EX-99.1 2 ex99-1.htm CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FIRST QUARTER - JULY 31, 2013 CA Filed by Filing Services Canada Inc. 403-717-3898

 

 

 

 

 

 

 

 

 

 

 

 

CanAlaska Uranium Ltd.

 

Condensed Interim Consolidated Financial Statements

First Quarter - July 31, 2013

(Unaudited)

(Expressed in Canadian dollars, except where indicated)

 

 

 

   
   

 

 

 

 

 

 

NOTICE OF NO AUDITOR REVIEW OF

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

 

Under National Instrument 51-102, if an auditor has not performed a review of the condensed interim consolidated financial statements required to be filed, they must be accompanied by a notice indicating that the condensed interim consolidated financial statements have not been reviewed by an auditor.

 

The accompanying condensed interim consolidated financial statements have been prepared by and are the responsibility of the Company’s management.

 

The Company’s independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of condensed interim consolidated financial statements by an entity’s auditor.

 

 

 

 

   
   

 

CanAlaska Uranium Ltd.

Condensed Interim Consolidated Statements of Financial Position

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

 

July 31

2013

$000’s

April 30

2013

$000’s

Assets    
Current assets    
Cash and cash equivalents (note 4) 1,105 1,265
Trade and other receivables 42 58
Available-for-sale securities (note 5) 79 86
Total current assets 1,226 1,409
     
Non-current assets    
Reclamation bonds 200 203
Property and equipment (note 6) 354 375
Mineral property interests (note 7) 1,098 1,238
Total assets 2,878 3,225
     
Liabilities    
Current liabilities    
Trade and other payables 204 195
     
Equity    
Common shares (note 8) 73,206 73,205
Equity reserve (note 8) 10,682 10,682
Investment revaluation reserve (24) (1)
Deficit (81,190) (80,856)
  2,674 3,030
  2,878 3,255
     
Going Concern (note 2)    
Commitments (note 11)    
Subsequent Events (note 14)    

 

 

 

Approved by the Audit Committee of the Board of Directors

 

“Peter Dasler”   “Jean Luc Roy”  
Director Director

 

 

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

   
   

CanAlaska Uranium Ltd.

Condensed Interim Consolidated Statements of Comprehensive Loss

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

 

Three months

ended

July 31

2013

Three months

ended

July 31

2012

  ($000's) ($000's)
     
EXPLORATION COSTS    
Mineral property expenditures net of reimbursements 29  324
Write-down on reclamation bonds 3  110 
Mineral property write-offs (note 7) 143  35 
Equipment rental income - (4)
  175 465
OTHER EXPENSES (INCOME)    
Consulting, labour and professional fees 100  321
Depreciation and amortization (note 6) 20  27
Loss on disposal of property and equipment 1  -
Insurance, licenses and filing fees 19  20 
Interest income (4) (9)
Other corporate costs 9  20 
Investor relations and presentations 1  28 
Rent (note 11) 4  34 
Share-based payments (note 9) - 16 
Travel and accommodation 2  11 
Impairment of available-for-sale securities (note 5) 8  -
Management fees (1) (27)
  159  441
     
Loss for the period (334) (906)
     
Other comprehensive loss    
Unrealized loss on available-for-sale securities 23  76
Total comprehensive loss for the period (357) (982)
     
Basic and diluted loss per share ($ per share) (0.02) (0.04)
     

Basic and diluted weighted average common shares outstanding

(000's)

 22,060  22,058 

 

 

 

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

   
   

CanAlaska Uranium Ltd.

Condensed Interim Consolidated Statements of Changes in Equity

For the three months ended July 31, 2013 and 2012

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

 

     

Investment Revaluation Reserve

$000’s

Accumulated

Deficit

$000’s

Total

Equity

$000’s

       
     

Equity

Reserve

$000’s

  Common Shares
 

Shares

000’s

Amount

$000’s

Balance-May 1, 2012 22,058 73,210 10,506 53 (78,496) 5,273
Share-based payments - - 16 - - 16
Unrealized loss on available-for-sale securities - - - (76) - (76)
Loss for the period - - - - (906) (906)
Balance-July31, 2012 22,058 73,210 10,522 (23) (79,402) 4,307
             
             
             
Balance-May 1, 2013 22,058 73,205 10,682 (1) (80,856) 3,030
Issued to acquire mineral property interest (note 8) 10 1 - - - 1
Unrealized loss on available-for-sale securities - - - (23) - (23)
Loss for the period - - - - (334) (334)
Balance-July31, 2013 22,068 73,206 10,682 (24) (81,190) 2,674
               

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

 

   
   

CanAlaska Uranium Ltd.

