Prospectus
Summary
|
3 | |
Risk
Factors
|
5 | |
Use
of Proceeds
|
10 | |
Market
for Common Equity and Related Stockholder Matters
|
10 | |
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
19 | |
Business
|
11 | |
Directors,
Executive Officers, Promoters and Control Persons
|
25 | |
Executive
Compensation
|
27 | |
Security
Ownership of Certain Beneficial Owners and Management
|
31 | |
Certain
Relationships and Related Transactions
|
30 | |
Description
of Securities
|
32 | |
Selling
Stockholders
|
33 | |
Plan
of Distribution
|
34 | |
Changes
In and Disagreements With Accountants on Accounting and Financial
Disclosure
|
35 | |
Legal
Matters
|
35 | |
Experts
|
35 | |
Where
You Can Find Additional Information
|
35 | |
Index
to Financial Statements
|
F-1 |
·
|
paid
Klondike Bay Resources $7,500 (paid upon the execution of the option
agreement); and
|
·
|
incurred
an aggregate of $200,000 of property exploration expenditures on
the
Manchester South Property within the following
periods:
|
·
|
$25,000
on or before December 31, 2004; and
|
·
|
a
further $175,000 on or before December 31, 2005.
|
Common
stock which may be sold by
|
|
43,686,734
shares
|
the
selling stockholders
|
|
|
|
|
|
Number
of selling stockholders
|
|
28
|
|
|
|
Use
of proceeds
|
|
We
will not receive any proceeds from the sale of our common stock
by the
selling stockholders. Any proceeds from the sale of our common
stock
offered pursuant to this prospectus will be received by the selling
stockholders.
|
|
|
|
OTC
Bulletin Board symbol
|
|
KALG.OB
|
|
|
|
Risk
factors
|
|
See
“Risk Factors” and the other information included in this prospectus for a
discussion of factors you should carefully consider before deciding
to
invest in shares of our common
stock.
|
·
|
technological
innovations or new products and services by us or our
competitors;
|
·
|
additions
or departures of key personnel;
|
·
|
limited
“public float” following the reorganization transaction, in the hands of a
small number of persons whose sales or lack of sales could result
in
positive or negative pricing pressure on the market price for the
common
stock;
|
·
|
our
ability to execute our business
plan;
|
·
|
operating
results that fall below
expectations;
|
·
|
loss
of any strategic relationship;
|
·
|
industry
developments;
|
·
|
economic
and other external factors; and
|
·
|
period-to-period
fluctuations in our financial
results.
|
Fiscal
Year Ending
|
High
|
Low
|
|||||
May
31, 2007
|
|||||||
First
Quarter
|
0.48
|
0.38
|
|||||
Second
Quarter
|
0.51
|
0.36
|
|||||
Third
Quarter
|
1.35
|
0.40
|
|||||
Fourth
Quarter
|
1.51
|
0.80
|
|||||
May
31, 2008
|
|||||||
First
Quarter
|
1.48
|
0.46
|
|||||
Second
Quarter
|
0.64
|
0.17
|
|||||
Third
Quarter
|
0.45
|
0.25
|
|||||
Fourth
Quarter
|
0.40
|
0.19
|
|||||
May
31, 2009
|
|||||||
First
Quarter
|
0.31
|
0.08
|
Plan category
|
Number of securities to be
issued upon exercise of
outstanding options,
warrants and rights
|
Weighted average exercise
price of outstanding
options, warrants and
rights
|
Number of securities
remaining available
for future issuance
|
|||||||
Equity compensation plans approved by security holders
|
12,000,000
|
$
|
0.38
|
2,441,667
|
||||||
Equity
compensation plans not approved by security holders
|
-
|
-
|
-
|
|||||||
Total
|
12,000,000
|
$
|
0.38
|
2,441,667
|
·
|
paid
Klondike Bay Resources $7,500 (paid upon the execution of the option
agreement); and
|
·
|
incurred
an aggregate of $200,000 of property exploration expenditures on
the
Manchester South Property within the following
periods:
|
·
|
$25,000
on or before December 31, 2004; and
|
·
|
a
further $175,000 on or before December 31,
2005.
|
·
|
a
share of the proceeds of production totaling $0.45 per ton pursuant
to
production share agreements entered into among GPK, Ferdinandus
Hanye, Eko
Purwanto, Rudiansyah and Laurensius Hajang, and between GPK and
Laurensius
Hajang, for production under the KP held by GPK. This share of
production
proceeds will be paid to the recipients in return for providing
assistance
to GPK relating to the development of the mining project (particularly
in
the area of local community relations);
and
|
·
|
a
share of the proceeds of production totaling $0.45 per ton pursuant
to
production share agreements entered into among BBM, Kristiana Neny,
Eko
Purwanto and Laurensius Hajang, and between BBM and Laurensius
Hajang, for
production under the KP held by BBM. This share of production proceeds
will be paid to the recipients in return for providing assistance
to BBM
relating to the development of the mining project (particularly
in the
area of local community relations).
|
Epoch
|
Division
|
Map
Ref
|
Facies
|
Formation
|
|
Holocene
|
|
Qa
|
Alluvium
|
|
|
Pleistocene
|
|
Tpkb
|
Mixed
with lignite
|
Kampung
Baru
|
|
Pliocene
|
|
—
|
—
|
—
|
|
Late
|
Tmbp
|
Mixed
with lignite/coal
|
Balikpapan
|
||
Unconformity
|
|||||
Miocene
|
Middle
|
Tmpb
Tmm
|
Sandstone
and mixed, with coal.
Tmm –
andesite
|
Palau
Balang
|
Tmm
Maragoh
|
Unconformity
|
|||||
Early
|
Tomp
|
Sandstone
and mixed, with coal
|
Pamaluan
|
||
Oligocene
|
Late
|
Unconformity
|
|||
Early
|
Toty
|
Mixed
with lignite/coal
|
Tuyu
|
||
Eocene
|
|
—
|
—
|
—
|
|
|
Graha
Seam Quality
|
||||||||||||||||||
Stats
|
|
TM
ar %
|
|
IM
ad %
|
|
Ash
ad %
|
|
VM
ad %
|
|
FC
ad %
|
|
RD
ad
|
|
TS ad
%
|
|
CV ad
kcal/kg
|
|
CV db
kcal/kg
|
|
CV daf
kcal/kg
|
Average
|
|
39.9
|
|
19.4
|
|
4.9
|
|
40.9
|
|
34.8
|
|
1.33
|
|
0.18
|
|
5,189
|
|
6,415
|
|
6,856
|
Minimum
|
|
33.9
|
|
12.9
|
|
1.4
|
|
35.4
|
|
29.4
|
|
1.29
|
|
0.03
|
|
4,346
|
|
5,536
|
|
6,499
|
Maximum
|
|
43.3
|
|
27.6
|
|
15.1
|
|
47.1
|
|
40.0
|
|
1.42
|
|
0.37
|
|
5,873
|
|
6,945
|
|
7,242
|
Name
|
Age
|
Director/Officer
Since
|
Position(s) Held
|
|||
|
|
|
|
|||
William
Bloking
|
57
|
June
26, 2007
|
Chairman
of the Board and President
|
|||
|
|
|
|
|||
Jorge
Nigaglioni
|
35
|
February
9, 2007
|
Chief
Financial Officer
|
|||
|
|
|
|
|||
Andrew
Caminschi
|
34
|
February
9, 2007
|
Senior
Vice President of Business Development and Director
|
|||
|
|
|
|
|||
Antonio
Varano
|
51
|
April
20, 2007
|
Director
|
Name
|
Fees Earned or
Paid in Cash
($)
|
Stock Awards
($)
|
Option Awards
($)
|
All Other
Compensation
($)
|
Total
($)
|
|||||||||||
Laith
Reynolds(1)
|
43,065
|
—
|
639,248
|
—
|
682,313
|
|||||||||||
|
||||||||||||||||
Andrew
Caminschi
|
72,000
|
315,000
|
—
|
—
|
387,000
|
|||||||||||
|
||||||||||||||||
Antonio
Varano
|
36,000
|
58,000
|
—
|
—
|
94,000
|
|||||||||||
|
||||||||||||||||
Martin
Hurley(2)
|
120,312
|
145,000
|
—
|
—
|
—
|
|||||||||||
|
||||||||||||||||
William
Bloking
|
25,226
|
48,333
|
—
|
—
|
73,559
|
(1) |
Mr.
