UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
10-Q
(Mark
One)
|
x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
For the
quarterly period ended March 31,
2009
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
transition period from
to
Commission
File Number: 000-51203
Amazon Goldsands
Ltd.
(Exact
name of registrant as specified in its charter)
|
Nevada
|
98-0425310
|
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
|
Jiron Caracas 2226, Jesus Maria, Lima,
Peru
|
|
(Address
of principal executive offices)
|
|
(51 1) 989 184 706
|
|
(Registrant’s
telephone number, including area code)
|
|
________________________________________________________________
|
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the issuer was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days.ý
Yes¨
No
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of “large accelerated filer,”
“accelerated filer,” “non-accelerated filer,” and “a smaller reporting company”
in Rule 12b-2 of the Exchange Act.
Large
accelerated filer ¨ Accelerated
filer ¨
Non-accelerated
filer ¨ (Do not
check if a smaller reporting
company) Smaller
reporting company ý
Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). ¨ Yes ý No
Indicate
the number of shares outstanding of each of the issuer’s classes of common
stock, as of the latest practicable date:
|
Class
|
Outstanding
at May 15, 2009
|
|
|
Common
Stock, $0.00001 par value
|
9,603,585
|
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FORM
10-Q
AMAZON
GOLDSANDS LTD.
MARCH
31, 2009
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Page
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PART I – FINANCIAL INFORMATION
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Item
1.
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3
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Item
2.
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4
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Item
3.
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12
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Item
4T.
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13
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PART II – OTHER INFORMATION
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Item
1.
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14
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Item
1A.
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14
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Item
2.
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14
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Item
3.
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14
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Item
4.
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14
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Item
5.
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14
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Item
6.
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14
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PART
I - FINANCIAL INFORMATION
Item 1. Financial Statements
|
Our
unaudited consolidated financial statements included in this Form 10-Q for
the three months ended March 31, 2009 are as follows:
|
|
|
F-1
|
Unaudited
Consolidated Balance Sheet as of March 31, 2009.
|
|
F-2
|
Unaudited
Consolidated Statements of Operations for the three months ended March 31,
2009 and 2008 and from inception on September 5, 1997 to March 31,
2009.
|
|
F-3
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Unaudited
Consolidated Statement of Changes in Stockholders' Equity from
inception on September 5, 1997 to March 31, 2009.
|
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F-4
|
Unaudited
Consolidated Statements of Cash Flows for the three months ended March 31,
2009 and 2008 and from inception on September 5, 1997 to March 31,
2009.
|
|
F-5
|
Notes
to Unaudited Consolidated Financial
Statements.
|
These
unaudited consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
for interim financial information and the SEC instructions to Form
10-Q. In the opinion of management, all adjustments considered
necessary for a fair presentation have been included. Operating
results for the interim period ended March 31, 2009 are not necessarily
indicative of the results that can be expected for the full year.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Interim
Consolidated Balance Sheets
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
|
As
at
31
March
2009
|
As
at
31
December
2008
(Audited)
|
|||||||
| $ | $ | |||||||
|
Assets
|
||||||||
|
Current
|
||||||||
|
Cash
and cash equivalents
|
45,478 | 492,903 | ||||||
|
Taxes
recoverable
|
- | 4,394 | ||||||
|
Prepaid
expenses and deposit
|
- | 1,962 | ||||||
| 45,478 | 499,259 | |||||||
|
Mineral property interests
(Note 4)
|
1,125,000 | 875,000 | ||||||
|
Property and equipment
(Note 5)
|
23,755 | 25,964 | ||||||
|
Website development cost
(Note 6)
|
20,833 | 24,167 | ||||||
| 1,215,066 | 1,424,390 | |||||||
|
Liabilities
|
||||||||
|
Current
|
||||||||
|
Accounts
payable and accrued liabilities (Note 3)
|
398,897 | 312,804 | ||||||
|
Stockholders’
equity
|
||||||||
|
Common stock (Note
7)
|
||||||||
|
Authorized
|
||||||||
|
200,000,000
common shares, par value $0.00001 and
|
||||||||
|
200,000,000
blank check preferred shares, par value $0.001
|
||||||||
|
Issued
and outstanding
|
||||||||
|
31
March 2009 – 9,463,585 common shares, par value $0.00001
|
||||||||
|
31
December 2008 – 4,191,252 common shares, par value
$0.00001
|
95 | 42 | ||||||
|
Share subscriptions received in
advance (Note 7)
|
19,000 | 613,583 | ||||||
|
Additional
paid in capital
|
12,406,120 | 11,694,408 | ||||||
|
Deficit,
accumulated during the exploration stage
|
(11,609,046 | ) | (11,196,447 | ) | ||||
| 816,169 | 1,111,586 | |||||||
| 1,215,066 | 1,424,390 | |||||||
Nature, Basis of Presentation and
Continuance of Operations (Note 1), Commitments (Note 9) and Subsequent Events (Note
12)
The
accompanying notes are an integral part of these interim consolidated financial
statements.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Interim
Consolidated Statements of Operations
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
|
For
the
period
from the
date
of inception
on
5 September 1997
to
31 March
2009
|
For
the
three
month
period
ended
31
March
2009
|
For
the three
month
period
ended
31 March
2008
|
||||||||||
| $ | $ | $ | ||||||||||
|
Expenses
|
||||||||||||
|
Amortization
– property and equipment
|
25,854 | 2,209 | 3,371 | |||||||||
|
Amortization
– website development costs
|
19,168 | 3,334 | 1,667 | |||||||||
|
Bank
charges
|
8,991 | 910 | 764 | |||||||||
|
Consulting
and management fees (Note 8)
|
4,718,280 | 157,704 | 679,187 | |||||||||
|
Foreign
exchange (gain) loss
|
16,346 | - | (9,103 | ) | ||||||||
|
Investor
communication and promotion
|
618,571 | 61,347 | 26,353 | |||||||||
|
Office
and administrative
|
131,801 | 8,954 | 25,560 | |||||||||
|
Professional
fees
|
465,774 | 29,490 | 37,404 | |||||||||
|
Rent
|
44,416 | 2,000 | 7,234 | |||||||||
|
Telephone
|
54,659 | 276 | 10,135 | |||||||||
|
Transfer
agent and filing fees
|
38,942 | 1,700 | 274 | |||||||||
|
Travel
and accommodation
|
377,754 | 1,118 | 35,236 | |||||||||
|
Website
maintenance
|
48,500 | 7,500 | 4,500 | |||||||||
|
Mineral
property acquisition and exploration expenditures
|
5,179,264 | 136,057 | 341,732 | |||||||||
|
Net
operating loss before other items
|
(11,748,320 | ) | (412,599 | ) | (1,164,314 | ) | ||||||
|
Other
items
|
||||||||||||
|
Forgiveness
of debt
|
39,000 | - | - | |||||||||
|
Gain
on sale of oil and gas property
|
10,745 | - | - | |||||||||
|
Interest
income
|
102,561 | - | 6,726 | |||||||||
|
Recovery
of project expenses
|
4,982 | - | - | |||||||||
|
Write-down
of incorporation cost
|
(12,500 | ) | - | - | ||||||||
|
Write-down
of assets
|
(5,514 | ) | - | - | ||||||||
|
Net
operating loss and comprehensive loss for the period
|
(11,609,046 | ) | (412,599 | ) | (1,157,588 | ) | ||||||
|
Basic
and diluted loss per common share
|
(0.10 | ) | (0.67 | ) | ||||||||
|
Weighted
average number of common shares used in per share
calculations
|
4,205,697 | 1,722,502 | ||||||||||
The
accompanying notes are an integral part of these interim consolidated financial
statements.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Interim
Consolidated Statements of Cash Flows
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
|
For
the period
from
the date
of
inception on
5
September 1997
to
31 March
2009
|
For
the
three
month
period
ended
31
March
2009
|
For
the
three
month
period
ended
31
March
2008
|
||||||||||
| $ | $ | $ | ||||||||||
|
Cash
flows used in operating activities
|
||||||||||||
|
Net
loss for the period
|
(11,609,046 | ) | (412,599 | ) | (1,157,588 | ) | ||||||
|
Adjustments
to reconcile loss to net cash used by operating activities
|
||||||||||||
|
Amortization
|
45,022 | 5,543 | 5,038 | |||||||||
|
Consulting
fees
|
40,200 | - | - | |||||||||
|
Forgiveness
of debt
|
(24,000 | ) | - | - | ||||||||
|
Gain
on sale of oil and gas property
|
(10,745 | ) | - | - | ||||||||
|
Mineral
property acquisition
|
1,816,000 | - | - | |||||||||
|
Stock-based
compensation
|
3,587,000 | - | 561,289 | |||||||||
|
Write-down
of assets
|
3,940 | - | - | |||||||||
|
Changes
in operating assets and liabilities
|
||||||||||||
|
(Increase)
decrease in taxes recoverable
|
- | 4,394 | (51,762 | ) | ||||||||
|
Decrease
exploration program advances
|
- | - | 87,600 | |||||||||
|
(Increase)
decrease prepaid expenses and deposit
|
- | 1,962 | (945 | ) | ||||||||
|
Increase
(decrease) in accounts payable and accrued liabilities
|
398,897 | 86,093 | (512,175 | ) | ||||||||
| (5,752,732 | ) | (314,607 | ) | (1,068,543 | ) | |||||||
|
Cash
flows from financing activities
|
||||||||||||
|
Share
subscriptions received in advance
|
19,000 | (594,583 | ) | - | ||||||||
|
Cost
of repurchase of common stock
|
(1,000 | ) | - | - | ||||||||
|
Proceeds
from issuance of common stock, net of share issue costs
|
6,353,015 | 711,765 | - | |||||||||
| 6,371,015 | 117,182 | - | ||||||||||
|
Cash
flows used in 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 | ) | - | - | ||||||||
|
Acquisition
of mineral rights
|
(500,000 | ) | (250,000 | ) | - | |||||||
|
Purchase
of equipment
|
(53,550 | ) | - | (9,666 | ) | |||||||
|
Website
development costs
|
(40,000 | ) | - | (10,000 | ) | |||||||
| (572,805 | ) | (250,000 | ) | (19,666 | ) | |||||||
|
Increase
(decrease) in cash and cash equivalents
|
45,478 | (447,425 | ) | (1,088,209 | ) | |||||||
|
Cash
