[X]
|
Quarterly
Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
|
For
the quarterly period ended June 30,
2008
|
|
[ ]
|
Transition
Report pursuant to 13 or 15(d) of the Securities Exchange Act of
1934
|
For
the transition period __________ to __________
|
|
Commission
File Number: 000-51203
|
Nevada
|
98-0425310
|
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification No.)
|
200 S. Virginia, 8th
Floor, Reno, Nevada 89501
|
(Address
of principal executive offices)
|
(775)
398-3005
|
(Registrant’s
telephone number, including area code)
|
Finmetal
Mining Ltd.
666 Burrard Street,
Suite 500, Vancouver, British Columbia, Canada
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Large
accelerated filer [ ]
|
Accelerated
filer [ ]
|
Non-accelerated
filer [ ]
|
Smaller
reporting company [X]
|
Page
|
||
PART I – FINANCIAL
INFORMATION
|
||
Item
1.
|
3
|
|
Item
2.
|
23
|
|
Item
3.
|
32
|
|
Item
4T.
|
32
|
|
PART II – OTHER
INFORMATION
|
||
Item
1.
|
34
|
|
Item
1A.
|
34
|
|
Item
2.
|
34
|
|
Item
3.
|
34
|
|
Item
4.
|
34
|
|
Item
5.
|
34
|
|
Item
6.
|
34
|
Our
unaudited consolidated financial statements included in this Form 10-Q are
as follows:
|
|
Unaudited
Consolidated Balance Sheet as of June 30, 2008;
|
|
Unaudited
Consolidated Statements of Operations for the three and six months ended
June 30, 2008 and 2007 and from inception on September 5, 1997 to June 30,
2008;
|
|
Unaudited
Consolidated Statement of Changes in Stockholders' Equity from
inception on September 5, 1997 to June 30, 2008;
|
|
Unaudited
Consolidated Statements of Cash Flows for the six months ended June 30,
2008 and 2007 and from inception on September 5, 1997 to June 30, 2008;
and
|
|
Notes
to Unaudited Consolidated Financial
Statements;
|
June
30,
|
December
31,
|
|||||||
As
at
|
2008
|
2007
|
||||||
$ | $ | |||||||
ASSETS
|
||||||||
Current
|
||||||||
Cash
and cash equivalents
|
525,485 | 1,957,856 | ||||||
Exploration
program advances
|
- | 87,600 | ||||||
Taxes
recoverable
|
498 | 19,226 | ||||||
Prepaid
expenses and deposit
|
6,682 | 5,723 | ||||||
532,665 | 2,070,415 | |||||||
Property
and equipment, net of accumulated amortization
|
||||||||
(Note
4(ii))
|
38,139 | 35,214 | ||||||
Website
development cost, net of accumulated amortization
|
||||||||
of
$9,167 (December 31, 2007: $4,167)
|
30,833 | 5,833 | ||||||
Total
Assets
|
601,637 | 2,111,453 | ||||||
LIABILITIES
|
||||||||
Current
|
||||||||
Accounts
payable and accrued liabilities
|
105,822 | 647,414 | ||||||
Amounts
due to related parties (Note 3)
|
9,685 | 54,365 | ||||||
Total
Liabilities
|
115,507 | 701,779 | ||||||
STOCKHOLDERS’
EQUITY
|
||||||||
Common
stock (Note 5)
|
||||||||
Authorized:
5,000,000 shares, $0.00001 par value
|
||||||||
Issued
and outstanding: 1,691,159 shares
(December
31, 2007: 1,722,409 shares)
|
17 | 17 | ||||||
Additional
paid-in capital
|
11,069,433 | 14,314,965 | ||||||
Deferred
stock based compensation (Note 5)
|
(86,698 | ) | (725,796 | ) | ||||
(Deficit)
accumulated during the exploration stage
|