Reynolds resigned from our board of directors on May 12,
2007.
|
(2)
|
Mr.
Hurley resigned from our board of directors on May 21, 2008. His
fees paid
during the year were $21,733 for his director fees through November
13,
2007 and $98,578 for his salary as our president and chief executive
officer.
|
·
|
Provide
competitive levels of total compensation which will enable us to
attract
and retain the best possible executive talent within our
industry;
|
·
|
Motivate
executive officers to achieve optimum individual
performance;
|
·
|
Align
the financial interest of our executive officers and stockholders
through
equity-based plans;
|
·
|
Provide
a compensation program that recognizes individual contributions
as well as
our overall business results; and
|
·
|
Ensure
that executive compensation-related disclosures are made to the
public on
a timely basis.
|
·
|
Reviewing
and establishing compensation and benefits practices and policies
to
ensure that they provide appropriate motivation for corporate performance
and increased stockholder value.
|
·
|
Overseeing
the administration of our 2007 Stock Incentive
Plan.
|
·
|
Reviewing
and approving compensation for our executive officers, including
base
salary and equity-based awards.
|
·
|
Base
salary; and
|
·
|
Long-term
equity incentive compensation.
|
Name and Principal Position
|
Year
|
|
Salary ($)
|
|
Stock
Awards
($)
|
|
Option
Awards
($)
|
|
Total
($)
|
|
||||||
William
Bloking, President
|
2008
2007
|
4,290.32
—
|
48,333.14
—
|
—
—
|
52,623.46
—
|
|||||||||||
Martin
Hurley, President and Chief Executive Officer (1)
|
2008
2007
|
104,068.10
—
|
145,000.00
—
|
35,777.53
—
|
284,845.63
—
|
|||||||||||
Cameron
Reynolds, President and Chief Executive Officer (2)
|
2008
2007
|
29,883.33
20,429.00
|
—
—
|
—
—
|
29,883.33
20,429.00
|
|||||||||||
Jorge
Nigaglioni, Chief Financial Officer
|
2008
2007
|
90,000.00
27,589.00
|
108,750.00
—
|
—
—
|
198,750.00
27,589.00
|
|||||||||||
David
Pope, Chief Operations Officer Thatcher (3)
|
2008
2007
|
80,000.00
—
|
—
—
|
319,623.83
—
|
389,623.83
—
|
(1) |
Mr.
Hurley was appointed to serve as our president and chief executive
officer
effective November 13, 2007. Mr. Hurley resigned as our president
and
chief executive
officer effective May 20, 2008.
|
(2) |
Mr.
Reynolds resigned as our president and chief executive officer
effective
as of November 13, 2007.
|
(3) |
Mr.
Pope resigned as chief operations officer of Thatcher effective
February
14, 2008.
|
Option Awards
|
Stock Awards
|
||||||||||||||||||
Name |
Number of
Securities
Underlying
Unexercised
Options
(#) (1)
|
Number of
Securities
Underlying
Unexercised
Options
(#) (1)
|
Option
Exercise
Price
($)
|
Option
Expiration
Date (2)
|
Number of
Shares or Units
of Stock That
Have Not
Vested
(#)(1)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)
|
|||||||||||||
Exercisable
|
Unexercisable
|
||||||||||||||||||
William
Bloking
|
—
|
—
|
—
|
—
|
166,667
|
45,000
|
|||||||||||||
Martin
Hurley (3)
|
250,000
|
—
|
0.30
|
8/20/08
|
—
|
—
|
|||||||||||||
Cameron
Reynolds (4)
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Jorge
Nigaglioni
|
—
|
—
|
—
|
—
|
375,000
|
101,250
|
|||||||||||||
David
Pope (5)
|
500,000
|
—
|
0.50
|
7/29/08
|
—
|
—
|
(1) |
Each
option or restricted stock award vests 25% upon the first six month
anniversary of the grant date and then in equal monthly installments
over
the next
three years. Options and restricted stock awards are fully vested
upon the
fourth anniversary of the grant
date.
|
(2) |
Options
expire ten years from the grant
date.
|
(3) |
Mr.
Hurley resigned as our president and chief executive officer effective
May
20, 2008.
|
(4) |
Mr.
Cameron Reynolds resigned as our president and chief executive
officer
effective November 13, 2007.
|
(5) |
Mr.
Pope resigned as chief operations officer of Thatcher effective
February
14, 2008.
|
Shares Beneficially Owned(2)
|
|||||||
Name and Address of Beneficial Owner(1)
|
Percent
|
||||||
Newland
Resources Ltd
|
13,333,333
|
9.65
|
%
|
||||
Strato
Malamas
|
6,000,000
|
6.68
|
%
|
||||
Jorge
Nigaglioni(3)
|
1,500,000
|
1.10
|
%
|
||||
Andrew
Caminschi(4)
|
1,000,000
|
*
|
|||||
Antonio
Varano(5)
|
837,500
|
*
|
|||||
William
Bloking(6)
|
1,333,333
|
*
|
|||||
Cameron
Reynolds (7)
|
2,750,000
|
2.01
|
%
|
||||
Martin
Hurley(8)
|
4,833,333
|
3.54
|
%
|
||||
David
Pope(9)
|
8,172
|
*
|
|||||
All
directors and executive officers as a group (4 persons)(10)
|
4,670,833
|
3.42
|
%
|
* |
Less
than 1% of the outstanding shares of common
stock.
|
(1) |
Unless
indicated otherwise, the address of each stockholder listed in
the table
is: c/o KAL Energy, Inc., World Trade Center 14th Floor, Jl. Jenderal
Sudirman Kav. 29-31, Jakarta, Indonesia
12920.
|
(2) |
Beneficial
ownership is based on information furnished by the individuals
or entities
and is determined in accordance with the rules of the SEC and generally
includes voting or investment power with respect to securities.
Shares of
common stock subject to options or warrants currently exercisable,
or
exercisable within 60 days of September 30, 2008 are deemed outstanding
for computing the percentage of the person holding such options
or
warrants but are
not deemed outstanding for computing the percentage of any other
person.
