Commitments

6 Months Ended

Jun. 30, 2014

Commitments [Text Block]

14. Commitments

a)	The Company has employment or consulting services agreements with each of its executive officers. Officers with contracts for services have notice requirements following a change in control of the Company and those requirements include a payment in lieu of notice and a termination payment.
b)	On September 18, 2008, the Company signed two mining lease agreements which require ten annual payments of $75,000. As at June 30, 2014, the first five annual payments have been made. Refer to Note 5(g).
c)	Refer to Note 9 for commitments pertaining to mineral property reclamation surety deposits.
d)	On May 7, 2013, the Company signed an office premises lease for a period of three years commencing September 1, 2013. Rent is approximately $51,700 (Cdn$55,000) per annum.
e)	On January 22, 2014 the Company renewed an office lease for a primary term of two years, beginning the 1st day of February, 2014 and ending on the 31st day of January, 2016. Rent consideration is $142,010 per annum. The lease agreement may be renewed for two additional years.
f)	The Company is party to a processing agreement under which it is committed to minimum annual payments of $450,000 for each of the years 2013, 2014 and 2015. The 2013 liability of $450,000 was paid in January, 2014. Refer to Note 6(b).
g)	The Company is committed under two sales agreements to supply triuranium octoxide (U3O8) over a four or five year period. One sales agreement has defined pricing each year and the second agreement has pricing which contains spot market referenced prices to set the sales price, with a floor and ceiling.

h)	In 2013 the Company signed a third sales agreement to supply triuranium octoxide (U3O8) over a five year period commencing in 2016. The agreement has pricing which contains a base with an escalation factor.
i)	At June 30, 2014 the Company has operational and construction purchase orders outstanding for approximately $240,000.