(10,496,622 | ) | (12,179,512 | ) | ||||
Total
Stockholders’ Equity
|
486,130 | 1,409,674 | ||||||
Total
Liabilities and Stockholders’ Equity
|
601,637 | 2,111,453 |
Cumulative
|
|||||||||||||||
From
|
|||||||||||||||
Inception
on
|
|||||||||||||||
September
5,
|
|||||||||||||||
Fiscal
quarter ended
|
Six
months ended
|
1997
to
|
|||||||||||||
June 30,
|
June 30,
|
June
30,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
|||||||||||
GENERAL
AND ADMINISTRATIVE EXPENSES
|
$
|
$
|
$
|
$
|
$
|
||||||||||
Amortization
– property and equipment
|
3,372
|
2,172
|
6,742
|
4,343
|
16,610
|
||||||||||
Amortization
– website development costs
|
3,333
|
833
|
5,000
|
1,667
|
9,167
|
||||||||||
Bank
charges
|
742
|
233
|
1,506
|
1,249
|
6,749
|
||||||||||
Consulting
and management
fees
(recovery) (Note 5)
|
(3,066,094)
|
2,313,737
|
(2,386,907)
|
2,690,893
|
4,222,551
|
||||||||||
Foreign
exchange (gain) loss
|
1,299
|
(6,186)
|
(7,804)
|
(59)
|
10,954
|
||||||||||
Investor
communication and promotion
|
53,747
|
18,839
|
80,200
|
158,913
|
386,120
|
||||||||||
Office
and administrative
|
6,202
|
4,190
|
31,762
|
10,842
|
106,944
|
||||||||||
Professional
fees
|
71,508
|
59,604
|
108,912
|
88,920
|
334,031
|
||||||||||
Rent
|
5,836
|
3,970
|
13,070
|
8,078
|
36,680
|
||||||||||
Telephone
|
6,578
|
11,675
|
16,713
|
19,411
|
51,839
|
||||||||||
Transfer
agent and filing fees
|
2,644
|
7,256
|
2,918
|
11,112
|
35,176
|
||||||||||
Travel
and accommodation
|
48,577
|
16,689
|
83,813
|
160,313
|
355,372
|
||||||||||
Website
maintenance
|
4,500
|
4,500
|
9,000
|
9,000
|
30,000
|
||||||||||
Mineral
property acquisition and exploration expenditures
|
18,798
|
1,230,052
|
360,530
|
1,230,052
|
5,023,052
|
||||||||||
(2,838,958)
|
3,667,564
|
(1,674,545)
|
4,394,734
|
10,625,245
|
|||||||||||
OTHER
INCOME AND (EXPENSES)
|
|||||||||||||||
Forgiveness
of debt
|
-
|
-
|
-
|
-
|
24,000
|
||||||||||
Gain
on sale of oil and gas property
|
-
|
-
|
-
|
-
|
10,745
|
||||||||||
Interest
income
|
1,619
|
33,883
|
8,345
|
33,883
|
101,396
|
||||||||||
Recovery
of expenses
|
-
|
-
|
-
|
-
|
4,982
|
||||||||||
Write-down
of incorporation cost
|
-
|
-
|
-
|
-
|
(12,500)
|
||||||||||
NET
(GAIN) LOSS
|
$
|
(2,840,577)
|
$
|
3,633,681
|
$
|
(1,682,890)
|
$
|
4,360,851
|
$
|
10,496,622
|
|||||
Net
income (loss) per share
|
$
|
1.67
|
$
|
$(2.04)
|
$
|
.98
|
$
|
$ (2.55)
|
|||||||
Weighted
average shares outstanding
|
1,696,997
|
1,781,042
|
1,709,633
|
1,706,863
|
Common
Shares
|
Stock
Amount
|
Additional
Paid-in
Capital
|
Deferred
Stock
Based Compensation
|
Deficit
Accumulated
During
The
Exploration
Stage
|
Total
Stockholders’
Equity
(Deficiency)
|
|||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||
Balance,
September 5, 1997
|
- | - | - | - | - | - | ||||||||||||||||||
Issuance
of common shares for cash at $0.25 per share on September 28,
1997
|
4,000 | 1 | 999 | - | - | 1,000 | ||||||||||||||||||
Net
loss for the period
|
- | - | - | - | (2,522 | ) | (2,522 | ) | ||||||||||||||||
Balance,
September 30, 1997
|
