PORTAL RESOURCES LTD.
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the six months ended December 31, 2009
NOTE TO READER
This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand Portal Resources Ltd. (“Portal” or the “Company”), its history, business environment, strategies, performance and risk factors from the viewpoint of management. The information provided should be read in conjunction with the Company’s audited annual consolidated financial statements and notes for the years ended June 30, 2009 and 2008, and the Company’s unaudited interim consolidated financial statements and notes for the six months ended December 31, 2009. The Company’s consolidated financial statements and related notes have been prepared in accordance with Canadian generally accepted accounting principles (“GAAP”) and all amounts are presented in Canadian dollars unless otherwise noted.
The following comments may contain management estimates of anticipated future trends, activities or results. These are not a guarantee of future performance, since actual results will change based on other factors and variables beyond management control.
Management is responsible for the preparation and integrity of the consolidated financial statements, including the maintenance of appropriate information systems, procedures and internal controls, and to ensure that information used internally or disclosed externally, including the consolidated financial statements and MD&A, is complete and reliable.
The Company’s board of directors follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The board’s audit committee meets with management regularly to review financial statement results, including the MD&A and to discuss other financial, operating and internal control matters.
The reader is encouraged to review Company statutory filings on www.sedar.com and to review general information, including maps on the Company’s website at www.portalresources.net.
DATE
This MD&A has been prepared based on information known to management as of February 18, 2010.
DESCRIPTION OF BUSINESS AND OVERVIEW
Portal is a growth oriented natural resource exploration company focused primarily on the acquisition exploration and development of mineral rights in Mexico and Canada, and light crude oil projects in Canada. The Company is concentrating on identifying early stage mineral and/or oil or natural gas properties that have potential for discovery of large deposits as well as acquiring more advanced projects that with further development have good production potential.
On November 1, 2008, the Company signed a Joint Venture Agreement to participate for the exploration, exploitation and production of oil and natural gas located in Central Alberta – see “Exploration review”.
EXPLORATION REVIEW
HIGHLIGHTS
•
Portal has an administrative office in Hermosillo, Sonora State, Mexico with the mandate to focus primarily on the acquisition and development of mineral rights.
•
Portal entered into the Bigwave Joint Venture Agreement to participate for a 22% interest in the exploration, exploitation and production of oil and natural gas from lands located in central Alberta.
•
Portal entered the Manito Joint Venture Agreement to participate as to a 33.3% interest for the exploration, exploitation and production of oil and natural gas resources in central Alberta.
OIL AND GAS JOINT VENTURES
Bigwave Joint Venture
On November 1, 2008 Portal signed the Bigwave Joint Venture Agreement to participate for a 15% interest in the exploration, exploitation and production of petroleum and natural gas from lands located in central Alberta. In December of 2008 the Agreement was modified to allow Portal to participate up to a 20% interest. During the quarter ended September 30, 2009 the Company increased its interest in the Joint Venture to 22%.
Within the area of interest, the Company has agreed to pay a 5.5% Gross Over Riding Royalty (GORR) on all products produced from certain geological formations.
During the quarter ended December 31, 2009, the Company completed drilling the first horizontal well operated by partner Bigwave Exploration Inc. of Calgary, Alberta. The Bigwave Joint Venture now controls 10,720 acres of land covering a source oil sand-shale sequence with several potential reservoirs (Bakken Formation type).
On January 5, 2009, the Company signed an agreement, “Participation Agreement”, with certain other partners in the Bigwave Joint Venture. Portal agreed to pay 100% of Portal’s cost per Drill Spacing Unit to earn a 100% interest until pay-out and then, after pay-out, to drop to a 70% interest per Drill Spacing Unit.
Manito Joint Venture
On March 9th, 2009 Portal signed the Manito Joint Venture Agreement to participate in a 33.3% interest for the exploration, exploitation and production of petroleum and natural gas resources in central Alberta.
Portal has agreed to pay a 5.5% Gross Over Riding Royalty (GORR) on all products produced from certain geological formations.
The Manito Joint Venture has acquired one section of land to date through the Alberta Crown Sale.
