RNS Number : 6504U
Moydow Mines International Inc
16 May 2008
First Quarter
Interim Report
Three Months Ended March 31, 2008
Dublin Office
74 Haddington Road
Dublin 4, Ireland
Tel : (353) 1-667-7611
Fax : (353) 1-667-7622
Toronto Office
Suite 1220, 20 Toronto Street
Toronto, Ontario M5C 2B8
Tel : (416) 703-3751
Fax : (416) 367-3638
E-mail : info@moydow.com
www.moydow.com
Moydow Mines International Inc.
Management's Discussion and Analysis of Financial Condition
and Operating Results
Three Months Ended March 31, 2008
General
This interim management discussion and analysis ("MD&A") is a review of Moydow's financial and operating results for the first quarter
ending March 31, 2008 and is compared with those for the corresponding quarter of 2007. In order to better understand the MD&A, it should be
read in conjunction with the audited consolidated financial statements of the Company and notes thereto for the year ended December 31,
2007. The MD&A has been prepared as at May 8, 2008. The consolidated financial statements have been prepared in accordance with Canadian
generally accepted accounting principles. The reporting currency for the Company is the United States dollar, and all amounts in the
following discussion are in United States dollars unless otherwise noted. The attached financial statements have not been reviewed by the
Company's auditors.
Company Overview
Moydow Mines International Inc. ("Moydow" or the "Company") is an international exploration company with primary interests in precious
and industrial minerals and diamonds. Exploration activities are focused principally in Africa. Moydow Mines' common shares are listed on
both the Toronto Stock Exchange and the AIM Market of the London Stock Exchange (symbol "MOY"). For further information on the Company
please visit our website at www.moydow.com or view our public filings on the SEDAR website at www.sedar.com.
Subsidiaries and affiliated companies of Moydow are organized internationally so that each has a specific geographic area or mineral
project interest. Moydow provides administrative, technical and financial assistance to these companies.
Forward-Looking Statements
This MD&A contains "forward-looking statements" that are subject to a number of known and unknown risks, uncertainties and other factors
that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such
differences include: changes in metal prices, equity markets, results of exploration and related expenses, drilling activity, sampling and
other data, currency exchange rates, change in governments, ability to raise finances and changes to regulations affecting the mining
industry. Such forward-looking statements involve known and unknown risks and uncertainties that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements.
Disclosure Controls and Procedures
As at March 31, 2008, an evaluation was carried out under the supervision of and with the participation of the Company's management,
including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures.
Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of these
disclosure controls and procedures were effective as at March 31, 2008, to provide reasonable assurance that material information relating
to the Company and its consolidated subsidiaries would be made known to them by others within those entities.
Application of Critical Accounting Estimates
Moydow's accounting policies are described in Note 2 to the Consolidated Financial Statements. Set out below is a discussion of the
application of Moydow's critical accounting policies that require the Company to make assumptions about matters that are uncertain at the
time the accounting estimate is made, and where different estimates that could reasonably have been used in the current period, or changes
in the accounting estimate that reasonably likely to occur from period to period would have a material impact on Moydow's financial
statements.
Carrying value of mineral properties
Acquisition costs of mineral properties, together with direct exploration and development expenses incurred thereon, are deferred and
capitalized on a property by property basis. Upon reaching commercial production, these capitalized costs are transferred from exploration
properties to producing properties on the consolidated balance sheets and are amortized into operations using the unit-of-production method
over the estimated useful life of the estimated related ore reserves.
In the event that the long-term expectation is that the net carrying amount of these capitalized exploration costs will not be
recovered, the carrying amount is written down accordingly and the write-down amount charged to operations. Such would be indicated where:
* Exploration activities have ceased;
* Exploration results are not promising such that exploration will not be planned for the foreseeable future;
* Lease ownership rights expire; or
* Insufficient funding is available to complete the exploration program.
The amount shown for mineral properties represents costs incurred to date net of recoveries from option or joint venture participants
and write-downs, and does not necessarily reflect present or future values.
Overview of Exploration Activities, Contractual Obligations and Commitments
Dala project, Angola
The Company is party to two separate exploration projects with the same partners on the Dala property in Angola,
relating to the exploration for alluvial and kimberlite diamonds.
Alluvial diamonds
On October 1, 2004, the Company signed an agreement with Empressa Nacional De Diamantes De Angola (Endiama), the Angolan state diamond
mining company and Cimader-Comercio Geral Limitada (Cimader), a local Angola company, to explore for alluvial diamonds on the Dala
concession, located near the town of Saurimo, in north-east Angola. The concession comprises 3,000 square kilometres. To obtain a 33%
interest, the Company will have to incur expenditures of not less than $5,000,000 on or before February 2008. The combined cumulative
expenditures by the Company and Concord (see below) to the year ended March 31, 2008, is $5.56 million. Cimader and Endiama have a free
carried interest in the exploration phase of the project.
The Company has agreed with Concord Minerala LLC ("Concord") to terminate their joint venture with respect to the Dala Diamond Project
("Project") in Angola in exchange for issuing to Concord 4,000,000 common shares of the Company at a price of Cdn$0.20 per share. These
shares were issued to Concord on April 21, 2008. The Company had entered into an agreement with Concord, a private Nevada company, whereby
the Company would transfer its interest in the Project to a joint venture company formed with Concord, and Concord would fund exploration
expenditures on the Project. The Company and Concord agreed not to proceed with this joint venture structure and to issue shares to Concord
to compensate it for the expenditures it incurred on the Project. The Company now holds a 40% interest in the Project with Empressa Nacional
De Diamantes De Angola (Endiama), the Angolan state diamond mining company, holding a 51% interest and Cimader-Comercio Geral Limitada
(Cimader), a local Angola company, holding a 9% interest. The Dala Diamond Project, located near Saurimo in north-east Angola, comprises 3,000 square kilometres.
The Company's cumulative expenditures on the alluvial licence to March 31, 2008, amounted to $4.83 million of which $0.23 million was
incurred during the first quarter of 2008 (2007 - $0.31 million).
Kimberlite
On December 16, 2005, the Company signed another agreement with Endiama and Cimader to explore for kimberlite (primary) diamonds on the
Dala concession. Under the terms of the agreement, the Company can earn 40% interest in the concession with the remaining percentages held
by Endiama and Cimader. To obtain its interest, the Company will have to incur expenditures of not less than $10,000,000 on or before
January 14, 2009. Cimader and Endiama have a free carried interest in the exploration phase of the project. The granting of the licence was
ratified by the Angolan Council of Ministers on October 18th, 2006 and was subject to the Company making a deposit of $1m with the Angolan
government. The deposit was made in 2006 and may be refunded provided that Moydow meet certain conditions. The deposit has been included as
a component of the cost to acquire an interest in the Dala project.
The Company's cumulative expenditures on the kimberlite licence to March 31, 2008 amounted to $4.02 million of which $0.34 million was
incurred during the first quarter of 2008 (2007 - $0.48 million).
Port Loko property, Sierra Leone
The Company has a 50% interest in the Port Loko bauxite exploration project in Sierra Leone, West Africa. The other 50% interest in the
project is held by Gondwana Investments Limited (Gondwana), a company incorporated in Luxembourg. On January 28, 2008, the Company was
granted a one year prospecting licence with respect to the Port Loko project by the Ministry of Mineral Resources in Sierra Leone.
Cumulative expenditures by the Company to March 31, 2008 amounted to $3.12 million of which $0.08 million was incurred in the first
quarter of 2008 (2007 - $0.13 million).
Ntotoroso property, Ghana
On December 8, 2003, the Company sold its wholly owned subsidiary, Moydow Limited (Isle of Man), which, following an internal
restructuring, owned the Company's 50% joint venture interest in the Ntotoroso property but no other mineral properties, to Newmont Mining
Corporation (Newmont).
In connection with the sale, the Company entered into a royalty agreement, whereby the Company acquired the right to a net smelter
return royalty of 2% on all recovered ounces of gold and silver produced from the Ntotoroso property after the first 1,200,000 gold
equivalent ounces in consideration for $250,000. No value has been ascribed to the royalty rights acquired by the Company.
