AMARC RESOURCES LTD.
CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS AND SIX MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
(Expressed in Canadian Dollars)
(Unaudited)
| Notice to Reader |
In accordance with subsection 4.3(3) of National Instrument 51-102, management of the Company advises that the Company's auditors have not performed a review of these interim financial statements.
Amarc Resources Ltd.
Condensed Interim Statements of Financial Position
(Unaudited - Expressed in Canadian Dollars)
| September 30, | March 31, | |||||
| 2012 | 2012 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 9,430,476 | $ | 15,475,104 | ||
| Amounts receivable and other assets (note 4) | 346,863 | 1,574,196 | ||||
| Marketable securities (note 5) | 69,925 | 135,675 | ||||
| 9,847,264 | 17,184,975 | |||||
| Non-current assets | ||||||
| Restricted cash | 266,307 | 246,142 | ||||
| Amounts receivable (note 4) | 1,643,713 | 743,554 | ||||
| Mineral properties and equipment (note 6) | 1,433 | 1,723 | ||||
| 1,911,453 | 991,419 | |||||
| $ | 11,758,717 | $ | 18,176,394 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 413,964 | $ | 823,934 | ||
| Balances due to related party (note 8(a)) | 41,573 | 6,770 | ||||
| Flow-through share premium | – | 130,000 | ||||
| 455,537 | 960,704 | |||||
| Shareholders' equity | ||||||
| Share capital (note 7) | 58,744,810 | 58,740,910 | ||||
| Reserves | 4,812,737 | 4,558,027 | ||||
| Accumulated deficit | (52,254,367 | ) | (46,083,247 | ) | ||
| 11,303,180 | 17,215,690 | |||||
| $ | 11,758,717 | $ | 18,176,394 |
The accompanying notes are an integral part of these condensed interim financial statements.
| /s/ Robert A. Dickinson | /s/ Rene G. Carrier |
| Robert A. Dickinson | Rene G. Carrier |
| Director | Director |
Amarc Resources Ltd.
Condensed Interim Statements of Comprehensive Loss
(Unaudited - Expressed in Canadian Dollars, except for share information)
| Three months ended | Six months ended | ||||||||||||||
| September 30 | September 30 | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Expenses | |||||||||||||||
| Exploration | $ | 2,332,528 | $ | 1,428,361 | $ | 5,069,617 | $ | 1,680,254 | |||||||
| Assays and analysis | 375,767 | 62,467 | 655,020 | 83,326 | |||||||||||
| Drilling | – | 62,792 | 859,034 | 62,792 | |||||||||||
| Equipment rental | 51,360 | 18,945 | 177,916 | 39,578 | |||||||||||
| Geological | 724,727 | 999,712 | 1,007,827 | 1,106,631 | |||||||||||
| Graphics | 980 | (144 | ) | 5,106 | 4,782 | ||||||||||
| Helicopter | 20,296 | – | 134,378 | – | |||||||||||
| Property fees and assessments | 805,000 | – | 819,090 | – | |||||||||||
| Site activities | 224,938 | 180,146 | 1,080,005 | 235,159 | |||||||||||
| Socio economic | 88,931 | 81,027 | 245,943 | 118,189 | |||||||||||
| Travel and accommodation | 40,529 | 23,416 | 85,298 | 29,797 | |||||||||||
| Administration | 498,388 | 411,931 | 996,696 | 722,855 | |||||||||||
| Depreciation | 145 | 11,253 | 290 | 26,686 | |||||||||||
| Legal, accounting and audit | 15,773 | 33,354 | 17,829 | 44,919 | |||||||||||
| Office and administration | 388,932 | 337,130 | 819,843 | 583,082 | |||||||||||
| Shareholder communication | 71,256 | 20,097 | 116,905 | 49,610 | |||||||||||
| Travel | 10,821 | 3,534 | 27,563 | 9,877 | |||||||||||
| Trust and filing | 11,461 | 6,563 | 14,266 | 8,681 | |||||||||||
| Share based payments | 155,195 | 458,432 | 320,460 | 458,432 | |||||||||||
