SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1998
Commission file number 0-10104
LA TEKO RESOURCES LTD.
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
British Columbia, Canada 87-0483319
------------------------------ ----------------------------------
(State or other Jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
625 Howe St., #500
Vancouver, B.C. V6C 2T6
-------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
(604) 688-0833
-------------------------------------------------
(Registrant's telephone number, including area code)
N/A
Former name, former address and former 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) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
As of June 30, 1998, the registrant had 25,775,358 shares of its common stock
issued and outstanding.
<PAGE>
LA TEKO RESOURCES LTD.
Financial Information
ITEM 1- FINANCIAL STATEMENTS
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included in the Company's annual report on Form
10-K for the year ended December 31, 1997. The accompanying financial
statements have not been examined by independent accountants in accordance with
generally accepted auditing standards, but in the opinion of management such
financial statements include all adjustments (consisting only of normal
recurring adjustments) necessary to summarize fairly the Company's financial
position and results of operations.
<PAGE>
LA TEKO RESOURCES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(EXPRESSED IN U.S. DOLLARS)
Three months ended June 30, 1998 and 1997
1998 1997
-------- --------
EXPENSES
General and administrative expenses $ 236,226 $345,552
Royalty and lease 37,500 37,500
Operating and mine maintenance costs 65,843 46,616
Depreciation 3,633 15,573
New prospect evaluation 1,093 -
--------- --------
344,295 445,241
--------- --------
Loss from operations before other items (344,295) (445,241)
OTHER ITEMS
Interest income (net) 124 17,372
Loss on sale of investments (46,469) -
Unrealized loss on investments (119,060) -
Loss on abandonment of furnishings and equipment - (156)
--------- --------
NET LOSS (509,700) (428,025)
========= ========
NET LOSS PER SHARE $ (0.020) (0.018)
========= ========
<PAGE>
LA TEKO RESOURCES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(EXPRESSED IN U.S. DOLLARS)
Six months ended June 30, 1998 and 1997 Unaudited
1998 1997
--------- --------
EXPENSES
General and administrative expenses $ 364,746 561,476
Royalty and lease 75,000 75,000
Operating and mine maintenance costs 72,724 101,286
Depreciation 7,283 28,564
New prospect evaluation 1,093 -
--------- --------
520,846 766,326
Loss from operations before other items (520,846) (766,326)
--------- --------
OTHER ITEMS
Interest income (net) 3,323 46,301
Loss on sale of investments (50,868) -
Unrealized loss on investments (119,060) -
Loss on sale of equipment - (2,924)
--------- --------
NET LOSS (687,451) (722,949)
========= ========
NET LOSS PER SHARE $ (0.025) (0.031)
========= ========
<PAGE>
LA TEKO RESOURCES LTD.
CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN U.S. DOLLARS)
June 30, 1998 and December 31, 1997 Unaudited
June 30, December 31,
1998 1997
--------- --------
CURRENT ASSETS
Cash and short-term deposits $ 1,671,871 $ 613,304
Accounts receivable 61,518 93,891
Prepaid expenses 76,606 160,090
----------- ----------
Total current assets 1,809,995 867,285
Mineral properties and deferred costs 11,258,003 10,985,135
Plant and equipment 50,707 57,593
Investments 540,601 750,913
----------- -----------
$13,659,306 $12,660,926
=========== ===========
CURRENT LIABILITIES
Bank demand loan $ - 150,000
Accounts payable and accrued expenses 49,418 84,462
---------- -----------
49,418 234,462
SHAREHOLDERS' EQUITY
Common capital stock; no par value;
authorized: 100,000,000 shares;
issued and outstanding: 25,775,358
(1997: 23,467,358) 20,053,092 18,182,217
Accumulated deficit (6,443,204) (5,755,753)
---------- -----------
13,609,888 12,426,464
---------- -----------
$13,659,306 $12,660,926
=========== ===========
<PAGE>
LA TEKO RESOURCES LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(EXPRESSED IN U.S. DOLLARS)
For the years ended December 31, 1996 and 1997 and six months ended June 30,
1998
Unaudited
Common Stock Accumulated
Shares Amount Deficit TOTAL
---------- ---------- ----------- -----------
Balance, December 31, 1995 36,729,449 24,064,475 (5,249,313) $18,815,162
1996
Common stock issued for:
Exercise of options 138,780 222,048 - 222,048
Compensatory stock options - 188,125 - 188,125
Net income - - 955,785 955,785
---------- ---------- ---------- ----------
Balance, December 31, 1996 36,868,229 24,474,648 (4,293,528) 20,181,120
1997
Common stock issued for:
Exercise of options 5,000 8,000 - -
Compensatory stock options
(reduction) - (43,125) - (43,125)
Net loss - - (1,462,225) (1,462,225)
---------- ---------- ---------- ----------
Balance, December 31, 1997 36,878,329 24,439,523 (5,755,753) 18,683,770
Six months ended June 30, 1998
Common stock issued for:
Cash, net of financing
costs 2,200,000 $1,767,200 - 1,767,200
Mineral properties 43,000 38,675 - 38,675
Employee termination
payment 65,000 65,000 - 65,000
Net loss - - (687,451) (687,451)
---------- ---------- ---------- ----------
Balance, June 30, 1997 39,186,329 26,310,398 6,443,204) 19,867,194
Less treasury shares (13,410,971) (6,257,306) - (6,257,306)
---------- ---------- ---------- ----------
Balance, June 30, 1997 25,775,358 20,053,092 (6,443,204) $13,609,888
========== ========== ========== ==========
<PAGE>
LA TEKO RESOURCES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(EXPRESSED IN U.S. DOLLARS)
Six months ended June 30, 1998 and 1997 Unaudited
1998 1997
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(687,451) (722,949)
Charges (credits) to operations not affecting cash:
Unrealized loss on marketable securities 119,060 -
Shares issued for employee termination payment 65,000 -
(Gain) / loss on sale of investments 50,868 -
Depreciation 7,283 28,564
Loss on sale of equipment - 2,924
--------- --------
(445,240) (691,461)
Net changes
Decrease in accounts receivable and pre-paid expenses 115,859 97,696
Decrease in accounts payable and accrued expenses (35,442) (159,238)
--------- --------
Net cash used in operating activities (364,823) (753,003)
Cash Flows from Investing Activities
Proceeds from sale of investments 40,383 -
Investment in mineral properties (215,648) -
Exploration costs capitalized (57,220) (221,060)
Purchase of plant and equipment - (63,268)
Proceeds from sale of equipment - 3,456
--------- --------
Net cash used in investing activities (232,485) (280,872)
--------- --------
Cash Flows from Financing Activities
Reduction of principal on debt - (372,500)
Common stock issued:
For cash, net of financing costs 1,767,200 8,000
For mineral properties 38,675 -
--------- --------
Net cash used in financing activities 1,805,875 (364,500)
Net increase (decrease) in cash and cash equivalents 1,208,567 (1,398,375)
Cash and cash equivalents, beginning of period 463,304 3,041,205
--------- ---------
Cash and cash equivalents, end of period $ 1,671,871 1,642,830
<PAGE>
LA TEKO RESOURCES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(EXPRESSED IN U.S. DOLLARS)
Six months ended June 30, 1998 and 1997 Unaudited
1998 1997
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION ------- -------
Cash paid during the period for interest $ - 2,396
Cash paid during the period for income taxes $ - -
Supplementary Schedule of Non-cash Investing
and Financing Activities
Depreciation capitalized into deferred costs $ - -
Stock issued as bonus compensation $ - -
<PAGE>
LA TEKO RESOURCES LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)
Six months ended June 30, 1998 and 1997 Unaudited - See Notice to Reader
1. BASIS OF PRESENTATION
These financial statements have been prepared in accordance with U.S. generally
accepted accounting principles and are expressed in U.S. dollars.