Oil and Gas Exploration Expenditures
Bigwave | Manito | Total | ||
Total as at June 30, 2008 (audited) | $ - | $ - | $ - | |
Crown Lease | 120,229 | - | 120,229 | |
Lease costs | 21,276 | 18,000 | 39,276 | |
Drilling (well costs) | 196,044 | - | 196,044 | |
Geological and engineering | 5,888 | - | 5,888 | |
Total expenditures | 343,437 | 18,000 | 361,437 | |
Total as at June 30, 2009 (audited) | $ 343,437 | $ 18,000 | $ 361,437 | |
Crown Lease | 12,023 | - | 12,023 | |
Lease costs | 2,767 | - | 2,767 | |
Drilling (well costs) | 56,657 | - | 56,657 | |
Geological and engineering | 589 | - | 589 | |
Total expenditures | 72,036 | - | 72,036 | |
Total as at December 31, 2009 (unaudited) | $ 415,473 | $ 18,000 | $ 433,473 |
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MINERAL PROPERTY EXPENDITURES
During the six months ended December 31, 2009, the Company did not own any mineral properties and did not capitalize any mineral property expenditures (2008 - $188,644).The Company wrote off all its mineral properties in fiscal year ending June 30, 2009. A breakdown of carrying values by property and significant expenditures by category is as follows:
Arroyo Verde (Argentina) | San Rafael (Argentina) | La Pampa Uranium (Argentina) | Tiger Uranium (Argentina) | Slick Rock Uranium (USA) | Golden Snow, Fish and CPG (USA) | Total | |
Total as at June 30, 2007 (audited) | 3,839,209 | 1,477,757 | 171,636 | 61,239 | 133,518 | - | 5,683,359 |
Land acquisition & holding costs | 108,687 | (27,301) | 11,523 | - | 16,873 | - | 109,782 |
Environment | 3,611 | 206 | 4,778 | 1,894 | 21,907 | - | 32,396 |
Geology | 155,866 | 101,517 | 415,886 | 6,416 | 62,353 | - | 742,038 |
Geophysics | 6,164 | 26,985 | 104 | - | - | - | 33,253 |
Surface geochemistry | 4,654 | 297 | 4,806 | - | 9,848 | - | 19,605 |
Drilling | 3,636 | 499 | - | - | 123,831 | - | 127,966 |
Total expenditures | 282,618 | 102,203 | 437,097 | 8,310 | 234,812 | - | 1,065,040 |
Property write offs | - | (1,414,474) | - | - | (368,330) | - | (1,782,804) |
- | |||||||
Total as at June 30, 2008 (audited) | $ 4,121,827 | $ 165,486 | $ 608,733 | $ 69,549 | $ - | $ - | $ 4,965,595 |
Land acquisition & holding costs | 53,853 | 2,087 | 37,481 | - | - | 30,677 | 124,098 |
Environment | 123 | - | - | - | - | - | 123 |
Geology | 26,034 | 15,342 | 32,958 | 22,934 | 4,215 | 4,136 | 105,619 |
Geophysics | - | - | - | - | - | - | - |
Surface geochemistry | - | 852 | 171 | - | - | 193 | 1,216 |
Drilling | - | - | - | - | - | - | - |
Total expenditures | 80,010 | 18,281 | 70,610 | 22,934 | 4,215 | 35,006 | 231,056 |
Gain (loss) on sale of properties | (99,127) | - | - | - | - | (41,104) | (140,231) |
Property write-offs | (4,102,710) | (183,767) | (679,343) | (92,483) | (4,215) | 6,098 | (5,056,420) |
Total as at June 30, 2009 (audited) | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
Total expenditures | - | - | - | - | - | - | - |
Property write-offs | - | - | - | - | - | - | - |
Total as at December 31, 2009 | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
SUMMARY OF QUARTERLY RESULTS
Three Months Ended | ||||
December 31 2009 | September 30 2009 | June 30 2009 | March 31 2009 | |
$ | $ | $ | $ | |
Interest Income | 872 | 3,765 | 10,447 | 12,567 |
General & Administration (excluding property write-offs) | 247,986 | 247,302 | 242,751 | 250,248 |
Property write-offs on sale of subsidiary | - | - | 58,194 | 5,134,856 |
Net loss | 247,114 | 243,537 | 152,802 | 5,372,537 |
Net loss per share | 0.01 | 0.01 | 0.01 | 0.18 |
Three Months Ended | ||||
December 31 2008 | September 30 2008 | June 30 2008 | March 31 2008 | |
$ | $ | $ | ||
Interest Income | 17,436 | 24,968 | 33,617 | 40,834 |
General & Administration (excluding property write-offs) | 330,398 | 551,177 | 396,004 | 385,575 |
Property write-offs | 163 | 3,438 | 1,782,804 | Nil |
Net loss | 313,125 | 529,647 | 2,145,191 | 344,738 |
Net loss per share | 0.01 | 0.02 | 0.07 | 0.01 |
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008
This review of the Results of Operations should be read in conjunction with the unaudited Consolidated Financial Statements of the Company for the six months ended December 31, 2009 and 2008.