| Share based payments - exploration-related | 62,746 | 196,179 | 126,212 | 196,179 | |||||||||||
| Share based payments - administration-related | 92,449 | 262,253 | 194,248 | 262,253 | |||||||||||
| 2,986,111 | 2,298,724 | 6,386,773 | 2,861,541 | ||||||||||||
| Other items | |||||||||||||||
| Interest income | (46,429 | ) | (20,620 | ) | (86,846 | ) | (41,857 | ) | |||||||
| Flow-through share premium | – | (245,000 | ) | (130,000 | ) | (290,000 | ) | ||||||||
| Gain on sale of mineral property | – | – | – | (679,050 | ) | ||||||||||
| Operator's fees | – | (11,237 | ) | – | (12,304 | ) | |||||||||
| Tax on Flow-through share | 2 | – | 2 | – | |||||||||||
| Foreign exchange loss | 1,843 | 940 | 1,191 | 1,039 | |||||||||||
| Loss for the period | $ | 2,941,527 | $ | 2,022,807 | $ | 6,171,120 | $ | 1,839,369 | |||||||
| Other comprehensive loss (income): | |||||||||||||||
| Revaluation of available-for-sale financial assets | 5,875 | (64,000 | ) | 65,750 | (111,000 | ) | |||||||||
| Comprehensive loss for the period | $ | 2,947,402 | $ | 1,958,807 | $ | 6,236,870 | $ | 1,728,369 | |||||||
| Basic and diluted loss per common share | $ | 0.02 | $ | 0.02 | $ | 0.05 | $ | 0.02 | |||||||
| Weighted average number of common sharesoutstanding | 138,584,061 | 102,728,896 | 138,582,422 | 102,728,896 | |||||||||||
The accompanying notes are an integral part of these condensed interim financial statements.
Amarc Resources Ltd.
Condensed Interim Statements of Cash Flows
(Unaudited - Expressed in Canadian Dollars)
| Six months ended September 30 | ||||||
| Cash provided by (used in): | 2012 | 2011 | ||||
| Operating activities | ||||||
| Loss for the period | $ | (6,171,120 | ) | $ | (1,839,369 | ) |
| Adjustments for: | ||||||
| Common shares issued, included in exploration expenses | 3,900 | – | ||||
| Depreciation (note 6) | 290 | 26,686 | ||||
| Share based payments | 320,460 | 458,432 | ||||
| Flow-through share premium | (130,000 | ) | (290,000 | ) | ||
| Interest and other income | (86,846 | ) | (41,857 | ) | ||
| Unrealized foreign exchange | 108 | (1,273 | ) | |||
| Changes in working capital items | ||||||
| Amounts receivable and other assets | 335,700 | 955,686 | ||||
| Related party balances | 34,803 | 22,461 | ||||
| Accounts payable and accrued liabilities | (409,970 | ) | 1,220,172 | |||
| Net cash provided by (used in) operating activities | (6,102,675 | ) | 510,938 | |||
| Investing activities | ||||||
| Restricted cash | (20,165 | ) | (25,040 | ) | ||
| Interest income | 78,320 | 41,857 | ||||
| Purchase of mineral property and equipment | – | (1,230 | ) | |||
| Net cash provided by investing activities | 58,155 | 15,587 | ||||
| Net increase in cash and cash equivalents | (6,044,520 | ) | 526,525 | |||
| Cash and cash equivalents, beginning of the period | 15,475,104 | 6,811,177 | ||||
| 9,430,584 | 7,337,702 | |||||
| Effect of exchange rate fluctuations on cash held | (108 | ) | 1,273 | |||
| Cash and cash equivalents, end of the period | $ | 9,430,476 | $ | 7,338,975 | ||
| Components of cash and cash equivalents are as follows: | ||||||
| Cash | $ | 9,430,476 | $ | 7,338,975 | ||
| Supplementary cash flow information: | ||||||
| Interest received | $ | 78,320 | $ | 41,857 | ||
| Non cash financing activities: | ||||||
| Common shares issued included in exploration expenses | $ | 3,900 | $ | – | ||
The accompanying notes are an integral part of these consended interim financial statements.