4,000 | 1 | 999 | - | (2,522 | ) | (1,522 | ) | ||||||||||||||||
Issuance
of common shares on acquisition of oil and gas property in New Zealand at
$25 per share on June 25, 1998
|
400 | - | 10,000 | - | - | 10,000 | ||||||||||||||||||
Issuance
of common shares for cash at $0.25 per share on July 8,
1998
|
4,000 | 1 | 999 | - | - | 1,000 | ||||||||||||||||||
Net
loss for the year
|
- | - | - | - | (1,246 | ) | (1,246 | ) | ||||||||||||||||
Balance,
September 30, 1998
|
8,400 | 2 | 11,998 | - | (3,768 | ) | 8,232 | |||||||||||||||||
Issuance
of common shares for cash at $25 per share on November 20,
1998
|
4,000 | 1 | 99,999 | - | - | 100,000 | ||||||||||||||||||
Repurchase
of common shares for cash at $0.25 per share on November 28,
1998
|
(4,000 | ) | (1 | ) | (999 | ) | - | - | (1,000 | ) | ||||||||||||||
Net
loss for the year
|
- | - | - | - | (9,569 | ) | (9,569 | ) | ||||||||||||||||
Balance,
September 30, 1999
|
8,400 | 1 | 110,999 | - | (13,337 | ) | 97,663 | |||||||||||||||||
Net
loss for the year
|
- | - | - | - | (34,290 | ) | (34,290 | ) | ||||||||||||||||
Balance,
September 30, 2000
|
8,400 | 1 | 110,999 | - | (47,627 | ) | 63,373 |
Common
Shares
|
Stock
Amount
|
Additional
Paid-in
Capital
|
Deferred
Stock
Based Compensation
|
Deficit
Accumulated
During
The
Exploration
Stage
|
Total
Stockholders’
Equity
(Deficiency)
|
|||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||
Balance,
September 30, 2000
(carried
forward)
|
8,400 | 1 | 110,999 | - | (47,627 | ) | 63,373 | |||||||||||||||||
Net
loss for the year
|
- | - | - | - | (14,296 | ) | (14,296 | ) | ||||||||||||||||
Balance,
September 30, 2001
|
8,400 | 1 | 110,999 | - | (61,923 | ) | 49,077 | |||||||||||||||||
Net
income for the year
|
- | - | - | - | 10,954 | 10,954 | ||||||||||||||||||
Balance,
September 30, 2002
|
8,400 | 1 | 110,999 | - | (50,969 | ) | 60,031 | |||||||||||||||||
Net
income for the year
|
- | - | - | - | 2,387 | 2,387 | ||||||||||||||||||
Balance,
September 30, 2003
|
8,400 | 1 | 110,999 | - | (48,582 | ) | 62,418 | |||||||||||||||||
Issuance
of common shares for cash at $1.50 per share and services at $6 per share
on April 2, 2004
|
8,476 | 1 | 62,699 | - | - | 62,700 | ||||||||||||||||||
Donated
capital
|
- | - | 5,000 | - | - | 5,000 | ||||||||||||||||||
Net
loss for the year
|
- | - | - | - | (64,175 | ) | (64,175 | ) | ||||||||||||||||
Balance,
September 30, 2004
|
16,876 | 1 | 178,699 | - | (112,757 | ) | 65,943 | |||||||||||||||||
Donated
capital
|
- | - | 3,000 | - | - | 3,000 | ||||||||||||||||||
Net
loss for the year
|
- | - | - | - | (7,750 | ) | (7,750 | ) | ||||||||||||||||
Balance,
December 31, 2004
|
16,876 | 1 | 181,699 | - | (120,507 | ) | 61,193 |
Common
Shares
|
Stock
Amount
|
Additional
Paid-in
Capital
|
Deferred
Stock
Based Compensation
|
Deficit
Accumulated
During
The
Exploration
Stage
|
Total
Stockholders’
Equity
(Deficiency)
|
|||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||
Balance,
December 31, 2004
(carried
forward)
|
16,876 | 1 | 181,699 | - | (120,507 | ) | 61,193 | |||||||||||||||||