The project poured it's first gold on July 18, 2006 and as at March 31, 2008, had produced 426,500 ounces of gold of which 36,150 ounces
of gold was produced in the three months ended March 31, 2008. Assuming the same rate of production, we expect our first royalty payment in
year 2011.
Hwidem property, Ghana
On November 23, 2007, the Company was granted a one-year extension to its prospecting licence with respect to the Hwidem property by the
Minister for Lands, Forestry and Mines in Ghana. The licence area covers 24.7 square kilometres and it adjoins the Kenyase-Ntotoroso area
currently under lease to Rank Mining Company Limited, a subsidiary of Newmont. The Company incurred exploration expenditures on this
property of $0.01 million in the first quarter of 2008. The minimum exploration expenditures required to be spent by the end of the
extension in order to maintain the licence are $0.52 million, of which $0.56 million had been spent as at March 31, 2008. If gold
mineralization does not exist in sufficient quantities in the area to warrant completion of the work program, the Company is not liable for
any shortfall of the minimum exploration expenditures.
Commitments
The Company, either directly or through certain joint ventures, has obligations to expend various amounts on its mineral properties and
projects in order to keep its mineral property rights in good standing. All agreements are in the normal course of business.
Payments due ($ thousand) Total Less than 1 year 1 to 3 years
Exploration and development $15,523 $15,523 $nil
Segmented Information
The Company has one reportable operating segment, being exploration of mineral properties in geographic areas disclosed in Note 4 to the
Consolidated Financial Statements.
Results of Operations
Comprehensive loss for quarter ended March 31, 2008 was $0.38 million or $0.007 per share compared to a loss of $0.26 million or $0.007
per share in the same quarter of 2007.
General and administrative expenses were $0.29 million in the first quarter of 2008 as compared with $0.26 million in same period of
2007. The increase in 2008 compared with 2007 is a result of operating currencies strengthening against the United States dollars together
with additional professional fees associated with potential joint venture transactions.
On July 13, 2007, the Company granted 3.30 million stock options to officers, directors, employees and consultants. The estimated fair
value of the options granted during the three months ended March 31, 2008 was $0.02 million. The Company recognizes this expense over the
period in which entitlement to the awards vest.
The foreign exchange loss in the first quarter of 2008 and 2007 were $0.001 million and $0.001 million, respectively. The foreign
exchange gain resulted from the movements in exchange rates between operating currencies and the United States dollar.
The Company earned deposit interest income of $0.001 million in the first quarter of 2007.
A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at LIBOR plus 2%.
The amount of interest charged to the Company during the quarter ended March 31, 2008 was $0.05 million.
The Company had an unrealised loss of $0.01 million in the first quarter of 2008 on financial assets held-for-trading.
The Company's revenues are derived from: interest and dividend income, which is dependent on available cash balances and prevailing
interest rates and returns on investments which are dependent on the prevailing market at the time of sale.
Liquidity and Capital Resources
At March 31, 2008, the Company had negative working capital of $4.45 million (December 31, 2007 - $3.46 million). Cash and cash
equivalents at March 31, 2008 amounted to $0.05 million compared to cash and cash equivalents as the December 31, 2007 of $0.09 million.
A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at LIBOR plus 2%.
The amount of interest charged to the Company during the first quarter of 2008 was $0.05 million. Included in accounts payable and accrued
liabilities as at March 31, 2008, is $4.70 million (December 31, 2007 - $3.44 million) payable to these related parties.
These financial statements have been prepared using Canadian generally accepted accounting principles applicable to a going concern,
which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due. As at March
31, 2008, the Company had an excess of current liabilities over current assets of $4.45 million and has recorded losses and net cash
outflows from operations for the past two years. The Company is also required to make expenditures in the near term to keep its mineral
property rights in Angola. The Company will have to secure additional financing to meet its required commitments. These circumstances lend
substantial doubt as to the ability of the Company to meet its obligations as they come due and, accordingly, the appropriateness of the use
of accounting principles applicable to a going concern.