Amarc Resources Ltd.
CondensedInterimStatements ofChanges inEquity
(Unaudited - Expressed in Canadian Dollars)
| Share capital | Reserves | |||||||||||||||||
| Share based | Share | Investment | ||||||||||||||||
| payments | warrants | revaluation | ||||||||||||||||
| Amount | reserve | reserve | reserve | Deficit | Total | |||||||||||||
| Balance at April 1, 2011 | $ | 45,482,087 | $ | 870,267 | $ | 982,110 | $ | 65,749 | $ | (38,510,486 | ) | $ | 8,889,727 | |||||
| Revaluation of available-for-sale financial assets | – | – | – | 111,000 | – | 111,000 | ||||||||||||
| Share based payments | – | 458,432 | – | – | – | 458,432 | ||||||||||||
| Gain for the period | – | – | – | – | (1,839,369 | ) | (1,839,369 | ) | ||||||||||
| Balance at September 30, 2011 | $ | 45,482,087 | $ | 1,328,699 | $ | 982,110 | $ | 176,749 | $ | (40,349,855 | ) | $ | 7,619,790 | |||||
| Balance at April 1, 2012 | $ | 58,740,910 | $ | 1,666,133 | $ | 2,811,220 | $ | 80,674 | $ | (46,083,247 | ) | $ | 17,215,690 | |||||
| Revaluation of available-for-sale financial assets | – | – | – | (65,750 | ) | – | (65,750 | ) | ||||||||||
| Share based payments | – | 320,460 | – | – | – | 320,460 | ||||||||||||
| Issuance of common shares for purchase of exploration and evaluation assets | 3,900 | – | – | – | – | 3,900 | ||||||||||||
| Loss for the period | – | – | – | – | (6,171,120 | ) | (6,171,120 | ) | ||||||||||
| Balance at September 30, 2012 | $ | 58,744,810 | $ | 1,986,593 | $ | 2,811,220 | $ | 14,924 | $ | (52,254,367 | ) | $ | 11,303,180 | |||||
Theaccompanying notes are anintegral part of thesecondensed interimfinancialstatements.
| Amarc Resources Ltd. |
| Notes to Condensed Interim Financial Statements |
| For the three and six months ended September 30, 2012 and 2011 |
| (Unaudited - Expressed in Canadian Dollars, unless otherwise stated) |
| 1. | NATURE OF OPERATIONS AND CONTINUANCE OF OPERATIONS |
Amarc Resources Ltd. (the "Company" or "Amarc") is incorporated under the laws of the province of British Columbia, and its principal business activity is the acquisition and exploration of mineral properties. Its principal mineral property interests are located in British Columbia. | |
| 2. | BASIS OF PREPARATION |
| (a) | Statement of compliance |
These condensed interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and results of operations of the Company since the last annual financial statements of the Company as at and for the year ended March 31, 2012 which were prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and which are publicly available atwww.sedar.com. These condensed interim financial statements do not include all the information required for full annual financial statements prepared in accordance with IFRS. | |
| (b) | Judgements and estimates |
The preparation of interim financial statements in conformity with IAS 34 requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from such estimates. | |
In preparing these condensed interim financial statements, significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the financial statements as at and for the year ended March 31, 2012. | |
Certain comparative amounts have been reclassified to conform to the presentation adopted in the current year. | |
| (c) | Authority for issuance |
A committee of the Board of Directors of the Company authorized these condensed interim financial statements on November 26, 2012 for issuance. |
| Amarc Resources Ltd. |
| Notes to Condensed Interim Financial Statements |
| For the three and six months ended September 30, 2012 and 2011 |
| (Unaudited - Expressed in Canadian Dollars, unless otherwise stated) |
| 3. | SIGNIFICANT ACCOUNTING POLICIES |
Except as described below, the accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its financial statements as at and for the year ended March 31, 2012. | |
