Consolidated Financial Statements
Ontex Resources Limited
March 31, 2009
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2009
9. RELATED PARTY TRANSACTIONS
All related party transactions have been recorded at the exchange amount which represented the amount of consideration established and agreed to by the related parties.
[a] During the period ended March 31, 2009, the Company paid $43,750 (2008 - $26,000) to a company influenced by an officer of the Company for management and consulting services.
[b] During the period ended March 31, 2009, the Company paid $29,690 (2008 - Nil) to a company influenced by an officer for work billed as an outside consultant.
[c] During the period ended March 31, 2009, the Company paid a company controlled by an officer $26,344 (2008 - $22,300) for geological consulting services.
[d] During the period ended March 31, 2009, the Company paid $11,250 (2008 - Nil) to an officer for financial services provided to the Company.
[e] During the period ended March 31, 2009, the Company paid $6,411 (2008 - Nil) in respect of financial services provided by a former officer of the Company.
During the period ended March 31, 2009, the Company advanced funds to Echo on account of Echo’s royalty obligations and expenses paid on Echo’s behalf in the amount of $2,321 (2008 - $15,603). During the period ended March 31, 2009, the Company received $9,174 (2008 - $85,072) for advances owed to the Company. The amount due from Echo of $8,386 as of March 31, 2009 (December 31, 2008 - $15,239) is non-interest bearing, unsecured and payable on demand.
The amount due from Echo Power Generation Inc. of $6,095 as at December 31, 2007 was written off in March 2008 as uncollectible.
The Company has an ongoing commitment in the amount of $175,000 per year, escalating by ten percent annually to compensate an executive officer for management services. The agreement, dated June 30, 2008, has an initial five year term, which may be renewed at the option of the executive officer, for a successive five year term for a maximum aggregate term of 10 years. -----.
