I found this as a press release, Yet I can not see a Edgar filing and this is dated the 14th of April, Anyone have any ideas Dino
April 14, 1997
GOLDEN EAGLE INTERNATIONAL INC (MINE)
Annual Report (SEC form 10KSB)
Management's Discussion and Analysis of Financial Condition and Results of Operations -
Changes in Financial Condition
At year end 1996 the Company's assets increased to $824,760 compared to $79,031 at the end of 1995.
The increase was a result of operations in Bolivia and expenditures for the exploration and development of
the Tipuani/Cangalli prospect.
Liabilities also increased significantly as a result of operations in Bolivia. At year end 1996, liabilities were
$1,666,870, an increase of 223% over 1995 year end liabilities of $515,271.
Stockholders' deficit at year end 1996 was ($842,110), an increase of 93% over the 1995 stockholders'
deficit of ($436,240). The Company, in other words, continued to increase the stockholders' deficit. This
was exacerbated by the Company's failure to generate any revenues from any source, in spite of continued
expenses and mining prospect investment and exploration costs.
From the aspect of whether the Company can continue toward its business goal of commencing production
from its Cangalli mining prospect, the Company is critically deficient in needed capital. Without a capital
infusion or loans or a combination thereof, it is unlikely that the Company can carry out its business goals
regarding the mine operations on the Bolivian Cangalli prospect.
Subsequent to December 31, 1996 the Company received a bridge loan for $240,000 from a Texas bank,
as well as a loan commitment from the same bank for $1,000,000 pursuant to a revolving line of credit which
would retire the $240,000 bridge loan.
The Company also received additional funding through private stock purchases. Management believes that
these cash infusions will contribute substantially to satisfying a portion of the needed capital. However, no
guarantee can be made that the loan amount, nor the capital raised through private placements, will entirely
satisfy the Company's capital needs.
Comparison of Results of Operation for the Fiscal Years Ended December 31, 1996 and 1995 -
The Company had no operating revenues in either 1996 or 1995. The Company had gains on sales of
marketable securities of $19,167 in 1996 and $9,666 in 1995. These are non-recurring gains and would not
be considered regular income.
The Company incurred operating expenses, all of which are general and administrative in nature, totaling
$1,982,768 in 1996 as compared to $815,507 in 1995. As a result of having no operating income, the
Company incurred operating losses of ($1,982,768) in 1996 and ($815,507) in 1995.
Salaries and consulting fees decreased in 1996 to $191,635 from a total of $317,938 in 1995. This,
however, excludes common stock issued to consultants and others in 1996 valued at $1,230,842 compared
to $171,983 in 1995. These continuing costs are the result of the use of consultants related to negotiations
and investigations concerning the Bolivian mining prospect. This trend will continue in 1997.
Travel expenses in 1996 were about the same as 1995, $71,649 and $69,429, respectively; they are
expected to remain at approximately the same level in 1997.
Office expenses, including telephone, were $101,984 in 1996 and $31,714 in 1995. This may increase again
in 1997 due to expanded operations.
Legal expenses in 1996 increased significantly due to the SEC investigation, Arizona litigation effort,
negotiation of the agreement for the Bolivian mining prospect, and efforts to update the corporate records
and SEC filings. The expense totaled $229,037 in 1996 as compared to $51,284 in 1995.
Likewise, accounting and other professional expenses in 1996 were materially larger due to efforts required
to bring the Company's accounting current. 1996 expense for accounting totaled $34,373, while 1995
accounting and other professional expenses were $10,754. It should be expected that future legal and
accounting expenses will continue in amounts comparable to 1996.
The per-share loss amounted to ($.05) in 1996 as compared to ($.03) in 1995.
Capital expenditures for property and equipment increased
disproportionately in 1996 to $741,696 as the Company funded exploration costs
and investment on the Bolivian mining prospect. By comparison, 1995 results
showed capital expenditures of only $34,516.
