Capital Stock

6 Months Ended

Jun. 30, 2012

Capital Stock [Abstract]

Capital Stock

7. Capital Stock

a) Common Stock

During the six months ended June 30, 2012, the Company issued 2,187,982 shares of common stock pursuant to private placement transactions at prices of $0.075 to $0.095 per share and for total cash proceeds of $132,000 and stock subscription receivable of $63,500.

During the six months ended June 30, 2012, the Company issued 2,468,526 shares of common stock to directors of the Company for services rendered. These transactions have been recorded as stock-based compensation with a total value of $177,510. Of these issuances, 600,000 shares of common stock were recorded as shares to be issued as of December 31, 2011 for $45,104.

During the six months ended June 30, 2012, the Company issued 3,000,000 shares of common stock to 2214098 Ontario Ltd. and Firelake Resources Inc. (note 4) in relation to previous mineral rights acquisitions. As of December 31, 2011, these shares were recorded within shares to be issued for $250,576.

b) Stock To Be Issued

As of June 30, 2012, the Company has yet to issue 1,000,000 shares of common stock to Shining Tree (note 4), in relation to a mineral rights acquisition.

As of June 30, 2012, the Company has yet to issue 3,222,275 shares of common stock to directors and consultants for services rendered. The Company has recorded stock-based compensation and stock to be issued of $295,641 in respect of these obligations.

c) Subscriptions Receivable

During the six months ended June 30, 2012, the Company has received payments of $103,247 related to subscriptions receivable, and recorded additional $63,500 subscriptions receivable for shares issued.

d) Warrants

The below table summarizes the Company’s activity with respect to warrants:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Balance – December 31, 2010		—		—		—
Granted		3,723,397		0.129		0.416
Cancelled		—		—		—
Exercised		—		—		—
Balance – December 31, 2011		3,723,397		0.129		0.416
Granted		2,187,982		0.135		0.707
Cancelled		—		—		—
Exercised		—		—		—
Balance – June 30, 2012		5,911,379	$	0.131		0.524

On various dates between October 18, 2011 and June 30, 2012, the Company issued 5,911,379 warrants in connection with its private placements of common stock. Each warrant entitles the holder to purchase 1 share of common stock of the Company at exercise prices ranging from $0.10 to $0.20 per share for a term of 1 year from the issue date.

e) Stock-Based Compensation

The Company incurred stock-based compensation expense in connection with its compensation agreements for its directors, management, and employees. Under these agreements, common stock may be issued as a signing bonus or at certain benchmark dates within an individual’s period of service. Stock-based compensation is calculated as the fair value of the stock issued or to be issued to an individual and is recorded at the time the stock becomes owing to the individual. Stock issued to a director, manager, or employee is deferred in the event that their contract requires the individual to remain employed with the Company for a specified time period after issuance.

During the six months ended June 30, 2012, the Company issued 2,468,526 shares of common stock and a further 3,112,012 shares became issuable in connection with stock-based compensation arrangements. These shares were valued at $0.095 per share and resulted in compensation expense of $473,151. These fees were recorded as a component of consulting fees in the amount of $201,510 and management fees in the amount of $271,641on the statement of operations.