CONCENTRATIONS

3 Months Ended

Mar. 31, 2013

CONCENTRATIONS [Text Block]

12. CONCENTRATIONS

The Company currently sells 100% of its copper cathode production to Red Kite Master Fund Limited (“Red Kite”) under a cathode sales agreement effective January 1, 2013, as amended, which replaced an earlier long term cathode sales agreement between the parties that was effective between February 1, 2008 and December 31, 2012. The cathode sales agreement runs through June 30, 2013 with renewable extensions by mutual agreement of both parties. The Company considers the credit risk to be minimal since Red Kite is a large, well-capitalized and diversified multinational organization.