First Quarter Interim Report - summary of activities
EMGOLD MINING CORPORATION
1610 - 777 Dunsmuir Street, P.O. 10435
Vancouver, BC V7Y 1K4
Tel:(604) 687- 4622 Fax: (604) 687-4212
www.langmining.com
First Quarter Interim Report
For the Three Months Ended March 31, 1999
May 27, 1999 Ticker Symbol: EMR-vse
SEC 12g3-2(b): 82-3003
Standard & Poors
The Company is pleased to present an update of activities for the first quarter ended March 31, 1999.
The Company continues to take steps to reduce cash-outflows while attempting to raise additional financing. The Company has curtailed activity at the project site and head office and has reduced staff levels and staff involvement accordingly. In April 1999, the Company completed a 982,000 unit private placement to raise a total of $245,500. Each unit consisted of one share and one share purchase warrant. Each warrant entitles the holder to acquire one additional share in the Company at $0.30 for a period of one year. Working capital commitments did not allow for the funds to be used to conduct the previously proposed 4,000-foot surface diamond drilling program.
In May 1999, the Company obtained regulatory approval, for the amendment to the Lease and Option to Purchase Agreement for an 80-acre land parcel adjacent to the Company's 3,460 foot vertical New Brunswick shaft. The land parcel will be required to de-water and conduct underground diamond core drilling of the Company's 100% owned Idaho-Maryland Mine Property located in Grass Valley California and is expected to host the mill and tailings complex in the event the property is put into production.
The Company has paid US$600,000 of the original US$2,000,000 option price. The amendment extends the payment date for the final US$1,400,000 option payment to December 10, 1999. As compensation for the amendment, the vendor has been issued one million common shares at a deemed value of $230,000. In the event the Company's average share price for 30 consecutive days anytime between the date of the amendment and December 10, 1999 is greater than or equal to US$3.00 per share, the Company will obtain immediate title to the property with no further compensation payable. The amendment also cancels the US$28,000 quarterly interest payments payable by the Company past June 10, 1998. The vendor holds the option to extend the terms of the amendment for one additional year to December 10, 2000.
The Company plans to review its geological database to identify those resource blocks that are readily accessible with expected grades in excess of one ounce of gold per ton. If a sufficient resource can be identified, the Company hopes to use the information to attract additional financing or joint venture partners. The Company anticipates that the cost of putting together this resource information and a corresponding presentation will be approximately US$20,000.
The Company continues to use the services of an investor relation's consultant to help raise investor awareness at a cost of $1,600 per month which has been reduced from the initial $4,000 per month charge. The Company has also incurred expenses of approximately $11,000 towards an E-mail promotional campaign and printing of additional shareholder information.
Frank A. Lang, P.Eng.
President & Chairman
For further information, please contact:
Andrew Hunter of the Investor Services Department of the Lang Mining Group
Tel: (604) 687-4622 Fax: (604) 687-4212
Toll Free: 1-888-267-1400
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