SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15 (d) of
the Securities Exchange Act of 1934
For The Three Months Ended October 31, 1996 Commission File Number:
2-86160-NY
LEADVILLE MINING AND MILLING CORP.
(Exact name of registrant as specified in its charter)
NEVADA #13-3180530
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
76 BEAVER STREET, NEW YORK, NEW YORK 10005
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (212) 344-5158
The Number of Shares Outstanding of Common Stock,
$.0001 Par Value, At October 31, 1996 131,192,150
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 _____
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
BALANCE SHEET
OCTOBER 31, 1996
ASSETS
Current Assets:
Cash ....................................... $ 30,819
Loans Receivable ........................... 8,108
Prepaid Expense ............................ 508
Other Current Assets ....................... 356
-----------
Total Current Assets .................... 39,791
-----------
Property and Equipment (Net of
Accumulated Depreciation of $340,422) ...... 1,361,032
Other Assets:
Mining Reclamation Bonds ................... 11,000
Security Deposit ........................... 3,667
-----------
Total Other Assets ...................... 14,667
-----------
Total Assets ................................. $ 1,415,490
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accrued Expenses and Taxes ................. $ 79,452
Loans Payable - Officers ................... 9,673
-----------
Total Current Liabilities ............... 89,125
-----------
Commitments and Contingencies
Stockholders' Equity:
Common Stock, Par Value $.0001 Per Share;
Authorized 150,000,000 shares; Issued and
Outstanding 131,192,150 Shares ........... 13,119
Capital Paid In Excess of Par Value ........ 6,303,543
Deficit Accumulated in the Development Stage (4,990,297)
-----------
Total Stockholders' Equity .............. 1,326,365
-----------
Total Liabilities and Stockholders' Equity ... $ 1,415,490
===========
The accompany notes are an integral part of the financial statements.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For The Period
September 17,1982
(Inception)
Three Months Ended To
October 31, July 31, 1996
--------------------- -----------------
1996 1995
--------------- -------------
<S> <C> <C> <C>
Revenues:
Interest Income ............... $ 220 $ 323 $ 707,614
Miscellaneous ................. -- -- 23,483
------------- ------------- -------------
Total Revenues .............. 220 323 731,097
------------- ------------- -------------
Costs and Expenses:
Mine Expenses ................. 90,001 30,644 1,495,573
Selling, General and
Administrative Expenses ..... 195,168 46,289 3,749,033
Depreciation .................. 1,940 1,548 340,422
Loss on Write-Off of
Investment .................. -- -- 10,000
Loss on Joint Venture ......... -- -- 101,700
------------- ------------- -------------
Total Costs and
Expenses ................... 287,109 78,481 5,696,728
------------- ------------- -------------
Loss Before Provision
For Income Taxes .............. (286,889) (78,158) (4,965,631)
Provision For Income
Taxes ......................... 688 1,900 24,666
------------- ------------- -------------
Net Loss ........................ $ (287,577) $ (80,058) $ (4,990,297)
============= ============= =============
Net Loss Per Share .............. $ (.00) $ (.00)
============= =============
============= =============
Average Common Shares Outstanding 130,775,275 111,574,516
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
For The Period
Three Months Ended September 17, 1982
October 31, (Inception)
-------------------------- To
1996 1995 October 31, 1996
----------- ----------- ------------------
<S> <C> <C> <C>
Cash Flow From Operating Activities:
Net Loss ......................................... $ (287,577) $ (80,058) $(4,990,297)
Adjustments to Reconcile Net Loss to
Net Cash Used By Operating Activities:
Depreciation ................................. 1,940 1,548 340,422
Loss on Write-Off of Investment .............. -- -- 10,000
Loss From Joint Venture ...................... -- -- 101,700
Value of Common Stock Issued For Services .... 3,857 12,000 1,258,302
Compensation Portion of Options Exercised .... 98,000 -- 359,500
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Prepaid Expenses .... 50,900 672 (508)
(Increase) Decrease in Other Current Assets (149) (315) (356)
Increase in Security Deposit ............... -- -- (3,667)
Increase (Decrease) in Accrued Expenses
and Taxes ............................... 9,646 (23,388) 79,452
----------- ----------- -----------
Net Cash Used By Operating Activities .............. (123,383) (89,541) (2,845,452)
----------- ----------- -----------
Cash Flow From Investing Activities:
Purchase of Property and Equipment ............... (2,000) -- (1,696,953)
Investment in Joint Venture ...................... -- -- (101,700)
Investment in Privately Held Company ............. -- -- (10,000)
----------- ----------- -----------
Net Cash Used By Investing Activities .............. (2,000) 0 (1,808,653)
----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF CASH FLOWS
(Continued)
<TABLE>
<CAPTION>
For The Period
Three Months Ended September 17, 1982
October 31, (Inception)
----------- To
1996 1995 October 31, 1996
---- ---- ----------------
<S> <C> <C> <C>
Cash Flow From Investing Activities:
(Increase) Decrease in Loans Receivable ....... $ (200) $ (32) $ (8,108)
Decrease in Loans Payable ..................... -- -- --
Increase in Loans Payable - Officers .......... -- -- 18,673
