RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2016

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 12   RELATED PARTY TRANSACTIONS

For the three and nine months ended September 30, 2016, the Company incurred $81,546 and $152,633, respectively (September 30, 2015 - $28,732 and $44,869, respectively) to an entity affiliated with the Company’s Chairman and Chief Executive Officer for the use of an aircraft. An outstanding balance of $81,546 is included within accounts payable at September 30, 2016 (December 31, 2015 - $66,272).

For the three and nine months ended September 30, 2016, legal fees of $37,823 and $91,826, respectively (September 30, 2015 – $21,675 and $36,120, respectively) were incurred with REVlaw, a company owned by Carmen Diges, General Counsel of the Company, and an outstanding balance of $151,209 is included within accounts payable at September 30, 2016 (December 31, 2015 - $57,800). The services of Ms. Diges as General Counsel are provided by REVlaw.  These legal fees have been recorded at their exchange amount, being the amount agreed to by the parties.

For the three and nine months ended September 30, 2016, the Company reimbursed Lexam VG Gold Inc. (“Lexam”) $17,239 and $57,294 respectively for net shared services. During the comparable period in 2015, Lexam received $7,287 and paid $19,263, respectively to the Company. These transactions are in the normal course of business. The Company has agreed to share services with Lexam including rent, personnel, office expenses and other administrative services.  The Company’s Chairman and Chief Executive Officer is the Non-Executive Chairman of Lexam and holds 27% ownership in Lexam.