and cash equivalents, beginning of period
|
- | 492,903 | 1,957,856 | |||||||||
|
Cash
and cash equivalents, end of period
|
45,478 | 45,478 | 869,647 | |||||||||
Supplemental
Disclosures with Respect of Cash Flows (Note 11)
The
accompanying notes are an integral part of these interim consolidated financial
statements.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Interim
Consolidated Statements of Changes in Stockholders’ Equity
(Deficiency)
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
|
Number
of
shares
issued
|
Share
capital
|
Additional
paid-in
capital
|
Deferred
stock-based
compensation
|
Share
subscriptions
received
|
Deficit,
accumulated
during
the
exploration
stage
|
Total
stockholders’
equity
(deficiency)
|
||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
|
Balance
at 5 September 1997 (inception)
|
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Common
shares issued for cash ($0.25 per share)
|
4,000 | 1 | 999 | - | - | - | 1,000 | |||||||||||||||||||||
|
Net
loss for the period
|
- | - | - | - | - | (2,522 | ) | (2,522 | ) | |||||||||||||||||||
|
Balance
at 30 September 1997
|
4,000 | 1 | 999 | - | - | (2,522 | ) | (1,522 | ) | |||||||||||||||||||
|
Common
shares issued for acquisition of oil and gas properties ($25 per
share)
|
400 | - | 10,000 | - | - | - | 10,000 | |||||||||||||||||||||
|
Common
shares issued for cash ($0.25 per share)
|
4,000 | 1 | 999 | - | - | - | 1,000 | |||||||||||||||||||||
|
Net
loss for the year
|
- | - | - | - | - | (1,246 | ) | (1,246 | ) | |||||||||||||||||||
|
Balance
at 30 September 1998
|
8,400 | 2 | 11,998 | - | - | (3,768 | ) | 8,232 | ||||||||||||||||||||
|
Common
shares issued for cash ($25 per share)
|
4,000 | 1 | 99,999 | - | - | - | 100,000 | |||||||||||||||||||||
|
Common
shares repurchased for cash ($0.25 per share)
|
(4,000 | ) | (1 | ) | (999 | ) | - | - | - | (1,000 | ) | |||||||||||||||||
|
Net
loss for the year
|
- | - | - | - | - | (9,569 | ) | (9,569 | ) | |||||||||||||||||||
|
Balance
at 30 September 1999
|
8,400 | 2 | 110,998 | - | - | (13,337 | ) | 97,663 | ||||||||||||||||||||
|
Net
loss for the year
|
- | - | - | - | - | (34,290 | ) | (34,290 | ) | |||||||||||||||||||
|
Balance
at 30 September 2000
|
8,400 | 2 | 110,998 | - | - | (47,627 | ) | 63,373 | ||||||||||||||||||||
|
Net
loss for the year
|
- | - | - | - | - | (14,296 | ) | (14,296 | ) | |||||||||||||||||||
|
Balance
at 30 September 2001
|
8,400 | 2 | 110,998 | - | - | (61,923 | ) | 49,077 | ||||||||||||||||||||
|
Net
income for the year
|
- | - | - | - | - | 10,954 | 10,954 | |||||||||||||||||||||
|
Balance
at 30 September 2002
|
8,400 | 2 | 110,998 | - | - | (50,969 | ) | 60,031 | ||||||||||||||||||||
|
Net
income for the year
|
- | - | - | - | - | 2,387 | 2,387 | |||||||||||||||||||||
|
Balance
at 30 September 2003
|
8,400 | 2 | 110,998 | - | - | (48,582 | ) | 62,418 | ||||||||||||||||||||
|
Common
shares issued for cash ($1.50 per share) and for services ($6 per
share)
|
8,569 | 1 | 62,699 | - | - | - | 62,700 | |||||||||||||||||||||
|
Donated
capital
|
- | - | 5,000 | - | - | - | 5,000 | |||||||||||||||||||||
|
Net
loss for the year
|
- | - | - | - | - | (64,175 | ) | (64,175 | ) | |||||||||||||||||||
|
Balance
at 30 September 2004
|
16,969 | 3 | 178,697 | - | - | (112,757 | ) | 65,943 | ||||||||||||||||||||
|
Donated
capital
|
- | - | 3,000 | - | - | - | 3,000 | |||||||||||||||||||||
|
Net
loss for the period
|
- | - | - | - | - | (7,750 | ) | (7,750 | ) | |||||||||||||||||||
|
Balance
at 31 December 2004
|
16,969 | 3 | 181,697 | - | - | (120,507 | ) | 61,193 | ||||||||||||||||||||
|
Common
shares repurchased ($0.25 per share)
|
(4,000 | ) | (1 | ) | (999 | ) | - | - | - | (1,000 | ) | |||||||||||||||||
|
Donated
capital
|
- | - | 8,200 | - | - | - | 8,200 | |||||||||||||||||||||
|
Net
loss for the year
|
- | - | - | - | - | (40,652 | ) | (40,652 | ) | |||||||||||||||||||
|
Balance
at 31 December 2005
|
12,969 | 2 | 188,898 | - | - | (161,159 | ) | 27,741 | ||||||||||||||||||||
The
accompanying notes are an integral part of these interim consolidated financial
statements.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Interim
Consolidated Statements of Changes in Stockholders’ Equity
(Deficiency)
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
|
Number
of
shares
issued
|
Share
capital
|
Additional
paid-in
capital
|
Deferred
stock-based
compensation
|
Share
subscriptions
received
|
Deficit,
accumulated
during
the
exploration
stage
|
Total
stockholders’
equity
(deficiency)
|
||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
|
Balance
at 31 December 2005
|
12,969 | 2 | 188,898 | - | - | (161,159 | ) | 27,741 | ||||||||||||||||||||
|
Common
shares issued for cash ($0.125 per share)
|
1,200,000 | 12 | 149,988 | - | - | - | 150,000 | |||||||||||||||||||||
|
Common
shares cancelled
|
(8,467 | ) | (1 | ) | 1 | - | - | - | - | |||||||||||||||||||
|
Common
shares issued for purchase of Finmetal OY (deemed at $25.60 per
share)
|
50,000 | 1 | 1,279,999 | - | - | - | 1,280,000 | |||||||||||||||||||||
|
Common
shares issued as stock-based compensation (deemed at $24.80 per
share)
|
97,500 | 1 | 2,417,999 | (2,321,280 | ) | - | - | 96,720 | ||||||||||||||||||||
|
Common
shares issued for cash ($10 per share)
|
279,950 | 2 | 2,799,498 | - | - | - | 2,799,500 | |||||||||||||||||||||
|
Share
issue costs
|
- | (254,500 | ) | - | - | - | (254,500 | ) | ||||||||||||||||||||
|
Net
loss for the year
|
- | - | - | - | - | (2,506,896 | ) | (2,506,896 | ) | |||||||||||||||||||
|
Balance
at 31 December 2006
|
1,631,952 | 17 | 6,581,883 | (2,321,280 | ) | - | (2,668,055 | ) | 1,592,565 | |||||||||||||||||||
|
Common
shares issued for cash ($25 per unit) (Note 7)
|
121,800 | 1 | 2,944,578 | - | - | - | 2,944,579 | |||||||||||||||||||||
|
Share
issue costs
|
- | - | (212,450 | ) | - | - | - | (212,450 | ) | |||||||||||||||||||
|
Warrants
issued (Note 7)
|
- | - | 100,421 | - | - | - | 100,421 | |||||||||||||||||||||
|
Common
shares issued as stock-based compensation (deemed at $29 per share) (Note
7)
|
46,250 | 1 | 1,341,249 | (1,341,250 | ) | - | - | - | ||||||||||||||||||||
|
Common
shares issued for finder’s fee for mineral interests (deemed at
$26.80) per share (Note 7)
|
20,000 | 1 | 535,999 | - | - | - | 536,000 | |||||||||||||||||||||
|
Stock-based
compensation
|
- | - | 3,023,282 | 2,936,734 | - | - | 5,960,016 | |||||||||||||||||||||
|
Stock
awards cancelled
|
(97,500 | ) | (1 | ) | 1 | - | - | - | - | |||||||||||||||||||
|
Net
loss for the year
|
- | - | - | - | - | (9,511,457 | ) | (9,511,457 | ) | |||||||||||||||||||
|
Balance
at 31 December 2007
|
1,722,502 | 19 | 14,314,963 | (725,796 | ) | - | (12,179,512 | ) | 1,409,674 | |||||||||||||||||||
|
Stock-based
compensation (Note 7)
|
- | - | - | 725,796 | - | - | 725,796 | |||||||||||||||||||||
|
Stock
awards cancelled (Note 7)
|
(31,250 | ) | (1 | ) | 1 | - | - | - | - | |||||||||||||||||||
|
Stock
options forfeited (Note 7)
|
- | - | (3,245,532 | ) | - | - | - | (3,245,532 | ) | |||||||||||||||||||
|
Common
shares issued for acquisition of mineral rights ($0.25 per share) (Note
7)
|
2,500,000 | 25 | 624,975 | - | - | - | 625,000 | |||||||||||||||||||||
|
Share
subscriptions received in advance
|
- | - | - | - | 613,583 | - | 613,583 | |||||||||||||||||||||
|
Net
income for the year
|
- | - | - | - | 983,065 | 983,065 | ||||||||||||||||||||||
|
Balance
at 31 December 2008
|
4,191,252 | 43 | 11,694,407 | - | 613,583 | (11,196,447 | ) | 1,111,586 | ||||||||||||||||||||
|
Common
shares issued for cash ($0.15 per unit) (Note 7)
|
5,272,333 | 52 | 790,798 | - | (613,583 | ) | - | 177,267 | ||||||||||||||||||||
|
Share
issue costs
|
- | - | (79,085 | ) | - | - | - | (79,085 | ) | |||||||||||||||||||
|
Share
subscriptions received in advance (Note 7)
|
- | - | - | - | 19,000 | - | 19,000 | |||||||||||||||||||||
|
Net
loss for the period
|
- | - | - | - | - | (412,599 | ) | (412,599 | ) | |||||||||||||||||||
|
Balance
at 31 March 2009
|
9,463,585 | 95 | 12,406,120 | - | 19,000 | (11,609,046 | ) | 816,169 | ||||||||||||||||||||
The
accompanying notes are an integral part of these interim consolidated financial
statements.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes to
Interim Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
|
1.
|
Nature,
Basis of Presentation and Continuance of
Operations
|
Amazon
Goldsands Ltd. (the “Company”) was incorporated under the laws of the State of
Nevada, U.S.A. under the name “Gondwana Energy, Ltd.” on 5 September
1997. On 23 January 2007, the Company changed its name to “FinMetal
Mining Ltd.”. On 27 November 2006, the Company completed the
acquisition of 100% of the shares of Finmetal Mining OY (“Finmetal OY”), a
company incorporated under the laws of Finland. During the fiscal
year ended 31 December 2006, the Company changed its operational focus from
development of oil and gas properties, to acquisition of, exploration for and
development of mineral properties in Finland. On 22 May 2008, the
Company changed its name to “Amazon Goldsands Ltd.” and on 18 September 2008,
the Company entered into a Mineral Rights Option Agreement and concurrently
re-focused on the acquisition of, exploration for and development of mineral
properties located in Peru. The Company is currently in the exploration
stage.
The
accompanying interim consolidated financial statements include the accounts of
the Company and its wholly-owned subsidiary, Finmetal OY, a company incorporated
under the laws of Finland, since its date of acquisition on 27 November
2006.
The
Company is an exploration stage enterprise, as defined in Statement of Financial
Accounting Standards (“SFAS”) No. 7. The Company is devoting all of its present
efforts in securing and establishing a new business, and its planned principle
operations have not commenced, and, accordingly, no revenue has been derived
during the organization period.
The
interim consolidated financial statements of the Company have been prepared in
accordance with accounting principles generally accepted in the United States of
America (“GAAP”) applicable to exploration stage enterprises, and are expressed
in U.S. dollars. The Company’s fiscal year end is 31
December.
The
Company’s interim consolidated financial statements as at 31 March 2009 and for
the three month period then ended have been prepared on a going concern basis,
which contemplates the realization of assets and the settlement of liabilities
and commitments in the normal course of business. The Company had a
loss of $412,599 for the three month period ended 31 March 2009 (2008 -
$1,157,588) and has working capital deficit of $353,419 at 31 March 2009 (31
December 2008 – working capital of $186,455).
