LIQUIDITY AND CAPITAL RESOURCES
At the end of December 31, 2009 the Company had $1,721,000 in cash and restricted cash. General funds on hand were $853,000 compared to $349,000 at the end of December, 2008. The Company had $868,000 in restricted cash on hand at December 31, 2009 and at the prior year end it had no restricted cash. Restricted cash is raised through the issue of flow-through shares and is available to finance specified Canadian exploration activities.
Cash flows resulted in a net increase of $503,000 in general funds during 2009, compared to a net increase of $122,000 for the comparable period in 2008. The Company’s exploration programs in 2009 resulted in net incurred costs of $166,000 (gross expenditure of $368,000 before option payments and government grants received and before impairments). In 2008 the net cost was $1,526,000 (gross expenditure of $1,792,000 before option payments, grants and impairments). During 2009, the Company raised $2,242,000 in net funding from issuance of shares compared to $1,332,000 during 2008.
