Earlier, I made a post about the Carmi property that had me a bit confused because of the 2 different lapse dates. Well it turns out that the property actually did lapse twice!!

It appears that in 2011 they couldn't afford to pay the renewal fees, but within the following year they paid $100,000.00 to regain parts of the claim, only to let them lapse again. It is beyond me why any company would shell out that kind of money, knowing full well that the renewal fees are due, just to let it lapse??

Hi Ho Silver MD&A:

During the year ended July 31, 2010, management recorded a write-down of $500,000 to reflect its estimate of the recoverable amount of the Carmi Property deferred exploration expenditures. On July 16, 2011, the tenures comprising the Carmi Property were due for renewal. The Company was not in a position to make the renewal due to lack of available funds, and the properties were forfeited. As a result of this forfeiture, the previously capitalized carrying value of $2,188,967 was written off during the year ended July 31, 2011.

Following the forfeiture, the Company entered into an agreement with arm’s length parties to re-acquire the Carmi Property and title to certain of the tenures within the Carmi Property were restored.

All terms and conditions of the original option agreement with St. Elias remain in force

.

During the year ended July 31, 2012, the Company entered into an option agreement to acquire an additional tenure within the Carmi Property for cash consideration of $100,000 (paid).

As at July 31, 2012, certain of the tenures were due for renewal, and the Company was not in a position to make the renewal due to lack of available funds. Accordingly, approximately 60% of the tenures were forfeited, and the Company wrote down the carrying value of its interest in the Property in the amount of $86,354.