Management
cannot provide assurance that the Company will ultimately achieve profitable
operations or become cash flow positive, or raise additional debt and/or equity
capital. Management believes that the Company’s capital resources
should be adequate to continue operating and maintaining its business strategy
during the fiscal year ending 31 December 2009. However, if the
Company is unable to raise additional capital in the near future, due to the
Company’s liquidity problems, management expects that the Company will need to
curtail operations, liquidate assets, seek additional capital on less favorable
terms and/or pursue other remedial measures. These consolidated
financial statements do not include any adjustments related to the
recoverability and classification of assets or the amounts and classification of
liabilities that might be necessary should the Company be unable to continue as
a going concern.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
2.
Significant
Accounting Policies
The
following is a summary of significant accounting policies used in the
preparation of these interim consolidated financial statements.
Principles
of consolidation
All
inter-company balances and transactions have been eliminated in these interim
consolidated financial statements.
Cash
and cash equivalents
The
Company considers all highly liquid instruments with a maturity of three months
or less at the time of issuance to be cash equivalents. As at 31 March 2009, the
Company has cash and cash equivalents in the amount of $45,478 (31 December 2008
– $492,903), which are over the federally insured limit.
Website
and software development costs
The
Company recognizes the costs incurred in the development of the Company’s
website in accordance with Emerging Issues Task Force (“EITF”) 00-2, “Accounting for Website Development
Costs” and, with the provisions of American Institute of Certified Public
Accountants (“AICPA”) Statement of Position No. 98-1, “Accounting for the Costs of
Computer Software Developed or Obtained for Internal
Use”. Accordingly, direct costs incurred during the
application stage of development are capitalized and amortized over the
estimated useful life of three years on a straight line basis. Fees
incurred for website hosting are expensed over the period of the
benefit. Costs of operating a website are expensed as
incurred.
Property
and equipment
Furniture
and office and computer equipment is carried at cost and is amortized over its
estimated useful life at rates of 20 to 30% per year. The property
and equipment is written down to its net realizable value if it is determined
that its carrying value exceeds estimated future benefits to the
Company.
Mineral
property costs
Mineral
property acquisition costs are initially capitalized as tangible assets when
purchased in accordance with Emerging Issues Task Force (“EITF”) 04-2, “Whether Mineral Rights Are Tangible
or Intangible Assets”. At the end of each fiscal quarter end, the Company
assesses the carrying costs for impairment. If proven and probable
reserves are established for a property and it has been determined that a
mineral property can be economically developed, costs will be amortized using
the units-of-production method over the estimated life of the probable
reserve.
Mineral
property exploration costs are expensed as incurred.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
Estimated
future removal and site restoration costs, when determinable are provided over
the life of proven reserves on a units-of-production basis. Costs,
which include production equipment removal and environmental remediation, are
estimated each period by management based on current regulations, actual
expenses incurred, and technology and industry standards. Any charge
is included in exploration expense or the provision for depletion and
depreciation during the period and the actual restoration expenditures are
charged to the accumulated provision amounts as incurred.
As of the
date of these interim consolidated financial statements, the Company has not
established any proven or probable reserves on its mineral properties and
incurred only acquisition and exploration costs.
Although
the Company has taken steps to verify title to mineral properties in which it
has an interest, according to the usual industry standards for the stage of
exploration of such properties, these procedures do not guarantee the Company’s
title. Such properties may be subject to prior agreements or
transfers and title may be affected by undetected defects.
Environmental
costs
Environmental
expenditures that related to current operations are charged to operations or
capitalized as appropriate. Expenditures that relate to an existing
condition caused by past operations, and which do not contribute to current or
future revenue generation, are charged to operations. Liabilities are
recorded when environmental assessments and/or remedial efforts are probable,
and the cost can be reasonably estimated. Generally, the timing of
these accruals coincides with the earlier of completion of a feasibility study
or the Company’s commitments to plan of action based on the then known
facts.
Comprehensive
loss
SFAS No.
130, “Reporting Comprehensive
Income”, establishes standards for the reporting and display of
comprehensive loss and its components in the financial statements. As
at 31 March 2009, the Company has no items that represent a comprehensive loss
and, therefore, has not included a schedule of comprehensive loss in the interim
consolidated financial statements.
Stock-based
compensation
Effective
1 January 2006, the Company adopted the provisions of SFAS No. 123(R), “Share-Based Payment”, which
establishes accounting for equity instruments exchanged for employee services.
Under the provisions of SFAS No.123(R), stock-based compensation cost is
measured at the grant date, based on the calculated fair value of the award, and
is recognized as an expense over the employees’ requisite service period
(generally the vesting period of the equity grant). Before 1 January 2006, the
Company accounted for stock-based compensation to employees in accordance with
Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to
Employees,” and complied with the disclosure requirements of SFAS No.
123, “Accounting for
Stock-Based Compensation”. The Company adopted SFAS No. 123(R)
using the modified prospective method, which requires the Company to record
compensation expense over the vesting period for all awards granted after the
date of adoption, and for the unvested portion of previously granted awards that
remain outstanding at the date of adoption. Accordingly, financial
statements for the periods prior to 1 January 2006 have not been restated to
reflect the fair value method of expensing share-based compensation.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
The
adoption of SFAS No. 123(R) does not change the way the Company accounts for
share-based payments to non-employees, with guidance provided by SFAS No. 123
(as originally issued) and EITF No. 96-18, “Accounting for Equity Instruments
That Are Issued to Other Than Employees for Acquiring, or in Conjunction with
Selling, Goods or Services”.
Foreign
currency translation
The
Company’s functional and reporting currency is U.S. dollars. The
consolidated financial statements of the Company are translated to U.S. dollars
in accordance with SFAS No. 52, “Foreign Currency
Translation.” Monetary assets and liabilities denominated in
foreign currencies are translated using the exchange rate prevailing at the
balance sheet date. Gains and losses arising on translation or
settlement of foreign currency denominated transactions or balances are included
in the determination of income. The Company has not, to the date of
these interim consolidated financial statements, entered into derivative
instruments to offset the impact of foreign currency fluctuations.
Basic
and diluted net loss per share
The
Company computes net income (loss) per share in accordance with SFAS No.128,
“Earnings per
Share”. SFAS No. 128 requires presentation of both basic and
diluted earnings per share (“EPS”) on the face of the income
statement. Basic EPS is computed by dividing net income (loss)
available to common shareholders (numerator) by the weighted average number of
shares outstanding (denominator) during the period. Diluted EPS gives
effect to all dilutive potential common shares outstanding during the period
using the treasury stock method and convertible preferred stock using the
if-converted method. In computing diluted EPS, the average stock
price for the period is used in determining the number of shares assumed to be
purchased from the exercise of stock options or warrants. Diluted EPS
excluded all dilutive potential shares if their effect is
anti-dilutive.
Income
taxes
Deferred
income taxes are reported for timing differences between items of income or
expense reported in the financial statements and those reported for income tax
purposes in accordance with SFAS No. 109, “Accounting for Income Taxes”,
which requires the use of the asset/liability method of accounting for income
taxes. Deferred income taxes and tax benefits are recognized for the
future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases, and for tax losses and credit
carry-forwards. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or
settled. The Company provides for deferred taxes for the estimated
future tax effects attributable to temporary differences and carry-forwards when
realization is more likely than not.
Long-lived
assets impairment
Long-term
assets of the Company are reviewed for impairment whenever events or
circumstances indicate that the carrying amount of assets may not be
recoverable, pursuant to guidance established in SFAS No. 144, “Accounting for the Impairment or
Disposal of Long-Lived Assets”.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
Management
considers assets to be impaired if the carrying value exceeds the future
projected cash flows from related operations (undiscounted and without interest
charges). If impairment is deemed to exist, the assets will be written down to
fair value. Fair value is generally determined using a discounted cash flow
analysis.
Asset
retirement obligations
The
Company has adopted SFAS No. 143, “Accounting for Assets Retirement
Obligations”, which requires that the fair value of a liability for an
asset retirement obligation be recognized in the period in which it is incurred.
SFAS No. 143 requires the Company to record a liability for the present value of
the estimated site restoration costs with corresponding increase to the carrying
amount of the related long-lived assets. The liability will be accreted and the
asset will be depreciated over the life of the related assets. Adjustments for
changes resulting from the passage of time and changes to either the timing or
amount of the original present value estimate underlying the obligation will be
made. As at 31 March 2009, the Company does not have any asset retirement
obligations.
Accounting
for derivative instruments and hedging activities
The
Financial Accounting Standards Board (“FASB”) issued SFAS No. 133, “Accounting for Derivative
Instruments and Hedging Activities”. SFAS No. 133 requires companies to
recognize all derivatives contracts as either assets or liabilities in the
balance sheet and to measure them at fair value. If certain conditions are met,
a derivative may be specifically designated as a hedge, the objective of which
is to match the timing of gain or loss recognition on the hedging derivative
with the recognition of (i) the changes in the fair value of the hedged asset or
liability that are attributable to the hedged risk or (ii) as a hedging
instrument, the gain or loss is recognized in income in the period of
change.
The
Company has not, to the date of these interim consolidated financial statements,
entered into derivative instruments to offset the impact of foreign currency
fluctuations.
Use
of estimates
The
preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amount of revenues and
expenses during the period. Actual results may differ from those
estimates.
Financial
instruments
The
carrying value of cash and cash equivalents and accounts payable and accrued
liabilities approximates their fair value because of the short maturity of these
instruments. The Company’s operations are in Canada and virtually all
of its assets and liabilities are giving rise to significant exposure to market
risks from changes in foreign currency rates. The Company’s financial
risk is the risk that arises from fluctuations in foreign exchange rates and the
degree of volatility of these rates. Currently, the Company does not
use derivative instruments to reduce its exposure to foreign currency
risk.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
Comparative
figures
Certain
comparative figures have been adjusted to conform to the current period’s
presentation.
International
Financial Reporting Standards
In
November 2008, the Securities and Exchange Commission (“SEC”) issued for comment
a proposed roadmap regarding potential use of financial statements prepared in
accordance with International Financial Reporting Standards (“IFRS”) as issued
by the International Accounting Standards Board. Under the proposed
roadmap, the Company would be required to prepare financial statements in
accordance with IFRS in fiscal year 2014, including comparative information also
prepared under IFRS for fiscal 2013 and 2012. The Company is
currently assessing the potential impact of IFRS on its consolidated financial
statements and will continue to follow the proposed roadmap for future
developments.
Recent
accounting pronouncements
In May
2008, the FASB issued FSP Accounting Principles Board Opinion No. 14-1, “Accounting for Convertible Debt
Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash
Settlement)”. FSP No. 14-1 requires issuers of convertible
debt instruments that may be settled in cash to separately account for the
liability and equity components in a manner that will reflect the entity’s
nonconvertible debt borrowing rate when interest cost is recognized in periods
subsequent to adoption. Upon adoption of FSP No. 14-1, the Company
will allocate a portion of the proceeds received from the issuance of
convertible notes between a liability and equity component by determining the
fair value of the liability component using the Company’s non-convertible debt
borrowing rate. The difference between the proceeds of the notes and
the fair value of the liability component will be recorded as a discount on the
debt with a corresponding offset to paid-in-capital. The resulting
discount will be accreted by recording additional non-cash interest expense over
the expected life of the convertible notes using the effective interest rate
method. The provisions of FSP No. 14-1 are to be applied
retrospectively to all periods presented upon adoption and are effective for
fiscal years beginning after 15 December 2008 and interim periods within those
fiscal years. Management has not determined the effect that adopting
this statement would have on the Company’s financial position, cash flows and
results of operations.