The following change in accounting policy is expected to be reflected in the Company's financial statements as at and for the year ending March 31, 2013. | |
Effective April 1, 2012, the Company adopted amendments to IFRS 7, Financial Instruments Disclosures, and the amendments to IAS 12, Income Taxes, that were issued by the International Accounting Standards Board (“IASB”). The application of these new and revised IFRS has not had any material impact on the amounts reported for the current and prior years but may affect the accounting for future transactions or arrangements. | |
| 4. | AMOUNTS RECEIVABLE AND OTHER ASSETS |
| September 30, | March 31, | ||||||
| 2012 | 2012 | ||||||
| Current | |||||||
| British Columbia Mineral Exploration Tax Credit ("METC") | $ | – | $ | 1,013,817 | |||
| Value added taxes refundable | 253,778 | 441,235 | |||||
| Prepaid insurance | 84,559 | 79,263 | |||||
| Other receivables and prepaid expenses | 8,526 | 39,881 | |||||
| Total current | $ | 346,863 | $ | 1,574,196 | |||
| Non-current | |||||||
| British Columbia Mineral Exploration Tax Credit | $ | 1,643,713 | $ | 743,554 |
| 5. | MARKETABLE SECURITIES |
As at September 30, 2012 and March 31, 2012 the Company held common shares in several public and private companies. These marketable securities were classified as available–for–sale securities with aggregate acquisition costs of $55,001 (March 31, 2012 – $55,001). The estimated fair value of these securities based on securities exchange quotes was $69,925 (March 31, 2012 – $135,675). |
| Amarc Resources Ltd. |
| Notes to Condensed Interim Financial Statements |
| For the three and six months ended September 30, 2012 and 2011 |
| (Unaudited - Expressed in Canadian Dollars, unless otherwise stated) |
| 6. | MINERAL PROPERTIES AND EQUIPMENT |
| Mineral | Site | Computer | Total | ||||||||||
| properties | equipment | equipment | |||||||||||
| Cost | |||||||||||||
| Balance at April 1, 2011 | $ | 2 | $ | 45,498 | $ | 30,607 | $ | 76,107 | |||||
| Additions during the year | – | 1,230 | – | 1,230 | |||||||||
| Balance at March 31, 2012 | 2 | 46,728 | 30,607 | 77,337 | |||||||||
| Additions during the period | – | – | – | – | |||||||||
| Balance at September 30, 2012 | $ | 2 | $ | 46,728 | $ | 30,607 | $ | 77,337 | |||||
| Accumulated Depreciation | |||||||||||||
| Balance at April 1, 2011 | $ | – | $ | 29,040 | $ | 19,552 | $ | 48,592 | |||||
| Depreciation for the year | – | 15,967 | 11,055 | 27,022 | |||||||||
| Balance at March 31, 2012 | – | 45,007 | 30,607 | 75,614 | |||||||||
| Depreciation for the period | – | 290 | – | 290 | |||||||||
| Balance at September 30, 2012 | $ | – | $ | 45,297 | $ | 30,607 | $ | 75,904 | |||||
| Net Carrying Values | |||||||||||||
| At March 31, 2012 | $ | 2 | $ | 1,721 | $ | – | $ | 1,723 | |||||
| At September 30, 2012 | $ | 2 | $ | 1,431 | $ | – | $ | 1,433 |
| (a) | Silver Vista Property |
In July 2012, Amarc acquired a 100% interest in the approximately 30 square kilometre Silver Vista property located in west central British Columbia for $800,000 cash. The mineral claims purchased are subject to an underlying 2% net smelter return royalty ("NSR"), of which 1% can be acquired by Amarc for $1 million, and thereafter the remaining 1% NSR is subject to a Right of First Refusal. | |
| |
In addition Amarc has staked approximately 635 square kilometres of mineral claims in the region of the Silver Vista property to cover prospective host rocks. | |
| (b) | Newton Property |
In August 2009, the Company entered into an agreement ("Newton Agreement") with Newton Gold Corp. ("Newton Gold") (at that time named New High Ridge Resources Inc.), whereby the Company acquired the right to earn an 80% interest in the Newton property by making certain cash and share payments to the underlying owners and funding $4,940,000 in exploration expenditures over a specified period. | |
| |
