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SHAREHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2014
SHAREHOLDERS' EQUITY  
SHAREHOLDERS' EQUITY

 

NOTE 10 SHAREHOLDERS' EQUITY

        During the year ended December 31, 2014, the Company issued approximately 1,499,300 shares (2013—48,000 shares) of common stock upon exercise of stock options under the Equity Incentive Plan at a weighted average exercise price of $1.29 per share (2013—$1.97) for proceeds of $1.9 million (2013—$0.1 million). The Company also issued 198,000 shares (2013—45,000 shares) of common stock upon exercise of certain stock options the Company assumed as part of the Minera Andes Inc. acquisition, at a weighted average exercise price of C$1.96 per share (2013—C$1.80) for proceeds of $0.4 million (2013—$0.1 million).

        As a result of a litigation settlement in November 2012 with TNR Gold Corp ("TNR"), the Company granted TNR an option to acquire a minority ownership position in the Los Azules project (the "Back-In Right Option"). The Back-In Right Option gave TNR the option of owning up to approximately 13% of the Los Azules deposit. On October 16, 2014, the Company terminated the Back-In Right Option. In exchange for the termination of the Back-In Right Option, the Company issued 850,000 shares of the Company's common stock to TNR, and granted a 0.4% net smelter royalty ("NSR") on Los Azules. Further, if Company sells all of its interest in the project within thirty six months of closing of the transaction on October 16, 2014, the Company will grant a bonus payment equal to 1% of the gross proceeds to TNR. The value of the 850,000 shares of $1.4 million was recorded as Exploration Costs in the Statement of Operations and Comprehensive Loss for the year ended December 31, 2014.

        During the year ended December 31, 2014, 3.7 million (2013—51.1 million) Exchangeable Shares were converted into common stock. At December 31, 2014, total outstanding Exchangeable Shares not exchanged and not owned by the Company or its subsidiaries totaled 28.5 million (2013—32.2 million). These Exchangeable Shares were initially issued by the Company in connection with the acquisition of Minera Andes as noted in Note 3, Business Acquisition. The Exchangeable Shares, by virtue of the redemption and exchange rights attached to them and the provisions of certain voting and support agreements, provide the holders with economic and voting rights that are, as nearly as practicable, equivalent to those of a holder of shares of common stock of the Company. Accordingly, remaining Exchangeable Shares are included as part of the consolidated share capital of the Company.