Read Report - Nuinsco Resources Limited

Recommendations

Info

34 2005 ANNUAL REPORT (c) Share Purchase Warrants The Company’s movement in share purchase warrants is as follows: Weighted Number Average Amount of Warrants Exercise Price ($’000s) Balance – December 31, 2003 10,884,949 $ 0.43 65 Issued for cash 500,000 0.30 6 Compensation warrants 243,102 0.20 9 Underlying warrants 121,551 0.30 1 Expired (624,000) 0.45 – 11,125,602 $ 0.42 81 Balance – December 31, 2004 Issued for cash 7,050,978 0.28 267 Flow-through warrants 6,368,914 0.40 108 Issued on exercise of Compensation Warrants 1,429,777 0.22 92 Underlying warrants 761,182 0.40 31 Expired (16,629,863) 0.42 (173) Balance – December 31, 2005 10,106,590 $ 0.28 406 At December 31, 2005 the following shares are reserved for issuance on the exercise of share purchase warrants (note 6(a)): Exercise Price Number Expiry $0.20 243,102 Dec. 2006 $0.30 621,551 Dec. 2006 $0.30 350,000 Jan. 2007 $0.30 9,750 Jan. 2007 $0.30 19,500 Jan. 2007 $0.40 1,145,410 Apr. 2007 $0.26 751,432 Apr. 2007 $0.40 751,432 Apr. 2007 $0.25 2,505,000 Nov. 2007 $0.17 658,845 Dec. 2007 $0.25 175,000 Dec. 2007 $0.25 2,875,568 Dec. 2007 10,106,590 (d) Share Incentive Plan At the annual meeting of shareholders held on May 27, 2005, shareholders of the Company approved a new share incentive plan (“Share Incentive Plan”) which includes both a share purchase plan (the “Share Purchase Plan”) and a share bonus plan (the “Share Bonus Plan”). The purpose of the Share Incentive Plan is to encourage ownership of the common shares by directors, senior officers and employees of the Corporation and its designated affiliates and consultants who are primarily responsible for the management and profitable growth of its business, to advance the interests of the Corporation NOTES TO FINANCIAL STATEMENTS
NUINSCO RESOURCES LIMITED 35 by providing additional incentive for superior performance by such persons and to enable the Corporation and its designated affiliates to attract and retain valued directors, officers, employees and consultants. Under the Share Purchase Plan, eligible directors, senior officers and employees of the Company and its designated affiliates and consultants can contribute up to 10% of their annual basic salary before deductions to purchase common shares. The Company matches each participant’s contribution. The purchase price per common share is the volume weighted-average of the trading prices of the common shares on The Toronto Stock Exchange for the calendar quarter in respect of which the common shares are issued. Common shares acquired are held in safekeeping and delivered to employees as soon as practicable following March 31, June 30, September 30 and December 31 in each calendar year. No common shares were issued pursuant to the Share Purchase Plan during 2005. The maximum number of common shares issuable under the Share Purchase Plan is the lesser of: (i) that number of common shares that can be purchased with a dollar amount equal to 20% of the annual gross annual salary of the Participants (as defined in the Share Incentive Plan); and (ii) 1% of the aggregate number of issued and outstanding common shares (calculated on a non-diluted basis) from time to time. The Share Bonus Plan permits common shares to be issued as a discretionary bonus to eligible directors, senior officers and employees of the Company and its designated affiliates, and consultants from time to time. For the year ended December 31, 2005, no common shares were issued under the Share Bonus Plan. The maximum number of common shares issuable under the Share Bonus Plan is the lesser of: (i) 2,000,000 common shares; and (ii) 2% of the aggregate number of issued and outstanding common shares (calculated on a non-diluted basis) from time to time. 8 INCOME TAXES The Company’s 2005 income tax recovery amount of $211,000 relates to a renunciation of flow-through shares (note 7(a)(vi)). For 2004, the income tax recovery amount of $1,182,000 relates to a renunciation of flow-through shares (note 7(a)(vi)) less an amount paid for large corporations tax. The reconciliation of the combined Canadian federal and provincial statutory income tax rate aggregating to 36.12% (2004 - 40%) to the effective tax rate is as follows: 2005 2004 Statutory rate applied to loss for year $ 1,810,000 $ 3,953,000 Non taxable items (1,533,000) (3,673,000) Large corporations tax – 9,000 Valuation allowance (488,000) (1,471,000) $ (211,000) $ (1,182,000) The Company has accumulated losses for tax purposes of approximately $3,247,000 which expire in various years to 2015 as follows: 2006 $ 245,000 2007 221,000 2008 308,000 2009 90,000 2010 679,000 2014 940,000 2015 764,000 $ 3,247,000 2005 ANNUAL REPORT
Page 1 and 2: finding value a multi-commodity com
Page 3 and 4: NUINSCO RESOURCES LIMITED 1 achieve
Page 5 and 6: NUINSCO RESOURCES LIMITED 3 MINAGO
Page 7 and 8: NUINSCO RESOURCES LIMITED 5 preside
Page 9 and 10: NUINSCO RESOURCES LIMITED 7 nuinsco
Page 11 and 12: NUINSCO RESOURCES LIMITED 9 The min
Page 13 and 14: NUINSCO RESOURCES LIMITED 11 manage
Page 15 and 16: NUINSCO RESOURCES LIMITED 13 BERTA
Page 17 and 18: NUINSCO RESOURCES LIMITED 15 Camero
Page 19 and 20: NUINSCO RESOURCES LIMITED 17 was co
Page 21 and 22: NUINSCO RESOURCES LIMITED 19 Compan
Page 23 and 24: NUINSCO RESOURCES LIMITED 21 manage
Page 25 and 26: NUINSCO RESOURCES LIMITED 23 consol
Page 27 and 28: NUINSCO RESOURCES LIMITED 25 notes
Page 29 and 30: NUINSCO RESOURCES LIMITED 27 Share
Page 31 and 32: NUINSCO RESOURCES LIMITED 29 (a) La
Page 33 and 34: NUINSCO RESOURCES LIMITED 31 6 CONV
Page 35: NUINSCO RESOURCES LIMITED 33 A summ
Page 39: OFFICERS W. Warren Holmes Chief Exe

Read Report - Nuinsco Resources Limited

Create successful ePaper yourself

Delete template?

Save as template?