Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions

7. Related Party Transactions

Related party transactions not disclosed elsewhere in these consolidated financial statements include:

a) During the reporting period ended March 31, 2012 consulting fees of $110,751 (March 31, 2011:$84,277) were incurred to directors and officers (or companies of the officers and directors) of the Company. The transactions were recorded at the exchange amount, being the value established and agreed to by the related parties.

b) Included in accounts payable and accrued expenses (related parties) as at March 31, 2012 and December 31, 2011 were $94,103 and $nil respectively payable to an officer and director of the Company for consulting fees and various expenses incurred on behalf of the Company.

c) Effective January 13, 2012, the Company’s board of directors granted 1,600,000 stock purchase options pursuant to the Company’s 2007 Stock Option Plan to Directors (800,000 each to Mr Lars Pearl and Mr Agustin Gomez De Segura). Each of the Options has an issue date, effective date and vesting date of January 13, 2012, with an exercise price of $0.05 per share. The term of these Options are five years. The Options are exercisable at any time from the grant date up to and including January 12, 2017.