The company is taking care of "its own"12 RELATED PARTY TRANSACTIONS
During the three months ended March 31, 2023 and 2022, the Company incurred the following amounts charged by officers and directors (being key management personnel) and companies controlled and/or owned by officers and directors of the Company in addition to the related party transactions disclosed elsewhere in these condensed consolidated interim financial statements:
For the three months ended March 31, 2023 March 31, 2022 Directors’ fees $ 40,400 $ 23,850
Exploration and evaluation (3)(4) 282,000 72,500
Management fees(1)(2)(3) 529,600 488,200
Share-based payments (1)(2) 263,421 626,365
Total $ 1,115,421 $ 1,210,915
(1) The Company entered into a consulting service agreement with S2K Capital Corp. and Shawn Khunkhun, the Chief Executive Officer and director of the Company. Pursuant to this consulting agreement, Mr. Khunkhun is compensated at a rate of $25,000 (2022 - $25,000) per month.
The Company is required to pay an equivalent to 24 months’ pay plus an average of any cash performance bonus paid in the previous two completed financial years if the consulting agreement is terminated by either party absent an event of default during the twelve-month period following the date of a change in control of the Company. If the agreement is terminated for reasons other than event of default, the Company is required to pay a sum equal to 12 months’ pay. The Company paid or accrued a $360,000 bonus for the three months ended March 31, 2023.
(2) The Company entered into a consulting service agreement with Fehr & Associates and Ann Fehr, the Chief Financial Officer (“CFO”) of the Company. Pursuant to this consulting agreement, Fehr & Associates is compensated at a rate of $17,500 (2022 - $17,500) per month for CFO, controller, bookkeeper and administrative services. The Company paid or accrued a $40,000 bonus for the period ended March 31, 2023. The Company is required to pay an equivalent to 12 months’ pay if the consulting agreement is terminated by either party absent an event of default during the twelve-month period following the date of a change in control of the Company.
(3) The Company is required to pay $170,000 if the consulting agreement with Mr. van Egmond, VP Exploration, is terminated by either party absent an event of default during the twelve-month period following the date of a change in control of the Company. (4) The Company paid exploration and evaluation expenses to a company controlled by a director.