Antares 9mo results
Antares Mining and Exploration Corp ANZ
Shares issued 18,992,219 Dec 31 close $0.08
Mon 4 Jan 99 Company Review
Mr. Robert Yeoman reviews the company
During the quarter ended Oct. 31, 1998 and subsequently, Antares:
Completed a further 2,721 metres of drilling on the Ojolali property;
Made further progress toward the receipt of a COW on the Ojolali property;
and
Invested $150,000 to acquire a 17.9 per cent interest in Vaaldiam Resources
Ltd., and agreed to invest a further $850,000 in the form of convertible
debentures of Vaaldiam.
Rappa Holdings (Pty.) Ltd.
During the seven months ended Oct. 31, 1998, reported consolidated
unaudited net after-tax earnings of Rappa, under South African generally
accepted accounting principles, were R9,054,852 ($2,323,475 (Canadian))
excluding non-recurring items. What is particularly encouraging regarding
these results is that they include losses of R2,335,853 ($599,380
(Canadian)) associated with Rappa's cobalt recovery operations, which are
in a startup phase. Rappa's balance sheet at the end of October
demonstrated significant strength with working capital of R13,523,565
($3,470,147 Canadian)) of which the cash component was R11,577,119
($2,970,689 (Canadian)). Debt was but 26 per cent of shareholders' equity,
while the return on equity on an annualized basis, assuming the current
earnings momentum continues over the balance of the year, would approach 40
per cent, underlining the Rappa Group's ability to use capital efficiently.
Antares' 24.75 per cent beneficial interest in Rappa remains a valuable
portfolio investment.
Vaaldiam Resources Ltd.
During the quarter, Antares acquired a private placement of 416,667 units
of Vaaldiam Resources Ltd. at 36 cents per unit or $150,000 in total, each
unit consisting of one common share and a whole warrant to purchase
additional common shares of Vaaldiam at a price of 46 cents per share for a
two-year period. In addition, Antares has agreed to invest a further
$850,000 in convertible debentures of Vaaldiam on or before Dec. 31, 1998.
As part of this private placement, Antares and Vaaldiam agreed to
negotiate, on a best efforts basis, a business combination of the two
companies on or before March 31, 1999. Should this business combination not
be completed, Antares can convert the $850,000 debentures, into an up to 50
per cent participating share of Vaaldiam's then interest in the Vetpan
property or into Vaaldiam shares at 36 cents per share, within one year
from the date of issue of the debentures. Vaaldiam will use the proceeds
from the aforementioned investments to complete its acquisition of a 50 per
cent interest in the Vetpan alluvial diamond property in the Ventersdorp
district approximately 120 kilometres west of Johannesburg, South Africa.
The 50 per cent interest will be acquired by expending $1,000,000 on the
property, primarily to extract a 50,000 tonne bulk sample of gravels to
determine the recoverable diamond content therein. According to a report
prepared for Vaaldiam by Dr. T.R. Marshall of Explorations Unlimited of
Homestead, South Africa dated April, 1998, a mini bulk-sample of 6,000
tonnes completed in 1994 is reported to have recovered 99.71 carats (or
1.66 carats per 100 tonnes) which were sold at an average value of $493
(U.S.) per carat, thus confirming the potential of the gravels on this
property to be mined economically. These diamonds averaged a reported 1.5
carats per stone. Recent exploration has indicated a gravel resource in
excess of 14 million tonnes on this property.
Lady Lina property
This 34.5 per cent owned property in Zimbabwe is currently on a care and
maintenance basis and Antares is currently endeavouring to divest this
asset for value.
Ojolali gold and silver property
During the quarter ended Oct. 31, 1998, 2,721 metres of diamond drilling
were completed on the Ojolali property in southern Sumatra, Indonesia.
Diamond drilling on the property was suspended on Oct. 31 in order to
conserve working capital. Surface exploration work, including mapping and
stream sampling continues. An application has been submitted to the general
director, Department of Mines and Energy to have a Seventh Generation COW
started.
Steppe Gold Resources Ltd.
Antares' $2,000,000 investment in Steppe in the second quarter, primarily
in the form of a convertible debenture, was to provide sufficient working
capital to Steppe to bridge the period until the company raised additional
capital to develop its Kazakhstan gold and base metal properties. Steppe is
continuing with its efforts to raise the additional capital required. As an
alternative to the ability to convert its debenture into Steppe shares and
warrants, Antares can convert the debenture into an up to a 20 per cent
share of Steppe's interest in the Mizek, Akbastau and Kosmurun properties.
Toodoggone gold property
The 1998 exploration program on the Toodoggone property in northcentral
British Columbia ended following the completion of 11 holes, all of which
encountered mineralization, however, without yet establishing the
continuity of grade required to establish a bulk mining opportunity. During
the winter, the results of the 1998 program will be analyzed to determine
the scope of the 1999 program.
Financial condition
As at Oct. 31, 1998 the Antares balance sheet was debt free with $1,024,958
in working capital.
Dennis Gray
Dennis Gray, chairman and CEO of Antares died on Nov. 9, following surgery
in Pod Elizabeth, South Africa. In addition to founding Antares, Mr. Gray
also co-founded Northam Platinum Limited. His family, colleagues and
friends miss him deeply.
Outlook
In addition to completing the business combination of Antares and Vaaldiam,
the strategic emphasis of Antares for the foreseeable future will be on the
exploration of properties with near term cash flow potential with low
development costs; an example of which is the Vetpan diamond property.
CONSOLIDATED STATEMENT OF INCOME
Nine months ended Oct. 31
1998 1997
Operating
revenue $ 119,125 $ 466,472
Direct costs
Materials and
development 107,335 311,795
Utilities and
rent 22,431 311,795
Wages and
salaries 89,550 156,931
Amortization 70,619 106,824
--------- ----------
Loss on
mining
operations (170,810) (301,598)
Share of income
of Cangold (Pty.)
Limited - 135,282
Other income 176,412 135,832
---------- ----------
5,602 (30,484)
Expenses
Professional
and consulting
fees 405,647 589,573
Admin 410,647 529,021
Investments
written down
to market 208,399 -
Amortization 50,017 141,720
Travel 66,428 85,820
---------- ----------
Net loss ($1,135,516) ($1,376,618)
========== ==========
Net loss
per share (3 cents) (7 cents)
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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