2. SHARE CAPITAL
AUTHORIZED - 100,000,000 shares having no par value
ISSUED - 25,775,358
DURING THE PERIOD SHARES ISSUED ARE AS FOLLOWS:
Number of shares Price
---------------- -------
Cash net of financing costs 2,200,000 $ 0.85 $1,767,200
Mineral properties 43,000 $ 0.8994 38,675
Employee termination payment 65,000 $ 1.00 65,000
--------- ----------
2,265,000 $1,870,875
OPTIONS OUTSTANDING AT JUNE 30, 1998:
Number Price Expire
------- ----- ------------
300,000 $1.60 11/16/2000-03
100,000 $2.50 03-14-2001
200,000 $2.41 06/05/2001-04
500,000 $1.85 12-10-2001-04
24,000 $1.60 08/17/1999
100,000 $1.50 07/16/2002-05
50,000 $1.60 12/31/1998
150,000 $1.05 10/08/2002-05
WARRANTS OUTSTANDING AT JUNE 30, 1998:
Number Price Expire
------- ----- ------------
2,133,000 $1.05/$1.25 May 1, 1999/2000
200,000 $1.05/$1.25 April 24, 1999/2000
3. SUBSEQUENT EVENT
On July 6, 1998 the company completed an agreement with Camnor Resources Ltd.
and Camnor Resources (USA) Inc. (collectively "Camnor") whereby Camnor has the
right to earn a 51% interest in La Teko's Discovery Gulch property.
In order to earn the 51% interest in the property, Camnor must, over four year
period, make payments of US$215,000, including US$10,000 to La Teko on signing,
issue 400,000 shares to La Teko, including 50,000 shares on Vancouver Stock
Exchange approval, and complete US$800,000 in exploration on the property. The
payments include US$140,000 to the underlying vendors and US$75,000 to La Teko.
Camnor has committed to a minimum US$75,000 exploration program for 1998. The
agreement is subject to regulatory approval.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
GENERAL
The Company is in the business of exploration and development of mineral
properties, with two advanced-stage projects, True North and Ryan Lode, one mid
stage project, Scheelite Dome, and three early stage exploration projects. The
Company has provided for recent years' operations primarily from the receipt of
funds from Newmont Exploration Limited ("Newmont") pursuant to the True North JV
Agreement and the cash proceeds from issuance of common stock. It is anticipated
that the $1,670,000 cash on hand June 30, 1998 is sufficient to cover
expenditures required for the balance of 1998.
All dollar amounts included herein respecting Management's Discussion and
Analysis are in U.S. dollars except where noted otherwise as Canadian dollars
(CAN).
CAPITALIZED COSTS
Costs of acquisition and deferred exploration expenditures associated with the
Company's mineral properties are summarized as follows:
PROJECT BALANCE CAPITALIZED ADDITIONS BALANCE
DECEMBER 31, 1997 (DELETIONS) 1998 06/ 30/98
----------------- --------------------- ----------
True North 225,465 96,370 321,835
Ryan Lode 9,770,530 - 9,770,530
Margarita 430,652 103 430,755
Juniper 231,762 13,436 245,198
Twin Buttes 227,671 3,078 230,749
Discovery Gulch 99,055 24,410 123,465
Scheelite Dome -- 135,471 135,471
---------- --------- -----------
Total Mineral Properties
and Deferred Costs 10,985,135 272,868 11,258,003
RESULTS OF OPERATIONS
INCOME
The Company has not received operating revenues during any of the last three
years and will not have income from sales of mineral product in 1998.
