BRITISH COLUMBIA SECURITIES COMMISSION
QUARTERLY REPORT
FORM61
"SCHEDULE A"
Issuer Details
Name of Issuer
NORTHRICH PACIFIC VENTURES INC.
For Quarter Ended
August 31, 1997 Date of Report
Y M D
98 01 19
Issuer's Address
220 - 1199 West Pender Street
City Province Postal Code
Vancouver, British Columbia V6E 2R1
Issuer Fax No.
(604)
Issuer Telephone No.
(604) 687-7083
Contact Person
Arshad A. Shah
Contact's Position
President
Contact Telephone No.
(604) 687-7083
CERTIFICATE
The three schedules required to complete this Quarterly Report are attached and the disclosure contained therein has been approved by the Board of Directors. A copy of this Quarterly Report will be provided to any shareholder who requests it.
Director's Signature
"ROBERT KLEIN"
Print Full Name
ROBERT KLEIN
Date Signed
Y M D
98 01 19
Director's Signature
"ARSHAD A. SHAH"
Print Full Name
ARSHAD A. SHAH
Date Signed
Y M D
98 01 19
NORTHRICH PACIFIC VENTURES INC.
FINANCIAL STATEMENTS
AUGUST 31, 1997
AUDITOR'S REPORT
To the Shareholders:
NORTHRICH PACIFIC VENTURES INC.
I have audited the balance sheet of Northrich Pacific Ventures Inc. as at August 31, 1997 and 1996 and the statements of loss and deficit, and changes in financial position for the years then ended. These financial statements are the responsibility of management. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In my opinion, these financial statements present fairly, in all material respects, the financial position of the company as at August 31, 1997 and 1996 and the results of its operations and the changes in its financial position for the years then ended in accordance with generally accepted accounting principles.
Vancouver, BC Maude & Associates
"Maude & Associates"
January 14, 1998 Certified General Accountant
NORTHRICH PACIFIC VENTURES INC.
FINANCIAL STATEMENTS
AUGUST 31, 1997
(Audited)
INDEX
AUDITOR'S REPORT
BALANCE SHEET
STATEMENT OF LOSS AND DEFICIT
STATEMENT OF CHANGES IN FINANCIAL POSITION
NOTES TO FINANCIAL STATEMENTS
NORTHRICH PACIFIC VENTURES INC.
BALANCE SHEET
AUGUST 31, 1997
(Audited)
ASSETS
1997 1996
$ $
CURRENT ASSETS
Cash 14,191 6,134
Funds held in trust 71,025 -
Accounts receivable 54,565 10,888
Prepaid expenses 8,289 4,417
148,070 21,439
INVESTMENTS - 301,669
MINERAL PROPERTIES, (Note 3) 796,900 370,901
CAPITAL ASSETS, at cost
Equipment 373,817 169,410
Computer 18,538 -
392,355 169,410
1,337,325 863,419
Approved by the Directors:
"Arshad A. Shah" Director
_"Robert Klein" __________ Director
(see accompanying notes)NORTHRICH PACIFIC VENTURES INC.
BALANCE SHEET
AUGUST 31, 1997
(Audited)
LIABILITIES
1997 1996
$ $
CURRENT LIABILITIES
Accounts payable and accruals, (Note 5 & 7b) 507,145 178,208
507,145 178,208
SHAREHOLDERS' (DEFICIENCY) EQUITY
CAPITAL STOCK LESS DEFICIT
Share capital, (Note 6) 5,215,740 3,764,690
Deficit 4,385,560 3,079,479
Continuing operations, (Note 1) 830,180 685,211
1,337,325 863,419
(see accompanying notes)
NORTHRICH PACIFIC VENTURES INC.