In May
2008, the FASB issued SFAS No. 163, “Accounting for Financial Guarantee
Insurance Contracts – an interpretation of FASB Statement No.
60”. SFAS No. 163 provides enhanced guidance on the
recognition and measurement to be used to account for premium revenue and claim
liabilities and related disclosures and is limited to financial guarantee
insurance (and reinsurance) contracts, issued by enterprises included within the
scope of FASB Statement No. 60, “Accounting and Reporting by
Insurance Enterprises.” SFAS No. 163 also requires that an
insurance enterprise recognize a claim liability prior to an event of default
when there is evidence that credit deterioration has occurred in an insured
financial obligation. SFAS No. 163 is effective for financial
statements issued for fiscal years and interim periods beginning after 15
December 2008, with early application not permitted. The adoption of
SFAS No. 163 did not have a material impact on its interim consolidated
financial statements.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles”. SFAS No. 162 identifies the sources of
accounting principles and the framework for selecting the principles used in the
preparation of financial statements of nongovernmental entities that are
presented in conformity with generally accepted accounting
principles. This statement shall be effective 60 days following the
SEC’s approval of the Public Company Accounting Oversight Board amendments to AU
Section 411, “The Meaning of
Present Fairly in Conformity with Generally Accepted Accounting
Principles”. The Company does not expect this adoption will
have a material impact on the Company’s interim consolidated financial
statements.
In April
2008, the FASB issued FSP No. FAS 142-3, “Determination of the Useful Life of
Intangible Assets”. In determining the useful life of
intangible assets, FSP No. FAS 142-3 removes the requirement to consider whether
an intangible asset can be renewed without substantial cost of material
modifications to the existing terms and conditions and, instead, requires an
entity to consider its own historical experience in renewing similar
arrangements. FSP No. FAS 142-3 also requires expanded disclosure
related to the determination of intangible asset useful lives. FSP
No. FAS 142-3 is effective for financial statements issued for fiscal years
beginning after 15 December 2008. The adoption of this statement did
not have a material impact on its interim consolidated financial
statements.
In March
2008, the FASB issued SFAS No. 161, “Disclosures about Derivative
Instruments and Hedging Activities – an amendment of FASB Statement No.
133”. SFAS No. 161 is intended to improve transparency in
financial reporting by requiring enhanced disclosures of an entity’s derivative
instruments and hedging activities and their effects on the entity’s financial
position, financial performance, and cash flows. SFAS No. 161 applies
to all derivate instruments within the scope of SFAS No. 133, “Accounting for Derivative
Instruments and Hedging Activities”. It also applies to
non-derivative hedging instruments and all hedged items designated and
qualifying as hedges under SFAS No. 133. SFAS No. 161 is effective
prospectively for financial statements issued for fiscal years beginning after
15 November 2008, with early application encouraged. The adoption of
SFAS No. 161 did not have a material impact on the Company’s interim
consolidated financial statements.
In
December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in
Consolidated Financial Statements – an amendment of Accounting Research Bulletin
No. 51”. SFAS No. 160 establishes accounting and reporting
standards for ownership interests in subsidiaries held by parties other than the
parent, the amount of consolidated net income attributable and to the
noncontrolling interest, changes in a parent’s ownership interest, and the
valuation of retained noncontrolling equity investments when a subsidiary is
deconsolidated. SFAS No. 160 also establishes disclosure requirements
that clearly identify and distinguish between the interests of the parent and
the interests of the noncontrolling owners. SFAS No. 160 is effective
for fiscal years beginning after 15 December 2008. The adoption of
SFAS No. 160 did not have a material impact on the Company’s interim
consolidated financial statements.
In
December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business Combinations”. SFAS
No. 141(R) establishes principles and requirements for how an acquirer
recognizes and measures in its financial statements the identifiable assets
acquired, the liabilities assumed, any noncontrolling interest in the
acquiree and the goodwill acquired. SFAS No. 141(R) also establishes
disclosure requirements to enable the evaluation of the nature and financial
effects of the business combination. SFAS No. 141(R) is effective for fiscal
years beginning after 15 December 2008. The adoption of SFAS No.
141(R) did not have a material impact on the Company’s interim consolidated
financial statements.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
3.
Accounts
Payable and Accrued Liabilities
Included
in accounts payable and accrued liabilities as at 31 March 2009 are amounts due
to a company controlled by a director and officer of the Company of $21,655 (31
December 2008 – $Nil). The amount is non-interest bearing, unsecured
and due on demand.
Included
in accounts payable and accrued liabilities as at 31 March 2009 is an advance
received from a former officer of the Company of $28,084 (31 December
2008 – $28,084). The amount is non-interest bearing, unsecured and
has no fixed terms of repayment.
4.
Mineral Property Interests
|
31
December 2008
|
Acquisition
costs
|
Write-off
to operations
|
31
March 2009
|
|||||||||||||
| $ | $ | $ | $ | |||||||||||||
|
Temasek
Propeties
|
875,000 | 250,000 | - | 1,125,000 | ||||||||||||
|
Apofas
Properties
|
- | - | - | - | ||||||||||||
|
Magnus
Properties
|
- | - | - | - | ||||||||||||
| 875,000 | 250,000 | - | 1,125,000 | |||||||||||||
The
Temasek Properties
Effective
18 September 2008 (the “Effective Date”), the Company entered into a Mineral
Right Option Agreement with Temasek Investments Inc. (“Temasek”), a company
incorporated under the laws of Panama (the “Temasek
Agreement”).
Pursuant
to the Temasek Agreement, the Company acquired four separate options from
Temasek, each providing for the acquisition of a 25% interest in certain mineral
rights in Peru potentially resulting in the acquisition of 100% of the mineral
rights (the “Mineral Rights”). The Mineral Rights are owned by Rio
Santiago Minerales S.A.C. (“Rio Santiago”). Beardmore Holdings, Inc.
(“Beardmore”), a wholly-owned subsidiary of Temasek, owns 999 shares of the
1,000 shares of Rio Santiago that are issued and outstanding. Temasek
owns the single remaining share of Rio Santiago. The acquisition of
each 25% interest in the Mineral Rights will occur through the transfer to the
Company of 25% of the outstanding shares of Beardmore.
The
Company may exercise the initial 25% option to acquire a 25% interest in the
Mineral Rights after fulfilling the following conditions:
|
·
|
Pay
$250,000 (paid) to Temasek on the date the Agreement is
executed;
|
|
·
|
Issue
2,500,000 common shares (issued) of the Company to Temasek within five
business days from the Effective Date (Note 7);
and
|
|
·
|
Pay
an additional $250,000 (paid) to Temasek within ninety days of the
Effective Date.
|
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
The
Company may exercise the second 25% option resulting in the acquisition of a 50%
interest in the Mineral Rights after fulfilling the following conditions by 18
March 2009:
|
·
|
Exercise
and complete the initial 25%
option;
|
|
·
|
Pay
an additional $750,000 (unpaid) to Temasek;
and
|
|
·
|
Issue
3,500,000 additional common shares (not issued) of the Company to Temasek
(Note 12).
|
The
Company may exercise the third 25% option resulting in the acquisition of a 75%
interest in the Mineral Rights after fulfilling the following conditions within
18 September 2009:
|
·
|
Exercise
and complete the initial and second 25%
options;
|
|
·
|
Pay
an additional $1,250,000 to Temasek;
and
|
|
·
|
Issue
4,500,000 additional common shares of the Company to
Temasek.
|
The
Company may exercise the fourth and final 25% option resulting in the
acquisition of a 100% interest in the Mineral Rights after fulfilling the
following conditions within 18 March 2010:
|
·
|
Exercise
and complete the initial, second and third 25%
options;
|
|
·
|
Pay
an additional $2,500,000 to Temasek;
and
|
|
·
|
Issue
5,500,000 additional common shares of the Company to
Temasek.
|
Upon the
acquisition of a 100% interest in the Mineral Rights, Temasek will hold its
single share of Rio Santiago in trust for the Company’s sole benefit and hold
the share strictly in accordance with the Company’s
instructions. Upon the Company’s acquisition of a 100% interest in
the Mineral Rights, Temasek is entitled to an annual 2.5% net returns
royalty. However, if the Company pays Temasek $2,000,000 within
ninety days of the acquisition of a 100% interest in the Mineral Rights, Temasek
will only be entitled to an annual 1.5% net returns royalty.
If the
Company exercises the second 25% option, resulting in the Company’s acquisition
of a 50% interest in the Mineral Rights, and fails to acquire a 100% interest in
the Mineral Rights, the Company and Temasek will form a joint venture in which
the Company will be wholly responsible for developing a feasible mining project
and all necessary facilities and Temasek shall retain a carried free interest in
the mining rights. If the Company does not develop a feasible mining
project within three years, the Company will be responsible to pay Temasek an
advance minimum mining royalty of $500,000 per year, which will be deducted from
Temasek's net return royalty.
Temasek
became a significant shareholder through the issuance of the 2,500,000 common
shares on exercise of the option to acquire the initial 25% interest in the
Mineral Rights.
The
Company breached a certain term of its Temasek Agreement. Subsequent to 31 March
2009, the Company re-negotiated the terms of the Temasek Agreement with Temasek
to extend the option payment due date related to the acquisition of the second
25% option (Note 12).
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
The
Apofas Properties
Pursuant
to an agreement dated 22 January 2007, the Company had the option to acquire a
100% interest in five mineral concessions, known as the Poronmannikko and
Sarkiahonkangas projects, located in Finland (the “Apofas Agreement”). Under the
terms of the Apofas Agreement, the Company had the right to acquire a 100%
interest in two projects by making cash payments totalling
€1,000,000:
·
Initial
payment of €150,000 due on or before 1 April 2007 (paid);
·
Second
payment of €150,000 due on or before 1 April 2008 (extended by agreement to 30
April 2008);
·
Third
payment of €300,000 due on or before 1 April 2009; and
·
Final
payment of €400,000 due on or before 1 April 2010.
Concurrent
with ratification of the Apofas Agreement on 4 May 2007, the Company issued
20,000 common shares as a finder’s fee. The mineral concessions were subject to
a 2% gross proceeds royalty. The Apofas Agreement was signed with a
company controlled by a former president of the Company. During the year ended
31 December 2008, the Company determined not to proceed with the option to
acquire these projects.
The
Magnus Properties
Pursuant
to an agreement dated 6 October 2006 with Magnus Minerals Oy (“Magnus”), the
Company had the option to acquire a 100% interest in four different mineral
properties (Petrovaara, Poskijarvi-Kokka, Rautavaara and Tainiovaara) by paying
option payments for a total of €1,000,000 in cash for each property over a
period of four years (the “Magnus Agreement”). The option payments
were to be paid annually at the beginning of each year as follows: first year of
€100,000 (paid); second year of €100,000; third year of €300,000; and fourth
year of €500,000 per property for a total of €4,000,000 if all 4 properties are
acquired fully; and by making a work commitment of €1,000,000 on each property,
of which 25% must be conducted annually. All properties were subject
to a 2% net smelter return.
The first
year payments for all 4 properties totaling $523,400 (€400,000) were paid during
the year ended 31 December 2006. The due date of the second option
payment of €100,000 with respect to the Rautavaara Property was extended
pursuant to an amendment agreement to 30 April 2008 in consideration of a
€10,000 extension payment (paid) and payment of applicable government and
landowner payments according to Finnish law (paid). The due date for
the first year work commitment of €250,000 with respect to the Rautavaara
Property was extended to 31 August 2008 and the first year work commitment of
€250,000 with respect to the Tainiovarra Property was extended to 31 May
2008. During the year ended 31 December 2008, the Company determined
not to proceed with the option to acquire this Property.
