-01-01
1996-12-31
0001037049
1995-10-19
2012-09-30
0001037049
1995-10-11
2011-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1995-10-11
1995-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1995-10-11
1995-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1995-10-11
1995-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1995-10-11
1995-12-31
0001037049
us-gaap:ComprehensiveIncomeMember
1995-10-11
1995-12-31
0001037049
us-gaap:CommonStockMember
1995-10-11
1995-12-31
0001037049
1995-10-11
1995-12-31
0001037049
us-gaap:IssuanceOfEquityMember
us-gaap:SubsequentEventMember
2012-10-05
0001037049
us-gaap:AdditionalPaidInCapitalMember
2012-09-30
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2012-09-30
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2012-09-30
0001037049
arxg:StockOptionPlanTwentyZeroSevenMember
2012-09-30
0001037049
arxg:SubscriptionsReceivablesMember
2012-09-30
0001037049
us-gaap:MaximumMember
2012-09-30
0001037049
us-gaap:ManagementMember
2012-09-30
0001037049
us-gaap:CommonStockMember
2012-09-30
0001037049
2012-09-30
0001037049
2012-06-30
0001037049
2012-03-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2011-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2011-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2011-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2011-12-31
0001037049
us-gaap:ManagementMember
2011-12-31
0001037049
us-gaap:CommonStockMember
2011-12-31
0001037049
2011-12-31
0001037049
us-gaap:MaximumMember
2011-12-20
0001037049
2011-12-20
0001037049
2011-10-31
0001037049
2011-09-30
0001037049
arxg:AgcResourceLimitedLiabilityCompanyMember
2011-06-14
0001037049
arxg:ExplorationRightsMember
arxg:ProcessesSevenMember
2011-02-15
0001037049
us-gaap:AdditionalPaidInCapitalMember
2010-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2010-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2010-12-31
0001037049
us-gaap:CommonStockMember
2010-12-31
0001037049
2010-12-31
0001037049
arxg:MineralClaimsMember
arxg:ProcessesTwoMember
arxg:RenewalRightsMember
2010-08-20
0001037049
us-gaap:AdditionalPaidInCapitalMember
2009-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2009-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2009-12-31
0001037049
us-gaap:CommonStockMember
2009-12-31
0001037049
2009-12-31
0001037049
arxg:MineralClaimsMember
arxg:ProcessesTwoMember
2009-09-28
0001037049
arxg:MineralClaimsMember
arxg:ProcessesTwoMember
2009-09-27
0001037049
us-gaap:AdditionalPaidInCapitalMember
2008-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2008-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2008-12-31
0001037049
us-gaap:CommonStockMember
2008-12-31
0001037049
2008-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2007-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2007-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2007-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2007-12-31
0001037049
us-gaap:CommonStockMember
2007-12-31
0001037049
2007-12-31
0001037049
arxg:ExplorationLicenseApplicationMember
arxg:ProcessesSevenMember
2007-04-17
0001037049
us-gaap:AdditionalPaidInCapitalMember
2006-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2006-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2006-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2006-12-31
0001037049
us-gaap:CommonStockMember
2006-12-31
0001037049
2006-12-31
0001037049
arxg:MineralClaimsMember
arxg:ProcessesSixMember
2006-09-15
0001037049
arxg:MineralClaimsMember
arxg:ProcessesOneMember
2006-09-13
0001037049
arxg:ExplorationLicenseApplicationMember
arxg:ProcessesSevenMember
2006-08-08
0001037049
arxg:ExplorationLicenseApplicationMember
arxg:ProcessesFiveMember
2006-03-07
0001037049
arxg:ExplorationLicenseApplicationMember
arxg:ProcessesSevenMember
2006-01-19
0001037049
arxg:ExplorationLicenseApplicationMember
arxg:ProcessesFourMember
2006-01-19
0001037049
arxg:ExplorationLicenseApplicationMember
arxg:ProcessesThreeMember
2006-01-19
0001037049
us-gaap:AdditionalPaidInCapitalMember
2005-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2005-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2005-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2005-12-31
0001037049
us-gaap:CommonStockMember
2005-12-31
0001037049
2005-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2004-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2004-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2004-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2004-12-31
0001037049
us-gaap:CommonStockMember
2004-12-31
0001037049
2004-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2003-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2003-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2003-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2003-12-31
0001037049
us-gaap:CommonStockMember
2003-12-31
0001037049
2003-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2002-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2002-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2002-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2002-12-31
0001037049
us-gaap:CommonStockMember
2002-12-31
0001037049
2002-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2001-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2001-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2001-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2001-12-31
0001037049
us-gaap:CommonStockMember
2001-12-31
0001037049
2001-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
2000-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
2000-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2000-12-31
0001037049
arxg:SubscriptionsReceivablesMember
2000-12-31
0001037049
us-gaap:CommonStockMember
2000-12-31
0001037049
2000-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1999-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1999-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1999-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1999-12-31
0001037049
us-gaap:CommonStockMember
1999-12-31
0001037049
1999-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1998-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1998-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1998-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1998-12-31
0001037049
us-gaap:CommonStockMember
1998-12-31
0001037049
1998-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1997-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1997-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1997-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1997-12-31
0001037049
us-gaap:CommonStockMember
1997-12-31
0001037049
1997-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1996-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1996-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1996-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1996-12-31
0001037049
us-gaap:CommonStockMember
1996-12-31
0001037049
1996-12-31
0001037049
us-gaap:AdditionalPaidInCapitalMember
1995-12-31
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1995-12-31
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1995-12-31
0001037049
arxg:SubscriptionsReceivablesMember
1995-12-31
0001037049
us-gaap:CommonStockMember
1995-12-31
0001037049
1995-12-31
0001037049
1995-10-18
0001037049
us-gaap:AdditionalPaidInCapitalMember
1995-10-10
0001037049
us-gaap:AccumulatedDeficitDuringDevelopmentStageMember
1995-10-10
0001037049
us-gaap:AccumulatedOtherComprehensiveIncomeMember
1995-10-10
0001037049
arxg:SubscriptionsReceivablesMember
1995-10-10
0001037049
us-gaap:CommonStockMember
1995-10-10
0001037049
1995-10-10