Condensed Interim Consolidated Statements of Cash Flows

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

   

Three months

ended July 31

2013

Three months

ended July 31

2012

    $000’s $000’s
Cash flows used in operating activities      
Loss for the period   (334) (906)
Items not affecting cash      
Depreciation and amortization (note 6)   20  27
Mineral property write-offs   143  35 
Write-down on reclamation bonds   3  110 
Impairment of available-for-sale securities (note 5)   8  -
Loss on disposal of property and equipment   1  -
Net option payments and receipts   (24) -
Share-based payments (note 9)   - 16
    (183) (718)
Change in non‑cash operating working capital      
Decrease in trade and other receivables   15  147
Increase (Decrease) in trade and other payables   10  (1,467)
    (158) (2,038)
Cash flows (used in) from investing activities      
Additions to mineral property interests   (2) (6)
Option payments received   - 75
    (2) 69 
       
Decrease in cash and cash equivalents   (160) (1,969)
       
Cash and cash equivalents - beginning of period (note 4)   1,265 4,394
       
Cash and cash equivalents - end of period (note 4)   1,105 2,425
       
       
       

 

 

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

 

   
   

CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

1     Nature of Operations

 

CanAlaska Uranium Ltd. (the “Company” or “CanAlaska”) and its subsidiaries for the past 8 years have been principally engaged in the exploration of uranium properties. The Company will attempt to bring the properties to production, structure joint ventures with others, option or lease properties to third parties or sell the properties outright. The Company has not determined whether these properties contain ore reserves that are economically recoverable and the Company is considered to be in the exploration stage. From time to time, the Company evaluates new properties and directs exploration on these properties based on the Board of Director’s evaluation of financial and market considerations at the time. On June 21, 2011, the Company’s shares commenced trading on the Toronto Stock Exchange under the symbol “CVV” and ceased trading on the TSX Venture Exchange. The Company’s shares are also quoted on the Over-The-Counter Bulletin Board (“OTCBB”) in the United States under the symbol “CVVUF” and the Frankfurt Stock Exchange under the symbol “DH7N”. The Company’s registered office is located at 625 Howe Street, Suite 1020, Vancouver, British Columbia, V6C 2T6, Canada.

 

2     Going Concern

 

These condensed interim consolidated financial statements have been prepared on a going concern basis. The going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. These condensed interim consolidated financial statements do not include any adjustments to the carrying values of assets and liabilities and the reported expenses and statement of financial position classification that would be necessary should the Company be unable to continue as a going concern. These adjustments could be material.

 

The recoverability of the amounts shown for mineral properties and related deferred costs is dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain the necessary financing to complete the development, and upon future profitable production or proceeds from disposition of the mineral properties. Due to increasingly difficult market conditions facing junior uranium exploration companies there is no assurance that the Company will be successful in raising additional financing. The amounts shown as mineral property costs represent net acquisition costs incurred to date and do not necessarily represent current or future values of the mineral properties.

 

At July 31, 2013, the Company had cash and cash equivalents of $1.1 million (April 30, 2013: $1.3 million) (note 4) and working capital of $1.0 million (April 30, 2013: $1.2 million). The Company has a deficit of $81.2 million at July 31, 2013 and incurred a loss of $0.3 million during the three months ended July 31, 2013. Management may either need to dilute its ownership in its properties or secure additional financing to continue to advance the development of its exploration projects. The above factors cast substantial doubt regarding the Company’s ability to continue as a going concern.

 - 1 - 
   

CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

3      Basis of Consolidation and Presentation

 

a)      Statement of Compliance

 

These condensed interim consolidated financial statements of the Company, including comparatives, have been prepared in accordance with International Financial Reporting Standards 34 Interim Financial Reporting (“IAS 34”) using the accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Boards (“IASB”). These condensed interim consolidated financial statements have been prepared on the basis of and using accounting policies, methods of computation and presentation consistent with those applied in the Company’s April 30, 2013 consolidated annual financial statements.