In recognition of these circumstances, the Company is exploring various initiatives to secure capital so that Moydow can continue as a
going concern. It is not possible to determine, with any certainty, the success, adequacy or sufficiency of these initiatives.
Cash Flow Statements
Cash flow provided by operating activities for the quarter ended March 31, 2008, including changes in non-cash working capital of $0.95
million, totalled $0.60 million as compared to cash flow provided by operation activities of $0.49 million in the same period in 2007. In
the three months ended March 31, 2008, cash used in investing activities was $0.65 million (2007 - $0.95 million) which was expended on
exploration of mineral properties incurred principally in Angola and Sierra Leone. Cash flow from financing activities for the period ended
March 31, 2008 and 2007, was $nil million, and $0.35 million, respectively. On March 29, 2007, the Company closed a private placement of
9,547,186 shares at a price of Cdn$0.20 per share in settlement of $1.62 million of debts owed for loans to the Company. These shares were
issued to parties at "non-arms length" to the Company.
Use of Financial Instruments
The Company has not entered into any specialized financial agreements to minimize its investment risk, currency risk or commodity risk.
There are no off-balance sheet arrangements.
Changes in Accounting Policies
On January 1, 2007, the Company adopted Section 1506 of the CICA Handbook Accounting Changes, which prescribes the criteria for changing
accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting
estimates and corrections of errors. This standard did not affect the Company's financial position or results of operations.
Canadian Accounting Pronouncements Issued and Not Yet Adopted
Section 1535
The new Section 1535, Capital Disclosures, requires that an entity disclose information that enables users of its financial statements
to evaluate an entity's objectives, policies and processes for managing capital, including disclosures of any externally imposed capital
requirements and the consequences of non-compliance. The new standard applies to interim and annual financial statements relating to fiscal
years beginning on or after October 1, 2007, specifically January 1, 2008 for the Company.
This standard will impact the Company's disclosures provided but will not affect the Company's results or financial position.
Section 3031
The new Section 3031, Inventories, relates to the accounting for inventories and revises and enhances the requirements for assigning costs
to inventories. The new standard applies to interim and annual financial statements relating to fiscal years beginning on or after January
1, 2008, and will be effective for the Company as of this date.
This standard is not expected to have a significant effect on the Company's consolidated financial statements.
Sections 3862 and 3863
The new Sections 3862 and 3863 replace Handbook Section 3861 Financial Instruments - Disclosure and Presentation, revising and enhancing
its disclosure requirements, and carrying forward unchanged its presentation requirements. These new sections place increased emphasis on
disclosures about the nature and extent of risks arising from financial instruments and how the entity manages those risks. The new
standards apply to interim and annual financial statements relating to fiscal years beginning on or after October 1, 2007, specifically
January 1, 2008 for the Company.
This standard will impact the Company's disclosures provided but will not affect the Company's results or financial position.
Outstanding Share Data
As at May 8, 2008, the Company has 60,572,904 common shares in issue. Holders of common shares are entitled to one vote on any ballot at
meetings in respect of each common share held. The Company has 4,900,000 stock options outstanding at a weighted average price of Cdn$0.27.
On March 29, 2007, the Company issued 9,547,186 common shares at a price of Cdn$0.20 per share in settlement of $1.62 million of debts
owed for loans made to the Company. These shares were issued to parties at "non-arms length" to the Company.
On June 18, 2007, the Company closed a private placement and issued 8,750,000 common shares at a price of Cdn$0.20 per shares. Of this,
3,075,000 shares were issued in settlement of debts owed for loans made to the Company. These shares were issued to parties at "non-arms
length" to the Company.
On April 21, 2008, the Company issued 4,000,000 shares to Concord Minerals LLC in connection with the acquisition of its interest in the
Dala project, Angola. The shares were issued at a price of Cdn$0.20 per share, in settlement of the cumulative expenditures incurred by
Concord Minerals LLC on the Dala project, Angola of $728,051.
Transactions with Related Parties
Related party transactions relate primarily to the payment of fees under contracts for services with companies in which a Moydow
director is a shareholder and director. The Company was charged a total of $0.08 million during the first quarter of 2008 (2007 - $0.07
million) with respect to administration services.
The Company's primary legal counsel is a firm in which a director of the Company is a partner. The Company was charged $0.05 million
during the first quarter of 2008 (2007 - $nil million) for legal services provided by this firm.
A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at LIBOR plus 2%.
The amount of interest charged to the Company during the first quarter of 2008 was $0.05 million.
These transactions are made in the normal course of business.
Selected Consolidated Annual Financial Information
Set forth below is certain financial data for the last three completed financial years:
December 31, 2007 December 31, 2006 December 31, 2005
$ $ $
Total revenue - - -
Basic and diluted (loss) per (0.02) (0.03) (0.05)
share
Total assets 12,478,835 8,358,027 6,334,596
(Loss) for the year (989,030) (1,060,179) (1,612,359)
Total long term financial - - -
liabilities
Dividends declared - - -
Quarterly Information
The following table summaries the results of the Company for each of the most recent eight quarters:
March March June June Sept Sept Dec Dec
2008 2007 2007 2006 2007 2006 2007 2006
$ $ $ $ $ $ $
$
Revenues - - - - - - -
-
Net profit/(loss) (380,640) (262,548) (363,490) (331,574) (363,581) (335,633) 589
(426,462)
Basic and diluted
(loss)/earnings per common
share
(0.007) (0.007) (0.007) (0.011) (0.006) (0.010) nil
(0.011)
Total assets
Number of common shares
outstanding 13,056,805 9,150,435 10,973,189 7,110,675 10,967,515 8,931,585 12,478,835
8,358,027
56,572,904 47,822,904 56,572,904 30,620,575 56,572,904 38,275,718 56,572,904
38,275,718
Regulatory, Environmental and Other Risk Factors
The Company intends to fulfil all statutory commitments on its current licences over the next year and will apply for licence renewals
in the normal course of business.
The Company's operating income and cash flow are affected by changes in the U.S./Canadian dollar exchange rate together with movement in
the local currencies in Angola, Sierra Leone, Ghana, and Ireland, as a portion of the Company's costs are incurred in these currencies.
The profitability of any mining operation will be significantly affected by changes in the market price of commodities. Commodity prices
fluctuate on a daily basis and are affected by numerous factors such as world supply, Central Bank selling, stability of exchange rates,
forward sales and inflationary forces, among other factors beyond Moydow's control.
Exploration companies are subject to various laws and regulations including but not limited to environmental and, health and safety
matters together with political risks which are outside the Company's control. Moydow is committed to a program of environmental protection
at all of its projects and exploration sites.
The financial statements of the Company have been prepared on the basis that the company will continue as a going concern which presumes
that it will be able to realize its assets and discharge its liabilities in the normal course of business. The financial statements do not
include any adjustments that might be necessary if the Company is unable to continue as a going concern. If management is unsuccessful in
securing capital, the Company's assets may not be realized or its liabilities discharged at their carrying amounts and these differences
could be material.
Outlook
The Company will focus its efforts on securing capital together with finalizing terms with potential joint venture partners. The Company
is in discussions with a major international mining company who are interested in acquiring a stake in our diamond property in Angola.
Although negotiations are at an early stage, this may present a good opportunity for the Company to significantly advance the project and
ensure continued participation in this very exciting diamond play. Future cash flow from the royalty on the Ntotoroso gold property, Ghana,
will provide funds with which to evaluate and capitalize on new gold and precious metal opportunities.
MOYDOW MINES INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(expressed in United States dollars, unless otherwise stated)
December 31
Assets March 31, 2007
2008 (audited)
(unaudited)
Current assets
Cash and cash equivalents $45,808 $93,733
Accounts receivable and 59,490 74,614
prepaid expenses
Current income taxes recoverable 383,800 383,800
489,098 552,147
12,517,968 11,870,438
Mineral properties (Note 3)
Other assets 49,739 56,250
13,056,805 12,478,835
Liabilities
Current liabilities
Accounts payable and accrued 4,939,589 4,004,847
liabilities
Loan 7,717 7,717
4,947,306 4,012,564
Future income tax liability 86,855 86,855
5,034,161 4,099,419
Shareholders' Equity
Capital stock (Note 4) 21,276,980 21,276,980
Contributed surplus 682,946 659,078
Deficit (13,937,282) (13,556,642)
8,022,644 8,379,416
13,056,805 12,478,835
Nature of operations and going concern (note 1)
MOYDOW MINES INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF EARNINGS
(expressed in United States dollars, unless otherwise stated)
For the three months ended March 31, 2008 2007
(unaudited) (unaudited)
Expenses
General and administrative expenses $291,134 $259,845
Foreign exchange loss 4,212 3,003
Amortization of plant and equipment 376 -
Stock-based compensation 23,868 -
319,590 262,848
Other income and expenses
Interest expense 54,915 -
Interest income - 300
Unrealised loss for period on financial
assetsheld-for-trading
6,135 -
61,050 300
Net loss before income taxes (380,640) (262,548)
Income tax (provision)/recovery - -
Comprehensive loss for the period (380,640) (262,548)
Basic and diluted (loss)/ earnings per common $(0.007) $(0.007)
share
Weighted average number of common shares
outstanding 56,572,904 38,381,798
For the three months ended March 31, 2008 2007
(unaudited) (unaudited)
Consolidated statements of deficit
Deficit, beginning of period $(13,556,642) $(12,652,670)
Net loss for the period (380,640) (262,548)
Deficit, end of period $(13,937,282) $(12,915,218)
MOYDOW MINES INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(expressed in United States dollars, unless otherwise stated)
For the three months ended March 31, (unaudited) 2008 2007
Cash provided by (used in)
Operating activities
Net earnings/(loss) for the period $(380,640)) $(262,548)
Adjustments for non-cash items:
Amortization of plant and equipment 376 -
Stock-based compensation 23,868 -
Unrealised loss for the year on financial assets
Held-for-trading
6,135 -
(350,261) (262,548)
Changes in non-cash working capital:
Accounts receivable and prepaid expenses 15,124 46,848
Accounts payable and accrued liabilities 934,742 704,956
949,866 751,804
599,605 489,256
Investing activities
Exploration of mineral properties (647,530) (946,980)
(647,530) (946,980)
Financing activities
Proceeds from issue of capital stock
- 1,624,500
Loan - (1,274,500)
- 350,000
Decrease in cash and cash equivalent (47,925) (107,724)
Cash and cash equivalents-Beginning of period 93,733 143,046
Cash and cash equivalents-End of period 45,808 35,322
MOYDOW MINES INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in United States dollars, unless otherwise stated)
* Nature of operations and going concern
Moydow Mines International Inc. ("Moydow" or the "Company") is an international exploration company with primary interests in precious
metals, diamonds and industrial minerals. Moydow's common shares are listed on both the Toronto Stock Exchange and the AIM Market of the
London Stock Exchange.
The Company is exploring its mineral properties and, as at March 31, 2008, had not determined the existence of economically recoverable
reserves (note 2). The recoverability of the amounts shown for mineral properties is dependent upon the existence of economically
recoverable mineral reserves, the preservation of the Company's interest in the underlying mineral claims, the ability to obtain necessary
financing, to obtain government approval and to attain profitable production or, alternatively, upon the Company's ability to profitably
dispose of its interests.
These financial statements have been prepared using Canadian generally accepted accounting principles applicable to a going concern,
which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due. As at March
31, 2008, the Company had an excess of current liabilities over current assets of $4.45 million and has recorded losses and net cash
outflows from operations for the past two years. The Company is also required to make expenditures in the near term to keep its mineral
property rights in Angola. The Company will have to secure additional financing to meet its required commitments. These circumstances lend
substantial doubt as to the ability of the Company to meet its obligations as they come due and, accordingly, the appropriateness of the use
of accounting principles applicable to a going concern.
