UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITES EXCHANGE
ACT OF 1934
For the quarterly period ended August 31, 2000
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File number 0-25707
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THE BRALORNE MINING COMPANY
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(Exact name of registrant as specified in charter)
Nevada 91-1948355
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
114 - 2274 Folkestone Way
West Vancouver, British Columbia, Canada V7S 2X7
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(Address of principal executive offices) (Zip Code)
1-604-688-3931
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Registrant's telephone number, including area code
(Former name, address, and fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), Yes [X] No [ ] and ( ) has been
subject to filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
Class Outstanding as of August 31, 2000
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Common Stock, $0.001 per share 11,040,050
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ANDERSEN ANDERSEN & STRONG, L.C. 941 EAST 3300 SOUTH, SUITE 202
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS SALT LAKE CITY, UTAH 84106
TELEPHONE 801 486-0096
FAX 801 486-0098
REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
The Bralorne Mining Company
We have reviewed the balance sheet of The Bralorne Mining Company, Inc.
(Exploration stage company) as of August 31, 2000 and November 30, 1999 the
related statement of operations and the statement of cash flows for the nine
months ended August 31, 2000 and 1999 and the periods December 2, 1998 (date of
inception) to August 31, 2000. These financial statements are the responsibility
of the company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.
Andersen Andersen and Strong
Salt Lake City, Utah
November 20, 2000
2
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INDEX
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<CAPTION>
Page
PART 1. Number
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<S> <C>
ITEM 1. Financial Statements (unaudited)........................................... 4
Balance Sheet as at August 31, 2000 and November
30, 1999................................................. 5
Statement of Operations
For the three months ended August 31, 2000 and 1999, for the
nine months ended August 31, 2000 and 1999 and for
the period from December 2, 1998 (Date of
Incorporation) to August 31, 2000........................ 6
Statement of Cash Flows
For the nine months ended August 31, 2000 and
1999 and for the period from December 2,
1998 (Date of
Incorporation) to August 31, 2000.................... 7
Notes to the Financial Statements................................ 8
ITEM 2. Plan of Operations........................................................ 11
PART 11 Signatures................................................................ 12
OTHER Financial Data Worksheet.................................................. 13
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PART 1 - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheet of The Bralorne Mining Company (exploration stage
company) at August 31, 2000 and 1999 and the statement of operations for the
three months and nine months ended August 31, 2000 and 1999 and statement of
cash flow for the nine months ended August 31, 2000 and 1999 and for the period
from December 2, 1998 (date of incorporation) to August 31, 2000 have been
prepared by the Company's management and they do not include all information and
notes to the financial statements necessary for a complete presentation of the
financial position, results of operations and cash flows, in conformity with
generally accepted accounting principles. In the opinion of management, all
adjustments considered necessary for a fair presentation of the results of
operations and financial position have been included and all such adjustments
are of a normal recurring nature.
Operating results for the quarter ended August 31, 2000, are not necessarily
indicative of the results that can be expected for the year ending November 30,
2000.
4
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THE BRALORNE MINING COMPANY
(An Exploration Stage Company)
BALANCE SHEET
August 31, 2000 and November 30, 1999
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
2000 1999
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Bank $ 197 $ 3,324
OTHER ASSETS
Mining claim - Note 3 1 1
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$ 198 $ 3,325
======== ========
LIABILITIES
Accounts payable and accrued liabilities $ 4,400 $ 4,200
Accounts payable - related parties 3,370 --
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7,770 4,200
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value, 11,040,050 shares issued and outstanding 11,040 11,040
Capital in excess of par value 15,972 15,972
Deficit accumulated during the development stage (34,584) (27,887)
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Total Stockholders' Deficiency (7,572) (875)
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$ 198 $ 3,325
======== ========
The accompanying notes are an integral part of these unaudited financial statements.
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5
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THE BRALORNE MINING COMPANY
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
For the nine months ended August 31, 2000 and 1999, for the three months
ended August 31, 2000 and 1999 and for the period
from December 2, 1998 (Date of Inception) to August 31, 2000
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE
THREE THREE NINE NINE FROM
MONTHS MONTHS MONTHS MONTHS INCEPTION
ENDED ENDED ENDED ENDED TO
AUGUST AUGUST AUGUST AUGUST AUGUST
31, 2000 31, 1999 31, 2000 31, 1999 31, 2000
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
SALES $ -- $ -- $ -- $ -- $ --
GENERAL AND
ADMINISTRATIVE
EXPENSES:
Accounting and audit $ 825 $ 300 $2,350 2,300 6,350
Assessment work -- -- -- 1,200 1,200
Bank charges and interest 18 19 76 142 243
Consulting -- -- -- 4,000 6,063
Filing fees -- Edgar system 1,822 259 2,696 1,315 6,517
Geological report -- -- -- 1,270 1,270
Incorporation costs written-off -- -- -- 670 670
Legal -- -- -- 2,520 4,020
Miscellaneous -- -- -- 39 39
Office expenses -- 337 110 865 1,253
Recording of assessment work -- -- -- 120 1,155
Transfer agent's fees -- 28 1,465 2,713 4,178
Travel -- -- -- -- 1,626
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NET LOSS $2,665 $943 $6,697 $17,154 $34,584
====== ====== ====== ======= =======
NET LOSS PER COMMON
SHARE
Basic $ -- $ -- $ -- $ --
====== ====== ====== =======
AVERAGE OUTSTANDING SHARES
Basic 11040050 11040050 11040050 9,358,671
======== ======== ======== =========
The accompanying notes are an integral part of these unaudited financial statements.