 

These condensed interim consolidated financial statements were authorized for issuance by the Board of Directors of the Company on September 10, 2013.

 

b)      Basis consolidation and preparation

 

These condensed interim consolidated financial statements are presented in Canadian dollars. The consolidated financial statements are prepared on the historical cost basis except for certain financial instruments that are measured on the fair value basis.

 

These condensed interim consolidated financial statements include the accounts of CanAlaska and its wholly-owned subsidiaries including:

  • CanAlaska Resources Ltd. U.S.A., a Nevada company
  • CanAlaska West McArthur Uranium Ltd., a B.C. company
  • Golden Fern Resources Limited, a New Zealand company
  • Poplar Uranium Limited., a B.C. company

 

Subsidiaries are entities over which the Company has the power, directly or indirectly, to govern the financial and operating policies of the entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are presently exercisable or convertible, are taken into account in the assessment of whether control exists. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date on which control ceases. All inter-company transactions, balances, income and expenses have been eliminated on consolidation.

 

These consolidated financial statements also include the proportionate share of each of the assets, liabilities, revenues and expenses of its interest in CanAlaska Korean Uranium Limited Partnership (“CKULP” or the “Partnership” or the “CKU Partnership”) and CanAlaska Korean Uranium Limited.

 - 2 - 
   

CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

4      Cash and Cash Equivalents

 

     

July 31, 2013

$000’s

 April 30, 2013 $000’s
CKU Partnership funds     287 290
Option-in advances     110 116
Cash in bank and other short term deposits     708 859
Total     1,105 1,265

 

CKU Partnership funds are held by the Company for expenditure on the properties held by the CKULP.

 

Option-in advances are advance cash funding by joint venture partners on various exploration properties.

 

Cash and cash equivalents of the Company are comprised of bank balances and short-term investments, which are convertible to cash, with an original maturity of 90 days or less as follows:

 

   

July 31, 2013

$000’s

April 30, 2013

$000’s

Cash   280 364
Cash equivalents   825 901
Total   1,105 1,265

 

 

5     Available-for-Sale Securities

 

    July 31, 2013 April 30, 2013
   

Cost

$000’s

Market Value

$000’s

Cost

$000’s

Market Value $000’s
Pacific North West Capital Corp.   38 38 42 42
Westcan Uranium Corp.   6 6 6 6
Mega Uranium Ltd.   5 5 6 6
Other available-for-sale securities   54 30 33 32
Total   103 79 87 86

 

The Company reviews the carrying values of its available-for-sale securities, and after considering where the decreases on fair value were significant or prolonged, the Company would recognize an impairment on available-for-sale securities. The Company recognized total impairment on available-for-sale securities of $7,976 for the three months ended July 31, 2013 (three months ended July 31, 2012: $nil).

 

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CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

6     Property and Equipment

 

 

Automotive

$000’s

Leasehold improvements

$000’s

Mining equipment

$000’s

Office equipment

$000’s

Total

$000’s

Cost          
At May 1, 2012 82 270 1,024 501 1,877
Additions - - - 2 2
Disposals (57) - (2) (47) (106)
At April 30, 2013 25 270 1,022 456 1,773
Disposals - - - (1) (1)
At July 31, 2013 25 270 1,022 455 1,772

 

Accumulated Depreciation and Amortization          
At May 1, 2012 (67) (105) (821) (380) (1,373)
Depreciation and amortization (4) (20) (61) (23) (108)
Disposals 54 - 2 27 83
At April 30, 2013 (17) (125) (880) (376) (1,398)
Depreciation and amortization (1) (5) (11) (3) (20)
At July 31, 2013 (18) (130) (891) (379) (1,418)
           
Carrying Value          
At April 30, 2013 8 145 142 80 375
At July 31, 2013 7 140 131 76 354

 

 

 

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CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

7       Mineral Property Interests

 

The Company holds approximately 749,000 hectares of mining claims in the Athabasca Basin located across the provinces of Alberta, Saskatchewan, and Manitoba in Canada. The holdings are comprised of 16 projects which are in various stages of exploration and discovery.

 

The Company also holds mining claims in New Zealand, Alaska, and British Columbia.