Results of Operations for the three months ended December 31, 2009 and 2008
For the three months ended December 31, 2009 the Company incurred a net loss of $247,114 ($0.01 per share) compared to a net loss of $313,125 ($0.01 per share) for the three months ended December 31, 2008. The decrease of $66,011 in the net loss for the period from 2008 to 2009 is primarily due to: (a) a decrease in salaries and benefits of $73,419 due to a reduction of staff; (b) a decrease in investor relations expenses of $17,827 due to a reduced number of trade show attendances and a decrease in the cost of the Annual General Meeting material; (c) a decrease of interest income of $16,564 due to the decrease in the interest rates and lower cash amount invested; (d) a decrease of legal expenses of $13,231 due to the reduction of legal services due to the sale of the Argentinean subsidiary and (e) a decrease of office and miscellaneous expenses of $11,478 due to the sale of the Argentinean subsidiary, offset by an increase in stock based compensation expense of $18,919 an d an increase on project investigation expenses of $47,908.
Expenses
General and administrative costs were $261,348 for the three months ended December 31, 2009, a decrease of $70,182 as compared to $331,530 for the same period in the prior year. The six largest expense items for this fiscal period, which account for 81% (2008 – 75%) of total general and administrative expenditures are: project investigation of $64,012 (2008 - $16,104), salaries and benefits of $50,047 (2008 - $123,466), stock based compensation expense of $27,330 (2008 – $8,411), office and miscellaneous expenses of $26,976 (2008 – $38,454), rent of $22,930 (2008 – 23,622) and investor relations expense of $21,565 (2008 – $39,392). The increase in project investigation expenses is due to the Company’s increased efforts in finding new opportunities, the increase in stock based compensation expense is due to the vesting of officers’, consultants’ and employees’ stock options; the decrease in salaries and benefits is the resu lt of the decrease in the number of salaried employees, as well as the sale of the Argentinean subsidiary. The decrease in office and miscellaneous expenses is the result of the sale of the Argentinean subsidiary. The decrease in investor relation expenses is due to the reduction of show attendances and the decrease of the Annual General Meeting costs.
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 2009 AND 2008
For the six months ended December 31, 2009 the Company incurred a net loss of $490,651 ($0.02 per share) compared to a net loss of $842,772 ($0.03 per share) for the six months ended December 31, 2008. The decrease in the net loss for the period from 2008 to 2009 of $352,121 is primarily due to: (a) a decrease in salaries and benefits of $294,671 due to a reduction of staff and a compensation package paid to the former CEO of the Company in August 2008; (b) a decrease in investor relations expenses of $87,594 due to a reduced number of trade show attendances and a decrease in the cost of the Annual General Meeting material; (c) a decrease of interest income of $37,767 due to the decrease in the interest rates and lower cash amount invested; (d) a decrease of legal expenses of $35,272 due to the reduction of legal services due to the sale of the Argentinean subsidiary and (e)a decrease of travel expenses of $32,381 due to the cessation of trips to Argentina since the sale of the subsidiary and (f) a decrease of office and miscellaneous expenses of $29,394 due to the sale of the Argentinean subsidiary, offset by an increase in stock based compensation expense of $70,753 and an increase of project investigation expenses of $42,910.
