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Message: WEL Q2 Financials on Sedar

WEL Q2 Financials on Sedar

posted on Aug 28, 2008 01:28PM

The MD&A has a very thorough discussion of activities including the various exploration projects. Here are some excerpts from the Corporate Info part:

CORPORATE ACTIVITIES
Property Transactions
In June 2008 the Company received the second scheduled option payment in connection with its agreement to option 72 of the 98 claims comprising Wildcat’s Poundmaker property, in the Rice Lake greenstone belt, to Marum Resources Inc. The payment of $50,000 brings total payments and shares received since the option was granted in February 2008 to $175,000. Under the terms of the five-year option agreement, during the first year Marum will carry out $500,000 of exploration expenditures on the property and will make a further payment to Wildcat of either $100,000 cash or shares of Marum having a market value of $150,000, at Wildcat’s option.


Financing
In June 2008 the Company completed a private placement of non-flow through units and flow through shares. The placement, which was oversubscribed, raised $1.4 million, through the issuance of $1,167,500 of non-flow through units at $0.10 per unit and $232,500 of flow-through shares at $0.10 per flow-through share. The units were comprised of one common share and one warrant, exercisable for two years at $0.20 to purchase a second common share of the Company.
Having completed its recent financing, the Company plans to opportunistically pursue transactions involving companies and/or properties that could enhance its portfolio of precious and base metal projects in Canada. High energy prices during the second quarter contributed to already slowing economic conditions and, combined with the normal seasonal summer slowdown in metals market, equity prices in the mining sector for both producer and explorer alike, have lost the gains made since 2007. Wildcat management anticipates that this weakness could continue through the remainder of the year, creating opportunities for those ready to pursue them.

Exploration activities and expenditures are discussed in a separate section of this Management Discussion and Analysis.
Professional fees in 2007 were a result of preparation and other costs relating to the April 26th, 2007 special shareholders’ meeting.

LIQUIDITY AND CAPITAL RESOURCES
At the end of June 2008, the Company had $833,000 in general funds on hand compared to $816,000 at the end of June 2007. As well, the Company had $463,000 (June 30, 2007 - $652,000) of restricted cash at June 30, 2008. Restricted cash is raised through the issue of flow-through shares and is available to finance specified Canadian exploration activities.
Cash flows show a net increase of $789,000 in general funds during the second quarter of 2008, compared to a net decrease of $825,000 for the comparable period in 2007. The Company’s exploration programs during the second quarter in 2008 resulted in a net investment of $329,000 (June 30, 2007 net investment
was $546,000). In the second quarter of 2008, financing activities of the Company raised $1,235,000 net of costs. In the second quarter of 2007, there were no financing activities.
The ability of the Company to fund its exploration projects is dependant upon its ability to obtain sufficient funding for its operations and is ultimately dependant on the recoverability of the amounts capitalized to mineral exploration properties. The Company has not yet determined whether its mineral properties contain mineral reserves that are economically recoverable, and accordingly, the success of any further exploration or development prospects cannot be assured. Because the Company is not yet a producer, the primary source of future funds is through the sale of additional equity capital. There is no assurance that the Company will be successful in raising sufficient capital to meet its obligations. If the Company is not successful in raising sufficient capital, the Company may have to curtail or otherwise limit its operations. From time to time the Company works to raise additional capital through private placements and other forms of equity financing.

RELATED PARTY TRANSACTIONS
During the quarter ended June 30, 2008, professional services amounting to $2,585 were paid to a director. In the quarter ended June 30, 2007 management fees totaling $33,000 were paid to the former Chairman for his services as Interim President and CEO and $13,350 was paid to a director and parties related to him for professional services.

OUTSTANDING SHARE DATA
The number of common shares outstanding as at August 19 and June 30, 2008 is 62,452,743; at December 31, 2007 it was 48,400,972 and at June 30, 2007 it was 39,550,972.



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