As of September 30, 2008, we had a total of 134,416,172 shares
of common
stock
issued and outstanding. Except as indicated by footnote and subject
to
community property laws where applicable, to our knowledge, the
companies
and persons named in this table have sole voting and investment
power with
respect to all shares of common stock shown to be beneficially
owned
by them.
|
(3) |
Includes
375,000 shares of unvested restricted stock. The shares of restricted
stock vest in equal six-month installments of 25% beginning November
1,
2007.
|
(4) |
Includes
125,000 shares of unvested restricted stock. The shares of restricted
stock vest in equal six-month installments of 25% beginning May
1,
2007.
|
(5) |
Includes
600,000 shares of unvested restricted stock and 37,500 shares subject
to
options exercisable
within 60 days of September 30, 2008. The
shares of restricted stock vest in equal six-month installments
of 25%
beginning November 1, 2007. The shares of restricted stock vest
in equal
six-month installments of 25% beginning May 1, 2008.
|
(6) |
Includes
1,166,667 shares of unvested restricted stock. The shares of restricted
stock vest in equal six-month installments of 25% beginning November
1,
2007.
|
(7) |
Mr.
Reynolds resigned as our president and chief executive officer
effective
November 13, 2007.
|
(8) |
Mr.
Hurley resigned as our president and chief executive officer and
as a
member of our board of directors effective May 20,
2008.
|
(9) |
Mr.
Pope resigned as chief operations officer of Thatcher effective
February
14, 2008.
|
(10) |
Includes
37,500 shares subject to options exercisable within 60 days of
September
30, 2008 and 2,266,667 shares of unvested restricted
stock.
|
Selling Stockholders
|
Common Shares
Owned Prior To
Offering
|
Common Shares
Registered
|
Common Shares
Owned After Offering
|
Percentage of
Shares Following
Offering (*)
|
|||||||||
James E.
Yates
|
50,000
|
50,000
|
—
|
—
|
|||||||||
3688
Investments Ltd (1)
|
300,000
|
300,000
|
—
|
—
|
|||||||||
Kaimar
Investments Corp (2)
|
133,400
|
133,400
|
—
|
—
|
|||||||||
Dan
Mosher
|
333,334
|
333,334
|
—
|
—
|
|||||||||
Appletree
Investments Management Inc. (3)
|
100,000
|
100,000
|
—
|
—
|
|||||||||
Admiralt
Investments Inc (4)
|
100,000
|
100,000
|
—
|
—
|
|||||||||
Asset
Protection Fund Ltd (5)
|
1,666,666
|
1,666,666
|
—
|
—
|
|||||||||
Barbara
Moriarty
|
300,000
|
300,000
|
—
|
—
|
|||||||||
321
Gold Ltd (6)
|
700,000
|
700,000
|
—
|
—
|
|||||||||
Charles
Smith
|
200,000
|
200,000
|
—
|
—
|
|||||||||
E&P
Fund Ltd (7)
|
3,333,333
|
3,333,333
|
—
|
—
|
|||||||||
Elston
Johnston
|
700,000
|
700,000
|
—
|
—
|
|||||||||
Pacific
International Management Inc. (8)
|
4,666,667
|
4,666,667
|
—
|
—
|
|||||||||
Newland
Resources Ltd (9)
|
13,333,333
|
13,333,333
|
—
|
—
|
|||||||||
Ken
Corbett
|
100,000
|
100,000
|
—
|
—
|
|||||||||
David
Massie
|
50,000
|
50,000
|
—
|
—
|
|||||||||
Stephen
Doe
|
500,000
|
500,000
|
—
|
—
|
|||||||||
Christine
Kennedy
|
240,000
|
240,000
|
—
|
—
|
|||||||||
Martin
Hurley
|
3,333,333
|
3,333,333
|
—
|
—
|
|||||||||
Daniel
Cane
|
380,000
|
380,000
|
—
|
—
|
|||||||||
Samantha
Harrison
|
420,000
|
420,000
|
—
|
—
|
|||||||||
Matthew
Seibert
|
200,000
|
200,000
|
—
|
—
|
|||||||||
Felix
Bayer
|
280,000
|
280,000
|
—
|
—
|
|||||||||
Blue
Star Private Foundation (10)
|
600,000
|
600,000
|
—
|
—
|
|||||||||
1,666,667
|
1,666,667
|
—
|
—
|
||||||||||
Gabriel
Law Khing Kong
|
1,666,667
|
1,666,667
|
—
|
—
|
|||||||||
Blackmort
Nominees Pty Ltd (11)
|
1,666,667
|
1,666,667
|
—
|
—
|
|||||||||
Coal
of Africa (12)
|
6,666,667
|
6,666,667
|
—
|
—
|
* |
Based
on 134,416,172 shares of our common stock outstanding as of October
21,
2008.
|
(1) |
Michael
Louie has voting and dispositive power over the shares held by
3688
Investments Ltd.
|
(2) |
Peter
Kains has voting and dispositive power over the shares held by
Kaimar
Investments Corp.
|
(3) |
Robert
Cooles has voting and dispositive power over the shares held by
Appletree
Investments Management Inc.
|
(4) |
Philip
Durell has voting and dispositive power over the shares held by
Admiralt
Investments Inc.
|
(5) |
David
Dawes has voting and dispositive power over the shares held by
Asset
Protection Fund Ltd.
|
(6) |
Robert
Moriarty has voting and dispositive power over the shares held
by 321 Gold
Ltd.
|
(7) |
Christian
Naville has voting and dispositive power over the shares held by
E&P
Fund Ltd.
|
(8) |
John
Cornille has voting and dispositive power over the shares held
by Pacific
International Management Inc.
|
(9) |
L.A.
Colless has voting and dispositive power over the shares held by
Newland
Resources Ltd.
|
(10) |
Florian
Hoertlehner has voting and dispositive power over the shares held
by Blue
Star Private Foundation.
|
(11) |
Phil
Coulson has voting and dispositive power over the shares held by
Blackmort
Nominees Pty Ltd.
|
(12) |
Blair
Sergeant has voting and dispositive power over the shares held
by Coal of
Africa.
|
·
|
directly
by any selling stockholder to one or more
purchasers;
|
·
|
ordinary
brokerage transactions and transactions in which the broker—dealer
solicits purchasers;
|
·
|
block
trades in which the broker—dealer will attempt to sell the shares as agent
but may position and resell a portion of the blocks as principal
to
facilitate
the transaction;
|
·
|
purchases
by a broker—dealer as principal and resale by the broker—dealer for its
account;
|
·
|
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
·
|
privately
negotiated transactions;
|
·
|
settlement
of short sales entered into after the date of this
prospectus;
|
·
|
broker—dealers
may agree with the selling stockholders to sell a specified number
of such
shares at a stipulated price per
share;
|
·
|
a
combination of any of these methods of sale;
and
|
·
|
any
other method permitted pursuant to applicable
law.
