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SHAREHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2015
SHAREHOLDERS' EQUITY  
SHAREHOLDERS' EQUITY

 

NOTE 7   SHAREHOLDERS’ EQUITY

 

During the six months ended June 30, 2015, 1.4 million exchangeable shares were converted into common stock (2014 – 1.2 million).  At June 30, 2015, total outstanding exchangeable shares not exchanged and not owned by the Company or its subsidiaries totaled 27.1 million (December 31, 2014 – 28.5 million).

 

During the six months ended June 30, 2015, there were no shares of common stock issued upon exercise of stock options under the Equity Incentive Plan.  This compares to approximately 60,300 shares of common stock issued upon exercise of stock options during the same period of 2014, at a weighted average exercise price of $2.14 per share for proceeds of $0.1 million.

 

During the six months ended June 30, 2015, the Company issued 430,295 shares of common stock under an agreement with one of its mining contractors to settle parts of its accounts payable for services rendered above a defined tonnage threshold. The fair value of the common stock at the time of issuance was $0.4 million. The agreement with this mining contractor expired and was renegotiated during the period. Under the revised agreement, the Company can no longer make share payments and instead is required to pay in cash.

 

On June 18, 2015, the Board of Directors declared an annual return of capital of $0.01 per share of common stock, payable semi-annually.  The first semi-annual return of capital payment of $0.005 is payable on August 17, 2015 to shareholders of record as of the close of business on July 31, 2015.  Return of capital will be paid to shareholders of the Company’s shares of common stock and to holders of exchangeable shares.  The second installment will occur in February 2016.