Expenses
General and administrative costs were $515,591 for the six months ended December 31, 2009, a decrease of $367,116 as compared to $882,707 for the same period in the prior year. The six largest expense items for this fiscal period, which account for 78% (2008 – 70%) of total general and administrative expenditures were: project investigation of $97,499 (2008 - $54,589),salaries and benefits of $96,623 (2008 - $391,294), stock based compensation expense of $80,964 (2008 – $10,211), office and miscellaneous expenses of $50,742 (2008 – $80,136), rent of $48,314 (2008 – 40,228) and consulting and management fees of $26,882 (2008 – $39,361). The increase in project investigation expenses is due to the Company’s increased efforts in finding new opportunities, the decrease in salaries and benefits is the result of the decrease in the number of salaried employees and a compensation package paid to the former CEO of the Company in August 2008, the increase in stock based compensation expense is due to the vesting of officers’, consultants’ and employees’ stock options. The decrease in office and miscellaneous expenses is the result of the sale of the Argentinean subsidiary. The increase in rent is a result of a decrease in the recovery charge for rent to related parties which moved out of the space. The decrease in consulting and management fees is due to a decrease of consulting services required after the sale of the Argentinean subsidiary.
SELECTED ANNUAL INFORMATION
For the years ended June 30th
2009 | 2008 | 2007 | |||
Interest Income | $ 65,418 | $ 161,429 | $ 106,674 | ||
Net income (loss) | (6,366,236) | (3,288,433) | (1,877,224) | ||
Basic and diluted EPS | (0.21) | (0.11) | (0.09) | ||
Total assets | 1,965,990 | 8,319,819 | 7,007,477 | ||
Total long-term liabilities | Nil | Nil | Nil | ||
Cash dividends declared | Nil | Nil | Nil |
LIQUIDITY AND CAPITAL RESOURCES
The Company had cash and short term investments of $979,078 and working capital of $1,018,478 as of December 31, 2009 (June 30, 2009: $1,504,528 and $1,493,622 respectively). The decrease in working capital is primarily due to expenditures on oil and gas properties of $72,036 and the funding of operating activities of $422,555.
The Company has sufficient cash to meet its on-going obligations as they become due and will modify budgeted exploration activities as necessary to ensure it continues to meet its on-going obligations.
The Company’s authorized capital consists of 100,000,000 common shares without par value and 100,000,000 preferred shares, issuable in series. As at December 31, 2009, the Company’s share capital was $14,760,161 representing 29,651,539 common shares (June 30, 2009 - $14,760,161 representing 29,651,539 common shares).
As at December 31, 2009, contributed surplus totaled $886,115 (June 30, 2009 - $805,151). During the six months ended December 31, 2009, the Company recognized $80,964 (2008 - $10,211) in compensation expense for share purchase options that vested during the period.
Stock options outstanding as at December 31, 2009 are as follows:
Number | Exercise Price | Expiry Date |
150,000 | $0.86 | 14-Apr-10 |
75,000 | $0.70 | 20-Jan-11 |
766,400 | $0.52 | 5-Dec-11 |
8385,000 | $0.20 | 7-Oct-13 |
1,037,200 | $0.12 | 9-Jun-14 |
2,863,600 |
At December 31, 2009 the Company had 2,863,600 (June 30, 2009 – 3,688,600) outstanding stock options with a weighted average exercise price of $0.30. If the remaining outstanding options were exercised, the Company’s available cash would increase by $871,492 (See also “Subsequent Events).
As the date of the MD&A there were 29,651,539 common shares issued and outstanding and 33,135,139 common shares outstanding on a diluted basis.
The Company relies on equity financings to fund its exploration activities and corporate overhead expenses. There is no guarantee that the Company will be able to secure additional financing in the future at terms that are favourable. To date, the Company has not used debt or other means of financing to further its exploration programs, and the Company has no plans to use debt financing at the present time.