|
|
|
|
|
Report
of Independent Registered Public Accounting Firm
|
F-2 |
|
|
Consolidated
Balance Sheet as of May 31, 2008
|
F-3 |
|
|
Consolidated
Statements of Operations for the Years Ended May 31, 2008 and 2007
and for
the Period From February 21, 2001 (Inception) to May 31,
2008
|
F-4 |
|
|
Consolidated
Statements of Cash Flows for the Years Ended May 31, 2008 and 2007
and for
the Period From February 21, 2001 (Inception) to May 31,
2008
|
F-5 |
|
|
Statement
of Stockholders’ Deficit for the Period From February 21, 2001 (Inception)
to May 31, 2008
|
F-6 |
|
|
Notes
to Consolidated Financial Statements
|
F-7 |
|
|
Financial
Statements (unaudited)
|
|
|
|
Consolidated
Balance Sheet — August 31, 2008
|
F-17 |
|
|
Consolidated
Statements of Operations — Three Month Periods Ended August 31, 2008 and
2007 and the Period From February 21, 2001 (Inception) to August
31,
2008
|
F-18 |
|
|
Consolidated
Statements of Cash Flows — Three Month Periods Ended August 31, 2008 and
2007 and the Period From February 21, 2001 (Inception) to August
31,
2008
|
F-19 |
|
|
Consolidated
Statements of Stockholders’ Equity/(Deficit) - From February 21, 2001
(Inception) to August 31, 2008
|
F-20 |
Notes
to Unaudited Consolidated Financial Statements
|
F-21 |
|
Los
Angeles, California
|
August
31,
2008
|
Current
assets:
|
||||
Cash
& cash equivalents
|
$
|
1,944,567
|
||
Other receivable
|
75,945
|
|||
Prepaid
expenses and other current assets
|
123,307
|
|||
Total
Current Assets
|
2,143,819
|
|||
|
||||
Intangible
Assets, net
|
6,613,326
|
|||
|
||||
TOTAL
ASSETS
|
$
|
8,757,144
|
||
|
||||
LIABILITIES
& STOCKHOLDERS’ DEFICIT
|
||||
|
||||
Current
liabilities:
|
||||
Accounts
payable and accrued liabilities
|
$
|
597,459
|
||
Shares
to be issued
|
700,000
|
|||
Total
current liabilities
|
1,297,459
|
|||
|
||||
COMMITMENTS
AND CONTINGENCIES
|
||||
|
||||
STOCKHOLDERS’
DEFICIT
|
||||
|
||||
Common
Stock
|
||||
$0.0001
par value; 500,000,000 shares authorized;
|
||||
134,687,004
issued and outstanding
|
13,469
|
|||
Additional
paid-in capital
|
21,904,316
|
|||
Subscription
receivable
|
(40,000
|
)
|
||
Deficit
accumulated during the exploration stage
|
(14,418,100
|
)
|
||
Total
Stockholders' Deficit
|
7,459,685
|
|||
|
||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$
|
8,757,144
|
FOR
|
||||||||||
THE CUMULATIVE
|
||||||||||
PERIOD FROM
|
||||||||||
FOR THE YEARS ENDED
|
FEBRUARY 21, 2001
|
|||||||||
MAY 31
|
(INCEPTION)
|
|||||||||
2008
|
2007
|
TO MAY 31, 2008
|
||||||||
|
|
|
|
|||||||
Net
Revenue
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
|
||||||||||
Operating
Expenses
|
||||||||||
Exploration
expenditures
|
3,140,838
|
1,228,807
|
4,389,655
|
|||||||
Stock
based compensation expense
|
4,883,059
|
1,301,372
|
6,184,431
|
|||||||
General
and administrative expenditures
|
1,980,357
|
552,025
|
2,542,218
|
|||||||
Professional
and consulting fees
|
732,921
|
642,835
|
1,423,132
|
|||||||
Total
Operating Expenses
|
10,736,725
|
3,725,039
|
14,539,436
|
|||||||
|
||||||||||
Other
income:
|
||||||||||
Consulting
services
|
71,880
|
—
|
71,880
|
|||||||
Interest
income
|
17,569
|
31,887
|
49,456
|
|||||||
Total
Other Income
|
89,449
|
31,887
|
121,336
|
|||||||
|
||||||||||
Net
Loss
|
$
|
(10,647,276
|
)
|
$
|
(3,693,152
|
)
|
$
|
(14,418,100
|
)
|
|
|
||||||||||
|
||||||||||
Loss
Per Share,
basic and diluted
|
$
|
(0.10
|
)
|
$
|
(0.06
|
)
|
||||
|
||||||||||
*Weighted
Average Number Of Common Shares Outstanding,
basic and diluted
|
103,975,510
|
59,430,964
|
FOR
|
||||||||||
THE
|
||||||||||
CUMULATIVE
|
||||||||||
PERIOD
|
||||||||||
FROM
|
||||||||||
FEBRUARY
|
||||||||||
21, 2001
|
||||||||||
FOR THE YEARS ENDED
|
(INCEPTION)
|
|||||||||
MAY 31
|
TO MAY 31,
|
|||||||||
2008
|
2007
|
2008
|
||||||||
Cash
Flows From Operating Activities:
|
||||||||||
Net
loss
|
$
|
(10,647,276
|
)
|
$
|
(3,693,152
|
)
|
$
|
(14,418,100
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
Stock
based compensation expense
|
4,883,059
|
1,301,372
|
6,184,431
|
|||||||
Stock
issued for consulting services
|
38,750
|
222,500
|
261,250
|
|||||||
Amortization
expense
|
354,285
|
118,095
|
472,380
|
|||||||
Allowance
for bad debt - notes receivable
|
362,656
|
—
|
362,656
|
|||||||
Increase
in accounts receivable
|
(75,945
|
)
|
—
|
(75,945
|
)
|
|||||
Increase
in prepaid expenses and other current assets
|
(57,850
|
)
|
(56,781
|
)
|
(128,631
|
)
|
||||
Increase
in accounts payable and accrued liabilities
|
230,724
|
76,514
|
315,363
|
|||||||
Net
cash used in operating activities
|
(4,911,598
|
)
|
(2,031,453
|
)
|
(7,026,596
|
|||||
|
||||||||||
Cash
Flows From Investing Activities:
|
||||||||||
Cash
of acquired subsidiary
|
—
|
201,054
|
201,054
|
|||||||
Cash
investment in subsidiary
|
—
|
(10,000
|
)
|
(10,000
|
)
|
|||||
Net
cash provided by investing activities
|
—
|
191,054
|
191,054
|
|||||||
|
||||||||||
Cash
Flows From Financing Activities:
|
||||||||||
Advances
from shareholder
|
75,000
|
10,000
|
117,820
|
|||||||
Payments
to shareholders against advances
|
(75,000
|
)
|
(42,820
|
)
|
(117,820
|
)
|
||||
Debt
repayment
|
—
|
(198,000
|
)
|
(198,000
|
)
|
|||||
Advances
on note receivables
|
(50,000
|
)
|
(703,995
|
)
|
(753,995
|
)
|
||||
Proceeds
from issuance of common stock
|
6,176,539
|
3,503,000
|
9,732,103
|
|||||||
Net
cash provided by financing activities
|
6,126,539
|
2,568,185
|
8,780,108
|
|||||||
|
||||||||||
Increase
In Cash & Cash Equivalents
|
1,214,941
|
727,786
|
1,944,567
|
|||||||
Cash
& Cash Equivalents, Beginning Of Period
|
729,626
|
1,840
|
—
|
|||||||
Cash
& Cash Equivalents, End Of Period
|
1,944,567
|
729,626
|
1,944,567
|
|||||||
|
||||||||||
Supplemental
Disclosure Of Cash Flow Information
|
||||||||||
Cash
paid for:
|
||||||||||
Interest
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Income
taxes
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Supplemental
Disclosure of Non Cash Transactions
|
||||||||||
Shares
issued to acquire subsidiary
|
$
|
—
|
$
|
—
|
$
|
6,400,000
|
ACCUMULATED
|
|||||||||||||||||||
COMMON STOCK
|
DEFICIT
|
||||||||||||||||||
ADDITIONAL
|
DURING THE
|
||||||||||||||||||
PAID-IN
|
SUBSCRIPTION
|
EXPLORATION
|
|||||||||||||||||
NUMBER
|
AMOUNT
|
CAPITAL
|
RECEIVABLE
|
STAGE
|
TOTAL
|
||||||||||||||
Issuance
