More highlights of MD&A
Cash Resources and Liquidity
As at December 31, 2012, the Company had cash and cash equivalents of $4,846,429 and working capital of $8,945,363 compared to cash and cash equivalents of $2,779,368 and working capital of $3,418,939 as at September 30, 2012. The Company has no debt or other long-term obligations outstanding impacting liquidity or future cash flows. The Company at this stage of operations depends on equity markets to raise funds for acquisition of assets and to carry out its exploration and development operations.
Consulting fees decreased $255,398 from $1,305,799 for the three months ended December 31, 2011 to $1,056,401 for the three months ended December 31, 2012. Investor relations decreased $161,191 from $314,981 for the three months ended December 31, 2011 to $153,790 for the three months ended December 31, 2012. Legal fees decreased $126,692 from $241,321 for the three months ended December 31, 2011 to $114,629 for the three months ended December 31, 2012. Salaries decreased $86,348 from $183,167 for the three months ended December 31, 2011 to $96,819 for the three months ended December 31, 2012. Travel expenses for corporate development decreased $288,292 from $405,280 for the three months ended December 31, 2011 to $116,982 for the three months ended December 31, 2012.
It seems the companies burn rate is approx $500k per month. If they had $4.8 million as of dec 31st 2012 they should not run out of money till mid September 2013, so roughly 7 months.
burn rate would be less if they got rid of this sweet deal below...
On August 1, 2007, as amended January 1, 2011, the Company entered into a two-year executive consulting agreement with J P Varas Management and Geological Corp., a company controlled by an officer of the Company. Under the agreement, the Company shall pay a monthly fee of $20,000 per month plus some other allowances. The agreement shall automatically renew for one year. If the agreement is terminated by the Company without cause, it is required to pay between 12 months to 24 months of monthly fees plus a certain amount calculated based on bonus paid within a 12 month period at the time of termination.