 

Details of acquisition costs and write-offs for the twelve and three months ended April 30, 2013 and July 31, 2013 are as follows:

 

Project ($000’s) May 1, 2012 Additions/write-offs April 31, 2013 Additions/write-offs July 31, 2013
Athabasca Basin          
Cree East (a) - - - - -
West McArthur (b) 65 - 65 - 65
Fond du Lac 120 - 120 - 120
Grease River (c) 133 - 133 (24) 109
Cree West 48 (48)- - - -
Key Lake 24 - 24 - 24
NW Manitoba 16 - 16 - 16
Poplar (d) 166 - 166 (5) 161
Black Lake - - - - -
Helmer 107 - 107 - 107
Lake Athabasca (e) 118 - 118 (5) 113
Alberta 11 (11) - - -
Hodgson (f) 109   109 (109) -
Arnold 35 (35) - - -
Collins Bay (g) - - - - -
McTavish 74   74 - 74
Carswell 173 (37) 136 - 136
Ruttan - 15  15 - 15
Patterson (h) - 4  4 - 4
Other 53 - 53 - 53
New Zealand   -      
Rise and Shine, NZ - - - - -
Reefton, NZ (i) 24 - 24 - 24
Other          
Other Projects, Various (j) 80 (6) 74 3  77
Total 1,356 (118) 1,238 (140) 1,098
 - 5 - 
   

CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

7       Mineral Property Interests (continued)

 

  Total

Summary of option payments remaining due in the

years ending April 30

    

Cash

$000’s

Spend1

$000’s

 Shares
2014       - - 10,000
2015       - - -
2016       - 600 30,000
Thereafter       - 3,000 80,000

 

1 Represents cumulative spend required not the spend per fiscal year to maintain certain interest in the Company’s properties. The cumulative spend is at the Company’s discretion under an option. It may not be the Company’s intention to pay the option, in which case the expenditure will not be incurred.

 

        Total2
Summary of option payments receivable in the years ending April 301

Cash

$000’s

Spend1

$000’s

 Shares
2014       50 75 1,000,000
2015       25 300 225,000
2016       25 700 400,000
Thereafter       - 1,400 700,000

 

1 Represents cumulative spend required not the spend per fiscal year to maintain certain interest in the Company’s properties.

2 Represents optionees' commitments to maintain certain interest in the Company's properties (see note 7(h)).

 

a)       Cree East, Saskatchewan – Korean Consortium

 

Cree East consists of approximately 58,000 hectares of mineral claims in the Athabasca. In December 2007, the Company formed the CKU Partnership with the Korean Consortium to develop Cree East. Under the terms of agreements, the Korean Consortium would invest $19.0 million towards the earn-in of a 50% ownership interest in the CKU Partnership over a four year period. As of July 31, 2013, the Korean Consortium has contributed $19.0 million (April 30, 2012: $19.0 million) and held a 50% interest (April 30, 2013: 50%) in the CKU Partnership. The Company acts as the operator for the exploration project and earns a management fee of 10% of the exploration expenditures incurred. The total expenditures on the property for the three months ended July 31, 2013 and 2012 was approximately $1,000 and $104,000 respectively.

 

 - 6 - 
   

CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

7       Mineral Property Interests (continued)

 

b)      West McArthur, Saskatchewan - Mitsubishi

 

West McArthur consists of approximately 36,000 hectares of mineral claims in the Athabasca. In April 2007, the Company optioned the claims to Mitsubishi Development Pty Ltd. (“Mitsubishi”) whereby Mitsubishi could exercise an option to earn a 50% interest in the property by funding expenditures of $10.0 million and by making a $1.0 million payment upon completion of the $10.0 million funding requirement. In February 2010, Mitsubishi exercised their option with a payment to the Company of $1.0 million and an unincorporated 50/50 joint venture was formed between the parties to pursue further exploration and development of the property. The Company acts as project operator and earns a fee (between 5% and 10%) based on the expenditures incurred. The total expenditures on the property for the three months ended July 31, 2013 and 2012 was approximately $7,000 and $325,000 respectively.

 

c)      Grease River, Saskatchewan

 

In the three months ended July 31, 2013, the Company recognized an impairment on certain of its Grease River claims of approximately $24,000 as it did not renew its permits on these claims.

