Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Text Block]

5.	Related Party Transactions
	The Company was charged the following by stockholders, directors, by companies controlled by directors and/or stockholders of the Company, and by companies with directors in common:

										Cumulative from
										February 28, 1989
		Three months ended				Six months ended				(Date of Inception) to
		June 30,				June 30,				June 30,
		2012		2011		2012		2011		2012
Consulting fees	$	-	$	-	$	-	$	-	$	249,043
Interest		16,233		14,694		32,070		28,876		454,043
Management fees		-		-		-		-		546,325
Office and general		-		-		-		-		26,944
Rent		-		-		-		-		130,232
	$	16,233	$	14,694	$	32,070	$	28,876	$	1,406,587

At June 30, 2012, accounts payable includes $457,211 (December 31, 2011 - $456,972) due to directors of the Company and companies controlled by directors of the Company in respect of unpaid management fees, consulting fee and expenses incurred on behalf of the Company.

At June 30, 2012, accounts payable also includes $15,527 (December 31, 2011 - $15,527) of expenses for operating costs paid on behalf of the Company by companies with directors in common.

The Company entered into two Management Services Agreements dated January 1, 2007 with a director and a company controlled by a director of the Company. Under the terms of these agreements they were each paid $7,500 per month, plus taxes where applicable, for management services. These agreements were for a 24-month period and expired on December 31, 2008. Effective September 12, 2008, one of the agreements was terminated and the other was not renewed subsequent to December 31, 2008. Pursuant to these agreements, accounts payable includes $321,057 of unpaid management fees. If the Company is unable to pay for the services, the consultant may elect to settle any portion of outstanding amounts plus interest with units of the Company. Each unit shall consist of one common share and one share purchase warrant entitling the holder to purchase one additional common share of the Company. The price for the units and warrants will be determined based on a discount to the 10 day average market price ranging from 50% to 60%, but no less than $0.05 per share.