EXPENSES
During the first six months of 1998, the Company expended $273,000 for
capitalized costs associated with the acquisition, exploration and development
of its mineral properties compared to $221,000 which was expended during the
comparable period of 1997. Of this $241,000 was expended in the second quarter,
compared to $177,000 expended in the second quarter of 1997. The expenditure
is a result of the increased activity on the properties which typically occurs
in the second and third quarters and also costs for new acquisitions totaling
7,400 acres to the True North property. Under the terms of the agreement with
joint venture partner Newmont Exploration Limited, La Teko contributes its 35%
of the initial acquisition cost of new additions to the True North project and
thereafter all expenditures will be carried by Newmont until fully vested in the
project. The True North property now consists of 17,500 acres.
General and administrative expenses, including corporate and project overhead,
decreased to $365,000 for the first six months of 1998 as compared to $561,000
for the same six month period for 1997. The decrease reflects the closure the
Fairbanks office, the absence of costs incurred in transferring the head office
functions from Salt Lake City to Vancouver, which occurred in the first quarter
of 1997, and a focused effort to minimize costs. The general and administrative
expenses for the second quarter were $236,000 compared to $346,000 in the
comparable period in 1997.
Operating and mine maintenance costs were $73,000 for the first six months of
1998 as compared to $101,000 in the first six months of 1997, reflecting the
operatorship of Silverado Gold Mines, Ltd. ("Silverado") during the first
quarter and reduced reclamation and environmental monitoring activities at the
Ryan Lode project following a major effort last year. During the second quarter
1998 the costs were $66,000 compared to $47,000 in 1997. The major costs for
the reclamation and environmental monitoring activities at the Ryan Lode project
will be incurred in the second and third quarters of 1998, as reflected in the
second quarter expenditures. The total costs in 1998 are expected to be lower
than were incurred in 1997.
Royalty and lease payments were identical at $75,000 and $37,500 for the six
month periods and second quarters.
Net interest income for the first six months of 1998 was $3,000 compared with
$46,000 for the comparable six months of 1997. In the second quarter 1998 net
interest income was $100 compared with $17,000 in the comparable period in 1997.
The decrease in interest income reflects the reduction in term deposits. The
Company currently has no debt, having completed the repayment of its outstanding
debt last year.
Depreciation declined to $7,000 from $29,000 for the first half as some of the
equipment required for the Ryan Lode and Fairbanks office was disposed of in
1997.
LIQUIDITY AND CAPITAL RESOURCES
During the first six months of 1998, the Company has relied on its December 31,
1997 cash on hand of $613,000 and private placements with gross proceeds of
$1,870,000 to fund its requirements for general and administrative costs and
ongoing exploration and development projects.
At June 30, 1998, the Company had working capital of approximately $1,761,000
compared with $1,304,000 for the comparable period in 1997. The Company believes
that it has sufficient working capital to cover expenditures required for the
balance of 1998.
During the first six months of 1998, cash flows from operating activities used
approximately $365,000 and investing activities $232,000, primarily respecting
capitalized exploration costs offset to a limited extent by the proceeds from
the sale of investments. During the six months of the comparable period in 1997,
cash flows from operating activities used approximately $753,000 and investing
activities $281,000, again primarily respecting capitalized exploration costs.
Remaining cash requirements for 1998 will be provided for from current cash
reserves.
The Company will receive no further cash payments from Newmont under the True
North JV Agreement.
Beyond 1998, the Company may require additional capital for ongoing
administrative, exploration, development and acquisition activities. In order
to meet such long-term needs, it will be necessary to obtain required capital
from the sale of securities, possible new joint ventures or similar
arrangements, project financing or other sources. There can be no assurance
that any required additional funds will be available or can be obtained on terms
favorable to the Company.
The Company has outstanding options to purchase an aggregate of 1,424,000 shares
of common stock at an average exercise price of $1.80 per share, for a total of
$ 2,562,900 and outstanding warrants to purchase an aggregate of 2,333,000
shares of common stock at an exercise price of $1.05 per share in 1999 for a
total of $ 2,449,650 or $1.25 per share in 2000 for a total of $2,916,250, but
cannot predict whether any material number of either options or warrants will be
exercised.