The agreement with Newton Gold was subject to an underlying option agreement ("Underlying Agreement") with arm's length parties, whereby Newton Gold had the right to acquire a 100% undivided interest in all the claims held under that Underlying |
| Amarc Resources Ltd. |
| Notes to Condensed Interim Financial Statements |
| For the three and six months ended September 30, 2012 and 2011 |
| (Unaudited - Expressed in Canadian Dollars, unless otherwise stated) |
Agreement through a series of staged payments and share issuances (which payments and share issuances have been completed), in addition to the required exploration expenditures (which have also been completed). All the conditions in the Newton Agreement were met in May 2011, and the Company's 80% interest in the Newton property then vested. Amarc entered into the Newton Joint Venture Agreement (the "Newton JV Agreement") with Newton Gold. In June 2011, the Company and Newton Gold agreed to incorporate adjacent mineral claims then held by the Company into the Newton JV Agreement. The Company recorded a gain of $679,050 on this transaction, as the Company's expenditures on these adjacent mineral claims had previously been expensed. | |
On March 1, 2012, Newton Gold ceased its pro-rata funding of the Newton Joint Venture. Consequently, expenditures on the properties subject to the Newton JV Agreement on or subsequent to March 1, 2012 are on the account of the Company. | |
In May 2012, subsequent to the year end, the Newton JV Agreement was terminated and the 20% participating interest of Newton Gold was converted to a 5% net profits interest. Accordingly, Amarc holds a 100% interest in the Newton Property. | |
The mineral claims defined in the underlying option agreement to the Newton Agreement are subject to a 2% net smelter returns royalty ("NSR"), which royalty may be purchased at any time by Amarc for $2,000,000. Advance royalty payments of $25,000 per annum commenced on January 1, 2011. | |
| (c) | Blackwater properties |
Galileo and Hubble Properties | |
Amarc owns a 100% interest in the approximately 970 square kilometre Galileo and Hubble properties, which are located within the Blackwater district, located approximately 120 kilometres southwest of Vanderhoof, BC. | |
In December 2011, Amarc purchased the 70 square kilometre Hubble East exploration property for $50,000 cash and 80,000 common shares of Amarc. The cash payment and the share issuance were completed in January 2012. | |
Blackwater South Property | |
In September 2011, the Company entered into an Option Agreement with an individual (the "Optionor"), whereby the Company was granted an option to acquire an undivided 100% interest in the Blackwater South property, which is located in the Omineca Mining Division, British Columbia, by making cash payments of $35,000 and issuing 140,000 common shares in tranches over a two year period. The Company must also expend a minimum of $50,000 in exploration expenditures prior to October 20, 2013, and a further $50,000 must be expended prior to October 20, 2014. The Optionor will retain a net smelter returns royalty ("NSR") of 2%. By making a cash payment of $1,000,000 at any time, the Company may purchase one half of the royalty (1%) and cap the remaining 1% royalty at $5,000,000. |
| Amarc Resources Ltd. |
| Notes to Condensed Interim Financial Statements |
| For the three and six months ended September 30, 2012 and 2011 |
| (Unaudited - Expressed in Canadian Dollars, unless otherwise stated) |
To September 30, 2012, the Company had paid $5,000 and issued 20,000 shares to the Optionor, and had incurred approximately $42,000 in exploration expenditures on the Blackwater South property. | |
| (d) | Tulox Property |
The Tulox property (the "Property") was acquired by the Company in stages by staking between 2005 to 2007. | |