of common stock for cash
|
|||||||||||||||||||
Founders’
shares
|
40,000,000
|
$
|
1,000
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
1,000.00
|
||||||||
Initial
shares
|
6,875,272
|
3,688
|
47,877
|
—
|
—
|
51,565
|
|||||||||||||
Net
loss for the period
|
—
|
—
|
—
|
—
|
(35,809
|
)
|
(35,809
|
)
|
|||||||||||
Balance,
May 31, 2001
|
46,875,272
|
4,688
|
47,877
|
—
|
(35,809
|
)
|
16,756
|
||||||||||||
Net
income for the year
|
—
|
—
|
—
|
—
|
15,723
|
15,723
|
|||||||||||||
Balance,
May 31, 2002
|
46,875,272
|
4,688
|
47,877
|
—
|
(20,086
|
)
|
32,479
|
||||||||||||
Net
loss for the year
|
—
|
—
|
—
|
—
|
(16,847
|
)
|
(16,847
|
)
|
|||||||||||
Balance,
May 31, 2003
|
46,875,272
|
4,688
|
47,877
|
—
|
(36,933
|
)
|
15,632
|
||||||||||||
Net
loss for the year
|
—
|
—
|
—
|
—
|
(18,846
|
)
|
(18,846
|
)
|
|||||||||||
Balance,
May 31, 2004
|
46,875,272
|
4,688
|
47,877
|
—
|
(55,779
|
)
|
(3,214
|
)
|
|||||||||||
Net
loss for the year
|
—
|
—
|
—
|
—
|
(11,544
|
)
|
(11,544
|
)
|
|||||||||||
Balance,
May 31, 2005
|
46,875,272
|
4,688
|
47,877
|
—
|
(67,323
|
)
|
(14,758
|
)
|
|||||||||||
Net
loss for the year
|
—
|
—
|
—
|
—
|
(10,348
|
)
|
(10,348
|
)
|
|||||||||||
Balance,
May 31, 2006
|
46,875,272
|
4,688
|
47,877
|
—
|
(77,671
|
)
|
(25,106
|
)
|
|||||||||||
Merger
with Thatcher Mining Pte. Ltd.
|
32,000,000
|
3,200
|
6,396,800
|
—
|
6,400,000
|
||||||||||||||
Stock
issued for cash
|
17,615,000
|
1,762
|
3,501,239
|
—
|
3,503,000
|
||||||||||||||
Stock
issued for services
|
1,112,500
|
111
|
222,389
|
—
|
222,500
|
||||||||||||||
Issuance
of shares under stock compensation plan
|
125,000
|
13
|
342,488
|
—
|
342,500
|
||||||||||||||
Stock
based compensation expense
|
—
|
—
|
958,872
|
—
|
958,872
|
||||||||||||||
Net
loss for the year
|
—
|
—
|
—
|
|
(3,693,152
|
)
|
(3,693,152
|
)
|
|||||||||||
Balance,
May 31, 2007
|
97,727,772
|
9,773
|
11,469,664
|
—
|
(3,770,823
|
)
|
7,708,614
|
||||||||||||
Stock
issued for cash
|
34,957,600
|
3,496
|
5,473,042
|
—
|
—
|
5,476,528
|
|||||||||||||
Stock
issued for services
|
55,000
|
6
|
38,745
|
—
|
—
|
38,750
|
|||||||||||||
Issuance
of shares under stock compensation plan
|
1,946,700
|
195
|
674,909
|
(40,000
|
)
|
—
|
635,104
|
||||||||||||
Stock
options granted to employees
|
—
|
—
|
4,247,957
|
—
|
—
|
4,247,957
|
|||||||||||||
Net
loss for the year
|
—
|
—
|
—
|
—
|
(10,647,276
|
)
|
(10,647,276
|
)
|
|||||||||||
Balance,
May 31, 2008
|
134,687,072
|
$
|
13,469
|
$
|
21,904,316
|
$
|
(40,000
|
)
|
$
|
(14,418,100
|
)
|
$
|
7,459,685
|
1. |
NATURE
OF OPERATIONS AND GOING
CONCERN
|
2. |
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
a. |
A
brief description of the provisions of this
Statement
|
b. |
The
date that adoption is required
|
c. |
The
date the employer plans to adopt the recognition provisions of this
Statement, if earlier.
|
3. |
OTHER
RECEIVABLE
|
4. |
NOTES
RECEIVABLE
|
Loan
advances
|
325,000
|
|||
Accrued
interest
|
37,656
|
|||
Loan
balance
|
362,656
|
|||
Reserve
|
(362,656
|
)
|
||
Total
|
-
|
5. |
PREPAID
EXPENSES AND DEPOSITS
|
Prepaid
expenses and deposits at May 31, 2008 are as follows:
|
||||
|
||||
Prepaid
expenses
|
$
|
111,542
|
||
Deposits
|
11,765
|
|||
|
$
|
123,307
|
6. |
ACCOUNTS
PAYABLE AND ACCRUED
LIABILITIES
|
Accounts
payable and accrued expenses at May 31, 2008 are as
follows:
|
|
|||
|
|
|||
Accounts
payable
|
$
|
424,847
|
||
Accrued
expenses
|
172,612
|
|||
|
$
|
597,459
|
Officers
& Directors
|
||||
Martin
Hurley
|
$
|
32,943
|
||
Jorge
Nigaglioni
|
3,154
|
|||
William
Bloking
|
16,341
|
|||
Antonio
Varano
|
3,061
|
|||
Related
Parties
|
||||
Asia
Consultancy Pte Ltd
|
(934
|
)
|
||
|
$
|
54,565
|
7. |
INTANGIBLE
ASSETS
|
Gross
Value of Agreements
|
$
|
7,085,706
|
||
Amortization
|
(472,380
|
)
|
||
Net
Intangible assets
|
$
|
6,613,326
|
2009
|
$
|
354,285
|
||
2010
|
354,285
|
|||
2011
|
354,285
|
|||
2012
|
354,285
|
|||
2013
|
354,285
|
|||
After
|
4,814,901
|
|||
Total
|
$
|
6,613,326
|
8. |
RELATED
PARTY TRANSACTIONS
|
9. |
SHAREHOLDER’S
EQUITY
|
Quarter Ended
|
Shares Issued
|
|||
August 31, 2007
|
205,000
|
|||
November 30, 2007
|
—
|
|||
February 29, 2008
|
250,000
|
|||
May 31, 2008
|
1,491,666
|
|||
|
1,946,666
|
10. |
BUSINESS
COMBINATION
|
Cash
|
$
|
201,054
|
||
Notes
receivable
|
187,424
|
|||
Prepaid
expenses and other current assets
|
19,907
|
|||
Intangible
assets
|
12,718,168
|
|||
Total
Assets
|
$
|
13,126,553
|
||
|
||||
Accounts
payable and accrued liabilities
|
$
|
271,091
|
||
Notes
payable
|
198,000
|
|||
Total
liabilities
|
$
|
469,091
|
||
|
||||
Net
asset acquired
|
$
|
12,657,462
|
||
|
||||
Consideration
paid:
|
||||
Total
cost of investment
|
$
|
7,025,000
|
||
Total
Acquisition cost
|
$
|
12,657,462
|
||
Negative
goodwill
|
$
|
(5,632,562
|
)
|
Statement of Operations
|
May 31, 2008
|
May 31, 2007
|
Cumulative Period
From Inception
February 21, 2001
to May 31, 2008
|
|||||||
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||
|
|
|
|
|||||||
Revenue
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
|
||||||||||
Expenses
|
||||||||||
Exploration
expenditures
|
3,140,838
|
1,731,071
|
4,891,909
|
|||||||
Stock
based compensation expense
|
4,883,059
|
1,301,372
|
6,184,431
|
|||||||
Professional
and consulting fees
|
732,921
|
735,903
|
1,516,210
|
|||||||
General
and administrative expenditures
|
1,979,907
|
594,257
|
2,584,449
|
|||||||
Total
Expenses
|
(10,736,725
|
)
|
(4,362,603
|
)
|
(15,176,999
|
)
|
||||
|
||||||||||
Interest
and Other Income
|
89,449
|
33,539
|
122,988
|
|||||||
|
||||||||||
Net
Loss
|
$
|
(10,647,276
|
)
|
$
|
(4,329,064
|
)
|
$
|
(15,054,011
|
)
|
|
|
||||||||||
Earnings
Per Share
|
||||||||||
Basic
|
$
|
(0.10
|
)
|
$
|
(0.01
|
)
|
11. |
VARIABLE
INTEREST ENTITY
|
·
|
carrying
amounts of the VIE are consolidated into the financial statements
of the
Company as the primary beneficiary (referred as "Primary Beneficiary"
or
"PB");
|
·
|
inter-company
transactions and balances, such as revenues and costs, receivables
and
payables between or among the Primary Beneficiary and the VIE(s)
are
eliminated in their entirety; and
|
·
|
because
there is no direct ownership interest by the Primary Beneficiary
in the
VIE, equity of the VIE is eliminated with an offsetting credit to
minority
interest.
