Contractual obligations:
The following are WPR’s contractual exploration obligations as at December 31, 2008:
i) Tri-Eagle Property:
Incur aggregate exploration expenditures on the Tri-Eagle Property of $5.0 million over a three year period, of which $1.5 million must be expended by October 30, 2008, an additional $1.5 million on or before October 30, 2009 and a further $2.0 million on or before October 30, 2010.
The Company is currently renegotiating the terms of this obligation.
As at December 31, 2008 the Company has incurred only $0.2 million in exploration expenditures and has discontinued its exploration activities in this area.
ii) Lowland Property:
Under the terms of the agreement, WPR has the right to fund a maximum of $20.0 million in expenditures on the Lowland Property over a four year period. For each $5.0 million in expenditures, WPR will acquire a 12.5% interest in the Lowland Property, up to a maximum 50% interest.
As at December 31, 2008, the Company has incurred $12.2 million of expenditures, fulfilling its exploration obligations until May 15, 2010.
iii) Big Mac Property:
In order to acquire its interest in the property WPR is required to incur exploration expenditures of $1.5 million on or before March 14, 2009 and $1.0 million before March 14, 2010.
As at December 31, 2008, the Company has incurred $2.0 million of exploration expenditures on this project.
iv) Luc Bourdon Property:
In order to acquire its 35% interest in the property, WPR made payments to Golden Valley of $175,000. In addition to these payments, WPR and Noront are required to incur aggregate exploration expenditures on the property of at least $5.0 million over a three-year period, of which $1.0 million must be expended in the first year.
As at December 31, 2008, the Company has incurred $0.3 million of exploration expenditures on this project.
