LONG TERM INVESTMENTS

9 Months Ended

May 31, 2013

LONG TERM INVESTMENTS [Text Block]

5.	LONG TERM INVESTMENTS
	On April 21, 2008, the Company purchased 900,000 shares for $45,000 in Pro Eco Energy USA Ltd. (“Pro Eco Energy”) which represented 8.25% ownership. The Chairman of the Company is a Director in Pro Eco Energy which established the existence of significant influence in Pro Eco Energy and accordingly the equity method of accounting is adopted for the investment.
	During the quarter ended May 31, 2013, the Company recorded an equity loss of $Nil (May 31, 2012 – equity loss of $Nil), which resulted in a net investment of $32,197 (August 31, 2012 - $32,197).
	Global Solar Water Power Systems Inc.
	As of February 28, 2013, the Company had purchased 9.82% (August 31, 2012 – 9.82%) investment in Global Solar Water Power Systems Inc. (“GSWPS”). This was made by a cash contribution of $103,500 and accrued contribution of $42,000 and an issuance of 500,000 shares of the Company at $0.25 per share for a combined value of $270,500. During the quarter ended May 31, 2013, the Company settled the accrued contribution of $42,000 by reducing the Company’s interest in GSWPS to 8.14% from the 9.82% interest and transferring this 1.68% interest back to GSWPS. GSWPS is owned by an executive officer of the Company.
	During the August 31, 2012 year end, based on the management’s assessment of GSWPS’s current operations, the management determined that there was a decline in the fair value of the Company’s long- term investment in GSWPS to $68,500.
	For the nine months ended May 31, 2013, the Company recorded an equity loss of $850 (for the nine months ended May 31, 2012 – equity loss of $Nil) and an equity refund of $11,719, which resulted in a net investment of $55,931 (August 31, 2012 - $68,500).