Just a correctionI stand corrected SA paid stock and cash for the rights to the property in the beginning, but since December 2009 we just paid in stock to acquire the right to the name "Indotan". I was partially correct. Investment in Indotan Lombok Pte. Ltd. and Indotan Sumbawa Pte. Ltd. During the period ended December 31, 2009, the Company acquired the right to the name Indotan Inc. as well as control over two companies (Indotan Lombok Pte. Ltd. and Indotan Sumbawa Pte. Ltd.) (“The Singapore Companies”). As consideration the Company issued 3,500,000 common shares with a value of $2,415,000 subject to two options. The first option will entitle the Company to acquire 1,500,000 of these shares at a price of
.90 per common share within a period of 18 months. The second option will entitle the Company to acquire 500,000 of these shares at a price of
.50 per common share within a period of 8 months. All of the shares to be issued by the Company will be subject to a four-month statutory hold period. In place of the existing 1% NSR’s on both the Sumbawa and Lombok Properties, the Company will grant a 2% NSR on the Sumbawa property and a 1% NSR on the Lombok Property, as those applications were originally described in March, 2005. In the case of the Lombok Property, the NSR does not apply to the Block 1 property (which encompasses all of Selodong, Mencanggah, and Pelangan prospects) acquired by the Company from Newmont in January, 2006. The shares of the Singapore Companies will be transferred to the Company once required permits have been granted to the Singapore Companies pursuant to the mining laws of Indonesia. Effective December 24, 2009, the Company consolidated the financial results of Singapore Companies. The acquisition of Singapore Companies has been accounted for using the purchase method. The total purchase price of $2,415,000 has been allocated to resource properties.