 

d)       Poplar, Saskatchewan

 

In the three months ended July 31, 2013, the Company recognized an impairment on certain of its Poplar claims of approximately $5,000 as it did not renew its permits on these claims.

 

e)       Lake Athabasca, Saskatchewan

 

In the three months ended July 31, 2013, the Company recognized an impairment on certain of its Lake Athabasca claims of approximately $5,000 as it did not renew its permits on these claims.

 

f)       Hodgson, Saskatchewan

 

In the three months ended July 31, 2013, the Company recognized an impairment on its Hodgson claim of approximately $109,000 as it did not renew its permits on this property.

 

g)      Collins Bay, Saskatchewan

 

In June 2013, the Collins Bay Extension option agreement dated July 4, 2009 and subsequently amended on March 29, 2011 with Bayswater Uranium Corporation ("Bayswater") was amended whereby the option period was extended from six years to eight years. In consideration for the extension, the Company accelerated its staged common share issuances and issued 10,000 common share on July 12, 2013 (note 8). As a result, in July 2013, the Company issued an aggregate of 20,000 common shares (post-consolidation) under the amended option agreement for the Collins Bay Extension project.

 

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CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

7       Athabasca Mineral Property Interests (continued)

 

h)      Patterson – Saskatchewan

 

In January 2013, the Company acquired three block of claims, totalling 6,687 hectares located in the Patterson Lake area of the western Athabasca basin. In August 2013, the Company optioned the claims to Makena Resources Inc ("Makena"). Makena may earn a 50% interest in the property by making cash payments totalling $100,000 by June 1, 2015, issuing 2,500,000 common share by June 1, 2015 and incurring exploration expenditures totalling $1.4 million by September 30, 2016.

 

i)      Reefton – New Zealand

 

In September 2012, Atlantic Industrial Minerals Inc. (“Atlantic”) entered into an option agreement to acquire 100% interest in the Reefton project, in South Island, New Zealand by paying $300,000 in staged payments, issuing 300,000 shares of Atlantic to the Company and reimbursing the Company for the annual permit fees for the property from 2012 to 2015 which are approximately $50,000 per year and drilling 1,500 metres by December 31, 2014. In September 2012 and October 2012, the Company received $50,000 from Atlantic for the 2012/2013 annual permit fee as part of an operating agreement. On August 21, 2013, the option agreement with Atlantic was terminated.

 

j)       Other Projects

 

BC Copper, British Columbia

 

BC Copper is comprised of approximately 7,000 hectares located in south central British Columbia. In March 2012, the Company optioned the claims to Tyrone Docherty. Tyrone Docherty may earn a 50% interest in the property by making exploration expenditures of $470,000 by July 2014. In May 2012 the company amended the agreement where a third party, Discovery Ventures Ltd and Docherty will earn 50% interest for the expenditure of $250,000 by July 1 2014. On July 2, 2013, the option agreement with Tyrone Docherty and Discovery Venture Ltd. was terminated.

 

Hanson, Saskatchewan

 

In July 2013, the Company staked the Hanson project which consists of twelve blocks of claims in the area of the Pikoo kimberlite discovery, totalling 11,086 hectares located in Saskatchewan for $2,276.

 

8        Share Capital

 

The Company has authorized capital consisting of an unlimited amount of common shares without par value.

 

Share Issuances

 

In July 2013, the Company issued 10,000 common shares under the option agreement for the Collins Bay Extension project (see note 7(g)).

 

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CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

9      Share Stock Options and Warrants

 

The Company has a stock option plan that permits the granting of stock options to directors, officers, key employees and consultants. Terms and pricing of options are determined by management at the date of grant. A total of 4,400,000 common shares of the Company may be allotted and reserved for issuance under the stock option plan.

 

   

Number of options

000’s

Weighted average

exercise price $

Outstanding - May 1, 2012   2,924 0.81
Granted   1,358  0.26
Expired   (661) 1.09
Forfeited   (23) 1.21
Outstanding – April 30, 2013   3,598 0.55
Expired   (18) 1.00
Forfeited   (237) 0.74
Outstanding – July 31, 2013   3,343  0.54

 

As at July 31, 2013, the following stock options were outstanding:

 

  Number of options outstanding 000’s Number of options exercisable 000’s

Exercise

price

Expiry date

(Fiscal Year)

  734 734 $0.54 - $1.00 2014
  1,321 1,321 $0.42 - $1.00 2015
  1,288 1,288 $0.25 2018
Total 3,343 3,334    
           

 

For the three months ended July 31, 2013, total share-based compensation expense was $nil (July 31, 2012: $15,785).