|
12. |
STOCK
BASED COMPENSATION EXPENSE
|
|
2008
|
2007
|
|||||
Stock
Option Plan
|
|||||||
Risk-free interest rate
|
3.08
|
%
|
4.67
|
%
|
|||
Dividend yield
|
0
|
%
|
0
|
%
|
|||
Volatility
|
122
|
%
|
91
|
%
|
|||
Expected life
|
10 years
|
10 years
|
Available For
Grant
|
Shares
|
Weighted
Average
Exercise Plan
|
Aggregate
Intrinsic Value
|
||||||||||
Outstanding
at May 31, 2007
|
1,225,000
|
10,650,000
|
$
|
1.44
|
$
|
0
|
|||||||
Granted
|
-2,865,000
|
2,865,000
|
$
|
0.29
|
|||||||||
Exercised
|
—
|
-2,001,667
|
$
|
0.38
|
|||||||||
Cancelled
|
4,081,667
|
-4,081,667
|
—
|
||||||||||
Plan
Shares Expired
|
—
|
—
|
—
|
|
|||||||||
Outstanding
at May 31, 2008
|
2,441,667
|
7,431,667
|
$
|
1.28
|
$
|
0
|
Options Outstanding
|
Options Exercisable
|
||||||||||||||||||
Range of
Exercise Prices
|
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
Number
Exercisable
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
|||||||||||||
$0.30-$0.50
|
6,040,000
|
9.2
|
$
|
0.45
|
3,776,083
|
9.2
|
$
|
0.23
|
13. |
EXPLORATION
EXPENDITURES
|
|
Year Ended
May 31, 2008
|
Year Ended
May 31, 2007
|
|||||
Manpower
|
$
|
1,552,421
|
$
|
500,325
|
|||
Site
Expenses
|
816,333
|
407,740
|
|||||
Equipment
|
481,205
|
178,899
|
|||||
Travel
|
290,879
|
141,843
|
|||||
|
$
|
3,140,838
|
$
|
1,228,807
|
14. |
INCOME
TAXES
|
US$
|
2008
|
2007
|
|||||
Loss
subject to United States
|
$
|
7,277,585
|
$
|
1,607,647
|
|||
Loss
subject to Singapore
|
2,322,657
|
2,085,505
|
|||||
Loss
subject to Indonesia
|
1,047,034
|
—
|
|||||
Total
Loss
|
$
|
10,647,276
|
$
|
3,693,152
|
(US$)
|
2008
|
2007
|
|||||
Net
Operating Loss Carry forwards
|
$
|
4,637,000
|
$
|
1,674,019
|
|||
Total
Deferred Tax Assets
|
1,577,000
|
669,608
|
|||||
Less:
Valuation Allowance
|
(1,577,000
|
)
|
(669,608
|
)
|
|||
Net
Deferred Tax Assets
|
$
|
—
|
$
|
—
|
|
May 31, 2008
|
May 31, 2007
|
|||||
Tax
expense (credit) at U.S. statutory rate-federal
|
34
|
%
|
34
|
%
|
|||
State
tax expense net of federal tax
|
6
|
%
|
6
|
%
|
|||
Net
operating loss carry-forward
|
(40
|
)%
|
(40
|
)%
|
|||
Foreign
income tax:
|
|||||||
Singapore
|
20
|
%
|
20
|
%
|
|||
Indonesia
|
35
|
%
|
0
|
%
|
|||
Net
operating loss carry-forward
|
(55
|
)%
|
(20
|
)%
|
|||
Tax
expense at actual rate
|
0
|
%
|
0
|
%
|
(US$)
|
2008
|
2007
|
|||||
Net
Operating Loss Carry forwards
|
$
|
2,322,657
|
$
|
2,085,505
|
|||
Total
Deferred Tax Assets
|
464,531
|
417,101
|
|||||
Less:
Valuation Allowance
|
(464,531
|
)
|
(417,101
|
)
|
|||
Net
Deferred Tax Assets
|
$
|
—
|
$
|
—
|
(US$)
|
2008
|
2007
|
|||||
Net
Operating Loss Carry forwards
|
$
|
1,047,034
|
$
|
—
|
|||
Total
Deferred Tax Assets
|
366,462
|
—
|
|||||
Less:
Valuation Allowance
|
(366,462
|
)
|
—
|
||||
Net
Deferred Tax Assets
|
$
|
—
|
$
|
—
|
15. |
COMMITMENTS
AND CONTINGENCIES
|
Years Ending May 31,
|
|
|||
2009
|
$
|
16,000
|
ASSETS
|
|
|
||
|
||||
Current
Assets
|
||||
Cash
and cash equivalents
|
$
|
1,190,573
|
||
Other
receivable
|
75,450
|
|||
Prepaid
expenses and other current assets
|
246,427
|
|||
Total
Current Assets
|
1,512,450
|
|||
|
||||
Intangible
assets, net
|
6,524,754
|
|||
|
||||
Total
Assets
|
$
|
8,037,204
|
||
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
|
||||
Current
Liabilities
|
||||
Accounts
payable
|
$
|
462,597
|
||
Accrued
liabilities
|
520,928
|
|||
Total
Current Liabilities
|
983,525
|
|||
|
||||
Stockholders’
Equity
|
||||
Common
Stock
|
||||
Authorized:
|
||||
500,000,000
voting common shares, par value $0.0001 Issued and
outstanding:
|
||||
143,175,272
common shares
|
14,342
|
|||
Additional
paid-in capital
|
22,813,435
|
|||
Subscription
receivable
|
(20,000
|
)
|
||
Deficit
Accumulated During The Exploration Stage
|
(15,754,098
|
)
|
||
Total
Stockholders' Equity
|
7,053,680
|
|||
|
||||
Total
Liabilities and Stockholders' Equity
|
$
|
8,037,204
|
FOR THE CUMULATIVE
|
||||||||||
PERIOD FROM
|
||||||||||
FEBRUARY 21
|
||||||||||
FOR THE THREE MONTH PERIODS ENDED
|
2001 (INCEPTION) TO
|
|||||||||
AUGUST 31
|
AUGUST 31
|
|||||||||
2008
|
2007
|
2008
|
||||||||
|
|
|
|
|||||||
Net
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
|
||||||||||
Operating
Expenses
|
||||||||||
Exploration
expenditures
|
379,916
|
1,425,746
|
4,769,571
|
|||||||
Stock
based compensation expense
|
209,992
|
1,527,396
|
6,394,423
|
|||||||
General
and administrative expenditures
|
411,760
|
376,317
|
2,953,989
|
|||||||
Professional
and consulting fees
|
398,051
|
210,277
|
1,821,183
|
|||||||
Total
Operating Expenses
|
1,399,719
|
3,539,736
|
15,939,156
|
|||||||
