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EMGOLD MINING CORPORATION
1610 - 777 Dunsmuir Street, P.O. 10435
Vancouver, BC V7Y 1K4
Website: www.langmining.com
November 24, 1999
Ticker Symbol: EMR.vse
SEC 12g3-2(b): 82-3003
Standard & Poors Directory
Third Quarter Interim Report
For the Nine Months Ended September 30, 1999
The Company is pleased to present an update of activities for the third
quarter ended September 30, 1999.
The Company continues to take steps to reduce cash-outflows while
attempting to raise additional financing. The Company has reviewed its
geological database and identified those resource blocks that are readily
accessible with expected grades in excess of one ounce of gold per ton. The
Company hopes to use the information to attract additional financing or
joint venture partners.
During the quarter, the Company issued 1,301,051 shares as settlement for
$247,200 in debt.
The Company was using the services of investor relations consultants until
August 31, 1999 to help raise investor awareness at a cost of $46,251. The
Company has also incurred expenses of approximately $12,677 towards an
E-mail promotional campaign and printing of additional shareholder
information and has incurred costs of $14,478 towards the annual general
meeting and annual report.
Frank A. Lang, P.Eng.
President & Chairman
For further information, please contact
Investor Relations of the Lang Mining Group
Tel: (604) 687-4622 Fax: (604) 687-4212
Toll Free: 1-888-267-1400 Email: Investor@langmining.com
EMGOLD MINING CORPORATION
CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30, 1999 AND 1998
(PREPARED BY MANAGEMENT WITHOUT AUDIT)
1999 1998
Assets
Current assets
Cash $ 2,566 $ 32,841
Accounts receivable 9,837 6,562
12,403 39,403
Mineral properties 6,901,154 6,255,752
Capital assets 120,841 168,643
$ 7,034,398 $ 6,463,798
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 121,167 $ 163,587
Due to related parties 299,255 171,547
Convertible debenture 561,324 --
Interest payable 12,357 54,364
994,103 389,498
Convertible debenture -- 486,618
Promissory note - minimum option payment 258,522 129,764
1,252,625 1,005,880
Shareholders' Equity
Share capital
Authorized: 50,000,000 common shares; 50,000,000 preferred shares
Issued: 15,204,954 (1998: 11,561,903) common
shares 16,736,862 15,926,662
Deficit (10,955,089) (10,468,744)
5,781,773 5,457,918
$ 7,034,398 $ 6,463,798
EMGOLD MINING CORPORATION
CONSOLIDATED STATEMENTS OF MINERAL PROPERTIES
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(PREPARED BY MANAGEMENT WITHOUT AUDIT)
1999 1998
Expenditures
Property payments $ 380,046 $ 276,674
Consulting and engineering studies 117,875 103,624
Property taxes 27,934 25,628
Travel and accommodation 13,354 10,279
Administration 17,808 45,839
Security 13,705 13,792
Well Monitoring 8,425 7,626
Wages and benefits 749 34,719
579,896 518,181
Mineral properties, beginning of period 6,321,258 5,737,571
Mineral properties, end of period $ 6,901,154 $ 6,255,752
EMGOLD MINING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(PREPARED BY MANAGEMENT WITHOUT AUDIT)
1999 1998
Administrative costs
Investor and public relations $ 73,406 $ 71,160
Finance expense 54,459 23,333
Office and administration 44,701 62,792
Management services fee 45,000 45,000
Depreciation 33,005 44,515
Wages and benefits 27,033 86,281
Listing, filing and transfer agent 20,348 15,697
Insurance 26,970 23,640
Professional fees 22,119 43,958
Consulting 3,214 --
Travel and accommodation 4,935 6,009
Interest and bank charges 791 1,043
Foreign exchange (gain) loss (3,268) 6,115
Miscellaneous 1,192 1,172
(353,905) (430,715)
Other income (expenses)
Gain on sale of mineral property -- 12,500
Interest and miscellaneous 842 474
842 12,974
Loss for period (353,063) (417,741)
Deficit, beginning of period (10,602,026) (10,051,003)
Deficit, end of period $ (10,955,089) $ (10,468,744)
Loss per common share $ (0.03) $ (0.04)
Weighted average number of shares outstanding 13,365,809 11,449,903
EMGOLD MINING CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(PREPARED BY MANAGEMENT WITHOUT AUDIT)
1999 1998
Cash provided by (used for)
Operations
Loss for the period before interest $ (353,905) $ (418,215)
Interest income 842 474