PROJECTED 1998 REQUIREMENTS
The Company has budgeted approximately $1,600,000 to continue with the True
North project under joint venture with Newmont, fund the continuation of basic
activities at the Ryan Lode property and other prospects and to meet other
ongoing operating expenses.
Notwithstanding Newmont's announcement of its intent to continue with the True
North Joint Venture the decisions by Newmont respecting its True North
activities are beyond the ability of the Company to predict or control. Newmont
is planning substantial additional exploration and development work during 1998,
including $2.1 million for pre-feasibility studies through the full year and
$1.5 million for exploration through the end of June. Provisions of the joint
venture agreement are such that Newmont may withdraw from the joint venture at
its sole discretion. In the event of termination by Newmont, the Company will
re-acquire, at no cost, Newmont's 65% interest in the True North project,
including subsequently acquired acreage, together with all exploration data, and
the Company will then become obligated for the continuing carrying costs and
expenses of the True North project. Newmont may also elect to attempt to sell
an interest in the joint venture agreement, in which case the Company has the
right of first opportunity to acquire Newmont's interest. Under the terms of the
private placement with Kinross Gold Corporation ("Kinross") La Teko has granted
Kinross a right of first refusal to finance the purchase of Newmont's interest
in the True North Project in the event such interest is offered to La Teko
through La Teko's right of first opportunity as defined under the terms of the
joint venture agreement between La Teko and Newmont. Under the agreement
between La Teko and Kinross, if Newmont elects to sell all or part of its 65%
interest in True North (the "Newmont Interest") and if Kinross elects to finance
La Teko to acquire the Newmont Interest, Kinross will advance the funds
necessary for La Teko to acquire the Newmont Interest by means of a 120 day
interest-free loan (the "Loan"), secured by the Newmont Interest. At the
election of either La Teko or Kinross, La Teko would repay the Loan by conveying
the Newmont Interest to Kinross, provided that La Teko may elect to retain
15/65ths of the Newmont Interest. In such case, La Teko would repay the
remainder of the Loan in cash or, at La Teko's option, by issuing shares to
Kinross at a 10% premium to market.
COMMITMENTS AND CONTINGENCIES
Operations are subject to certain lease and royalty obligations.
The Company carries insurance against property damage including insurance on its
machinery and equipment and motor vehicles and also comprehensive general
liability and liability policies applicable to motor vehicles. The Company has
elected not to insure against business interruption.
The Company cannot insure for environmental pollution and has elected not to
insure for mine cave-ins, flooding, earthquake and other possible natural
hazards consistent with industry practice. The Company may in the future be
exposed to contingencies and liabilities relating to the foregoing that may
arise under governmental regulations relating to the environment. The Company
is not aware of any existing material contingencies respecting compliance of its
previous activities with environmental requirements.
The Company has implemented procedures to minimize the possibility of chemical
spills, especially in its drilling and Ryan Lode operations.
CHANGING PRICES, CURRENCY EXCHANGE RATES AND INFLATION
The value of the Company's properties and its proposed operations have been and
will continue to be affected generally by changes in gold prices and general
market conditions. The Company's ability to obtain exploration capital through
joint ventures or other arrangements with other mining firms and attract
additional capital, if required, through the sale of securities or borrowings on
attractive terms are also affected by gold prices and general market conditions.
Such prices are subject to substantial fluctuations that are beyond the ability
of the Company to control or predict.
Although certain of the Company's costs and expenses are affected by the level
of inflation, inflation has not had a significant effect on the Company's
operations. Similarly, the Company's operations, all of which except for its
executive offices are located in the United States, are not materially affected
by fluctuations in the exchange rate between Canadian and US dollars.