On 11
June 2007, the Company entered into an Option Agreement with Magnus (the “Option
Agreement”), pursuant to which the Company entered into a joint venture to
explore the “Enonkoski area” in Finland primarily for nickel-copper-platinum
group elements.
Under the
terms of the Option Agreement, the Company had the right to acquire ownership
from Magnus of up to a 51% interest in certain claim reservations, and pending
claims comprising the Property as more particularly set forth in the Option
Agreement.
It was
intended that the Company be the operator of the joint venture and can earn a
51% interest in the Property by fulfilling $10,000,000 in work commitments and
€3,000,000 in option payments.
In order
to exercise the option, the Company was required to spend $10,000,000 in work
commitments with minimum expenditures as follows: $1,800,000 by 30 November
2008; $2,200,000 by 30 November 2009; $2,800,000 by 30 November 2010; and
$3,200,000 by 30 November 2011.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
In
addition, the Company was required to make a total of €3,000,000 in option
payments to Magnus over four years as follows: €30,000 by 22 May 2007 (paid);
€270,000 upon execution of the Option Agreement (paid); €600,000 by 30 November
2008; €900,000 by 30 November 2009; and €1,200,000 by 30 November
2010.
During
the year ended 31 December 2008, the Company decided not to exercise the option
with respect to this Property.
Magnus is
a company in which the Company’s former president has an ownership
interest.
There are
certain inherent risks relating to the title to the mineral properties and
mining and exploration rights that the Company has an interest in through its
above noted option agreement, as registration of some of the mineral claims with
the Peruvian government has not yet been completed. The Company,
therefore, cannot give any assurance that it will have valid title on its
mineral property interests.
5.
Property
and Equipment
|
Net
Book Value
|
||||||||||||||||
|
Cost
|
Accumulated
amortization
|
31
March 2009
|
31
December 2008
|
|||||||||||||
| $ | $ | $ | $ | |||||||||||||
|
Furniture,
computer and office equipment
|
38,505 | 15,875 | 22,630 | 24,464 | ||||||||||||
|
Computer
software
|
8,928 | 7,803 | 1,125 | 1,500 | ||||||||||||
| 47,433 | 23,678 | 23,755 | 25,964 | |||||||||||||
During
the three month period ended 31 March 2009, total additions to property and
equipment were $Nil (2008 - $9,666).
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
6.
Website
Development Cost
|
Net
Book Value
|
||||||||||||||||
|
Cost
|
Accumulated
amortization
|
31
March 2009
|
31
December 2008
|
|||||||||||||
| $ | $ | $ | $ | |||||||||||||
|
Website
development
|
40,000 | 19,167 | 20,833 | 24,167 | ||||||||||||
During
the three month period ended 31 March 2009, total additions to website
development were $Nil (2008 - $10,000).
7.
Common
Stock
Authorized
The total
authorized capital consists of
|
·
|
200,000,000
of common shares with par value of
$0.00001
|
|
·
|
200,000,000
of blank check preferred shares with par value of
$0.001
|
Issued
and outstanding
As at 31
March 2009, the total issued and outstanding capital stock is 9,463,585 common
shares with a par value of $0.00001 per share.
On 31
March 2009, the Company issued 5,272,333 shares at a price of $0.15 per share
for total proceeds of $711,765, net of share issue costs of
$79,085.
During
the year ended 31 December 2008, the Company issued 2,500,000 common shares
valued at a deemed price of $0.25 per share pursuant to the Temasek Agreement
(Note 4). The deemed price is equal to the market price of the
Company’s stock on the date of the transaction.
During
the year ended 31 December 2008, the Company completed a one new for twenty old
share reverse stock split. The Company’s share transactions,
including the weighted average number of common shares outstanding calculation
for purposes of determining earnings per share, have been restated retroactively
to reflect all of the above corporate capital transactions in these interim
consolidated financial statements.
During
the year ended 31 December 2007, the Company issued 121,800 units at a price of
$25 per share for proceeds of $2,832,550, net of share issue costs of
$212,450. Each unit consists of one share of common stock with par
value $0.00001 and one-half share purchase warrant. Each full share purchase
warrant entitles the holder to purchase one common share at a price of $35 up to
17 April 2008. As at 31 December 2007, all of the related share
purchase warrants in this series remain outstanding.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
During
the year ended 31 December 2007, the Company granted 37,500 restricted shares at
a deemed price of $29 per share to officers and directors of the
Company. The deemed price is equal to the market price of the
Company’s stock on the date of the transaction. During the year ended
31 December 2008, 30,000 restricted shares were cancelled and returned to
treasury. Fifty percent of the remaining 7,500 shares vested during
the year ended 31 December 2008 and the balance have been deemed to have
vested. The related stock-based compensation of $705,365 has been
recorded in the consolidated statement of operations during the year ended 31
December 2008.
During
the year ended 31 December 2007, the Company granted 8,750 restricted shares at
a deemed price of $3.60 per share to consultants of the Company. The deemed
price is equal to the market price of the Company’s stock as of 31 December
2007. During the year ended 31 December 2008, 1,250 restricted shares
were cancelled and returned to treasury. Fifty percent of the
remaining shares vested during the year ended 31 December 2008 and the balance
have been deemed to have vested. The related stock-based compensation
of $20,431 has been recorded in the consolidated statement of operations during
the year ended 31 December 2008.
Share
subscriptions received in advance
Share
subscriptions received in advance consists of $19,000 cash received by the
Company for 126,666 common shares that were not issued yet at 31 March
2009. These common shares were issued subsequent to 31 March 2009
(Note 13).
Stock
options
As at 31 March 2009, there are Nil
incentive stock options outstanding (31 December 2008 – Nil).
During
the year ended 31 December 2007, the Company granted 167,500 incentive stock
options to officers, directors and consultants of the Company to purchase common
stock of the Company at a price of $25 per common share on or before 17 April
2017 and vesting as to one-quarter of the common shares under the stock option
on 17 April 2007 and one-quarter every six months thereafter in accordance with
the terms and conditions of the Company’s Stock Incentive Plan (the
“Plan”). As at 31 December 2007, all of the related stock options in
this series remain outstanding. During the year ended 31 December
2008, all of the related stock options in this series were
forfeited.
During
the year ended 31 December 2007, the Company adopted the Plan, which provides
for the grant of incentive stock options, non-qualified stock options, stock
appreciation rights, restricted stock, performance shares and performance units,
and stock awards to officers, directors or employees of, as well as advisers and
consultants to, the Company.
All stock
options and rights are to vest over a period determined by the Board of
Directors and expire not more than ten years from the date
granted. Pursuant to the Plan, the maximum aggregate number of shares
that may be issued for awards is 500,000 and the maximum aggregate number of
shares that may be issued for incentive stock options is 500,000.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
The
following is a summary of option activities during the three month periods ended
31 March 2009 and 2008:
|
Number
of options
|
Weighted
average exercise price
|
|||||||
| $ | ||||||||
|
Outstanding
and exercisable at 1 January 2009
|
- | - | ||||||
|
Granted
|
- | - | ||||||
|
Exercised
|
- | - | ||||||
|
Expired
|
- | - | ||||||
|
Outstanding
and exercisable at 31 March 2009
|
- | - | ||||||
|
Weighted
average fair value of options granted during the period
|
- | |||||||
|
Number
of options
|
Weighted
average exercise price
|
|||||||
| $ | ||||||||
|
Outstanding
and exercisable at 1 January 2008
|
167,500 | 24.47 | ||||||
|
Granted
|
- | - | ||||||
|
Exercised
|
- | - | ||||||
|
Expired
|
- | - | ||||||
|
Outstanding
and exercisable at 31 March 2008
|
167,500 | 24.47 | ||||||
|
Weighted
average fair value of options granted during the period
|
- | |||||||
Warrants
As at 31
March 2009, there are Nil warrants outstanding (31 December 2008 –
Nil).
During
the year ended 31 December 2007, as part of the 121,800 unit private placement,
the Company issued 60,900 share purchase warrants. Each share
purchase warrant entitles the holder to purchase one common share at a price of
$35 up to 17 April 2008. As at 31 December 2007, all of the related
share purchase warrants in this series remain outstanding. During the
year ended 31 December 2008, all of the related share purchase warrants in this
series expired.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
During
the year ended 31 December 2007, the Company issued 8,358 agent compensation
warrants for services rendered by a private placement agent. Each
warrant entitles the holder to purchase one common share at a price of $35 up to
17 April 2008. As at 31 December 2007, all of the related share
purchase warrants in this series remain outstanding. During the year
ended 31 December 2008, all of the related share purchase warrants in this
series expired.
The
following is a summary of warrant activities during the three month periods
ended 31 March 2009 and 2008:
|
Number
of warrants
|
Weighted
average exercise price
|
|||||||
| $ | ||||||||
|
Outstanding
and exercisable at 1 January 2009
|
- | - | ||||||
|
Granted
|
- | - | ||||||
|
Exercised
|
- | - | ||||||
|
Expired
|
- | - | ||||||
|
Outstanding
and exercisable at 31 March 2009
|
- | - | ||||||
|
Number
of warrants
|
Weighted
average exercise price
|
|||||||
| $ | ||||||||
|
Outstanding
and exercisable at 1 January 2008
|
69,258 | 35.00 | ||||||
|
Granted
|
- | - | ||||||
|
Exercised
|
- | - | ||||||
|
Expired
|
- | - | ||||||
|
Outstanding
and exercisable at 31 March 2008
|
69,258 | 35.00 | ||||||
8.
Related
Party Transactions
During
the three month period ended 31 March 2009, the Company paid or accrued $24,075
(2008 – $101,451) for consulting and management fees to officers and directors
of the Company.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
During
the three month period ended 31 March 2009, the Company paid or accrued $6,169
(2008 – $25,486) for consulting fees included in mineral property acquisition
and exploration expenditures, to a company controlled by an officer of the
Company.
9.
Commitments
|
a.
|
During
the year ended 31 December 2008, the Company entered into a one-year
contract for consulting services, commencing 1 December 2008, with a party
to provide consulting services at 10% on all costs incurred related to
providing exploration management and mineral property development services
for the Company’s mineral project in Peru, as well as a one time fee of
$125,000 due within sixty days of execution of the agreement
(paid).
|
|
b.
|
During
the year ended 31 December 2008, the Company entered into a one-year
contract for consulting services, commencing 1 November 2008, with a firm
to provide website maintenance services for a monthly payment of
$2,500.
|
|
c.
|
During
the year ended 31 December 2008, the Company entered into a one-year
contract for consulting services, commencing 1 October 2008, with a party
to provide investor relation services for a monthly payment of
$10,000.
|
|
d.
|
During
the year ended 31 December 2008, the Company entered into a one-year
contract for consulting services, commencing 1 June 2008, with a party to
provide investor relations services for a monthly payment of
$10,000.
|
|
e.
|
During
the year ended 31 December 2008, the Company entered into a two-year
contract for consulting services, commencing 1 April 2008, with a party to
provide management services in Europe for a monthly payment of
$5,000.
|
|
10.
|
Geographic
Areas
|
Prior to
the operations of acquisition and exploration of mineral properties, the
Company’s areas of operations were primarily in Canada. Since the
commencement of acquisition and exploration of mineral properties, during the
year ended 31 December 2006, the Company’s principal mineral property activities
have been in Finland. During the year ended 31 December 2008, the
Company re-focused its acquisition and exploration of mineral properties
operations to Peru. As at 31 March 2009, the Company does not have any material
assets outside of North America.