</TABLE>
6
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THE BRALORNE MINING COMPANY
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the nine months ended August 31, 2000 and 1999 and for the
period from December 2, 1998 (Date of Inception) to August 31, 2000
(Unaudited - Prepared by Management)
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<CAPTION>
FOR THE NINE FOR THE NINE FROM
MONTHS MONTHS INCEPTION
ENDED ENDED TO
AUGUST 31, AUGUST 31, AUGUST 31,
2000 1999 2000
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<S> <C> <C> <C>
Net loss $(6,697) $(17,154) $(34,584)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in accounts payable 200 2,800 4,400
Increase in accounts payable -- related
Parties 3,370 -- 3,370
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Net Cash from Operations (3,127) (14,354) (26,814)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Mineral claim -- (1) (1)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common
Stock -- 27,012 27,012
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Net Increase in Cash (3,127) 12,657 197
Cash at Beginning of Period 3,324 -- --
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CASH AT END OF PERIOD $ 197 $ 12,657 $ 197
======= ======== ========
The accompanying notes are an integral part of these unaudited financial statements.
</TABLE>
7
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THE BRALORNE MINING COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
(Unaudited - Prepared by Management)
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on
December 2, 1998 with the authorized common shares of 200,000,000
shares at $0.001 par value.
The Company was organized for the purpose of acquiring and developing
mineral properties. As at the date of the balance sheet a mineral
property, with unknown reserves, has been acquired. The Company has not
established the existence of a commercially minable ore deposit and
therefore has not reached the development stage and is considered to be
in the exploration stage. (see Note 3).
The Company has completed Regulation D offerings of 11,040,050 common
shares of its capital stock for cash.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
The Company recognizes income and expenses based on the accrual method
of accounting.
Dividend Policy
The Company has not yet adopted a policy regarding payment of
dividends.
Income Taxes
On August 31, 2000, the Company had a net operating loss carry forward
of $34,584. The tax benefit from the loss carry forward has been fully
offset by the valuation reserve because the use of the future tax
benefit is undeterminable since the Company has no operations. The net
operating loss carry forward will expire in 2020.
Earnings (Loss) per Share
Earnings (Loss) per share amounts are computed based on the weighted
average number of shares actually outstanding.
8
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THE BRALORNE MINING COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Comprehensive Income
The Company adopted Statement of Financial Accounting Standards No.
130. The adoption of the standard had no impact on the total
stockholder's equity.
Recent Accounting Pronouncements
The Company does not expect that the adoption of other recent
accounting pronouncements will have a material impact on its financial
statements.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a
maturity, at the time of purchase, of less than three months, to be
cash equivalents.
Capitalization of Mineral Claim Costs
Cost of acquisition, exploration, carrying and retained unproven
properties are expensed as incurred. Cost in proving and developing a
property ready for production are capitalized and amortized over the
life of the mineral deposit or over a shorter period if the property is
shown to have an impairment in value. Expenditures for mining equipment
are capitalized and depreciated over their useful life.
Environmental Requirements
At the report date environmental requirements related to the mineral
claims acquired (Note 3) are unknown and therefore an estimate of any
future cost cannot be made.
Financial Instruments
The carrying amounts of financial instruments, including cash and
accounts payable, are considered by management to be their standard
fair values.
9
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THE BRALORNE MINING COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Estimates and Assumptions
Management uses estimates and assumptions in preparing financial
statements in accordance with generally accepted accounting principles.
Those estimates and assumptions affect the reported amounts of the
assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported revenues and expenses. Actual results
could vary from the estimates that were assumed in preparing these
financial statements.
3. MINING CLAIMS
During February, 1999 the Company acquired a mineral claim, for $1.00
from a related party, known as "Golden" consisting of one 18 unit
metric claim situated within the Bridge River gold camp near the town
of Gold Bridge, British Columbia, with an expiration date of March 17,
2001.
4. RELATED PARTY TRANSACTIONS
Related parties acquired 43% of the common shares issued for cash.
5. GOING CONCERN
Management is currently seeking other mineral leases which it believes
can be profitable. To be successful in this effort the Company will
need additional working capital.
Continuation of the Company as a going concern is dependent upon
obtaining additional working capital and the management of the Company
has developed a strategy, which it believes will accomplish this
objective through additional equity funding, and long term financing,
which will enable the Company to operate in the future.
10
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ITEM 2. PLAN OF OPERATIONS
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Due to lack of funding, the Company was unable to do further exploration work on
the property during the last quarter.
Liquidity and Capital Resources
The Company will need additional working capital to finance its activities on
the Golden mineral claims.
Results of Operations
The Company has had no operations during this reporting period.
11
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE BRALORNE MINING COMPANY
(Registrant)
November 22, 2000 /s/ "James Bruce"
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Date James Bruce - President and Director
November 22, 2000 /s/ "Raymond Contoli"
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Date Raymond Contoli - Secretary Treasurer and
Director
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