--05-31 hndi HANDENI GOLD INC. 2012-11-30 0001297223 No Smaller Reporting Company No 10-Q false 308416654 Yes 2013 Q2 0001297223 2012-01-08 0001297223 2012-06-01 2012-11-30 0001297223 2012-11-30 0001297223 2012-05-31 0001297223 2012-09-01 2012-11-30 0001297223 2011-09-01 2011-11-30 0001297223 2011-06-01 2011-11-30 0001297223 2004-01-05 2012-11-30 0001297223 2011-05-31 0001297223 2004-01-04 0001297223 2011-11-30 0001297223 2011-12-01 2012-05-31 shares iso4217:USD iso4217:USD shares utr:Y utr:km pure utr:D utr:M hndi:option hndi:unit 297001 886889 667450 602286 160333 189937 1124784 1679112 57724 56531 160000 1160000 1650000 1650000 345522 463521 3338030 5009164 75023 134066 117045 30000 192068 164066 0 0 308417 307417 115777824 115289842 -650000 -150000 109000 109000 -1000000 -1600000 -112699279 -109411161 3145962 4845098 3338030 5009164 500000000 500000000 0.001 0.001 308416654 307416654 308416654 307416654 0 0 0 0 0 209680 486478 496250 958000 23971366 50839 33588 102677 69582 342560 175345 2579561 406559 3301037 7803416 205321 261580 459288 306145 2850445 0 0 0 0 77492074 29626 265065 111991 496807 2480350 14868 39668 46157 72399 393739 13052 114600 65509 190688 1954795 698731 3780540 1688431 5394658 117288745 -698731 -3780540 -1688431 -5394658 -117288745 0 99246 0 99246 458058 1600000 0 1600000 0 1600000 245 143 313 143 1103 0 0 0 0 -57071 0 0 0 0 -81641 0 0 0 0 3616017 0 0 0 0 2253000 -1599755 99389 -1599687 99389 4589466 -2298486 -3681151 -3288118 -5295269 -112699279 -420000 160000 -1000000 200000 -1000000 -2718486 -3521151 -4288118 -5095269 -113699279 -0.01 -0.01 -0.01 -0.02 308416654 292581489 308121572 292498621 0 0 9000 0 0 57071 0 0 -156017 488982 599704 20275633 1193 0 1193 0 0 81641 2687 6741 21740 0 0 -2760000 65164 -409334 749091 -29604 -1555993 160333 -59043 735046 -165877 87045 -1112 970988 -1102523 -2019227 -18552141 0 0 697677 0 0 600000 21578 0 21578 0 27853 56531 8943 144278 731400 12635 -172131 -864030 0 0 20384363 500000 13814 650000 0 0 -1321191 500000 13814 19713172 -589888 -2177544 297001 6795474 0 4617930 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>1.</b> </td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>Nature of Operations and Continuance of Business</b> </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company was incorporated in the State of Nevada on January 5, 2004. On February 14, 2012, the Company changed its name from Douglas Lake Minerals Inc. to Handeni Gold Inc. (the &#8220;Company&#8221;). The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) 915, <i>Development Stage Entities</i> . The Company&#8217;s principal business is the acquisition and exploration of mineral resources located in Tanzania, Africa. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of the Company&#8217;s interests in the underlying properties, and the attainment of profitable operations. As at November 30, 2012, the Company has not generated any revenues and has accumulated losses of $112,699,279 since inception. These factors raise substantial doubt regarding the Company&#8217;s ability to continue as a going concern. The Company plans to raise equity and/or debt financing to fund its operations. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. </p> </td> </tr> </table> 112699279 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>2.</b></td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>Summary of Significant Accounting Policies</b></p> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> a)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Basis of Presentation</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. These consolidated financial statements include the accounts of the Company and its subsidiaries described as follows. In June 2011, the Company incorporated in Tanzania a new wholly-owned subsidiary, HG Limited (formerly DLM Tanzania Limited), which undertakes mineral property exploration activities in Tanzania. The Company also has a wholly-owned non-operating Tanzanian subsidiary (Douglas Lake Tanzania Limited).</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> All significant intercompany transactions and balances have been eliminated. The Company&#8217;s fiscal year-end is May 31.</p> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> b)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Interim Financial Statements</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Securities and Exchange Commission (&#8220;SEC&#8221;) Form 10- Q. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company&#8217;s audited consolidated financial statements and notes thereto for the year ended May 31, 2012, included in the Company&#8217;s Annual Report on Form 10-K filed on August 27, 2012 with the SEC.</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The interim financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the Company&#8217;s financial position at November 30, 2012, and the results of its operations and cash flows for the interim period ended November 30, 2012. The results of operations for the three and six months ended November 30, 2012 are not necessarily indicative of the results to be expected for future quarters or the full year.</p> </td> </tr> </table> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> c)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Use of Estimates</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The preparation of consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to the recoverability and useful life of long-lived assets, mineral prospecting licenses, stock-based compensation, deferred income tax asset valuation allowances and contingent liabilities. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company&#8217;s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.</p> </td> </tr> </table> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> d)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Basic and Diluted Net Income (Loss) Per Share</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company computes net income (loss) per share in accordance with ASC 260, <i>Earnings per Share</i> which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.</p> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> e)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Comprehensive Income (Loss)</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> ASC 220, <i>Comprehensive Income</i> establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at November 30, 2012, the Company&#8217;s components of other comprehensive income (loss) and accumulated other comprehensive income (loss) are an unrealized fair value gain (loss) on available for sale marketable securities.