OTHER
The Company has reviewed all recently issued, but not yet adopted, accounting
standards in order to determine their effects, if any, on the results of
operations or financial position of the Company. Based on that review, the
Company believes that none of these pronouncements will have significant effects
on current or future operations.
PART II
PART II. OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES
UNREGISTERED SALES
During the quarter ended June 30, 1998, the Company sold securities without
registration under the Securities Act of 1933 (the "Securities Act") in the
following transactions:
1. In April, the Company sold 2,000,000 shares of common stock to Kinross Gold
Corporation in a private placement for $0.85 per share.
2. In May, the Company issued 43,000 shares of common stock valued at $1.00
per share in connection with acquisition of property respecting the
Scheelite Dome project.
3. In June, the Company issued 65,000 shares of common stock valued at $1.00
per share in settlement of a debt.
4. In June, the Company sold to Thermo Dynamics, Inc., a company owned by John
R. Hardesty, a director of the Company, 200,000 shares at $0.85 per share
in a private placement.
Except as otherwise noted, the securities issued in the transactions
described above were issued in reliance on the exemption from the registration
and prospectus delivery requirements of the Securities Act provided in S 4(2)
thereof.
Each purchaser was provided with business and financial information
respecting the Company and was provided with the opportunity to obtain
additional information in order to verify the information provided or to further
inform themselves respecting the Company.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On June 2, 1998, at the annual meeting of the Company's shareholders, the
shareholders approved the following matters submitted to them for consideration:
(1) Fixed the number of directors at seven:
For 12,903,236 Against 166,050 Abstain 35,418
(2) Elected directors of the Company as follows:
Gerald G. Carlson For: 13,850,171
Robert W. Gentry For: 13,118,403
John R. Hardesty For: 13,852,921
John S. Auston For: 13,852,421
Douglas R. Beaumont For: 13,850,221
Gordon J. Fretwell For: 13,850,671
Stuart Havenstrite For: 13,121,153
(3) Appointed Bedford Curry, Chartered Accountants, Vancouver, B.C., Canada, as
auditors of the Company as follows:
For 12,950,086 Against 107,500 Abstain 47,118
(3) Approved and ratified stock options and amendments to stock options
For 11,369,425 Against 1,650,061 Abstain 79,218
Item 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
The following exhibits are included a part of this report:
Exhibit No. SEC Reference No. Title of Document Location
- ---------- ----------------- ----------------------- -----------
27.01 27 Financial Data Schedule This filing
(B) REPORTS ON FORM 8-K
During the quarter ended June 30, 1998 the Company filed the following reports
on Form 8-K:
DATE OF EVENT REPORTED ITEM REPORTED
- ---------------------- ---------------------
April 8, 1998 Item 5. Other events
April 24, 1998 Item 5. Other events
April 28, 1998 Item 5. Other events
May 5, 1998 Item 5. Other events
June 2, 1998 Item 5. Other events
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
LA TEKO RESOURCES LTD.
(Registrant)
Date: August 14, 1998 By /s/ Gerry C. Carlson
Chief Executive Officer, President, Chief
Financial and Accounting Officer, and Director
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF JUNE 30, 1998, AND STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED
JUNE 30, 1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 1,671,871
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 138,124
<INVENTORY> 0
<CURRENT-ASSETS> 1,809,995
<PP&E> 11,869,439
<DEPRECIATION> (20,128)
<TOTAL-ASSETS> 13,659,306
<CURRENT-LIABILITIES> 49,418
<BONDS> 0
<COMMON> 19,800,402
0
0
<OTHER-SE> (6,190,514)
<TOTAL-LIABILITY-AND-EQUITY> 13,659,306
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> (520,846)
<OTHER-EXPENSES> (169,928)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,323
<INCOME-PRETAX> (687,451)
<INCOME-TAX> 0
<INCOME-CONTINUING> (687,451)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (687,451)
<EPS-PRIMARY> (0.025)
<EPS-DILUTED> (0.025)
</TABLE>