 

 

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CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

9      Share Stock Options and Warrants (continued)

 

Warrants

 

   

Number of warrants

000’s

Weighted average

exercise price $

Outstanding - May 1, 2012   1,311  1.83
Expired   (1,239) 1.90
Outstanding – April 30, 2013   72  0.55
Outstanding – July 31, 2013   72  0.55

 

At July 31, 2013, the following warrants were outstanding:

 

Number of warrants

Outstanding

000’s

Exercise price

$

Expiry date

 

  72 $0.55 September 21, 2013
Total 72    

 

Option and warrant pricing models require the input of highly subjective assumptions including the expected volatility. Changes in the assumptions can materially affect the fair value estimate, and therefore, the existing models do not necessarily provide a reliable measure of the fair value of the Company’s stock options and warrants. The Company’s expected volatility is based on the historical volatility of the Company’s share price on the Toronto Stock Exchange. For the three months ended July 31, 2013, there were no stock options or warrants granted.

 

10       Related Party Transactions

 

Related parties include the Board of Directors and Officers of the Company and enterprises which are controlled by these individuals.

 

The remuneration of directors and key management of the Company for the three ended July 31, 2013 and 2012 were as follows.

 

  Three months ended July 31
($000’s)

2013

$

2012

$

Employment benefits 73 197
Directors fees - 30
Share-based compensation - 10

 

 - 10 - 
   

CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

11      Commitments

 

The Company has the following commitments in respect of operating leases for office space, land, or computer equipment:

 

Fiscal Year Ending

 

        

Total

$000’s

2014         111
2015         150
2016         133
Thereafter         7
Total         401

 

The Company has outstanding and future commitments under mineral properties option agreements to pay cash and/or issue common shares of the Company (note 7).

 

The Company has sub leased its Vancouver office space to reduce its operating costs. The Company is committed for the full office lease amount, not the net.

 

12       Management of Capital

 

The Company considers its capital to consist of common shares, stock options and warrants. The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the exploration of its mineral properties and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk.

 

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares and, acquire or dispose of assets.

 

In order to maximize ongoing exploration efforts, the Company does not pay out dividends. The Company’s investment policy is to invest its short-term excess cash in highly liquid short-term interest bearing investments with short term maturities, selected with regards to the expected timing of expenditures from continuing operations.

 

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CanAlaska Uranium Ltd.

Notes to the Condensed Interim Consolidated Financial Statements

For the three month period ended July 31, 2013

(Unaudited)

(Expressed in Canadian dollars except where indicated)

 

 

13       Geographic Segmented Information

 

The Company operates in one segment, the exploration of mineral property interests.

 

July 31, 2013 ($000’s)   Canada   U.S.A.   New Zealand   Total
Non-current Assets   1,622   6     24   1,652
Total Assets   2,836   6   36   2,878
Loss for the Period   315   -   19   334

 

April 30, 2013 ($000’s)   Canada   U.S.A.   New Zealand   Total
Non-current Assets   1,786   6     24   1,816
Total Assets   3,185   6   34   3,225
Loss for the Year   2,342   9   9   2,360

 

14       Subsequent Events

 

On July 5, 2013, the Company received notification that the Toronto Stock Exchange is reviewing the Company's eligibility for continued listing on the Toronto Stock Exchange pursuant to Part VII of the TSX Company Manual regarding minimum market capitalization requirements. The Company has until November 5, 2013 to remedy the matter. Should the Toronto Stock Exchange decide to delist the securities of the Company, the Company will seek a listing on the TSX Venture Exchange.

 

On August 21, 2013, the option agreement with Atlantic for the Reefton project was terminated.

 

On August 28, 2013, the Company entered into an option agreement with Makena Resources Inc.. Makena Resources Inc. may earn a 50% interest in the Patterson property by making cash payments totalling $100,000 by June 1, 2015, issuing 2,500,000 common share by June 1, 2015 and incurring exploration expenditures totalling $1.4 million by September 30, 2016.

 

 

 

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