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Related Party Transactions
 12 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

Note 7. Related Party Transactions

The Company’s expenses includes allocations from PGSC of costs associated with administrative support functions which included executive management, information systems, finance, legal, accounting and certain other administrative functions and stock-based compensation.  Allocated stock-based compensation includes equity awards granted to employees of the Company as well as allocated stock-based compensation expense associated with PGSC employees that provided administrative support to the Company.  For the years ended June 30, 2015 and 2014, the Company’s allocated expenses from PGSC were as follows:

 

 

 

Year Ended

 

 

Year Ended

 

 

 

2015

 

 

2014

 

Allocated expenses included in:

 

 

 

 

 

 

 

 

Exploration

 

$

11,100

 

 

$

116,305

 

Professional fees

 

 

197,738

 

 

 

179,976

 

Directors compensation

 

 

31,060

 

 

 

127,711

 

Total

 

$

239,898

 

 

$

423,992

 

 

In connection with the spinoff of the Company from PGSC, all inter-company debt owed to PGSC was settled and re-characterized as an equity contribution from PGSC (Note 6).  As of June 30, 2015 and June 30, 2014, respectively, the Company owed a total of $ nil  and $15,363,799 to PGSC.    The advances from PGSC were non-interest bearing in nature and have no fixed terms of repayment.  The Company has imputed interest on these sums at the rate of 17.5% per annum and has recorded interest expense related to these balances in the amount of $2,252,027 and $2,452,100 for the years ended June 30, 2015 and June 30, 2014.

As discussed in Note 1, the Company believes the assumptions and methodologies underlying the allocation of administrative expenses and stock-based compensation are reasonable.  However, such expenses may not be indicative of the actual expenses that would have been incurred by the Company as a stand-alone company.  As such, the financial information herein may not necessarily reflect the consolidated financial position, results of operation, and cash flows of the Company in the future or if the Company had been a stand-alone entity during the periods presented.

During the year ended June 30, 2015, directors were paid or accrued $10,565 (2014- $nil) for their services as directors of the Company’s Board.  During the year ended June 30, 2015, the Company also recorded a non-cash transaction to recognize stock based compensation for directors in the amount of $81,524 (2014 - $nil).  Accounts payable and accrued liabilities includes $10,565 (2014 - $nil) due to directors for their services.

All transactions with related parties are made in the normal course of operations and are measured at exchange value.