56
FORTUNA SILVER MINES INC. | 2014 ANNUAL REPORT
Related Party Transactions
(expressed in $’000’s)
a) Purchase of Goods and Services
The Company entered into the following related party transactions:
Expressed in $’000’s
Three months ended December 31,
Years ended December 31,
2014
2013
2014
2013
Salaries and wages
1,2
$ 15
$ 15
$ 83
$ 86
Other general and administrative expenses
2
16
21
108
130
$ 31
$ 36
$ 191
$ 216
1
Salaries and wages includes employees' salaries and benefits charged to the Company based on a percentage of the estimatedhours
worked for the Company.
2
Radius Gold Inc. (“Radius”) has directors in common with the Company and shares office space, and is reimbursed for general overhead
costs incurred on behalf of the Company. Gold Group Management Inc. ("Gold Group"), which is owned by a director in common with
the Company, provides various administrative, management, and other related services.
In 2013, the Company issued 11,415 common shares of the Company, at a fair market value of $4.38 per share and
paid $50 cash to Radius, under the option to acquire a 60% interest in the Tlacolula silver project located in the State
of Oaxaca, Mexico.
Subsequent to December 31, 2014, the Company paid $50 under the option agreement to Radius.
b) Key Management Compensation
key management includes all persons named or performing the duties of Vice-President, Chief Financial Officer, President,
Chief Executive Officer, and non-executive Directors of the Company. The compensation paid or payable to key
management for services is shown below:
Expressed in $’000’s
Three months ended December 31,
Years ended December 31,
2014
2013
2014
2013
Salaries and other short term
employee benefits
$ 1,292
$ 884
$ 4,828
$ 2,849
Directors fees
97
106
390
409
Consulting fees
40
43
163
175
Share-based payments
1,437
(14)
6,178
2,683
$ 2,866
$ 1,019
$ 11,559
$ 6,116
Consulting fees includes fees paid to two non-executive directors in both 2014 and 2013.
c) Period End Balances Arising From Purchases of Goods/Services
On October 10, 2012, the Company paid Gold Group Management Inc., which is owned by a director in common with the
Company, a retainer of $61 representing three months deposit under a services agreement effective July 1, 2012.
Expressed in $‘000’s
December 31,
December 31,
Amounts due from related parties
2014
2013
Owing to company(ies) with common directors
3
$ 9
$ 20
3
Owing to Gold Group Management Inc. ("Gold Group)" who has a director in common with the Company.