</p> </td> </tr> </table> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> f)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Cash and Cash Equivalents</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Cash and cash equivalents are carried at fair value and they comprise cash on hand, deposits held with banks and other highly liquid investments. Highly liquid investments are readily convertible to cash and generally have maturities of three months or less from the time acquired. The Company places its cash and cash equivalents with high quality financial institutions which the Company believes limits credit risk.</p> </td> </tr> </table> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> g)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Marketable Securities</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company reports investments in marketable equity securities at fair value based on quoted market prices. All investment securities are designated as available for sale with unrealized gains and losses included in stockholders&#8217; equity. Unrealized losses that are other than temporary are recognized in earnings. Realized gains and losses are accounted for on the specific identification method.</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company periodically reviews these investments for other-than-temporary declines in fair value based on the specific identification method and writes down investments to their fair value when an other-than-temporary decline has occurred. When determining whether a decline is other-than-temporary, the Company examines (i) the length of time and the extent to which the fair value of an investment has been lower than its carrying value: (ii) the financial condition and near-term prospects of the investee, including any specific events that may influence the operations of the investee such as changes in technology that may impair the earnings potential of the investee: and (iii) the Company&#8217;s intent and ability to retain its investment in the investee for a sufficient period of time to allow for any anticipated recovery in market value. The Company generally believes that an other-than-temporary decline has occurred when the fair value of the investment is below the carrying value for one year, absent of evidence to the contrary.</p> </td> </tr> </table> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> h)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Property and Equipment</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Property and equipment consists of office equipment, automobiles and computer software recorded at cost and depreciated on a straight-line basis as follows:</p> </td> </tr> </table> <br /> <div align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="70%"> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Automobiles</td> <td align="left" bgcolor="#e6efff" width="50%"> 3 years</td> </tr> <tr valign="top"> <td align="left"> Camp and equipment</td> <td align="left" width="50%"> 3 years</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Computer software</td> <td align="left" bgcolor="#e6efff" width="50%"> 1 year</td> </tr> <tr valign="top"> <td align="left"> Office furniture and equipment</td> <td align="left" width="50%"> 3 years</td> </tr> </table> </div> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> i)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Mineral Property Costs</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company has been in the exploration stage since its inception on January 5, 2004 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property exploration costs are expensed as incurred. Mineral prospecting licenses and mineral property acquisition costs are initially capitalized. The Company assesses the carrying costs for impairment under ASC 360, <i>Property, Plant, and Equipment</i> at each fiscal quarter end. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs then incurred to develop such property, are capitalized. Such costs will be amortized using the units-of- production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.</p> </td> </tr> </table> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> j)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Long-Lived Assets</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> In accordance with ASC 360 <i>, Property Plant and Equipment</i> the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.</p> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> k)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Asset Retirement Obligations</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company accounts for asset retirement obligations in accordance with the provisions of ASC 440 <i>Asset Retirement and Environmental Obligations</i> which requires the Company to record the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development and/or normal use of the assets. The Company did not have any asset retirement obligations as of November 30, 2012 and May 31, 2012.</p> </td> </tr> </table> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &#160;</td> <td valign="top" width="5%"> l)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> Financial Instruments</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> ASC 825, <i>Financial Instruments</i> requires an entity to maximize the use of observable inputs and the fair value of financial instruments, which include cash and cash equivalents, restricted cash equivalent, restricted marketable securities, and accounts payable were estimated to approximate their carrying values due to the immediate or short-term maturities of these financial instruments.</p> </td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> &#160;</td> </tr> <tr> <td width="5%"> &#160;</td> <td width="5%"> &#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The Company&#8217;s operations are in Canada and Africa, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company&#8217;s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. 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align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="9%"> 1,160,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="9%"> (1,600,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="2%">)</td> </tr> </table> 4000000 2760000 160000 -1600000 -1000000 1160000 -1600000 2760000 160000 1160000 1600000 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>4.