Repurchase of common stock for cash at $ 0.25
pershare
on March 3, 2005
|
(4,000 | ) | (1 | ) | (999 | ) | - | - | (1,000 | ) | ||||||||||||||
Donated Capital
|
- | - | 8,200 | - | - | 8,200 | ||||||||||||||||||
Net loss for year
|
- | - | - | - | (40,652 | ) | (40,652 | ) | ||||||||||||||||
Balance,
December 31, 2005
|
12,876 | 1 | 188,892 | - | (161,159 | ) | 27,741 | |||||||||||||||||
Issue
of common stock for
cash
at $0.125 per share
on
April 7, 2006
|
1,200,000 | 12 | 149,988 | - | - | 150,000 | ||||||||||||||||||
Cancellation
of shares on September 6, 2006
|
(8,467 | ) | (1 | ) | 1 | - | - | - | ||||||||||||||||
Issue
of common stock on purchase of Finetal
Mining
Oy at a deemed value of $25.60 per share
on
November 27, 2006
|
50,000 | 1 | 1,279,999 | - | - | 1,280,000 | ||||||||||||||||||
Stock
grant issued as stock based compensation
at
a deemed value of $24.80 per share on
November
30, 2006
|
97,500 | 1 | 2,417,999 | (2,321,280 | ) | - | 96,720 | |||||||||||||||||
Issue
of 254,500 common shares for cash at $10
per
share and 25,450 common shares as a finder’s
fee
on December 7, 2006
|
279,950 | 3 | 2,544,997 | - | - | 2,545,000 | ||||||||||||||||||
Net
loss for the year
|
- | - | - | - | (2,506,896 | ) | (2,506,896 | ) | ||||||||||||||||
Balance,
December 31, 2006
|
1,631,859 | 17 | 6,581,883 | (2,321,280 | ) | (2,668,055 | ) | 1,592,565 |
Common
Shares
|
Stock
Amount
|
Additional
Paid-in
Capital
|
Deferred
Stock
Based Compensation
|
Deficit
Accumulated
During
The
Exploration
Stage
|
Total
Stockholders’
Equity
(Deficiency)
|
|||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||
Balance,
December 31, 2006
(carried
forward)
|
1,631,859 | 17 | 6,581,883 | (2,321,280 | ) | (2,668,055 | ) | 1,592,565 | ||||||||||||||||
Issue
of 121,800 common shares for cash at
$25
per unit on April 17, 2007, net of finder’s fees
of
$312,896
|
121,800 | 1 | 2,732,128 | - | - | 2,732,129 | ||||||||||||||||||
Issue
of 8,358 warrants as a finder’s fee on
April
17, 2007 pursuant to an unit offering
|
- | - | 100,421 | - | - | 100,421 | ||||||||||||||||||
Stock
grant issued as stock based compensation
at
a deemed value of $29 per share on
April
17, 2007 (Note 5)
|
46,250 | 1 | 1,341,249 | (1,341,250 | ) | - | - | |||||||||||||||||
Issue
of 20,000 common shares as a finder’s fee
for
mineral interests at a deemed value of $26.80
on
May 4, 2007 (Note 4
(i))
|
20,000 | 1 | 535,999 | - | - | 536,000 | ||||||||||||||||||
Stock
based compensation on granting of stock
options
and stock (Note 5)
|
- | - | 3,023,282 | 2,936,734 | - | 5,960,016 | ||||||||||||||||||
Cancellation
of stock awards (Note5)
|
(97,500 | ) | (1 | ) | 1 | - | - | - | ||||||||||||||||
Net
loss for the year
|
- | - | - | - | (9,511,457 | ) | (9,511,457 | ) | ||||||||||||||||
Balance,
December 31, 2007
|
1,722,409 | 18 | 14,314,964 | (725,796 | ) | (12,179,512 | ) | 1,409,674 | ||||||||||||||||
Stock
based compensation (Note 5)
|
- | - | - | 639,098 | 639,098 | |||||||||||||||||||
Cancellation
of stock awards (Note 5)