Repayment of Loans Payable - Officers ......... -- -- (9,000)
Proceeds From Sale of Common Stock ............ 121,545 87,500 5,108,372
Commissions on Sale of Common Stock ........... -- -- (5,250)
Expenses of Initial Public Offering ........... -- -- (408,763)
Purchase of Certificate of Deposit - Restricted -- -- (5,000)
Purchase of Mining Reclamation Bond ........... -- -- (6,000)
----------- ----------- -----------
Net Cash Provided By Financing Activities ....... 121,345 87,468 4,684,924
----------- ----------- -----------
Increase (Decrease) In Cash and Cash Equivalents (4,038) (2,073) 30,819
Cash and Cash Equivalents - Beginning ........... 34,857 11,268 --
----------- ----------- -----------
Cash and Cash Equivalents - Ending .............. $ 30,819 $ 9,195 $ 30,819
=========== =========== ===========
Supplemental Cash Flow Information:
Cash Paid For Interest ........................ $ -- $ -- --
=========== =========== ===========
Cash Paid For Income Taxes .................... $ 688 $ 1,900 $ 24,115
=========== =========== ===========
Non-Cash Financing Activities:
Issuances of Common Stock as Commissions
on Sales of Common Stock .................... $ 16,797 $ 6,050 $ 86,582
=========== =========== ===========
Issuances of Common Stock For
Acquisition of Property and Equipment ......... $ 4,500 $ -- $ 4,500
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996
NOTE 1 - Basis of Presentation
In the opinion of the Company, the accompanying unaudited financial
statements reflect all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results of
operations and cash flows for the periods presented.
Results of operations for interim periods are not necessarily indicative of
the results of operations for a full year due to external factors which are
beyond the control of the Company.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
Item I. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
REFERENCE TO ANNUAL REPORT;
These financial statements should be read in conjunction with the Form
10-KSB for the Quarter ended July 31, 1996 and the 10-QSB for quarter ended
April 30, 1996. The interim financial statements reflect all adjustments which
are, in the opinion of management, necessary for a fair statement of the results
of operations for the interim periods presented. Such adjustments are of a
normal recurring nature. Operating results for the six months ended October 31,
1996 are not necessarily indicative of the results that may be expected for the
fiscal year ending July 31, 1997.
Item II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS:
FINANCIAL CONDITION:
As of January 31, 1996, the Company had a negative working capital of
$40,334 (defined as current assets less current liabilities) which represents a
net decrease in working capital of $3,827 from July 31, 1996. The decrease in
working capital resulted from the Company's difficulty in obtaining private
financing. As was explained in the Company's 10-KSB, the Company is in a
precarious financial condition and there is no assurance whatsoever that the
Company will be able to continue as a going concern or that any of its plans
with respect to its gold mining properties will come to fruition. The Company,
in order to continue its mine program must obtain substantial financing. While
management is seeing such financing through joint venture partners, private
placement of its shares and other arrangements, there is no assurance that
management will succeed therein. It should be emphasized that the Company's
financial condition has remained critical since the date of the last 10-KSB and
that in order to survive, the Company will need an infusion of capital within
the near future.
RESULTS OF OPERATIONS:
Construction work continued on the Hunter, second exit shaft during
this Fiscal quarter. The shaft is now open to the main level. Dividers, ladders
and landings are being installed to the bottom of the shaft. Guides to hold the
elevator in place are now nearly all installed.
The Hunter hoist facility is now completed. The electrical generating
plant is now finished and operational. The Hunter hoist is fully operational.
The Hunter third level has been explored and partially rehabilitated.
Oxide mineralization was abundant in many locations on this level. The Hunter,
fourth level has been explored and partially rehabilitated.
Resumption of exploration, has commenced with long-hole drilling on the
Comstock, seventh level.
<PAGE>
PART II
Item 1. LEGAL PROCEEDINGS
There are no legal procedures pending against the company
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTERS TO SHAREHOLDERS VOTE
None
Item 5. OTHER INFORMATION
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
None
<PAGE>
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 thereto duly authorized.
LEADVILLE MINING & MILLING CORP.
Registrant
By: /S/ Gifford Dieterle
------------------------
Gifford Dieterle
Treasurer/Secretary
Date: December 17, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-START> AUG-1-1996
<PERIOD-END> OCT-31-1996
<CASH> 30,819
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 39,791
<PP&E> 1,701,454
<DEPRECIATION> 340,422
<TOTAL-ASSETS> 1,415,490
<CURRENT-LIABILITIES> 89,125
<BONDS> 0
0
0
<COMMON> 13,119
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,415,490
<SALES> 0
<TOTAL-REVENUES> 220
<CGS> 0
<TOTAL-COSTS> 90,001
<OTHER-EXPENSES> 197,108
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (286,889)
<INCOME-TAX> 688
<INCOME-CONTINUING> (287,577)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (287,577)
<EPS-PRIMARY> .00
<EPS-DILUTED> .00
</TABLE>
