NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(All amounts in US$’000’s unless otherwise stated)
88
FORTUNA SILVER MINES INC. | 2014 ANNUAL REPORT
9. Related Party Transactions
a) Purchase of Goods and Services
The Company entered into the following related party transactions:
Years ended December 31,
Transaction with related parties
2014
2013
Salaries and wages
1, 2
$
83
$
86
Other general and administrative expenses
2
108
130
$ 191
$
216
1
Salaries and wages includes employees' salaries and benefits charged to the Company based on a percentage of the estimated hours
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. Refer to Note 7. a).
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 and payable to key
management for services is shown below:
Years ended December 31,
2014
2013
Salaries and other short term employee benefits
$ 4,828
$ 2,849
Directors fees
390
409
Consulting fees
163
175
Share-based payments
6,178
2,683
$ 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
December 31,
December 31,
Amounts due to 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.
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.
