Investments





Valuation Policy

    1. There has been a significant subsequent equity financing provided by outside investors, at a valuation above the current fair value of the investee company, in which case the fair value of the investment is set to the value at which that financing took place;
    2. there have been significant corporate, political or operating events affecting the investee company that, in management’s opinion, have a positive impact on the investee company’s prospects and therefore its fair value.  In these circumstances, the adjustment to the fair value of the investment will be based on management’s judgment and any value estimated may not be realized or realizable.

    Such events include, without limitation:

    1. Political changes in a country in which the investee company operates which, for example, reduce the corporate tax burden, permit mining where, or to an extent that, it was not previously allowed, or reduce or eliminate the need for permitting or approvals;
    2. receipt by the company of environmental, mining, aboriginal or similar approvals, which allow the investee company to proceed with its project(s);
    3. filing by the investee company of a National Instrument 43-101 technical report in respect of a previously non-compliant resource;
    4. release by the investee company of positive exploration results, which either proves or greatly expands their resource prospects; and
    5. important, positive management changes by the investee company that we believe will have a very positive impact on the investee company’s ability to achieve its objectives and build value for shareholders.

    In the circumstances described above under (i) through (v), an adjustment to the fair value of an investment will be based upon management’s judgment and any value estimated may not be realized or realizable.

    The fair value of a privately-held investment may be adjusted downward if:

    1. There has been a significant subsequent equity financing provided by outside investors, at a valuation below the current fair value of the investee company, in which case the fair value of the investment is set to the value at which that financing took place;
    2. the investee company is placed into receivership or bankruptcy;
    3. based on financial information received from the investee company, it is apparent to the Company that the investee company is unlikely to be able to continue as a going concern;
    4. there have been significant corporate, political or operating events affecting the investee company that, in management’s opinion, have a negative impact on the investee company’s prospects and therefore its fair value.  The amount of the change to the fair value of the investment is based on management’s judgment and any value estimated may not be realized or realizable.

    Such events include, without limitation:

    1. Political changes in a country in which the investee company operates which increases the tax burden on companies, which prohibit mining where it was previously allowed, which increases the need for permitting or approvals, etc.
    2. denial of the investee company’s application for environmental, mining, aboriginal or similar approvals which prohibit the investee company from proceeding with its projects;
    3. the investee company releases negative exploration results;
    4. changes to the management of the investee company take place which the Company believes will have a negative impact on the investee company’s ability to achieve its objectives and build value for shareholders.”

    In the circumstances described above under (i) through (iv), an adjustment to the fair value of an investment will be based upon management’s judgment and any value estimated may not be realized or realizable.

    Options and warrants of private companies are carried at nil

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