From last MD&A LIQUIDITY AND CAPITAL RESOURCES
During the period ended March 31, 2013, the Corporation incurred a net loss of $496,026 and had negative cash flows from operating activities of $171,424. At March 31, 2013 the Corporation's working capital deficit is $5,254,312. The operating loan (see below) is in default at March 31, 2013 and as of the date of this MD&A, although the operating loan has not been called the loan is due within the next twelve months. These events and conditions indicate a material uncertainty that may cast significant doubt about the Corporation's ability to continue as a going concern.
The ability of the Corporation to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due and generate sufficient funds to continue its exploration and development activities. The Corporation plans to raise additional funds through the issuance of common shares in order to meets its working capital commitments and fund future development, however there is no assurance that equity financings will be available under acceptable terms to meet the Corporation's ongoing obligations. The Corporation is also taking steps to rectify its default of the Amended Loan Facility in order to be able to draw additional funds from the Amended Term Loan Facility (see below).
Accounts payable and accrued liabilities $ 3,030,958 $
Operating loan 4,000,000
$ 7,030,958 $
On November 29, 2012 the Corporation issued 1,684,538 common shares at $0.30 per share for gross proceeds of $505,307. In conjunction with the issuance, the Corporation recognized a flow-through share premium liability of $84,218. At December 31, 2012, the Corporation had incurred $297,858 of qualifying expenditures related to the issuance.