TRANSACTIONS WITH RELATED PARTIES
During the six months ended December 31, 2009
a)
$5,774 (2008 - $21,064) was charged to a public company with a director in common with the Company for rent. As at December 31, 2009, $Nil (June 30, 2009 - $Nil) was receivable from this public company.
b)
$3,150 (2008 - $16,642) was charged to a private company with certain directors in common with the Company for administrative fees. As at December 31, 2009, $3,150 (June 30, 2009 - $Nil) was receivable from this private company.
c)
$1,050 (2008 - $Nil) was charged to a private company with a director in common with the Company for rent. As at December 31, 2009, $Nil (June 30, 2009 - $Nil) was receivable from this private company.
d)
the Company paid or accrued to pay a private company with a director in common with the Company an aggregate of $4,179 (2008 - $5,565) for fees and expenses. As at December 31, 2009, the Company owed this company an aggregate of $525 (June 30, 2009 - $788).
e)
the Company Incurred director fees of $14,833 (2008 - $6,500) to five directors.
ADDITIONAL INFORMATION
Additional information about the Company is available on SEDAR at www.sedar.com.
Outstanding Share Data
As at February 18, 2010 the Company had the following items issued and outstanding (see also “Subsequent Events”):
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29,651,539 common shares
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3,483,600 common stock options with a weighted average exercise price of $0.28 expiring at various dates until January 17, 2015.
Commitments and Contingencies
The Company has obligations under an operating lease for its corporate office that is in effect until February 28, 2013. The remaining future minimum lease payments for the non-cancellable lease are: 2010 - $43,229; 2011 - $90,709; 2012 - $94,961; and 2013 - $65,197.
RISK FACTORS
The Company’s financial success will be dependent upon the extent to which it can discover mineralization, oil and gas reserves or acquire mineral or oil and gas properties and the economic viability of developing its properties.
The Company competes with many companies possessing greater financial resources and technical facilities than itself. The market price of minerals, metals and/or oil and gas is volatile and cannot be controlled. There is no assurance that the Company’s mineral exploration, oil and gas exploration and development activities will be successful. The development of mineral resources and oil and gas properties involves many risks that even a combination of experience, knowledge and careful evaluation may not be able to overcome.
The development of mineral and oil and gas resources in Mexico and Canada are subject to a comprehensive review, approval and permitting process that involves various federal and regional agencies. There can be no assurance given that the required approvals and permits for a mining or oil and gas project, if technically and economically warranted, on the Company’s claims can be obtained in a timely or cost effective manner.
All of the Company’s short to medium term operating and cash flow must be derived from external financing. Actual funding may vary from what is planned due to a number of factors including the progress of exploration and development on its current properties. Should changes in equity market conditions prevent the Company from obtaining additional external financing, the Company will need to review its exploration and oil and gas property holdings to prioritise project expenditures based on funding availability.
The Company competes with larger and better financed companies for exploration personnel, contractors and equipment. Increased exploration activity has increased the demand for equipment and services. There can be no assurance that the Company can obtain required equipment and services in a timely or cost effective manner.
The Company’s operations in Mexico and Canada and financing activities in Canada make it subject to foreign currency fluctuations and such fluctuations may materially affect its financial position and results.
OUTLOOK
Portal has planned exploration programs for the oil and gas project in Central Alberta and it is continuing to review other mineral exploration projects for acquisition.
The recently opened office in Hermosillo, Sonora, Mexico, brings together the core corporate functions and management personnel released after the takeover of Nevada Pacific Gold by US Gold in late 2007. When combined with the directors of the Company this group has the collective experience and success of acquiring, developing and producing from three different open pit gold mines in Mexico over the last 17 years. Portal will leverage this knowledge and the business relationships built to acquire a portfolio of quality exploration projects.
FORWARD LOOKING STATEMENTS
Certain information set forth in this report contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties including: the results of current operation and exploration activities; market reaction to future operation and exploration activities; significant changes in metal prices; currency fluctuations; general market and industry conditions; and other factors detailed in the Company’s public filings. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Portal Resources Ltd.’s actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements, and accordingly, no assurance can be given that the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Portal Resources Ltd. will derive therefrom. Portal Resources Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward looking statements included or incorporated by reference in this document include statements with respect to:
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The Company’s progress, potential and uncertainties of its oil and gas drilling program in central Alberta.
