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RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2013
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES  
RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES

NOTE 13 RENTAL EXPENSE, COMMITMENTS AND CONTINGENCIES

        For the year ended December 31, 2013, the Company had rental expense under operating leases of $0.8 million (2012—$0.7 million; 2011—$0.1 million).

        At December 31, 2013, the Company is obligated for the next five years under purchase commitments, long term leases covering office space, exploration expenditures, option payments on properties for the following minimum amounts:

 
   2014   2015   2016   2017   2018  
 
   (in thousands)
  

Lease Obligations

   $ 3,534   $ 3,563   $ 3,648   $ 4,097   $ 4,409  

Purchase Commitments

     3,071     306     —     —     —  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 6,605   $ 3,869   $ 3,648   $ 4,097   $ 4,409  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

        Lease obligations include a new lease agreement the Company entered into during 2013 for the relocation of its corporate office, with a term extending to 2024. Purchase commitments include $2.4 million that the Company expects to disburse in 2014 for the construction of the El Gallo 2 ball mill. During 2012, the Company had one option agreement which required a cash payment of $900,000 and the issuance of 249,000 shares of common stock over a period of 36 months, of which $750,000 and 207,500 shares has already been paid by the end of 2012. The final installment of cash and 41,500 shares was paid in the first quarter of 2013.

        The Company has transferred its interest in several mining properties to third parties. The Company could remain potentially liable for environmental enforcement actions related to its prior ownership of such properties. However, the Company has no reasonable belief that any violation of relevant environmental laws or regulations has occurred regarding these transferred properties.

        The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations.