My grammar is gettin' terrible...Sorry about that...Here's more...
III. Use of Proceeds Changes
The above described capital changes and the payment to Donner also affect the Use Of Proceeds calculations found at page 55 of the Prospectus. The following tables and related footnotes set out updated calculations:
The following table describes the actual use of the Flow-Through Special Warrants proceeds which, in turn, leads to the calculation of the flow-through funds available.
Net proceeds from the 2,000,000 Flow-Through Special Warrants $300,000.00
Less: amount spent to September 30, 1997 as follows:
Completion of the 1996 work program on the South Voisey's Bay Project $132,754.71
Expenditures under the 1997 work program on the Cypress Donner Joint Venture Property to date $102,720.56
$64,524.73
The following table describes the actual use of the convertible promissory notes proceeds which in turn, leads to the calculation, of the working capital as at October 31, 1997.
Proceeds from convertible promissory notes $464,050.00
Less: Payment to Prior Acquisition $30,000.00
Payment of Working Capital Deficiency as at March 1997 $110,000.00
Payment of Administrative costs April- September 1997 $127,857.64
$196,192.36
The sum of the resulting figures ($64,524.73) and ($196,192.36) from the above two tables is $260,717.09 which was the amount of cash on hand as of September 30, 1997.
As a result of the above described capital changes occurring subsequent to the date of the Prospectus, the Issuer received a total of $687,998 and then expended a total of $232,224 as of October 29, 1997 as follows:
Description of Expenditure Amount
Paid exploration expense under the 1997 Cypress Donner Work Program $52,646
Paid cost of Offering $37,022
Paid 98 Corporate Group Resources Ltd. $120,000
Paid general administrative expenses $22,556
Total $232,224
The total of the funds available is the sum of the proceeds from the Rights Offering ($1,536,786) and the cash on hand as of September 30, 1997 ($260,717) and the proceeds of the capital changes which occurred subsequent to the date of the Prospectus and which are described in this Amendment No. 1 ($687,998) less the expenses paid subsequent to the date of the Prospectus ($232,224) which is $2,253,277 as of October 29, 1997.
The principal purposes for which the funds available in the amount of $2,253,277 will be utilized are as follows:
Purpose Amount
1. To pay for the 1997 Cypress Donner Work Program $208,071
2. To pay for exploration expense which is to be incurred on the Cypress Donner Joint Venture Property if the written report of the results of the 1997 exploration program on Cypress Donner Joint Venture Property recommends further exploration or, if recommended in a written report, on the Cypress Donner BMA Joint Venture Property or, if recommended in a written report, any other exploration property in Canada which the Issuer acquires(2) $1,649,594
3. To pay the 2% commission to the Agent $30,736
4. To pay the remaining cost of this Offering $34,097
5. To pay six months of non exploration expenses $157,512
6. To pay existing debt $NIL(3)
7. To pay general working capital $173,267(4)
Total $2,253,277
(1) The estimated total cost of the 1997 exploration program on the Cypress Donner Joint Venture Property was $363,438 (exclusive of GST), of which $155,366.89 (exclusive of GST) has been paid and $208,071.11 (exclusive of GST) is to be incurred and paid.
(2) The Issuer anticipates that following the completion of the current exploration program on the Donner Cypress Joint Venture Property that the Issuer will receive a written report recommending that further work be carried out on the property. In the event that the Issuer is advised that no further work should be carried out on that property, then the Issuer will expend such funds on either the Cypress Donner BMA Joint Venture Property or any other property in Canada which it acquires or a combination of both. The Issuer is not presently acquiring any other properties.
(3) $120,000 was owing to 98 Corporate Group Resources Ltd. which had entered into the Cash Flow Assistance Agreement. As a result of the capital changes described in this Amendment No. 1, the agreement is non extant and the Issuer paid $120,000. Accordingly, there is no unpaid debt.
(4) There was no provision for general working capital in the Prospectus as the Issuer had a shortage of non flow-through funds and, hence the Cash Flow Assistance Agreement was entered into. But, as a result of the capital changes described in this Amendment No. 1, the Issuer now has non flow-through funds and the Cash Flow Assistance Agreement has been terminated.
(2) The Issuer anticipates that following the completion of the current exploration program on the Donner Cypress Joint Venture Property that the Issuer will receive a written report recommending that further work be carried out on the property. In the event that the Issuer is advised that no further work should be carried out on that property, then the Issuer will expend such funds on either the Cypress Donner BMA Joint Venture Property or any other property in Canada which it acquires or a combination of both. The Issuer is not presently acquiring any other properties.
Anybody know who these guy's are: 98 Corporate Group Resources Ltd.
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