Net loss for the period (353,063) (417,741)
Adjustments
Gain on sale of mineral property -- (12,500)
Depreciation 33,005 44,515
Finance expense 54,459 23,333
(265,599) (362,393)
Changes in non-cash working capital
(Increase) decrease in accounts receivable (9,345) 2,640
Decrease in prepaid expenses -- 9,170
Increase (decrease) in accounts payable (117,960) 40,213
Increase in interest payable 8,512 54,364
Increase in due to related parties 273,790 37,975
154,997 144,362
Foreign exchange (3,268) 6,115
Cash flows from operations (113,870) (211,916)
Investing activities
Cash expenditures on mineral properties (349,894) (356,092)
Proceeds from sale of investments -- 8,932
Proceeds from sale of mineral property -- 12,500
(349,894) (334,660)
Financing activities
Issuance of shares for cash, net 333,000 47,294
Share subscriptions (42,500) (129,801)
Issuance of convertible debenture, net of option granted -- 463,286
Promissory note 128,758 129,764
419,258 510,543
Foreign exchange gain (loss) on cash held in foreign
currency 3,268 (6,115)
Decrease in cash (41,238) (42,148)
Cash, beginning of period 43,804 74,989
Cash, end of period on hand in banks $ 2,566 $ 32,841
Supplemental information
Value of shares issued for mineral property payments $ 230,000 $ 120,691
EMGOLD MINING CORPORATION
NOTES TO CONSOLIDATED FINANMCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(PREPARED BY MANAGEMENT WITHOUT AUDIT)
NOTE 1 SEGMENTED FINANCIAL INFORMATION
The Company has one operating segment, which is the exploration and
development of mineral properties. The Company's principal operations are
carried out in Canada and the United States. Management reviews the
financial results according to expenditures by property. All of the
investment income is earned in Canada. Segment assets by geographical
location is as follows:
1999 1998
Canada
Capital assets $ -- $ --
Mineral properties and deferred
costs -- --
$ -- $ --
United States
Capital assets $ 120,841 $ 168,643
Mineral properties and deferred
costs 6,901,154 6,255,752
$ 7,021,995 $ 6,424,395
SCHEDULE B
1. Related Party Transactions
During the six months ended September 30, 1999:
(a) a company controlled by a director charged the following:
(i) $126,491 for the Company's share of office and staff costs; and
(ii) $45,000 for management fees;
(b) A director of the Company is owed $38,903 for project management fees
on and expenses incurred on the Idaho-Maryland project.
(c) A director of the Company is owed a total of $92,326 for short-term
loans made to the Company. This same director and a company controlled by
this director are owed $561,324 towards a convertible debenture due June 8,
2000.
(d) Legal fees of $5,481 have been accrued as owing to a firm of which a
director of the Company is a partner.
2. (a) Securities issued during the three months ended September 30, 1999
(i) The Company issued 1,301,501 common shares in settlement of debt in the
amount of $247,200.
(b) Options granted during the six months ended September 30, 1999
Name Amount Exercise Price Expiry
Ingrid Gilmour 5,000 $0.25 6/11/2009
William Witte 150,000 $0.25 6/11/2009
Mary Vorvis 25,000 $0.25 6/11/2009
180,000
3. (a) Authorized Capital
50,000,000 common shares without par value.
50,000,000 preferred shares.
Issued and Outstanding Capital at September 30, 1999
15,204,954 common shares are issued and outstanding.
3. (b) (i) Stock Options Outstanding
No. of Shares Exercise Price($) Expiry Date
150,000 0.30 5/15/00
11,000 0.30 8/16/00
83,500 0.30 10/20/00
221,000 0.30 4/15/01
10,000 0.20 6/12/02
165,000 0.30 4/22/03
115,000 0.30 9/22/03
52,000 0.30 6/16/04
25,000 0.25 11/06/04
20,000 0.30 1/10/07
13,000 0.30 2/21/07
360,000 0.30 4/21/07
247,000 0.25 1/15/09
150,000 0.25 6/11/09
1,622,500
(ii) Warrants Outstanding
No. of Shares Exercise Price ($) Expiry Date
982,000 0.30 January 12, 2000
360,000 0.30 March 12, 2000
300,000 nil September 10, 2000
1,642,000
(ii) Shares reserved and warrants issued under convertible debenture
No. shares Exercise Price ($) Expiry Date
1,134,622 shares 0.45 June 8, 2000
567,311 warrants 0.60 June 8, 2000
1,701,933
(c) Shares in Escrow
4,558 shares
(d) List of Directors
Frank A. Lang
Ron Lang
Sargent H. Berner
William J. Witte
Ross Guenther |