STATEMENT OF LOSS AND DEFICIT
YEAR ENDED AUGUST 31, 1997
(Audited)
1997 1996
$ $
SALES - 19,503
COST OF SALES 7,527 63,699
GROSS PROFIT (7,527) (44,196)
EXPENSES
Bank charges 1,175 492
Consulting and professional fees 59,809 17,482
Exploration and drilling 725,053 17,000
General administration and rent (Schedule A) 42,620 34,167
Interest - 33,902
Management fees 60,000 30,000
Travel and promotion 26,102 10,103
Trust and stock exchange fees 22,125 21,417
936,884 164,563
LOSS FROM OPERATIONS 944,411 208,759
EXTRAORDINARY ITEM
Mining Claims written off 361,670 -
NET LOSS FOR THE YEAR 1,306,081 208,759
DEFICIT - BEGINNING OF THE YEAR 3,079,479 2,870,720
DEFICIT - END OF THE YEAR 4,385,560 3,079,479
(see accompanying notes)
NORTHRICH PACIFIC VENTURES INC.
`SCHEDULE A"
YEAR ENDED AUGUST 31, 1997
(Audited)
1997 1996
$ $
GENERAL ADMINISTRATION AND RENT
Office 12,660 4,393
Rent 25,200 24,800
Telephone 4,760 4,974
42,620 34,167
(see accompanying notes)
NORTHRICH PACIFIC VENTURES INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED AUGUST 31, 1997
(Audited)
1997 1996
$ $
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Operating income (loss) for the year (1,306,081) (208,759)
Add: non-cash items
Amortization - -
(1,306,081) (208,759)
Changes in working capital items
Funds held in trust (71,025) -
Accounts receivable (43,677) (10,585)
Prepaid expense (3,872) -
Accounts payable 328,937 (76,405)
Deposits - 164,000
Loans payable - (20,000)
(1,095,718) (151,749)
INVESTING ACTIVITIES
Capital asset acquisition (222,945) (164,883)
Mineral property acquisition (425,999) (232,201)
Investments 301,669 -
Debenture - (30,000)
(347,275) (427,084)
FINANCING ACTIVITIES
Shares issued 1,451,050 584,975
1,451,050 584,975
CASH PROVIDED (USED) DURING THE YEAR 8,057 6,142
CASH (DEFICIENCY) - BEGINNING OF YEAR 6,134 (8)
CASH (DEFICIENCY) - END OF YEAR 14,191 6,134
(see accompanying notes)
NORTHRICH PACIFIC VENTURES INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED AUGUST 31, 1997
(Audited)
NOTE 1 - NATURE AND CONTINUANCE OF OPERATIONS
The company operates as an exploration and development corporation with its focus primarily in mining activities. The company has divested itself of all of its oil and gas interests.
The company also maintains an interest in an environmentally
safe paint stripping company with a view to securing a joint
venture partner to further the research and development of a
specialized application for the aeronautical industry.
These financial statements have been prepared on a going concern basis which implies that the company will realize assets and discharge liabilities in the normal course of business for the foreseeable future. The continued operations of the company are dependent upon its ability to obtain additional financing, receive continued financial support from its creditors and to generate profitable operations in the future.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Mineral Properties
The cost of acquisition, exploration and development of mineral
properties are charged to earnings in the year in which they are
incurred. Where costs relate to specific properties which are expected to have economically recoverable reserves these costs are deferred to be amortized on the unit of production basis following commencement of commercial production. These costs are written off in total when the property is abandoned or sold and are written down when it is apparent all costs ultimately
will not be recoverable.
Cost includes the cash consideration and the fair market value of shares issued, if any, on the acquisition of mineral properties. Properties acquired under option agreements, whereby option payments are made at the sole discretion of the company, are recorded in the accounts at such time as the payments are made.
NORTHRICH PACIFIC VENTURES INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED AUGUST 31, 1997
(Audited)
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES CON'T.
Loss per Share
Loss per share has not been calculated as it is not considered
meaningful at this stage of the company's operations.
