Here's note 9 from the Financials: which was not in the earlier post
9. LOAN RECEIVABLE
"During the fiscal year ended September 30, 2009, the Company entered into a loan agreement with another company. Under the agreement, the Company agreed to loan that company a total of up to $6,000,000. The money loaned bears interest at Prime plus 4% per annum, compounded daily. Both principal and interest are payable upon demand. The borrower granted the Company a general security over all of its present and after acquired personal property. On September 30, 2009, the borrower had drawn down $722,331 on that lending agreement."
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From the December filed Sept 30/09 AIF:
"Apart from the Company’s main activities in exploration, the Company has continued to review a number of potential exploration acquisitions. Those are being reviewed and analysised with particular regard to the changing economic climate as that impacts the metals market. Apart from its primary activity in exploration, the Company agreed to loan up to $6,000,000 to a separate company at the approximate interest rate of 5%. (See: “Loan Receivable” below.)"
"Loan Receivable
During the year ended September 30, 2009, the Company entered into a loan agreement with another company. The Company agreed to loan a total of $6,000,000 which bears interest at Prime plus 4% per year, compounded daily and is repayable on demand. As at September 30, 2009, $722,331 of the $6,000,000 was advanced for purposes of the loan agreement."
Subsequent Events
Subsequent to September 30, 2009, the following material events have occurred:
a) The Company amended the exercise price of 2,304,625 warrants which expire on May 8, 2010 with an original exercise price of $3.50 to $1.50.
b) The Company granted 480,000 stock options to consultants of the Company exercisable at $0.62 per share until October 8, 2014.
c) A total of 125,000 options were exercised, 100,000 at $0.50 and 25,000 at $0.78, for total gross proceeds of $69,500.
d) The Company acquired additional marketable securities, the most significant purchase being 750,000 units in Nitinat’s initial public offering for a total of $300,000.
e) As outlined in Note 11 of the financial statements, the Company received an aggregate of 13,367,904 common shares of Nitinat from the completion of the Company’s sale of the Jasper Property to Nitinat.
f) An additional $5,263,588 was advanced under the loan agreement discussed in Note 9 of the financial statements.