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
|
11.
|
Supplemental
Disclosures with Respect to Cash Flows
|
|
For
the period from the date of inception on 6 March 2000 to 31 March
2009
|
For
the three month period ended 31 March 2009
|
For
the three month period ended 31 March 2008
|
||||||||||
| $ | $ | $ | ||||||||||
|
Supplemental
cash flows information
|
||||||||||||
|
Interest
expense
|
1,906 | - | - | |||||||||
|
Foreign
exchange (gain) loss
|
16,346 | - | (9,103 | ) | ||||||||
|
Supplemental
disclosure of non-cash investing and financing
|
||||||||||||
|
Common
shares issued for oil and gas property ($25 per share)
|
10,000 | - | - | |||||||||
|
Common
shares issued for services ($6 per share)
|
50,000 | - | - | |||||||||
|
Donated
consulting services
|
16,200 | - | - | |||||||||
|
Common
shares cancelled and returned
|
(2 | ) | - | - | ||||||||
|
Common
shares issued for equity acquisition of Finmetal ($25.60 per
share)
|
1,280,000 | - | - | |||||||||
|
Restricted
shares issued ($24.80 per share)
|
2,418,000 | - | - | |||||||||
|
Common
shares issued for finder’s fee ($10 per unit)
|
254,500 | - | - | |||||||||
|
Warrants
issued
|
100,421 | - | - | |||||||||
|
Common
shares issued for finder’s fee for mineral property interests ($26.80 per
share)
|
536,000 | - | - | |||||||||
|
Common
shares issued for acquisition of mineral rights (deemed at $0.25 per
share)
|
625,000 | - | - | |||||||||
12. Subsequent
Events
Subsequent
to 31 March 2009, the following events occurred:
|
a.
|
The
Company issued 140,000 common shares at a price of $0.15 per common share
for proceeds of $21,000. A total of $19,000 of these proceeds
was received in advance as at 31 March 2009 (Note
7).
|
Amazon
Goldsands Ltd.
(formerly
Finmetal Mining Ltd.)
(An
Exploration Stage Company)
Notes
Interim to Consolidated Financial Statements
(Expressed
in U.S. Dollars)
(Unaudited
– Prepared by Management)
31
March 2009
|
b.
|
The
Company entered into an amending agreement with Temasek related to the
Temasek Properties (the “Amending Temasek Agreement”). Under
the Amending Temasek Agreement, the Company may now exercise the second
25% option by fulfilling the following conditions as set out in the
Amending Temasek Agreement as soon as practicable thereafter (Note
4):
|
|
·
|
Issue
3,500,000 additional common shares of the Company to Temasek;
and
|
|
·
|
Pay
an additional $750,000 to Temasek by 18 September
2009.
|
The
Company must also pay interest on any unpaid amount of the option payment of
$750,000 at 5% per annum accruing from 12 May 2009 to the date that payment is
made.
Item 2. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations.
This
Quarterly Report on Form 10-Q contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The words “believe,” “expect,” “anticipate,”
“intend,” “estimate,” “may,” “should,” “could,” “will,” “plan,” “future,”
“continue,” and other expressions that are predictions of or indicate future
events and trends and that do not relate to historical matters identify
forward-looking statements. These forward-looking statements are based largely
on our expectations or forecasts of future events, can be affected by inaccurate
assumptions, and are subject to various business risks and known and unknown
uncertainties, a number of which are beyond our control. Therefore, actual
results could differ materially from the forward-looking statements contained in
this document, and readers are cautioned not to place undue reliance on such
forward-looking statements. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. A wide variety of factors could cause or contribute
to such differences and could adversely impact revenues, profitability, cash
flows and capital needs. There can be no assurance that the forward-looking
statements contained in this document will, in fact, transpire or prove to be
accurate.
Factors
that could cause or contribute to our actual results differing materially from
those discussed herein or for our stock price to be adversely affected include,
but are not limited to: (i) our short operating history; (ii) our ability to
manage business expansion; (iii) risks and uncertainties relating to the
interpretation of drill results, the geology, grade and continuity of mineral
deposits; (iv) results of initial feasibility, pre-feasibility and feasibility
studies, and the possibility that future exploration, development or mining
results will not be consistent with our expectations; (v) mining and development
risks, including risks related to accidents, equipment breakdowns, labor
disputes or other unanticipated difficulties with or interruptions in
production; (vi) the potential for delays in exploration or development
activities or the completion of feasibility studies; (vii) risks related to the
inherent uncertainty of production and cost estimates and the potential for
unexpected costs and expenses; (viii) risks related to commodity price
fluctuations; (ix) the uncertainty of profitability based upon our history of
losses; (x) risks related to failure to obtain adequate financing on a timely
basis and on acceptable terms for our planned exploration and development
projects; (xi) risks related to environmental regulation and liability; (xii)
risks that the amounts reserved or allocated for environmental compliance,
reclamation, post-closure control measures, monitoring and on-going maintenance
may not be sufficient to cover such costs; (xiii) risks related to tax
assessments; (xiv) political and regulatory risks associated with mining
development and exploration; (xv) other risks and uncertainties related to our
prospects, properties and business strategy; (xvi) potential that shareholders
may lose all or part of their investment if we are unable to compete in our
industry; (xvii) our dependence on key personnel; (xvii) sale of substantial
amounts of our common stock that may have a depressive effect on the market
price of the outstanding shares of our common stock; (xviii) possible issuance
of common stock subject to options and warrants that may dilute the interest of
shareholders; (xix) our ability to comply with Sarbanes-Oxley Act of 2002
Section 404; (xx) our nonpayment of dividends and lack of plans to pay dividends
in the future; (xxi) future sale of a substantial number of shares of our common
stock that could depress the trading price of our common stock, lower our value
and make it more difficult for us to raise capital; (xxii) our additional
securities available for issuance, which, if issued, could adversely affect the
rights of the holders of our common stock; (xxiii) our stock price which is
likely to be highly volatile because of several factors, including a relatively
limited public float; and (xxiv) indemnification of our officers and
directors.
As used
in this Quarterly Report, the terms “we,” “us,” “our,” and “Amazon” mean Amazon
Goldsands Ltd. and our subsidiaries unless otherwise indicated.
Overview
We were
incorporated in the state of Nevada under the name Gondwana Energy, Ltd. on
September 5, 1997, and previously operated under the name Finmetal Mining
Ltd. We were previously focused on the acquisition and development of
our interests in the mineral rights on properties located in
Finland.
In
September 2008, we reorganized our operations and our current focus is on the
acquisition and development of our interests in the mineral rights on properties
located in northeastern Peru. Effective June 6, 2008, we merged with
our wholly-owned subsidiary, Amazon Goldsands Ltd., pursuant to Articles of
Merger that we filed with the Nevada Secretary of State. We decided
to change our name to "Amazon Goldsands Ltd." to better reflect our current
focus on the acquisition and development of the mineral and mining rights
underlying properties located in South America.
We are
considered an exploration or exploratory stage company because we are involved
in the examination and investigation of land that we believe may contain
valuable minerals, for the purpose of discovering the presence of ore, if any,
and its extent. There is no assurance that a commercially viable mineral deposit
exists on any of the properties underlying our mineral property interests, and a
great deal of further exploration will be required before a final evaluation as
to the economic and legal feasibility for our future exploration is determined.
We have no known reserves of any type of mineral. To date, we have not
discovered an economically viable mineral deposit on any of the properties
underlying our mineral property interests, and there is no assurance that we
will discover one. If we cannot acquire or locate mineral deposits,
or if it is not economical to recover any mineral deposits that we do find, our
business and operations will be materially and adversely affected.
We no
longer have any interest in any properties located in Finland and have allowed
our options on these properties to lapse and revert back to the optionors so
that we can pursue the development of our interests in the mineral rights on
properties located in northeastern Peru. The disclosure that follows
is a summary of those mineral property interests in Finland that we have decided
not to pursue during 2008 by allowing our options to lapse and revert back to
the optionors.
The
FinMetal Oy Properties
On
November 27, 2006, we acquired our wholly-owned subsidiary, FinMetal OY, a
corporation organized under the laws of Finland, on November 27,
2006. At the time we acquired FinMetal OY, FinMetal OY owned the
option, pursuant to an October 6, 2006 option agreement by and between FinMetal
OY and Magnus Minerals OY, a Finnish corporation ("Magnus"), to acquire a 100%
interest in certain mineral rights to four mineral properties located in
Finland, and better known as the Petrovaara, Poskijärvi-Kokka, Rautavaara and
Tainiovaara properties, along with all existing property data. As
indicated above, our options with respect to the Rautavaara and Tainiovarra
properties have lapsed and reverted back to Magnus. We are seeking to
dissolve our wholly-owned subsidiary, FinMetal OY.
The
Apofas Properties
On January 22, 2007, we entered into a
letter agreement with Ab Apofas OY ("Apofas"), pursuant to which Apofas granted
to us the sole and exclusive option to acquire, subject to a 2% gross proceeds
royalty, a 100% undivided interest in five mineral property concession
registration interest assets known as the Poronmannikko and Sarkiahonkangas gold
prospects, which are located in northern Finland (collectively, the "Apofas
Properties" and also known as the Oijarvi Gold Project). We decided
to allow this option to lapse and did not make the scheduled option payment or
any subsequent option payments. As a result, our option with respect to the
Apofas Properties has lapsed and reverted back to Apofas.
The
Enonkoski Property
On June 11, 2007, we entered into a
definitive Mineral Property Option and Joint Venture Agreement with Magnus,
pursuant to which we and Magnus agreed to an option and a joint venture to
explore the "Enonkoski area" in Finland (collectively, the "Enonkoski Property")
primarily for nickel-copper-platinum group elements. It was intended
that we would be the operator of the joint venture and we could earn a 51%
interest in certain valid claim reservations and pending claims comprising the
Enonkoski Property by fulfilling certain specified conditions. As
indicated above, our options with respect to the Enonkoski area have lapsed and
reverted back to Magnus.
A
description of each of our options to acquire the mineral and mining rights
underlying properties located in Peru and the conditions that we must meet in
order to exercise these options is set forth in Item 2 of this annual
report.
We are also focusing on seeking
additional mining opportunities, some of which may be mineral deposits that are
fully defined and have already completed the feasibility stage of development
and are ready to produce. In other cases, the mineral deposits we
seek to acquire may have a significant amount of proven and probable resources
with what we believe to be excellent potential for expansion. We may also seek
to acquire other drill-ready exploration projects that contain little or no
proven resources, as with the options we currently hold to acquire existing
mining projects in Peru, but that are strategically positioned to offer what we
perceive as exceptional potential at a comparatively minimal
expense. In order to acquire any additional mining properties or
exploration projects, we will need to secure additional financing.
Due to the extensive and expensive
development programs required to prove mineral resources and reserves, as is
typical in the mining business, companies such as ours sometimes are able to
acquire deposits at significant discounts of the known in-the-ground value of
the gold, silver, or other minerals. In the event that we do
locate a commercially exploitable mineral deposits, we may determine that it is
commercially advantageous to sell our property interests rather than enter into
production of any commercially mineral deposits on the property
ourselves.
