7. Capital Stock

6 Months Ended

Jun. 30, 2013

Notes

7. Capital Stock

7.       Capital Stock

a)       Common Stock

During the six months ended June 30, 2013, the Company issued no shares of common stock pursuant to private placement transactions.

During the six months ended June 30, 2013, the Company issued 299,099 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 $105,550.

During the six months ended June 30, 2013, the Company issued 40,000 shares of common stock to Shelly Moretti and Jaques Robert (note 4) in relation to previous mineral rights acquisitions. As of December 31, 2012, these shares were recorded within shares to be issued for $12,000.

b)       Stock To Be Issued

As of June 30, 2013, the Company has yet to issue 353,333 shares of common stock to Shining Tree and Michael Tremblay (note 4), in relation to a mineral rights acquisition.

As of June 30, 2013, the Company has yet to issue 4,303,020 shares of common stock to directors and consultants for services rendered. The Company has recorded stock-based compensation and stock to be issued of $1,290,906 in respect of these obligations.

c)       Subscriptions Receivable

During the six months ended June 30, 2013, the Company has received payments of $170,000 related to subscriptions receivable.

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	0.387	-
Expired	-	-	-
Cancelled	-	-	-
Exercised	-	-	-
Balance – December 31, 2011	-	-	-
Granted	2,002,580	0.446	0.727
Expired	(3,723,397)	0.387	-
Cancelled	-	-	-
Exercised	-	-	-
Balance – December 31, 2012	2,002,580	$ 0.446	0.727
Granted	266,667	0.446	0.727
Expired	-	-	-
Cancelled	-	-	-
Exercised	-	-	-
Balance – June 30, 2013	2,269,247	$ 0.446	0.727

On various dates between January 1, 2013 and June 30, 2013, the Company issued 266,667 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 $0.30 to $0.60 per share for a term of one year from the issue date.

The warrants described above were not included in the calculation of loss per share as they would have been antidilutive.

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, 2013, the Company issued 52,734 shares of common stock and a further 246,365 shares became issuable in connection with stock-based compensation arrangements. These shares were valued at $0.30 per share and resulted in compensation expense of $102,820. These fees were recorded as a component of consulting fees in the amount of $102,820 and management fees in the amount of NIL on the statement of operations.