In April 2009, the Company entered into an agreement with Tulox Resources Inc. ("Tulox") (formerly named Sitec Ventures Corp.), and amended the agreement on March 23, 2010 and July 27, 2010, whereby Tulox may acquire a 50% interest in the Property for consideration of 1,525,000 Tulox common shares and by incurring $1,000,000 in expenditures on the Property over three years. Under this agreement, Tulox may acquire a 100% interest by issuing an additional 1,100,000 of its common shares to Amarc and by incurring a further $1,000,000 in expenditures on the property on or before August 1, 2013. | |
In July 2011, Tulox assigned the option agreement to a subsidiary company, Newlox Gold Ventures Corp. ("Newlox"), as part of a corporate reorganization and Newlox entered into an amended option agreement with Amarc, which was further amended in December 2011. Pursuant to the latest amendments, Newlox can acquire a 100% interest in the Property by spending $2,000,000 on the Property and issuing 2,325,000 common shares in its capital to Amarc, in tranches ending December 2014. | |
To September 30, 2012, the Company had received $10,000 cash and 775,000 Tulox common shares under the agreements and a further 225,000 Newlox common shares under the amended option agreement. The agreement is subject to certain conditions including regulatory approval. | |
Under the agreement, the Company is entitled to receive a 3% net smelter returns royalty ("NSR") following the commencement of commercial production on the Property. In addition, the Company receives a "back–in right" whereby the Company can acquire a 60% interest in the Property by agreeing, within 90 days of the completion of a pre– feasibility study, to fund a further $10,000,000 of exploration expenditures on the Property. However, upon exercise of the "back–in right", the Company's entitlement to an NSR will reduce to 1.2% from 3%. | |
| (e) | Franklin Property |
In March 2012, Amarc purchased outright 100% of the Franklin property under a Mineral Property Purchase Agreement with two unrelated individuals (the "Vendors"), in consideration of the payment by Amarc to the Vendors of $10,000 and the issuance to the Vendors of 10,000 Amarc common shares. The cash payment and the share issuance were completed in April 2012. | |
The Franklin property lies 17 kilometers north of the Blackwater deposit and occupies an area of approximately 4.8 square kilometres. |
| Amarc Resources Ltd. |
| Notes to Condensed Interim Financial Statements |
| For the three and six months ended September 30, 2012 and 2011 |
| (Unaudited - Expressed in Canadian Dollars, unless otherwise stated) |
| 7. | CAPITAL AND RESERVES |
| (a) | Reconciliation of changes in share capital |
| Number of | ||||
| common shares | ||||
| Number of common shares outstanding at March 31, 2012 | 138,574,061 | |||
| Shares issued for acquisition of mineral property (note 6(e)) | 10,000 | |||
| Number of common shares outstanding at September 30, 2012 | 138,584,061 |
| 8. | RELATED PARTY TRANSACTIONS |
| (a) | Outstanding balances |
| September 30, 2012 | March 31, 2012 | ||||||
| Balance due from (to) Hunter Dickinson Services Inc ("HDSI") (note 8(c)) | $ | (41,573 | ) | $ | (6,770 | ) |
| (b) | Transactions with key management personnel |
Transactions with key management personnel were as follows: |
| Three months ended | Six months ended | ||||||||||||
| September 30 | September 30 | ||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| Short-term employee benefits | $ | 135,550 | $ | 93,750 | $ | 273,072 | $ | 187,500 | |||||
| Share-based payments | 75,846 | 220,182 | 155,482 | 220,182 | |||||||||
| Total | $ | 211,396 | $ | 313,932 | $ | 428,554 | $ | 407,682 | |||||
| Amarc Resources Ltd. |
| Notes to Condensed Interim Financial Statements |
| For the three and six months ended September 30, 2012 and 2011 |
| (Unaudited - Expressed in Canadian Dollars, unless otherwise stated) |
| (c) | Entities with significant influence |
Hunter Dickinson Services Inc. ("HDSI") | |