Income Taxes
The company has non capital losses totaling $2,098,047 which
are available to be offset against future taxable income. The benefits of these losses and deductions are not reflected in these financial statements as there is no virtual certainty that the company will be able to utilize them.
NOTE 3 - MINERAL PROPERTIES
1997 1996 $ $
Lac la Range 150,000 150,000
Forte la Corne 120,000 10,000
Lucky Break 58,500 20,000
Kansas Oil and Gas - 60,001
Beaurock Mineral 170,900 130,900
Thunder Hill 132,500 -
Whalen (Aidina) 10,000 -
Coni I 155,000 __ -___
796,900 370,901
Lac la Range
Forte la Corne
The company has acquired interests in mineral claims near Lac la Range and Fort la Corne in Saskatchewan. The claims are located in regions which have recently seen a considerable amount of exploration work to determine the presence of diamonds. To date geological work has identified a number of kimberlite pipes, a typical host body in deposits containing micro and macro diamonds.
NORTHRICH PACIFIC VENTURES INC.
NOTES TO THE FINANCIAL STATEMENTS
AUGUST 31, 1997
(Audited)
NOTE 3 - MINERAL PROPERTIES CON'T.
BeauRock Industrial Minerals
The company has acquired interests in mineral claims owned by BeauRock located near Barriere, British Columbia. The Company originally acquired an interest in certain garnet claims to secure a cost-effective blast media for the paint stripping technology. The company has acquired additional interest following the discovery of significant copper deposits on the claims.
Lucky Break
The company entered into an agreement with Lucky Break Minerals to acquire a fifty percent interest in Lucky Break's property located in the Weirdale claim group in Saskatchewan. The agreement also calls for the Company to issue 100,000 shares and participate in work programs to a maximum of $100,000 in the first 12 months following the date of the agreement and $100,000 in the 12 months following thereafter.
Coni I
The company has entered into agreement to purchase 100%
interest in Coni I claim in the Northwest Territories. In addition to the cash payment the company has issued 100,000 shares.
NORTHRICH PACIFIC VENTURES INC.
NOTES TO THE FINANCIAL STATEMENTS
AUGUST 31, 1997
(Audited)
NOTE 4 - REMUNERATION OF DIRECTORS AND SENIOR OFFICERS
Companies controlled by directors of this company charged for
reimbursement of office and administration services.
NOTE 5 - ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
WITH RELATED COMPANIES
Accounts receivable and payable include amounts due to/from
private companies controlled by a director of this company, as
follows:
1997 1996
$ $
Included in accounts payable 2,250 -__
NOTE 6 - SHARE CAPITAL
Authorized share capital consists of 100,000,000 common shares
without par value.
Name # of shares $ Value
Issued at August 31, 1996 8,415,224 3,764,690
For cash @ $.15 per share 2,067,000 310,050
For cash @ $.20 per share 2,500,000 500,000
For cash @ $.45 per share 750,000 337,500
For cash @ $.50 per share 200,000 100,000
For cash @ $1.00 per share 135,000 135,000
For property purchase @ $.25 100,000 25,000
For property purchase @ $.30 100,000 30,000
For finder fee @ $.25 per share 54,000 13,500
Issued at August 31, 1997 14,321,224 5,215,740
NORTHRICH PACIFIC VENTURES INC.
NOTES TO THE FINANCIAL STATEMENTS
AUGUST 31, 1997
(Audited)
NOTE 7 - SUBSEQUENT EVENT
Subsequent to the year end the company has proposed a
common share consolidation on a 5 share for 1 basis. This will reduce authorized share capital to 20,000,000 shares but a request will be made to increase the authorized share capital to 100,000,000 common shares without par value. This will be presented as a special resolution at the next Board of Directors meeting.
A letter from the legal representative of Kalvik Mining
Services Ltd., a supplier of exploration services and
mining equipment, has threatened to commence legal
action against the company for non-payment of invoices
totaling $ 280,953. |