The
Peru Property
Our properties are located in Peru are
in the exploration stage. These properties are without known reserves
and the proposed plan of exploration detailed below is exploratory in
nature. These properties are described below.
On September 18, 2008 (the "Effective
Date"), we entered into a Mineral Right Option Agreement (the "Temasek Option
Agreement") with Temasek Investments Inc. ("Temasek"), a company incorporated
under the laws of Panama. Pursuant to the Temasek Option Agreement,
we acquired four separate options from Temasek, each providing for the
acquisition of a twenty-five percent interest in certain mineral rights (the
"Mineral Rights") in certain properties in Peru (the “Peru Property”)
potentially resulting in our acquisition of one hundred percent of the Mineral
Rights. The Mineral Rights are owned by Rio Santiago Minerales S.A.C.
("Rio Santiago"). Beardmore Holdings, Inc. ("Beardmore"), a
wholly-owned subsidiary of Temasek, owns 999 shares of the 1,000 shares of Rio
Santiago that are issued and outstanding. Temasek owns the single
remaining share of Rio Santiago. The acquisition of each 25% interest
in the Mineral Rights will occur through the transfer to us of twenty-five
percent of the outstanding shares of Beardmore.
A
description of the Mineral Rights is set forth below:
|
Name
|
Area
(ha)
|
Code
|
Title
Nº
|
Owner
|
|
Bianka
1
|
1000
|
01-03905-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Bianka
2
|
1000
|
01-03878-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Bianka
3
|
900
|
01-03879-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Bianka
4
|
1000
|
01-03883-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Bianka
6
|
1000
|
01-03881-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Bianka
7
|
1000
|
01-03888-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dalma
1
|
1000
|
01-03859-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dalma
2
|
1000
|
01-03863-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dalma
3
|
1000
|
01-03857-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dalma
4
|
800
|
01-03865-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dalma
5
|
500
|
01-03866-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dorotea
1
|
1000
|
01-03909-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dorotea
2
|
900
|
01-03906-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dorotea
3
|
1000
|
01-03904-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dorotea
4
|
800
|
01-03908-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dorotea
5
|
1000
|
01-03910-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dorotea
6
|
1000
|
01-03901-08
|
00074599
|
Rio
Santiago Minerales SAC
|
|
Dorotea
7
|
1000
|
01-03899-08
|
00074599
|
Rio
Santiago Minerales SAC
|
We
exercised the initial option to acquire a twenty-five percent interest in the
Mineral Rights by fulfilling the following conditions:
|
·
|
Payment
of $250,000 to Temasek on the date the Temasek Option Agreement is
executed;
|
|
·
|
Issuance
of 2,500,000 shares of Common Stock to Temasek within five business days
from the Effective Date; and
|
|
·
|
Payment
of an additional amount of $250,000 to Temasek within ninety days of the
Effective Date.
|
The
Temasek Option Agreement provided that we may exercise the second twenty-five
percent option, resulting in our acquisition of a fifty percent interest in the
Mineral Rights, after fulfilling the following conditions within six months of
the Effective Date:
|
·
|
Payment
of an additional amount of $750,000 to Temasek, and
|
|
·
|
Issuance
of 3,500,000 additional shares of Common Stock to
Temasek.
|
Subsequent
to the reporting period, we entered into an agreement with Temasek to amend the
Temasek Option Agreement (the “Amended Option Agreement”) in order to revise the
conditions required for us to exercise the second twenty-five percent
option. Under the terms of the Amended Option Agreement, we may
exercise the second twenty-five percent option, resulting in our acquisition of
a fifty percent interest in the Mineral Rights, after fulfilling the following
conditions
|
·
|
Issuance
of 3,500,000 additional shares of our common stock to Temasek within 6
months from the Effective Date or as soon as practicable thereafter,
and
|
|
·
|
Payment
within 12 months from the Effective Date of an additional $750,000 to
Temasek plus interest at
a
rate of 5% per annum accruing from the date of the Amended Option
Agreement to the date that payment is
made.
|
We may
exercise the third twenty-five percent option, resulting in our acquisition of a
seventy-five percent interest in the Mineral Rights, after fulfilling the
following conditions within twelve months of the Effective Date:
|
·
|
Payment
of an additional amount $1,250,000 to Temasek, and
|
|
·
|
Issuance
of 4,500,000 additional shares of Common Stock to
Temasek.
|
We may
exercise the fourth twenty-five percent option, resulting in our acquisition of
a one hundred percent interest in the Mineral Rights, after fulfilling the
following conditions within eighteen months of the Effective Date:
|
·
|
Payment
of an additional amount $2,500,000 to Temasek, and
|
|
·
|
Issuance
of 5,500,000 additional shares of Common Stock to
Temasek.
|
Upon our
acquisition of a one hundred percent interest in the Mineral Rights, Temasek
will hold its single share of Rio Santiago in trust for our sole benefit and
hold the share strictly in accordance with our instructions.
Upon our
acquisition of a one hundred percent interest in the Mineral Rights, Temasek is
entitled to an annual 2.5% net returns royalty. However, if we pay
Temasek $2,000,000 within ninety days of our acquisition of a one hundred
percent interest in the Mineral Rights, Temasek will only be entitled to an
annual 1.5% net returns royalty.
If we
exercise the second twenty-five percent option, resulting in our acquisition of
a fifty percent interest in the Mineral Rights, and fail to acquire a one
hundred percent interest in the Mineral Rights, we and Temasek will form a joint
venture in which we will be wholly responsible for developing a feasible mining
project and all necessary facilities and Temasek shall retain a carried free
interest in the mining rights. If we do not develop a feasible mining
project within three years of the Effective Date (or by September 18, 2011), we
will be required to pay Temasek an advance minimum mining royalty of $500,000
per year, which will be deducted from Temasek's net return royalty.
Planned
Exploration Program
An
exploration base is being set up in the town of Saramiriza, which is located in
the center of the Manseriche alluvial camp on the western bank of the
Marañón.
We intend to conduct a seismic survey
along selected lines across the Marañón gravels in order to define the
gravel-bedrock contact. This information is needed to plan a drilling
program and to assist with locating drill collar positions. The
selection of seismic lines will made on the basis of interpretation of aerial
photos and satellite images, as well as from reconnaissance-scale mapping of
sedimentary features. Scout drilling utilizing churn drills will be
undertaken on favorable areas, and anomalous zones will be followed up with
reverse circulation drilling (Becker) in order to fully develop resources and
reserves.
Before implementing the drilling plan,
we intend to identify the landowners of the plots on which the mines are
located so as to determine who the legal owners or current occupants are and/or
the kind of tenancy or tenancy claim over the surface of the land, as well as
the location of Native or Creole communities within the project’s area of
influence.
An Environmental Impact Report will
also be required to be drafted so as to obtain the Environmental Impact
Declaration from the Peruvian Mining Authorities, which is an essential
requirement for any kind of exploration in Peru.
We intend to collect bulk samples
collected by backhoe and an excavator will be required for metallurgical testing
to confirm drill results. At the same time, mine development
planning, process design, and other engineering studies will be conducted with a
view to completing a feasibility study within an 18 month
period. Permitting work will be initiated as early in the exploration
and development cycle as possible, so that trial or pilot dredging can be
started as soon as feasibility has been established.
We planned to complete the landowner
studies and environmental report prior to June 30, 2009. We
anticipate that we will commence the mapping and geophysics in June 2009 with
the initial drilling to begin shortly thereafter. Our current cash on hand
is insufficient in order to complete the landowner studies and environmental
report and commence the mapping and geophysics and initial drilling
program.
Provided
we are able to secure additional financing, we anticipate that we will incur the
following costs for the next twelve months:
|
Activity
|
USD
000s
|
|
||
|
MINERAL
PROPERTY COSTS:
|
||||
|
Annual
Fee
|
50
|
|||
|
Surface
Rights Access
|
15
|
|||
|
EXPLORATION
|
||||
|
Mapping
|
45
|
|||
|
Geophysics
- Seismic
|
130
|
|||
|
DRILLING
|
||||
|
Churn
Drilling
|
500
|
|||
|
TECHNICAL
SERVICES
|
||||
|
Consultants
|
180
|
|||
|
Personnel
|
230
|
|||
|
CAMP
AND FIELD EXPENSES
|
||||
|
Camp
|
180
|
|||
|
Field
|
150
|
|||
|
TRANSPORT
AND LOGISTICS
|
||||
|
Air
Transport
|
180
|
|||
|
Water
Transport
|
80
|
|||
|
Ground
Transport
|
50
|
|||
|
EQUIPMENT
& PERMITTING
|
110
|
|||
|
COMMUNITY
OUTREACH
|
50
|
|||
|
ADMINISTRATION
|
150
|
|||
|
TOTAL
|
2,100
|
|||
Results
of Operations
We have
not generated any revenues from our operations in either of the past two fiscal
years.
We
reported expenses in the amount of $412,599 for the three months ended March 31,
2009, compared to operating expenses of $1,164,314 for the three months ended
March 31, 2008. The decrease in reported expenses was attributable to
a reduction in consulting and management fees and mineral property acquisition
and exploration expeditures incurred during the three months ended March 31,
2009, as compared to the three months ended March 31, 2008. We
incurred consulting and management fees of $157,704 for the three months ended
March 31, 2009, compared to $679,187 for the three months ended March 31,
2008. We incurred property acquisition and exploration expenditures
of $136,057 for the three months ended March 31, 2009, compared to $341,732 for
the three months ended March 31, 2008. The decrease in mineral
property acquisition and exploration expenditures is attributable to
management’s decision not to proceed with the exercise of options to acquire
certain mineral property interests located in Finland.
We
reported no other expenses or income for the three months ended March 31, 2009
compared to other income of $6,726 for the three months ended March 31,
2008. Other income for the three months ended March 31, 2008
consisted solely of interest income.
We had
net loss of $412,599 for the three months ended March 31, 2009, as compared to a
net loss of $1,157,588 for the three months ended March 31,
2008. This decrease in net loss was primarily attributable to a
significant decrease in consulting and management fees and mineral property
acquisition and exploration expeditures incurred during the three months ended
March 31, 2009, as compared to the three months ended March 31,
2008.
Liquidity
and Capital Resources
At March
31, 2009, we had cash and cash equivalents of $45,478 at March 31, 2009 and a
working capital deficit of $353,419. Our proposed plan of exploration
anticipates that we will incur exploration related expenditures of $2,100,000
over the next twelve months. Over the next twelve months, we will be
required to make a payment of $750,000 if we elect to increase our
ownership interest in the Mineral Rights from a twenty-five percent
interest to a fifty percent interest and a payment of $1,250,000 if we
elect to further increase our interest in the Mineral Rights from a fifty
percent interest to a seventy-five percent interest. We anticipate
spending approximately $50,000 in ongoing general and administrative expenses
per month for the next twelve months, for a total anticipated expenditure of
$600,000 over the next twelve months. The general and administrative
expenses for the year will consist primarily of professional fees for the audit
and legal work relating to our regulatory filings throughout the year, as well
as transfer agent fees and general office expenses. Our current cash
on hand is insufficient to be able to make our planned exploration expenditures
and to pay for our general administrative expenses over the next twelve
months. Accordingly, we must obtain additional financing in order to
complete the landowner studies and environmental report and commence the mapping
and geophysics and initial drilling program described above. We
believe that debt financing will not be an alternative for funding additional
phases of exploration as we do not have limited tangible assets to secure any
debt financing. We anticipate that additional funding will be in the form of
equity financing from the sale of our common stock. We are currently
seeking additional funding in the form of equity financing from the sale of our
common stock, but cannot provide investors with any assurance that we will be
able to raise sufficient funding from the sale of our common stock to fund our
complete exploration program. In the absence of such financing, we will not be
able to pursue our exploration program and maintain our mineral property
interests in good standing. If we do not fulfill the terms of any of
these option agreements according to our business plan, then our ability to
commence or continue operations could be materially limited. We also
may be forced to abandon our mineral property interests. If we
are unable to raise additional capital in the near future, we will experience
liquidity problems and management expects that we will need to curtail
operations, liquidate assets, seek additional capital on less favorable terms
and/or pursue other remedial measures and potentially cease
operations.