|
(31,250 | ) | (1 | ) | 1 | - | - | - | ||||||||||||||||
Cancellation
and expiration of stock options
(Note
5)
|
(3,245,532 | ) | (3,245,532 | ) | ||||||||||||||||||||
Net
income for the period
|
- | - | - | - | 1,682,890 | 1,682,890 | ||||||||||||||||||
Balance,
June 30, 2008
|
1,691,159 | 17 | 11,069,433 | (86,698 | ) | (10,496,622 | ) | 486,130 |
Six
|
Six
|
Cumulative
from
Inception
(September
5, 1997)
|
||||||||||
Months
Ended
|
Months
Ended
|
Through
|
||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||
2008
|
2007
|
2008
|
||||||||||
$ | $ | $ | ||||||||||
OPERATING
ACTIVITIES:
|
||||||||||||
Net
loss from operations
|
1,682,890 | (4,360,851 | ) | (10,496,622 | ) | |||||||
Items
not requiring cash outlay:
|
||||||||||||
-
Consulting fees
|
- | - | 40,200 | |||||||||
-
Forgiveness of debt
|
- | - | (24,000 | ) | ||||||||
-
Gain on sale of oil and gas property
|
- | - | (10,745 | ) | ||||||||
-
Stock-based compensation
|
(2,606,434 | ) | 2,519,624 | 3,500,302 | ||||||||
-
Amortization of equipment
|
6,743 | 4,343 | 16,610 | |||||||||
-
Amortization of website development cost
|
5,000 | 1,667 | 9,167 | |||||||||
-
Mineral property acquisition
|
- | 536,000 | 1,816,000 | |||||||||
Cash
provided by (used in) changes in operating
|
||||||||||||
Assets
and liabilities:
|
||||||||||||
- Taxes
recoverable
|
18,728 | (9,207 | ) | (498 | ) | |||||||
- Exploration
program advances
|
87,600 | (217,868 | ) | - | ||||||||
- Prepaid
expenses and deposit
|
(959 | ) | 14,113 | (6,682 | ) | |||||||
- Accounts
payable and accrued liabilities
|
(541,592 | ) | 146,078 | 105,822 | ||||||||
- Advances
from related parties
|
(44,680 | ) | (88,210 | ) | 9,685 | |||||||
Net
cash used in operating activities
|
(1,392,704 | ) | (1,454,311 | ) | (5,040,761 | ) | ||||||
FINANCING
ACTIVITIES:
|
||||||||||||
Cost
of repurchase of common stock
|
- | - | (1,000 | ) | ||||||||
Proceeds
from issuance of common stock, net
|
- | 2,832,550 | 5,641,250 | |||||||||
Net
cash provided by financing activities
|
- | 2,832,550 | 5,640,250 | |||||||||
INVESTING
ACTIVITIES:
|
||||||||||||
Proceeds
from sale of oil and gas property
|
- | - | 46,200 | |||||||||
Oil
and gas property acquisitions
|
- | - | (2,846 | ) | ||||||||
Oil
and gas exploration
|
- | - | (22,609 | ) | ||||||||
Purchase
of equipment
|
(9,667 | ) | (35,407 | ) | (54,749 | ) | ||||||
Website
development costs
|
(30,000 | ) | - | (40,000 | ) | |||||||
Net
cash provided used in investing activities
|
(39,667 | ) | (35,407 | ) | (74,004 | ) | ||||||
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
(1,432,371 | ) | 1,342,832 | 525,485 | ||||||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
1,957,856 | 1,648,814 | - | |||||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$ | 525,485 | $ | 2,991,646 | $ | 525,485 |
Six
|
Six
|
Cumulative
from
Inception
(September
5, 1997)
|
||||||||||
Months
Ended
|
Months
Ended
|
Through
|
||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||
2008
|
2007
|
2008
|
||||||||||
$ | $ | $ | ||||||||||
