LOAN RECEIVABLE

6 Months Ended

Jan. 31, 2012

LOAN RECEIVABLE [Text Block]

NOTE 8:              LOAN RECEIVABLE

Pursuant to a Secured Loan Agreement dated January 20, 2012, the Company provided a senior secured loan to Cue in the principal amount of $334,065 (CAD$335,000), subject to interest calculated at 3% per annum, for Cue’s general corporate expenses incurred prior to the completion of the Arrangement Agreement relating to the Yuty Project (Note 5). At January 31, 2012, interest receivable of $329 (CAD$330) was accrued by the Company relating to this secured loan.

Pursuant to a Secured Loan Agreement dated April 20, 2011, the Company provided a senior secured loan to Concentric in the principal amount of $300,000, subject to interest calculated at 6% per annum, of which $200,000 was utilized to repay a secured loan owed to Global by Concentric, with the remainder for Concentric’s general corporate expenses incurred prior to the completion of the Merger Agreement relating to the Anderson Project (Note 5). Effective September 9, 2011, the Company merged with Concentric which resulted in the reclassification of the loan receivable as partial consideration towards the purchase price related to the Anderson Project.