Commitments
The Company has minimum commitments under its operating leases for its premises averaging approximately $300,000 per year through 2013.
In May 2007, the Company entered into an operating lease for additional premises. The Company is committed to annual lease payments of approximately $105,000 in respect of these premises until June 30, 2010. A portion of these payments may be recovered through sub-leases.
In addition, the Company has Guaranteed Investment Certificates (“GICs”) in the amount of $259,000 as collateral security for its corporate credit cards and a line of credit of up to $1.4 million to satisfy exploration bonding requirements. Short-term deposits equivalent to the utilization of the line of credit are provided as collateral security.