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 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width="1%">&#160;</td> <td align="right" width="12%"> 23,791 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 9,423 </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Professional fees</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> 2,066 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left">Rent</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 122,292 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 128,670 </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td 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double">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 160,333 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 189,937 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> </tr> </table> 0 44500 23791 9423 0 2066 122292 128670 14250 5278 160333 189937 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>5.</b> </td> <td> <p align="justify" style="font-family: times new 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IPP Gold retained a 2.5% net smelter royalty (&#8220;NSR&#8221;) on the Handeni Properties and the Company has the option to reduce the NSR to 1.25% by paying $5,000,000. If the NSR is reduced to 1.25% the maximum NSR for any year is capped at $1,000,000. In any year the NSR payment is less than $1,000,000 the difference between the actual NSR payment and $1,000,000 will be carried forward to subsequent years. In addition if the London spot price for gold is equal to or greater than $1,500 then the NSR will increase from 2.5% to 3%. 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Pursuant to the agreement, the Company agreed to pay the consultant a transaction fee for each completed property acquisition transaction in Tanzania (a &#8220;Completed Transaction&#8221;). The transaction fee is 12.5% of the shares issuable under each Completed Transaction, payable in restricted common shares at the lowest priced security issuable under each Completed Transaction. On September 30, 2010, the Company issued 16,666,667 restricted shares of common stock pursuant to the Transaction Fee Agreement in relation to the acquisition of the Handeni Properties. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The fair value of the 133,333,333 shares of the Company&#8217;s common stock issued to IPP Gold pursuant to the Acquisition Agreement and the 16,666,667 shares of the Company&#8217;s common stock issued pursuant to the Transaction Fee Agreement totalled $60,000,000. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> On November 30, 2010, the capitalized acquisition costs of the Handeni Properties were tested for impairment by the Company&#8217;s management as required by ASC 360. Management determined that no positive cash flows from the Handeni Properties could be identified or supported and a full impairment loss was recognized in expenses for the $60,000,000 acquisition cost. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> On August 5, 2011, the Company entered a Mineral Property Acquisition Agreement (the &#8220;2011 Acquisition Agreement&#8221;) with Handeni Resources Limited (&#8220;Handeni Resources&#8221;), a limited liability company registered under the laws of Tanzania. The Chairman of the Board of Directors of the Company has an existing ownership and/or beneficial interest(s) in Handeni Resources. Pursuant to the 2011 Acquisition Agreement, the Company had an exclusive option to acquire from Handeni Resources a 100% interest in mineral licenses covering an area of approximately 2.67 square kilometres to the east of Magambazi Hill, which is adjacent to the area covered by the Company&#8217;s four existing prospecting licenses (totalling approximately 800 square kilometres) in the Handeni District. </p> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> On November 30, 2011, the Company completed the 2011 Acquisition Agreement and issued 15,000,000 restricted common shares to Handeni Resources as payment. 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During this period Handeni Resources is conducting exploration and mining activities on the PMLs as directed by the Company. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">b)</td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Mkuvia Alluvial Gold Project, Tanzania, Africa</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> On June 27, 2008, the Company entered into a Joint Venture Agreement that grants the Company the right to explore for minerals on properties in Liwale and Nachigwea Districts of Tanzania known as the Mkuvia Alluvial Gold Project, in consideration for the payment of $1,000,000 (paid) upon signing the agreement and $540,000 over five years beginning July 15, 2008. The $540,000 is payable in stages on a quarterly basis of which $80,000 must be paid in the first year, and $460,000 over the next five years. The holder of the property licenses retains a net smelter royalty return of 3%. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> On June 5, 2009, the Company entered into a new joint venture which reduced the area covered by the original agreement to approximately 380 square kilometres. Pursuant to the new joint venture agreement, the Company was required to pay $40,000 upon the signing of the new agreement. In addition, the joint venture partner is still entitled to receive a perpetual net smelter royalty return of 3% from any product realized from the property underlying the prospecting licenses. By entering into the new joint venture agreement, the Company is no longer required to pay the balance of the $460,000 previously due under the prior joint venture agreement. The new joint venture agreement covers prospecting licenses No. 5673/2009, No. 5669/2009, No. 5664/2009, and No. 5662/2009, all of which were renewed on June 12, 2009 for a period of three years. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td colspan="2"> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> On November 7, 2009, the Company entered into its first agreement with Ruby Creek Resources Inc. (&#8220;RCR&#8221;) in which RCR has the right to acquire a 70% interest in 125 square kilometres of the Company&#8217;s interest in the 380 square kilometres covered by the four prospecting licenses in the Mkuvia Alluvial Gold Project in consideration for $3,000,000 payable as follows: </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td valign="top" width="5%">i)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> $100,000 within 5 business days of signing the agreement (received). </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td valign="top" width="5%">ii)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> $150,000 within 15 business days of signing the agreement (received). </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td valign="top" width="5%">iii)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> $100,000 upon satisfactory completion of RCR due diligence (received). </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td valign="top" width="5%">iv)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> $400,000 upon closing and receipt the first mining license. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td valign="top" width="5%">v)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> $750,000 payable within 12 months of closing. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td valign="top" width="5%">vi)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> $750,000 payable within 24 months of closing, and </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td valign="top" width="5%">vii)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> $750,000 payable within 36 months of closing. This payment may be made in common shares of RCR. 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Ruby Creek Resources (Tanzania) Limited, a joint venture company (the &#8220;Joint Venture Company&#8221;), is owned by Ruby Creek Resources ( 70%), the Company ( 25%) and Mr. Mkuvia Maita ( 5%). </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td width="5%">&#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> During fiscal 2011 the Company recognized a total of $3,110,000 in other income for the receipt of the shares at fair market value and the option payments (i) and (ii). The Company has not yet received the $450,000 option payment (iii) nor received the $1,000,000 option payment (iv) which are overdue and the agreement is in default. 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On July 4, 2012, the Company granted stock options to its independent directors to acquire a total of 1,000,000 common shares at an exercise price of $0.08 per share exercisable for 10 years and during the period ended November 30, 2012, 600,000 vested options were forfeited. At November 30, 2012, the Company had 11,300,000 shares of common stock available to be issued under the November 2010 Stock Incentive Plan.</p> </td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> &nbsp;</td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> There were no stock options exercised during the six months ended November 30, 2012 and 2011, and there were no intrinsic values of outstanding options at November 30, 2012 and May 31, 2012. 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Outstanding, May 31, 2011</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 36,493,333</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.21</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 8.93</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 8,824,000</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> Granted</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 6,250,000</td> <td align="left" width="2%"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 0.40</td> <td align="left" width="2%"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 7.61</td> <td align="left" width="2%"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> -</td> <td align="left" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Forfeited</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> (14,443,333</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> )</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 0.23</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 6.60</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> -</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" bgcolor="#e6efff"> Outstanding, May 31, 2012</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 28,300,000</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.24</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 8.53</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> -</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> Granted</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 1,000,000</td> <td align="left" width="2%"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 0.08</td> <td align="left" width="2%"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 9.60</td> <td align="left" width="2%"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> -</td> <td align="left" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Forfeited</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> (600,000</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> )</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 0.20</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 8.00</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> -</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);"> Outstanding, November 30, 2012</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 28,700,000</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 0.23</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> 8.08</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="border-bottom: 3px double rgb(0, 0, 0);" width="12%"> -</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> <td width="1%"> &nbsp;</td> <td width="12%"> &nbsp;</td> <td width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double"> Exercisable, November 30, 2012</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 28,700,000</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 0.23</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 8.08</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> -</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%"> &nbsp;</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> &nbsp;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> The stock options outstanding are exercisable for cash or on a cashless exercise basis using a prorated formula whereby the number of shares issuable is equal to (a) the average closing price for the five days prior to exercise date (&#8220;ACP&#8221;) in excess of the exercise price, divided by (b) the exercise price multiplied by (c) the number of options exercised. During the six months ended November 30, 2012 and 2011, no cashless stock options were exercised.