SUPPLEMENTAL
CASH FLOWS INFORMATION
|
||||||||||||
Interest
expense
|
- | - | 1,906 | |||||||||
Taxes
|
- | - | - | |||||||||
Foreign
exchange (gain) loss
|
(7,804 | ) | (59 | ) | 10,954 | |||||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING AND FINANCING
|
||||||||||||
Purchase
of oil and gas property for consideration of
400
of the Company’s common shares at $25
|
- | - | 10,000 | |||||||||
Issuance
of 8,476 common shares for services at
$6.00
per share on April 2, 2004
|
- | - | 50,000 | |||||||||
Donated
consulting services
|
- | - | 16,200 | |||||||||
On
September 6, 2006, 8,467 shares were cancelled
and
returned to the un-issued share capital of the
Company
by a former director
|
- | - | (2 | ) | ||||||||
On
November 27, 2006 the Company issued 50,000
shares
at a deemed price of $25.60 per share pursuant
to
the equity acquisition of 100% of the
issued
common shares of FM OY
|
- | - | 1,280,000 | |||||||||
On
November 30, 2006 the Company granted 97,500
restricted
shares at a deemed price of $24.80 per share
to
officers of the company
|
- | - | 2,418,000 | |||||||||
On
December 7, 2006, the Company issued 25,450
units
at a deemed value of $10 per unit as a finder’s
fee
related to the private placement
|
- | - | 254,500 | |||||||||
On
April 17, 2007 the Company issued 8,358
warrants
exercisable on or before April 17, 2008
at
an exercise price of $35
|
- | - | 100,421 | |||||||||
On
May 4, 2007 the Company issued 20,000
common
shares at a deemed price of $26.80
per
share as a finders’ fee pursuant to the
acquisition
of mineral property interests
|
- | - | 536,000 |
As
at June 30, 2008:
|
Cost
$
|
Accumulated
Amortization
$
|
Net
book
Value
$
|
|||||||||
Furniture,
computer and office equipment
|
47,958 | 11,301 | 36,657 | |||||||||
Computer
software
|
5,928 | 4,446 | 1,482 | |||||||||
53,886 | 15,747 | 38,139 |
As
at December 31, 2007:
|
Cost
$
|
Accumulated
Amortization
$
|
Net
book
Value
$
|
|||||||||
Furniture,
computer and office equipment
|
38,291 | 6,041 | 32,250 | |||||||||
Computer
software
|
5,928 | 2,964 | 2,964 | |||||||||
44,219 | 9,005 | 35,214 |
·
|
paid
$211,527 (2007: $171,268) for consulting and management fees and
management salaries to current officers and directors of the
Company
|
·
|
paid
$25,486 (2007: $31,614) for consulting fees included in mineral property
acquisition and exploration expenditures, to companies controlled by the
Vice-President of Exploration and the
President.
|
·
|
The
Company is committed for one year, commencing November 1, 2007, for
monthly consulting services in the amount of $5,000 to a party who shall
provide business development strategies and corporate
marketing.
|
·
|
The
Company committed for a one year period commencing January 1, 2008, to a
consulting firm for monthly services in the amount of $1,500, for website
maintenance.
|
·
|
The
Company committed for two years, commencing April 1, 2008, for a monthly
consulting services in the amount of $ 5,000 to a party who will provide
management services in Europe.