|
||||||||||
Other
income:
|
||||||||||
Consulting
services
|
53,305
|
-
|
125,185
|
|||||||
Interest
income
|
10,417
|
12,835
|
59,873
|
|||||||
Total
other income
|
63,722
|
|
185,058
|
|||||||
|
||||||||||
Net
Loss
|
$
|
(1,335,997
|
)
|
$
|
(3,526,901
|
)
|
$
|
(15,754,098
|
)
|
|
|
||||||||||
Net
Loss Per Common Share, basic and diluted
|
$
|
(0.01
|
)
|
$
|
(0.04
|
)
|
||||
|
||||||||||
*Basic
and Diluted Weighted Average Number Of Common Shares
Outstanding
|
141,803,173
|
97,884,923
|
FOR THE CUMULATIVE
|
||||||||||
PERIOD FROM
|
||||||||||
FOR THE THREE MONTH PERIODS ENDED
|
FEBRUARY 21, 2001
|
|||||||||
AUGUST 31
|
(INCEPTION) TO
|
|||||||||
2008
|
2007
|
AUGUST 31, 2008
|
||||||||
Cash
Flows In Operating Activities:
|
||||||||||
|
||||||||||
Net
loss for the period
|
$
|
(1,335,997
|
)
|
$
|
(3,526,901
|
)
|
$
|
(15,754,098
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
Stock
based compensation expense
|
209,992
|
1,527,396
|
6,394,423
|
|||||||
Stock
issued for consulting services
|
-
|
-
|
261,250
|
|||||||
Amortization
expense
|
88,572
|
88,572
|
560,952
|
|||||||
Allowance
for Bad Debt - Note Receivable
|
-
|
-
|
362,656
|
|||||||
(Increase)
/ decrease in accounts receivable
|
495
|
-
|
(75,450
|
)
|
||||||
Increase
in prepaid expenses and other current assets
|
(123,121
|
)
|
(13,584
|
)
|
(251,752
|
)
|
||||
Increase
in accounts payable and accrued liabilities
|
406,065
|
875,033
|
721,428
|
|||||||
Net
cash used in operating activities
|
(753,994
|
)
|
(1,049,484
|
)
|
(7,780,590
|
)
|
||||
|
||||||||||
Cash
Flows In Investing Activities:
|
||||||||||
Cash
of acquired subsidiary
|
-
|
-
|
201,054
|
|||||||
Cash
investment in subsidiary
|
-
|
-
|
(10,000
|
)
|
||||||
Net
cash provided by investing activities
|
-
|
-
|
191,054
|
|||||||
|
||||||||||
Cash
Flows In Financing Activities:
|
||||||||||
Advances
from shareholder
|
-
|
-
|
117,820
|
|||||||
Payments
to shareholders
|
-
|
-
|
(117,820
|
)
|
||||||
Issuance
of notes payable
|
-
|
-
|
-
|
|||||||
Debt
repayments
|
-
|
-
|
(198,000
|
)
|
||||||
Advances
on notes receivable
|
-
|
(50,000
|
)
|
(753,995
|
)
|
|||||
Proceeds
from issuance of common stock
|
-
|
725,000
|
9,732,103
|
|||||||
Net
cash provided by financing activities
|
-
|
675,000
|
8,780,108
|
|||||||
|
||||||||||
Increase/(Decrease)
In Cash & cash equivalents
|
(753,994
|
)
|
(374,484
|
)
|
1,190,573
|
|||||
|
||||||||||
Cash
And Cash Equivalents, Beginning Of Period
|
1,944,567
|
729,626
|
-
|
|||||||
|
||||||||||
Cash
And Cash Equivalents, End Of Period
|
$
|
1,190,573
|
$
|
355,142
|
1,190,573
|
|||||
|
||||||||||
Supplemental
Disclosure Of Cash Flow Information
|
||||||||||
Cash
paid during the period
|
||||||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Income
Taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
|
||||||||||
Supplemental
Disclosure of Non Cash Transactions
|
||||||||||
|
||||||||||
Shares
issued to acquire subsidiary
|
6,400,000
|
ACCUMULATED
|
|||||||||||||||||||
COMMON STOCK
|
DEFICIT
|
||||||||||||||||||
ADDITIONAL
|
DURING THE
|
||||||||||||||||||
PAID-IN
|
SUBSCRIPTION
|
EXPLORATION
|
|||||||||||||||||
NUMBER
|
AMOUNT
|
CAPITAL
|
RECEIVABLE
|
STAGE
|
TOTAL
|
||||||||||||||
Issuance
of common stock for cash
|
|||||||||||||||||||
Founders’
shares
|
40,000,000
|
$
|
1,000
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,000.00
|
||||||||
Initial
shares
|
6,875,272
|
3,688
|
47,877
|
-
|
-
|
51,565
|
|||||||||||||
Net
loss for the period
|
-
|
-
|
-
|
-
|
(35,809
|
)
|
(35,809
|
)
|
|||||||||||
Balance,
May 31, 2001
|
46,875,272
|
4,688
|
47,877
|
-
|
(35,809
|
)
|
16,756
|
||||||||||||
Net
income for the year
|
-
|
-
|
-
|
-
|
15,723
|
15,723
|
|||||||||||||
Balance,
May 31, 2002
|
46,875,272
|
4,688
|
47,877
|
-
|
(20,086
|
)
|
32,479
|
||||||||||||
Net
loss for the year
|
-
|
-
|
-
|
-
|
(16,847
|
)
|
(16,847
|
)
|
|||||||||||
Balance,
May 31, 2003
|
46,875,272
|
4,688
|
47,877
|
-
|
(36,933
|
)
|
15,632
|
||||||||||||
Net
loss for the year
|
-
|
-
|
-
|
-
|
(18,846
|
)
|
(18,846
|
)
|
|||||||||||
Balance,
May 31, 2004
|
46,875,272
|
4,688
|
47,877
|
-
|
(55,779
|
)
|
(3,214
|
)
|
|||||||||||
Net
loss for the year
|
-
|
-
|
-
|
-
|
(11,544
|
)
|
(11,544
|
)
|
|||||||||||
Balance,
May 31, 2005
|
6,875,272
|
4,688
|
47,877
|
-
|
(67,323
|
)
|
(14,758
|
)
|
|||||||||||
Net
loss for the year
|
-
|
-
|
-
|
-
|
(10,348
|
)
|
(10,348
|
)
|
|||||||||||
Balance,
May 31, 2006
|
46,875,272
|
4,688
|
47,877
|
-
|
(77,671
|
)
|
(25,106
|
)
|
|||||||||||
Merger
with Thatcher Mining Pte. Ltd.