The Company incurred interest expenses in 1996 of $79,141 as opposed to 1995 interest of $9,289. The
increased dollar amount of loans led to the
eight-fold interest category increase. This increased interest cost will continue, and probably double, in the
coming year with projected borrowings.
The Company lost $16,000 in 1996 on the sale of equipment, but had no such loss in 1995. The Company
hopes to avoid future losses on equipment purchases/sales.
The Company had a net loss for 1996 of ($2,058,742) compared to its net loss in 1995 of ($908,130). The
Company anticipates that the trend of net losses will continue in 1997 as it continues to incur major expenses
in attempting to start up mining of its Bolivian prospect without initially generating any significant revenues
from mining.
Comparison of Results of Operation for the Fiscal Years Ended December 31, 1995 and 1994 -
During the fiscal year ended December 31, 1994, the Registrant realized a net loss on operations of
$119,354 compared to $908,130 for the fiscal year ended December 31, 1995. In 1994, $899 in interest
income was generated from business loans and in 1995 no revenue was generated.
Operating expenses increased during 1995 to $815,507 compared to 1994 at $114,212 as a result of the
increase in administrative, travel and professional costs involved in negotiating and evaluating potential mining
prospects. In addition, only in 1995 did the Company begin activities in mineral prospect analysis and
evaluation and incurred greatly increased expenses as a result of its attempts to negotiate, evaluate and
acquire mineral prospects. It had to write off $78,000 in expenditures for the Mineral Mountain/Arizona
proposed acquisition. In 1995, the Company issued or agreed to issue stock for services of $171,983 in
relation to operations and attempts to find mining properties. Accounts payable increased by $215,516
related to ongoing operations. It wrote off a loan to an investment advisor of $15,000. It received advances
or loans from officers and related parties of $297,846 and repaid $168,811 of such loans or advances. It
issued stock, and agreed to issue stock related to financing activities that the company valued at $391,693.
The Company issued notes for funds advanced of $110,422.
(b) Liquidity and Capital Resources
At year end 1996, the Company had cash of $11,741 as compared to $32,979 in 1995. Its total current
assets were $51,584 at year end 1996 and $42,645 in 1995. The Company investment in exploration and
development costs of its Bolivian mining prospect at 1996 year end, and mining and related equipment,
totaled $762,870 whereas in 1995 the Company had property and equipment of $34,516.
At year end 1996 the total assets, less depreciation, were $824,760, while at year end 1995 total assets
stood at $79,031.
Other than its cash on hand, the Company had no other capital resources. Its investment in mining equipment
not yet placed in service was illiquid. In order to fund future operations and capital expenditures, the
Company will have to borrow monies or make private equity placements on terms which may not be
favorable to the Company. The Company's subsidiary, Eagle Mining of Bolivia, Ltd., committed in its
contract with United Cangalli Gold Mining Cooperative, Ltd. ("UCL") to complete first-phase exploration
and open one work front, in addition to the Cangalli shaft, by April 20, 1997; to open two additional work
fronts by December 6, 1997; and to invest a minimum of $3 million in the project. Management of the
Company's subsidiary is working to meet its contractual commitments. As of December 31, 1996 the
Company had expended $762,870 in Bolivia, and considers that a major portion of its overhead and
expenses in the United States are allocable toward the $3,000,000 commitment in its efforts to complete title
and commence mining operations in Bolivia. In addition, subsequent to December 31, 1996, the Company
has acquired $1,000,000 worth of recovery and other mining equipment, which will be applied toward the
$3,000,000 commitment to UCL. The Company has also received a commitment from a Texas bank for a
$1,000,000 line of credit, which amount in its entirety will be allocable to the UCL contract commitment; and
has raised additional capital through private stock purchases. In 1997 the Company will continue in its efforts
to obtain additional capital and mining equipment which it will apply against the $3 million commitment.
Item 7. Financial Statements and Supplementary Data
Please refer to pages F-1 through F-19.
Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
There were no disagreements with the Company's accountants on any matters of accounting principles,
practices or financial statement disclosures during 1996. |
