Accounting. 2010 had about a $5 million difference from gross procedes and reported amount too but that was on almost 28 million shares not the approximate $10 million shortfall in 2011 on ~8 million shares. Maybe it is reported when the actual money is spent and the rest goes into an accrual account.

Flow-through shares

Under IFRS, the Company will record a liability for the difference between the proceeds received and the market price of the Company’s shares on the date of the transaction (“premium”). This premium will be recognized as income upon the related renouncement of expenditures. At this point, the Company will also record the deferred tax liability associated with the renouncement of the tax benefits. Any difference between the deferred tax liability and the original premium liability will be recorded in the statement of income.

The adjustment on transition to IFRS to record the change in accounting for flow-through shares is computed as the difference between the tax attributes renounced to subscribers (and recorded against equity for Canadian GAAP) and the premium on the flow through share issuance (which is the only amount that should be recorded for IFRS). Under IFRS, the difference is recorded to future tax expense, which impacts accumulated deficit. Accordingly, the Company recorded an adjustment on transition to decrease share capital and deficit by $11.0 million to record the effects of this policy change on historical flow-through issuances.

The Company also issued flow through shares in the first quarter of 2010. Upon renouncing these expenditures, an income tax expense is recorded as the difference between the premium and value of tax attributes renounced to shareholders. As a result of the issuance and subsequent renunciation, share capital and deficit decreased by $16.6 million for the year ended December 31, 2010.