|
32,000,000
|
3,200
|
6,396,800
|
-
|
6,400,000
|
||||||||||||||
Stock
issued for cash
|
17,615,000
|
1,762
|
3,501,239
|
-
|
3,503,000
|
||||||||||||||
Stock
issued for services
|
1,112,500
|
111
|
222,389
|
-
|
222,500
|
||||||||||||||
Issuance
of shares under stock compensation plan
|
125,000
|
13
|
342,488
|
-
|
342,500
|
||||||||||||||
Stock
based compensation expense
|
-
|
-
|
958,872
|
-
|
958,872
|
||||||||||||||
Net
loss for the year
|
-
|
-
|
-
|
|
(3,693,152
|
)
|
(3,693,152
|
)
|
|||||||||||
Balance,
May 31, 2007
|
97,727,772
|
9,773
|
11,469,664
|
-
|
(3,770,823
|
)
|
7,708,614
|
||||||||||||
Stock
issued for cash
|
34,957,600
|
3,496
|
5,473,042
|
-
|
-
|
5,476,528
|
|||||||||||||
Stock
issued for services
|
55,000
|
6
|
38,745
|
-
|
-
|
38,750
|
|||||||||||||
Issuance
of shares under stock compensation plan
|
1,946,700
|
195
|
674,909
|
(40,000
|
)
|
-
|
635,104
|
||||||||||||
Stock
options granted to employees
|
-
|
-
|
4,247,957
|
-
|
-
|
4,247,957
|
|||||||||||||
Net
loss for the year
|
-
|
-
|
-
|
-
|
(10,647,276
|
)
|
(10,647,276
|
)
|
|||||||||||
Balance,
May 31, 2008
|
134,687,072
|
$
|
13,469
|
$
|
21,904,316
|
$
|
(40,000
|
)
|
$
|
(14,418,100
|
)
|
$
|
7,459,685
|
||||||
Stock
issued for cash
|
8,729,100
|
873
|
699,127
|
-
|
-
|
700,000
|
|||||||||||||
Stock
options granted to employees
|
-
|
-
|
209,992
|
20,000
|
-
|
229,992
|
|||||||||||||
Net
loss for the three month period ended August 31, 2008
|
-
|
-
|
-
|
-
|
(1,335,997
|
)
|
(1,335,997
|
)
|
|||||||||||
Balance,
August 31, 2008
|
143,416,172
|
$
|
14,342
|
$
|
22,813,435
|
$
|
(20,000
|
)
|
$
|
(15,754,098
|
)
|
$
|
7,053,680
|
1. |
NATURE
OF OPERATIONS AND GOING
CONCERN
|
2. |
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
3. |
OTHER
RECEIVABLE
|
4. |
NOTES
RECEIVABLE
|
Loan
advances
|
325,000
|
|||
Accrued
interest
|
44,409
|
|||
Loan
balance
|
369,409
|
|||
Reserve
|
(369,409
|
)
|
||
Total
|
-
|
5. |
PREPAID
EXPENSES AND DEPOSITS
|
Prepaid
expenses
|
$
|
211,158
|
||
Deposits
|
35,269
|
|||
Total
Prepaid expenses
|
$
|
246,427
|
6. |
ACCOUNTS
PAYABLE AND ACCRUED
LIABILITIES
|
Accounts
payable
|
$
|
462,597
|
||
Accrued
expenses
|
520,928
|
|||
Total
Accounts payable and accrued expenses
|
$
|
983,525
|
Officers
& Directors
|
||||
Jorge
Nigaglioni
|
$
|
35,735
|
||
William
Bloking
|
70,051
|
|||
Andrew
Caminschi
|
22,540
|
|||
Antonio
Varano
|
9,698
|
|||
Related
Parties
|
||||
Mining
House Ltd.
|
15,087
|
|||
|
$
|
153,112
|
7. |
INTANGIBLE
ASSETS
|
Gross
Value of Agreements
|
$
|
7,085,706
|
||
Amortization
|
(560,952
|
)
|
||
Net
Intangible assets
|
$
|
6,524,754
|
2008
|
$
|
265,714
|
||
2009
|
354,285
|
|||
2010
|
354,285
|
|||
2011
|
354,285
|
|||
2012,
|
354,285
|
|||
After
|
4,841,900
|
|||
Total
|
$
|
6,524,754
|
8. |
RELATED
PARTY TRANSACTIONS
|
9. |
SHAREHOLDER’S
EQUITY
|
10. |
VARIABLE
INTEREST ENTITY
|
11. |
EXPLORATION
EXPENDITURES
|
|
Three Months Ended
August 31, 2008
|
|||
Manpower
|
$
|
322,910
|
||
Site
Expenses
|
29,044
|
|||
Equipment
|
12,027
|
|||
Travel
|
15,935
|
|||
|
$
|
379,916
|
12. |
STOCK
BASED COMPENSATION EXPENSE
|
Stock
Option Plan
|
||||
Risk-free
interest rate
|
1.69
|
%
|
||
Dividend
yield
|
0
|
%
|
||
Volatility
|
113.0
|
%
|
||
Expected
life
|
10 years
|
Available For
Grant
|
Shares
|
Weighted
Average Exercise
Plan
|
||||||||
Outstanding
at May 31, 2007
|
1,225,000
|
10,650,000
|
$
|
1.44
|
||||||
Granted
|
-2,865,000
|
2,865,000
|
$
|
0.29
|
||||||
Exercised
|
-
|
-2,001,667
|
$
|
0.38
|
||||||
Cancelled
|
4,081,667
|
-4,081,667
|
||||||||
Plan
Shares Expired
|
-
|
|||||||||
Outstanding
at May 31, 2008
|
2,441,667
|
7,431,667
|
$
|
1.28
|
||||||
Granted
|
-1,250,000
|
1,250,000
|
$
|
0.12
|
||||||
Exercised
|
-
|
-
|
$
|
-
|
||||||
Cancelled
|
4,063,750
|
-4,063,750
|
-
|
|||||||
Plan
Shares Expired
|
-
|
-
|
-
|
|||||||
Outstanding
at August 31, 2008
|
5,255,417
|
4,617,917
|
$
|
0.40
|
|
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||||
Range of
Exercise
Prices
|
Number
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
(in thousands)
|
Number
Exercisable
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||||||||||||||||
$0.12-$0.50
|
2,306,250
|
9.4
|
$
|
0.40
|
$
|
10
|
1,317,333
|
9.25
|
$
|
0.46
|
$
|
2
|
Year
Ending August 31, 2009
|
$
|
60,852
|