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The Company’s expectations regarding the ability to find new projects by its recently opened office in Mexico.
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Expectations regarding the ability to raise capital to continue its exploration and project search programs.
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The Company’s future adoption of IFRS; and,
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Plans to complete a financing.
INTERNAL CONTROLS AND PROCEDURES OVER FINANCIAL REPORTING
Changes in Internal Control Over Financial Reporting (“ICFR”)
No changes occurred in the current period of the Company’s ICFR that have materially affected or are reasonable likely to materially affect the Company’s ICFR.
INTERNATIONAL FINANCIAL REPORTING STANDARDS
On February 13, 2008, the Canadian Accounting Standards Board (“AcSB”) confirmed the mandatory changeover date to International Financial Reporting Standards (“IFRS”) for Canadian profit-oriented publicly accountable entities (“PAE’s”) such as the Company.
The AcSB requires that IFRS compliant financial statements be prepared for annual and interim financial statements commencing on or after January 1, 2011. For PAE’s with a June 30 year-end, the first unaudited interim financial statements under IFRS will be the quarter ending September 30, 2011, with comparative financial information for the quarter ended September 30, 2010. The first audited annual financial statements will be for the year ending June 30, 2012, with comparative financial information for the year ended June 30, 2011. This also means that all the opening balance sheet adjustments relating to the adoption of IFRS must be reflected in the July 1, 2010 opening balance sheet which will be issued as part of the comparative financial information in the September 30, 2011 unaudited interim financial statements.
The Company intends to adopt these requirements as set out by the AcSB and other regulatory bodies. At this time, the impact of adopting IFRS cannot be reasonably quantify areas relating to IFRS that could materially affect the Company. During the fiscal 2010, the Company will continue to evaluate the impact of IFRS on the Company, The actual conversion work will occur in 2010 and 2011, in anticipation of the preparation of the July 1, 2010 balance sheet that will be required for comparative purposes for all periods ending in fiscal 2012.
FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS
The fair values of the Company’s cash and cash equivalents, marketable securities, short-term investments, amounts receivable, accounts payables and accrued liabilities approximate their carrying values.
The Company’s financial instruments are exposed to certain financial risks, including currency risk, credit risk, liquidity risk and interest risk.
(a)
Currency risk
The Company may acquire property interests in foreign jurisdictions that may make it subject to foreign currency fluctuations and inflationary pressures which may adversely affect the Company’s financial position, results of operations and cash flows. The Company is affected by changes in exchange rates between the Canadian Dollar and foreign functional currencies. The Company does not invest in foreign currency contracts to mitigate the risks.
(b)
Credit risk
The Company’s cash and cash equivalents are held in a Canadian financial institution. The Company does not have any asset-backed commercial paper in its cash and cash equivalents or short-term investments. The Company’s amount receivable consists primarily of recovered rent and office expense, and tax due from the federal government of Canada.
(c)
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure. Accounts payable and accrued liabilities are due within the current operating period.
(d)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The risk that the Company will realize a loss as a result of a decline in the fair value of the cash and cash equivalents is limited because they are generally held to maturity. A 1% change in the interest rate, with other variables unchanged, would affect the Company by an annualized amount of interest equal to approximately $1,000.
SUBSEQUENT EVENTS
On January 18, 2010, the Company granted stock options to directors, consultants and employees of the Company to purchase a total of 620,000 common shares at a price of 15 cents per share, exercisable until January 19, 2015.
On January 26, 2010 the Company announced that, subject to Regulatory approval the Company has negotiated a $1-million non brokered private placement; the proceeds of which will be used for general working capital. The placement consists of four million units at a price of 25 cents per unit. Each unit consists of one common share and a one-half share purchase warrant. Each whole share purchase warrant will be exercisable for one common share at a price of 30 cents for a period of 12 months. A 7-per-cent finder’s fee will be paid on a portion of the placement. Company officers and directors will purchase a portion of the financing.
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