Transactions with HDSI during the three and six months ended September 30, 2012 and 2011 were as follows: |
| Three months ended | Six months ended | ||||||||||||
| September 30 | September 30 | ||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| Based on annually set rates | $ | 933,942 | $ | 486,814 | $ | 2,165,841 | $ | 815,996 | |||||
| Reimbursement of third party expenses | 58,482 | 37,049 | 113,732 | 62,499 | |||||||||
| Total | $ | 992,424 | $ | 523,863 | $ | 2,279,573 | $ | 878,495 | |||||
| 9. | EMPLOYEES BENEFITS EXPENSES |
Employees' salaries and benefits (including share based payments) included in various expenses were as follows: |
| Three months ended | Six months ended | ||||||||||||
| September 30 | September 30 | ||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| Exploration | $ | 776,515 | $ | 409,758 | $ | 1,782,227 | $ | 608,143 | |||||
| Office and administration | 387,807 | 493,687 | 837,585 | 670,552 | |||||||||
| Shareholder communication | 51,273 | 8,131 | 84,006 | 21,293 | |||||||||
| Total | $ | 1,215,595 | $ | 911,576 | $ | 2,703,818 | $ | 1,299,988 | |||||
| 10. | SUBSEQUENT EVENTS |
| (a) | Share issuance |
Subsequent to September 30, 2012, the Company issued 40,000 shares pursuant to an option agreement signed in September 2011 whereby the Company was granted an option to acquire an undivided 100% interest in the Blackwater South property located in the Omineca Mining Division, British Columbia. |
| Amarc Resources Ltd. |
| Notes to Condensed Interim Financial Statements |
| For the three and six months ended September 30, 2012 and 2011 |
| (Unaudited - Expressed in Canadian Dollars, unless otherwise stated) |
| (b) | Galaxie Property |
Subsequent to the reporting period, on November 1, 2012, the Company entered into an agreement with a publicly-listed company, Quartz Mountain Resources Ltd. ("Quartz") whereby the Company can earn up to a 50% interest in the Galaxie and ZNT properties owned by Quartz. The Company and Quartz have certain directors in common. The agreement is subject to regulatory approval. | |
The Company and Quartz have agreed to conduct exploration activities at the Galaxie and ZNT projects as an unincorporated joint venture, upon the Company earning its interest in these properties, whereby Quartz would transfer into the joint venture its interest in the properties including its obligations under the related acquisition agreements, the Galaxie royalty agreement, and its convertible debenture. The Company and Quartz have agreed that Quartz will initially be the Manager of the joint venture. | |
An initial 40% interest will be earned by the Company paying to Quartz $1,000,000 in cash and also funding $1,000,000 of exploration expenses, as defined in the agreements, to be incurred by Quartz on these properties, prior to December 31, 2012. The Company has advanced $1,950,000 in November 2012. | |
Upon earning the initial 40% interest, the Company will have an option to earn an additional 10% (for a total of 50%) interest in these properties by funding $1,000,000 of exploration expenses to be incurred by Quartz on these properties, prior to September 30, 2013. If the Company chose not to, or was unable to, exercise this option, its interest would remain at 40%, subject to customary dilution provisions. | |
| (c) | Babine North Property |
Subsequent to September 30, 2012, the Company entered into an option agreement with a third party vendor under which it was granted an option to acquire a 100% interest in eight mineral claims comprising approximately 35 square kilometres internal and adjacent to its Silver Vista property. Pursuant to the Option Agreement, the Company can acquire a 100% interest in the property by issuing a total of 200,000 common shares, making cash payments in the aggregate amount of $130,000 and expending a total of $630,000 on the property over a six year period. |