|
·
|
The
Company committed for one year, commencing June 1, 2008 for monthly
consulting services in the amount of $ 10,000 to a party who will provide
investor relations services.
|
·
|
the
due date of the second option payment of 100,000 euros with respect to the
Rautavaara property was extended to April 30, 2008 in consideration of a
10,000 Euro extension payment (which has been paid) and by FinMetal Oy
keeping the claims in good standing by paying the applicable government
and landowner payments according to Finnish law (we have decided to allow
this option to lapse, so we have not made this second option
payment);
|
·
|
after
the abovementioned extension payment was paid and the second year option
payment was paid with respect to the Rautavaara property, the due date of
the first year work commitment of 250,000 euros with respect to such
property would have been extended such that such work commitment would not
be due until August 31, 2008; and
|
·
|
the
due date of the first year work commitment of 250,000 euros with respect
to the Tainiovarra property would have been extended such that such work
commitment would not be due until May 31, 2008 (we have decided to allow
this option to lapse).
|
o
|
first
year work commitment expenditures of $1.8 million with respect to the
Enonkoski properties to be incurred by November 30, 2008;
and
|
o
|
a
third option payment of 600,000 euros (US $894,000 based on the noon
buying rate on August 12, 2008 of Euro 1.00 : US$1.49) with respect to the
Enonkoski properties to be paid by November 30,
2008,
|
·
|
Monetary
assets and liabilities are translated at the year-end exchange
rate;
|
·
|
Non-monetary
assets are translated at the rate of exchange in effect at their
acquisition, unless such assets are carried at market or nominal value, in
which case they are translated at the year-end exchange
rate;
|
·
|
Revenue
and expense items are translated at the average exchange rate for the
year; and
|
·
|
Foreign
exchange gains and losses in the year are included in
operations.
|
|
SIGNATURES
|
Amazon
Goldsands Ltd.
|
|
Date:
|
August
14, 2008
|
By:
/s/ Hector
Ponte
Hector Ponte
Title: Chief
Executive Officer and Director
|
|
Date:
|
August
14, 2008
|
By:
/s/ Kenneth
Phillippe
Kenneth
Phillippe
Title: Chief
Financial Officer and Director
|
Exhibit
No.
|
Description
|
Incorporated
Herein by
Reference
to
|
Filed
Herewith
|
2.1
|
Articles
of Merger
|
Exhibit
2.1 to the Registrant's Current Report on Form 8-K filed May 27,
2008
|
|
2.2
|
Agreement
and Plan of Merger
|
Exhibit
2.2 to the Registrant's Current Report on Form 8-K filed May 27,
2008
|
|
3.1
|
Certificate
of Change pursuant to NRS 78.209
|
Exhibit
2.3 to the Registrant's Current Report on Form 8-K filed May 27,
2008
|
|
10.1
|
Stock
Purchase Agreement between the Company and Peter Löfberg, dated November
2, 2006, relating to the acquisition of FinMetal OY
|
Exhibit
10.1 to the Registrant's Current Report on Form 8-K filed November 30,
2006
|
|
10.2
|
Letter
Agreement dated January 22, 2007 between the Company and AB Apofas
OY
|
Exhibit
10.1 to the Registrant's Current Report on Form 8-K filed January 26,
2007
|
|
10.3
|
Amendment
No. 1 to Option Agreement between Company and Magnus Minerals Oy, dated
December 28, 2007
|
Exhibit
10.1 to the Registrant's Current Report on Form 8-K filed January 4,
2008
|
|
10.4
|
Mineral
Property Option and Joint Venture Agreement between the Company and Magnus
Minerals Oy, dated June 11, 2007
|
Exhibit
10.1 to the Registrant's Current Report on Form 8-K filed June 13,
2007
|
|
31.1
|
|
X
|
|
31.2
|
|
X
|
|
32.1
|
|
X
|