</p> </td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> &nbsp;</td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> As at November 30, 2012, all non-vested stock options were vested. A summary of the Company&#8217;s non-vested stock options changes during the six months ended November 30, 2012 and the year ended May 31, 2012 are presented below:</p> </td> </tr> </table> <br /> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="left" nowrap="nowrap" width="12%"> &nbsp;</td> <td align="left" nowrap="nowrap" width="2%"> &nbsp;</td> <td align="left" nowrap="nowrap" width="1%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="12%"> Weighted</td> <td align="left" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Non-vested stock options</td> <td align="left" width="1%"> &nbsp;</td> <td align="left" nowrap="nowrap" width="12%"> &nbsp;</td> <td align="left" nowrap="nowrap" width="2%"> &nbsp;</td> <td align="left" nowrap="nowrap" width="1%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="12%"> Average</td> <td align="left" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="12%"> Number of</td> <td align="left" nowrap="nowrap" width="2%"> &nbsp;</td> <td align="left" nowrap="nowrap" width="1%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="12%"> Grant Date</td> <td align="left" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="12%"> Options</td> <td align="left" nowrap="nowrap" width="2%"> &nbsp;</td> <td align="left" nowrap="nowrap" width="1%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="12%"> Fair Value</td> <td align="left" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="12%"> #</td> <td align="left" nowrap="nowrap" width="2%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="1%"> &nbsp;</td> <td align="right" nowrap="nowrap" width="12%"> $&nbsp;</td> <td align="right" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" bgcolor="#e6efff"> Non-vested at May 31, 2011</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 20,100,000</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.36</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> Granted</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 5,500,000</td> <td align="left" width="2%"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 0.45</td> <td align="left" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" bgcolor="#e6efff"> Forfeited</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> (5,920,000</td> <td align="left" bgcolor="#e6efff" width="2%"> )</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.33</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> Vested</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> (12,990,000</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> )</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 0.24</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> </tr> <tr> <td width="5%"> &nbsp;</td> <td bgcolor="#e6efff"> &nbsp;</td> <td bgcolor="#e6efff" width="1%"> &nbsp;</td> <td bgcolor="#e6efff" width="12%"> &nbsp;</td> <td bgcolor="#e6efff" width="2%"> &nbsp;</td> <td bgcolor="#e6efff" width="1%"> &nbsp;</td> <td bgcolor="#e6efff" width="12%"> &nbsp;</td> <td bgcolor="#e6efff" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left"> Non-vested at May 31, 2012</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 6,690,000</td> <td align="left" width="2%"> &nbsp;</td> <td align="left" width="1%"> &nbsp;</td> <td align="right" width="12%"> 0.23</td> <td align="left" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" bgcolor="#e6efff"> Granted</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 1,000,000</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> <td align="left" bgcolor="#e6efff" width="1%"> &nbsp;</td> <td align="right" bgcolor="#e6efff" width="12%"> 0.08</td> <td align="left" bgcolor="#e6efff" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> Vested</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> (7,690,000</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> )</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> &nbsp;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 0.02</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> &nbsp;</td> </tr> <tr> <td width="5%"> &nbsp;</td> <td bgcolor="#e6efff"> &nbsp;</td> <td bgcolor="#e6efff" width="1%"> &nbsp;</td> <td bgcolor="#e6efff" width="12%"> &nbsp;</td> <td bgcolor="#e6efff" width="2%"> &nbsp;</td> <td bgcolor="#e6efff" width="1%"> &nbsp;</td> <td bgcolor="#e6efff" width="12%"> &nbsp;</td> <td bgcolor="#e6efff" width="2%"> &nbsp;</td> </tr> <tr valign="top"> <td width="5%"> &nbsp;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double"> Non-vested at November 30, 2012</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%"> &nbsp;</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> -</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%"> &nbsp;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%"> &nbsp;</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> -</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%"> &nbsp;</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="left" nowrap="nowrap" width="12%">&#160;</td> <td align="left" nowrap="nowrap" width="2%">&#160;</td> <td align="left" nowrap="nowrap" width="1%">&#160;</td> <td align="left" nowrap="nowrap" width="12%">&#160;</td> <td align="left" nowrap="nowrap" width="2%">&#160;</td> <td align="left" nowrap="nowrap" width="1%">&#160;</td> <td align="right" nowrap="nowrap" width="12%">Weighted</td> <td align="left" nowrap="nowrap" width="2%">&#160;</td> <td align="left" nowrap="nowrap" width="1%">&#160;</td> <td align="left" nowrap="nowrap" width="12%">&#160;</td> <td 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width="2%">&#160;</td> </tr> </table> 20100000 0.36 5500000 0.45 -5920000 0.33 -12990000 0.24 6690000 0.23 1000000 0.08 -7690000 0.02 0 0 40000000 1000000 0.08 10 600000 11300000 0 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>11.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>Common Stock Purchase Warrants</b> </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> During the six months ended November 30, 2012, there were no stock purchase warrants granted and 20,162,262 stock purchase warrants expired. </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td 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receipt of proceeds from the exercise of any warrants attached to the 17,757,777 units sold by Rodman &amp; Renshaw in the March 2011 private placements. During the six months ended November 30, 2012, 5,446,667 stock purchase warrants related to such units expired. 