Included in accounts payable and accrued liabilities is a total of $106,703 (December 31, 2012 - $151,224) due to related parties for office costs, directors' fees, and consulting fees and expenses. The amounts due to related parties are unsecured, non-interest bearing and have no specific terms of repayment.
On May 31, 2013 the Company entered into a short term loan agreement with Salida Capital International Corp for $350,000 to fund some immediate obligations at Verticalnaya pending completion of the private placement. The loan was repaid in June 2013 following the private placement.
8 Significant Accounting Policies and Critical Accounting Estimates
The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses for the periods reported. The Company's accounting policies are described in Note 3 to the December 31, 2012 audited consolidated financial statements.
9 Forward-Looking Statements
This MD&A contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's expectations and assumptions regarding the growth, results of operations, performance, prospects and opportunities of the Company. When used in this MD&A, such statements use words such as "may", "would", "could", "will", "expect", "believe", "plan", "anticipate", "forecast", "estimate", "predict", "potential", "budget", or the negative of these terms or other similar expressions concerning matters that are not historical fact. In particular, statements regarding the Company's future operating plans including reactivation of the development work on the ventilation and conveyor roadways and the expected timing of commencement of commercial production at the Company's Verticalnaya Mine, the expected average price of coal to be received by the Company from any off-take arrangements, the liquidation in Ukraine of Inter-Invest and the legal and financial implications of the liquidation process to the Company, economic performance and product development efforts are or involve forward-looking statements. These statements reflect management's expectations as of the date of such forward-looking statement regarding the Company's future operational or financial performance and should not be read as guarantees of future performance or results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the risk factors disclosed in the Company's AIF and in certain documents incorporated by reference herein. Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those described in forward-looking statements, there may be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that actual events, performance or results will be consistent with these forward-looking statements and accordingly readers should not place undue reliance on forward-looking statements. The Company assumes no obligation to update or revise forward-looking statements to reflect new events or circumstances, except as required by law.
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