In recognition of these circumstances, the Company is exploring various initiatives to secure capital so that Moydow can continue as a
going concern. It is not possible to determine, with any certainty, the success, adequacy or sufficiency of these initiatives.
The Company's ability to continue as a going concern is dependent upon its ability to fund its working capital and exploration
requirements and eventually to generate positive cash flows, either from operations or sale of a property. These financial statements do not
reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that
would be necessary were the going concern assumption inappropriate. These adjustments could be material.
Operating results for the periods ended March 31, 2008 are not necessarily indicative of the results that may be expected for the full
year ended December 31, 2008. For further information, see the Company's consolidated financial statements including the notes thereto
included in the Annual Report for the year ended December 31, 2007.
2) Mineral properties
The Company, either directly or through certain joint ventures, has obligations to expend various amounts on its mineral properties and
projects in order to keep its mineral property rights in good standing. All agreements are in the normal course of business.
Mineral exploration properties in Africa are recorded with their carrying values as follows:
Angola Sierra Leone Ghana Total
Balance-December 31, 2007 $8,275,387 $3,039,000 $556,051 $11,870,438
Costs-March 31, 2008 565,978 78,200 3,352 647,530
Balance-March 31, 2008 $8,841,365 $3,117,200 $559,403 $12,517,968
* Capital stock
Authorized
Unlimited number of common shares
Issued
Number of
Shares $
Balance-December 31, 2007 56,572,904 21,276,980
Issue of shares- First Quarter, 2008 - -
Balance-March 31, 2008 56,572,904 21,276,980
On April 20, 2007, the Company agreed to issue 4,000,000 common shares to Concord Minerals LLC in connection with the acquisition of its
interest in the Dala property, Angola. The common shares will be issued at a price of Cdn$0.20 per common share, in settlement of the
cumulative expenditures incurred by Concord Minerals LLC on the Dala property, Angola of $728,051. These shares were issued on April 21,
2008.
* Related party transactions
Related party transactions relate primarily to the payment of fees under contracts for services with companies in which a Moydow Mines'
director is a shareholder and director. The Company was charged a total of $76,590 during the quarter March 31, 2008 (2007 - $68,857) with
respect to administration services.
The Company's primary legal counsel is a firm in which a director of the Company is a partner. The Company was charged $47,049 during
the quarter March 31, 2008 (2007 - $nil) for legal services provided by this firm.
A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at LIBOR plus 2%.
The amount of interest charged to the Company during the quarter ended March 31, 2008 was $54,915.
These transactions are made in the normal course of business.
Corporate Information.
Directors and Officers
Noel P. Kiernan - Director, Chairman
Brian P. Kiernan - Director, President & CEO
J. Joseph Breen - Director & COO
Michael E. Power - Director, Vice President & Secretary
Albert Gourley - Director & Audit Committee
Richard Linnell - Director & Audit Committee
Rosemary G. O'Mongain - CFO
Toronto Office
12th Floor
20 Toronto Street
Toronto, Ontario
Canada, M5C 2B8
Tel: (416) 703 3751 Fax: (416) 367 3638
Registered Office
Suite 2100, 1075 Georgia Street West
Vancouver, British Columbia V6E 3G2
Dublin Office
74 Haddington Road
Dublin 4, Ireland
Tel: (353) 1 667 7611 Fax: (353) 1 667 7622
Transfer Agent
Computershare Trust Company of Canada
100 University Avenue, 8th Floor
Toronto, Ontario
Canada, M5J 2YI
Exchange Listing
The Toronto Stock Exchange
Symbol: MOY
CUSIP: 62472V 100
Shares outstanding: 60,572,904
Shares fully diluted: 65,472,904
To contact the Company
In order to contact the Company or to request to be added to our mailing list
please email info@moydow.com
website: www.moydow.com
This information is provided by RNS
The company news service from the London Stock Exchange
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Moydow Mines (LSE:MOY)
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De Mai 2024 à Juin 2024
Moydow Mines (LSE:MOY)
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De Juin 2023 à Juin 2024