If we are able to locate an appropriate
partner, we may consider entering into a joint venture arrangement to provide
the required funding to explore the properties underlying our mineral property
interests. We have not undertaken any efforts to locate a joint venture
participant. Even if we determine to pursue a joint venture participant, there
is no assurance that any third party would enter into a joint venture agreement
with us in order to fund exploration of the properties underlying our mineral
property interests. If we enter into a joint venture arrangement, we would
likely have to assign a percentage of our interest in our mineral property
interests to the joint venture participant.
Cash
Used in Operating Activities
Operating
activities in the three months ended March 31, 2009 and 2008 used cash of
$314,607 and $1,068,543, respectively, which reflect our recurring operating
losses. Our net loss of $412,599 for the three months ended March 31,
2009 was the primary reason for our negative operating cash
flow.
Cash
Used in Investing Activities
For the
three months ended March 31, 2009, we used $250,000 in investing activities, as
compared to $19,666 used in investing activities during the three months ended
March 31, 2008. For the three months ended March 31, 2009, we paid
Temasek $250,000 for the acquisition of mineral rights pursuant to the Temasek
Option Agreement.
Cash
from Financing Activities
As we
have had no revenues since inception, we have financed our operations primarily
by using existing capital reserves and through private placements of our
stock. Net cash flows provided by financing activities for the three
months ended March 31, 2009 was $117,182. There was no cash flows
provided by financing activities for three months ended March 31,
2008.
Off
Balance Sheet Arrangements
We do not
have any off-balance sheet debt nor did we have any transactions, arrangements,
obligations (including contingent obligations) or other relationships with any
unconsolidated entities or other persons that may have material current or
future effect on financial conditions, changes in the financial conditions,
results of operations, liquidity, capital expenditures, capital resources, or
significant components of revenue or expenses.
Going
Concern
We have
incurred net losses for the period from inception on September 5, 1997 to March
31, 2009 of $11,609,046 and have no source of revenue. The continuity
of our future operations is dependent on our ability to obtain financing and
upon future acquisition, exploration and development of profitable operations
from our mineral properties. These conditions raise substantial doubt
about our ability to continue as a going concern.
Critical
Accounting Policies
In
December 2001, the SEC requested that all registrants list their most “critical
accounting polices” in the Management Discussion and Analysis. The
SEC indicated that a “critical accounting policy” is one which is both important
to the portrayal of a company’s financial condition and results, and requires
management’s most difficult, subjective or complex judgments, often as a result
of the need to make estimates about the effect of matters that are inherently
uncertain. We believe the following critical accounting estimates
affect our more significant judgments and estimates used in the preparation of
our consolidated financial statements:
Mineral
Claim Payments and Exploration Expenditures
Mineral property acquisition costs are
initially capitalized as tangible assets when purchased in accordance with
Emerging Issues Task Force (“EITF”) 04-2, “Whether Mineral Rights Are Tangible
or Intangible Assets”. At the end of each fiscal quarter end, we assess
the carrying costs for impairment. If proven and probable reserves
are established for a property and it has been determined that a mineral
property can be economically developed, costs will be amortized using the
units-of-production method over the estimated life of the probable
reserve.
Mineral property exploration costs are
expensed as incurred. Estimated future removal and site restoration
costs, when determinable are provided over the life of proven reserves on a
units-of-production basis. Costs, which include production equipment
removal and environmental remediation, are estimated each period by management
based on current regulations, actual expenses incurred, and technology and
industry standards. Any charge is included in exploration expense or
the provision for depletion and depreciation during the period and the actual
restoration expenditures are charged to the accumulated provision amounts as
incurred.
As of the date of these interim
consolidated financial statements, we had not established any proven or probable
reserves on its mineral properties and incurred only acquisition and exploration
costs.
Although we have taken steps to verify
title to mineral properties in which we have an interest, according to the usual
industry standards for the stage of exploration of such properties, these
procedures do not guarantee our title. Such properties may be subject
to prior agreements or transfers and title may be affected by undetected
defects.
Environmental
Costs
Environmental expenditures that related
to current operations are charged to operations or capitalized as
appropriate. Expenditures that relate to an existing condition caused
by past operations, and which do not contribute to current or future revenue
generation, are charged to operations. Liabilities are recorded when
environmental assessments and/or remedial efforts are probable, and the cost can
be reasonably estimated. Generally, the timing of these accruals
coincides with the earlier of completion of a feasibility study or our
commitments to plan of action based on the then known facts.
Stock-Based
Compensation
Effective 1 January 2006, we adopted
the provisions of SFAS No. 123(R), “Share-Based Payment”, which
establishes accounting for equity instruments exchanged for employee services.
Under the provisions of SFAS No.123(R), stock-based compensation cost is
measured at the grant date, based on the calculated fair value of the award, and
is recognized as an expense over the employees’ requisite service period
(generally the vesting period of the equity grant). Before 1 January 2006, we
accounted for stock-based compensation to employees in accordance with
Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to
Employees,” and complied with the disclosure requirements of SFAS No.
123, “Accounting for
Stock-Based Compensation”. We adopted SFAS No. 123(R) using the
modified prospective method, which requires us to record compensation expense
over the vesting period for all awards granted after the date of adoption, and
for the unvested portion of previously granted awards that remain outstanding at
the date of adoption. Accordingly, financial statements for the periods
prior to 1 January 2006 have not been restated to reflect the fair value method
of expensing share-based compensation.
The adoption of SFAS No. 123(R) does
not change the way we account for share-based payments to non-employees, with
guidance provided by SFAS No. 123 (as originally issued) and EITF No. 96-18,
“Accounting for Equity
Instruments That Are Issued to Other Than Employees for Acquiring, or in
Conjunction with Selling, Goods or Services”.
Foreign
Currency Translation
Our functional and reporting currency
is U.S. dollars. The consolidated financial statements of the Company
are translated to U.S. dollars in accordance with SFAS No. 52, “Foreign Currency
Translation.” Monetary assets and liabilities denominated in
foreign currencies are translated using the exchange rate prevailing at the
balance sheet date. Gains and losses arising on translation or
settlement of foreign currency denominated transactions or balances are included
in the determination of income. We have not, to the date of these
interim consolidated financial statements, entered into derivative instruments
to offset the impact of foreign currency fluctuations.
Item 3. Quantitative and
Qualitative Disclosures About Market Risk
Not
Applicable.
Item 4T. Controls and
Procedures.
Evaluation
of Disclosure Controls and Procedures
We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) as of March 31, 2009. This evaluation was
carried out under the supervision and with the participation of our Chief
Executive Officer, Mr. Hector Ponte, and our Chief Financial Officer, Mr. Carlos
Stocker. Based upon that evaluation, our Chief Executive Officer and
Chief Financial Officer concluded that, as of March 31, 2009, our disclosure
controls and procedures are effective.
Disclosure
controls and procedures are controls and other procedures that are designed to
ensure that information required to be disclosed in our reports filed or
submitted under the Exchange Act are recorded, processed, summarized and
reported, within the time periods specified in the
SEC's rules and
forms
Disclosure
controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed in our reports
filed under the Exchange Act is accumulated and communicated to management,
including our Chief Executive Officer and Chief Financial Officer, to allow
timely decisions regarding required disclosure.
Limitations on the
Effectiveness of Internal Controls
Our
management does not expect that our disclosure controls and procedures or our
internal control over financial reporting will necessarily prevent all fraud and
material error. Our disclosure controls and procedures are designed to provide
reasonable assurance of achieving our objectives and our Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and
procedures are effective at that reasonable assurance level. Further,
the design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within our company have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
internal control. The design of any system of controls also is based in part
upon certain assumptions about the likelihood of future events, and there can be
no assurance that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, control may become inadequate
because of changes in conditions, or the degree of compliance with the policies
or procedures may deteriorate.
Changes in Internal Control
Over Financial Reporting
There
have been no changes in our internal controls over financial reporting during
the quarter ended March 31, 2009 that have materially affected or are reasonably
likely to materially affect such controls.
PART
II – OTHER INFORMATION
Item 1. Legal
Proceedings.
We are
not a party to any pending legal proceeding. We are not aware of any
pending legal proceeding to which any of our officers, directors, or any
beneficial holders of five percent or more of our voting securities are adverse
to us or have a material interest adverse to us.
Item 1A. Risk
Factors.
Not
Applicable.
Item 2. Unregistered
Sales of Equity Securities and Use of Proceeds.
Subsequent to the reporting period, we
issued 140,000 shares of our common stock at $0.15 per share, par value $0.00001
(the “Shares”), to a total of six (6) investors. The gross proceeds we
received from this private equity offering was $21,000.
These securities were offered and sold
in reliance on Section 4(2) of the Securities Act of 1933, as amended (the
“Securities Act”). In connection with the offer and sale of these
securities, we relied on each of the investors’ written
representations. Sales were made only to persons who represented that
they were “accredited investors” as that term is defined in Rule 501(a) under
the Securities Act. Each investor represented that they were
acquiring the securities for investment only and not with a view toward resale
or distribution. We our stock transfer agent affixed appropriate restricted
legends to the stock certificate issued to each investor. Each investor
was given adequate access to sufficient information about us to make an informed
investment decision. Neither we nor anyone acting on our behalf
offered or sold these Shares by any form of general solicitation or general
advertising.
The Shares were not sold through an
underwriter and accordingly, there were no underwriting discounts or commissions
involved. No registration rights were granted to any of the
investors.
Item 3. Defaults upon Senior
Securities.
None.
Item 4. Submission of Matters to
a Vote of Security Holders.
No
matters have been submitted to our security holders for a vote, through the
solicitation of proxies or otherwise, during the quarterly period ended March
31, 2009.
Item 5. Other
Information.
None.
Item 6.
Exhibits.
See the
Exhibit Index following the signatures page of this report, which is
incorporated herein by reference.
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
Amazon
Goldsands Ltd.
|
|
|
Date:
|
May
19, 2009
|
|
By: /s/ Hector
Ponte
Hector
Ponte
Title: Chief
Executive Officer and Director
|
|
|
Date:
|
May
19, 2009
|
|
By:
/s/ Carlos
Stocker
Carlos
Stocker
Title: Chief
Financial Officer
|
AMAZON
GOLDSANDS LTD.
(the
“Registrant”)
(Commission
File No. 000-51203)
to
Quarterly
Report on Form 10-Q
for
the Quarter Ended March 31, 2009
|
Exhibit
No.
|
Description
|
Incorporated
Herein by
Reference
to
|
Filed
Herewith
|
|
X
|
|||
|
31.1
|
|
X
|
|
|
31.2
|
|
X
|
|
|
32.1
|
X
|
.
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