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style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 160,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double">Total assets measured at fair value</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" 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bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> &#8211; </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> &#8211; </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 1,160,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td width="2%">&#160;</td> <td width="1%">&#160;</td> <td width="12%">&#160;</td> <td 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border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>16.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>Segment Disclosures</b> </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The Company operates in one reportable segment, being the acquisition and exploration of mineral properties. 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&#160;Equipment, net</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 10,572 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 334,950 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 345,522 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Total assets, at November 30, 2012</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 748,641 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 2,589,389 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 3,338,030 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> </tr> </table> <br/> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%">Canada</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%">Tanzania, Africa</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%">Total</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">&#160; &#160;Current assets</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> &#160; 941,374 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> &#160; 737,738 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> &#160; 1,679,112 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160; &#160;Restricted cash equivalent</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 56,531 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> - </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 56,531 </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">&#160; &#160;Restricted marketable securities</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> 1,160,000 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> 1,160,000 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160; &#160;Mineral licenses</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> - </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 1,650,000 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 1,650,000 </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">&#160; &#160;Equipment, net</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 10,141 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 453,380 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 463,521 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Total assets, at May 31, 2012</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 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&#160;Equipment, net</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 10,572 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 334,950 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 345,522 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Total assets, at November 30, 2012</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 748,641 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 2,589,389 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 3,338,030 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> </tr> </table> 520345 604439 1124784 57724 0 57724 160000 0 160000 0 1650000 1650000 10572 334950 345522 748641 2589389 3338030 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%">Canada</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%">Tanzania, Africa</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%">Total</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">&#160; &#160;Current assets</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> &#160; 941,374 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> &#160; 737,738 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> &#160; 1,679,112 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160; &#160;Restricted cash equivalent</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 56,531 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> - </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 56,531 </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">&#160; &#160;Restricted marketable securities</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> 1,160,000 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> 1,160,000 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160; &#160;Mineral licenses</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> - </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 1,650,000 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 1,650,000 </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" bgcolor="#e6efff">&#160; &#160;Equipment, net</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 10,141 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 453,380 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 463,521 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">Total assets, at May 31, 2012</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 2,168,046 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 2,841,118 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="12%"> &#160; 5,009,164 </td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> </tr> </table> 941374 737738 1679112 56531 0 56531 1160000 0 1160000 0 1650000 1650000 10141 453380 463521 2168046 2841118 5009164 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; border-collapse: collapse; font-size: 10pt; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>17.</b></td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>Subsequent Event</b></p> </td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> &nbsp;</td> </tr> <tr> <td width="5%"> &nbsp;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> On December 7, 2012, the Company entered into a facility agreement with IPP Ltd., a private company controlled by the chairman of Handeni Gold Inc. 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