AFFILIATE TRANSACTIONS

9 Months Ended

Jul. 31, 2014

Related Party Transactions [Abstract]

AFFILIATE TRANSACTIONS

(4) AFFILIATE TRANSACTIONS

The Company entered into an agreement with AXIS Consultants Pty Ltd (“AXIS”) to provide management and administration services to the Company. AXIS is affiliated through common management. The Company is one of nine affiliated companies to which AXIS provides services. Each of the companies has some common Directors, officers and shareholders. Currently, there are no material arrangements or planned transactions between the Company and any of the affiliated companies other than AXIS.

During the nine months ended nine July 31, 2014, AXIS provided services in accordance with the services agreement, incurred direct costs on behalf of the Company and provided funding of $241,650. During the nine months ended July 31, 2014, the foreign exchange effect on the amounts owed to affiliates was a gain of $93,181. The amounts owed to affiliates as of July 31, 2014 and October 31, 2013 is $7,707,480 and $7,558,320, respectively, and are reflected in non-current liabilities - advances from affiliates. Included in these amounts is $232,500 respectively being funds advanced by the Manager of the Laos operations. During the nine months ended July 31, 2014 and 2013, the affiliates have agreed not to charge interest.

The Company intends to repay these amounts with funds raised either via additional debt or equity offerings. Both affiliates have agreed not to call the advance within the next twelve months and accordingly the Company has classified the amounts payable as non-current in the accompanying balance sheet.