FORM 10Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTER ENDED AUGUST 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
Commission file number 0-12132
SILVERADO GOLD MINES LTD.
(Exact name of registrant as specified in its charter)
British Columbia, Canada 98-0045034
(State or other jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
Suite 505, 1111 West Georgia Street
Vancouver, British Columbia, Canada V6E 4M3 (604) 689-1535
(Address of Principal Executive Offices) (Registrant's
telephone number)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 13(d) of the Securities and Exchange Act of 1934
during the preceding 12 months (or for a 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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at October 12, 2000
(Common stock (npv)) 29,639,891
<PAGE>
<TABLE>
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SILVERADO GOLD MINES LTD.
INTERIM CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN U.S. DOLLARS)
AS AT
(UNAUDITED)
AUGUST 31, 2000 AUGUST 31, 1999
----------------- -----------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
CASH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,063 $ -
GOLD INVENTORY. . . . . . . . . . . . . . . . . . . . . . . . 23,487 10,567
ACCOUNTS RECEIVABLE . . . . . . . . . . . . . . . . . . . . . 7,413 79,935
----------------- -----------------
48,963 90,502
MINERAL PROPERTIES AND DEVELOPMENT, NET. . . . . . . . . . . . . . . 1,224,200 1,224,200
----------------- -----------------
BUILDINGS, PLANT AND EQUIPMENT . . . . . . . . . . . . . . . . . . . 2,982,608 2,982,608
LESS ACCUMULATED DEPRECIATION. . . . . . . . . . . . . . . . . . . (1,804,549) (1,538,322)
----------------- -----------------
1,178,059 1,444,286
$ 2,451,222 $ 2,758,988
================= =================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
BANK INDEBTEDNESS. . . . . . . . . . . . . . . . . . . . . . . . $ - $ 2,385
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
(NOTE 5). . . . . . . . . . . . . . . . . . . . . . . . 1,143,029 1,162,023
LOANS PAYABLE. . . . . . . . . . . . . . . . . . . . . . . . . . 49,130 49,130
MINERAL CLAIMS PAYABLE . . . . . . . . . . . . . . . . . . . . . 280,375 286,500
DUE TO RELATED PARTIES (NOTE 8). . . . . . . . . . . . . . . . . 359,289 -
CONVERTIBLE DEBENTURE, CURRENT PORTION
(NOTE 6) . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
----------------- -----------------
3,472,534 3,500,038
LONG TERM LIABILITIES
CONVERTIBLE DEBENTURE (NOTE 6) . . . . . . . . . . . . . . . . . 75,000 75,000
SHAREHOLDERS' EQUITY
SHARE CAPITAL
AUTHORIZED: 100,000,000 COMMON SHARES
ISSUED AND OUTSTANDING:
AUGUST 31, 2000 - 27,639,891 SHARES . . . . . . . . . . . 45,355,365 44,454,365
NOVEMBER 30, 1999 - 15,873,224 SHARES . . . . . . . . . . - -
SHARES TO BE ISSUED . . . . . . . . . . . . . . . 33,485 28,188
DEFICIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46,844,450) (45,298,603)
----------------- -----------------
(1,455,600) (816,050)
----------------- -----------------
$ 2,451,222 $ 2,758,988
================= =================
SEE ACCOMPANYING NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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<TABLE>
<CAPTION>
SILVERADO GOLD MINES LTD.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(EXPRESSED IN U.S. DOLLARS)
NINE MONTHS ENDED
AUGUST 31, 2000 AUGUST 31, 1999
------------------- -----------------
<S> <C> <C>
REVENUE FROM GOLD SALES. . . . . . . $ 6,387 $ 15,859
LESS MINING AND PROCESSING COSTS 10,210 14,601
------------------- -----------------
(3,823) 1,258
MINERAL PROPERTIES AND
DEVELOPMENT EXPENDITURES. . . . . 24,600 258,213
ADMINISTRATIVE EXPENSES. . . . . . . 1,393,674 429,073
INTEREST EXPENSE . . . . . . . . . . 123,750 120,000
------------------- -----------------
LOSS FOR THE PERIOD. . . . . . . . . (1,545,847) (806,028)
ACCUMULATED DEFICIT AT
BEGINNING OF PERIOD. . . . . . . (45,298,603) (43,849,212)
------------------- -----------------
ACCUMULATED DEFICIT AT
END OF PERIOD. . . . . . . . . . $ (46,844,450) $ (44,655,240)
=================== =================
LOSS PER SHARE . . . . . . . . . . . $ (0.060) $ (0.062)
=================== =================
THREE MONTHS ENDED
AUGUST 31, 2000 AUGUST 31, 1999
REVENUE FROM GOLD SALES. . . . . . . $ 6,387 -
LESS MINING AND PROCESSING COSTS 10,210 -
------------------- -----------------
(3,823) -
- -
MINERAL PROPERTIES AND
DEVELOPMENT EXPENDITURES. . . . . 24,600 11,897
ADMINISTRATIVE EXPENSES. . . . . . . 726,090 124,735
INTEREST EXPENSE . . . . . . . . . . 40,000 40,000
------------------- -----------------
LOSS FOR THE PERIOD. . . . . . . . . (794,513) (176,632)
ACCUMULATED DEFICIT AT
BEGINNING OF PERIOD. . . . . . . (46,049,937) (44,478,608)
------------------- -----------------
ACCUMULATED DEFICIT AT
END OF PERIOD. . . . . . . . . . $ (46,844,450) $ (44,655,240)
=================== =================
LOSS PER SHARE . . . . . . . . . . . $ (0.034) $ (0.013)
=================== =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SILVEVERADO GOLD MINES LTD.
INTERIM CONSOLODATED STATEMENTS OF CASH FLOW
(EXPRESS IN U.S. DOLLARS) (UNAUDITED)
NINE MONTHS ENDED
AUGUST 31, 2000 AUGUST 31, 1999
------------------- -----------------
<S> <C> <C>
CASH PROVIDED BY (USED FOR):
OPERATIONS:
LOSS FOR THE PERIOD . . . . . . . . . . . . . . . . . . . . . . $ (1,545,847) $ (806,028)
ITEMS NOT INVOLVING CASH
DEPRECIATION. . . . . . . . . . . . . . . . . . . . . . . . . 266,220 222,250
AMORTIZATION OF DEFERRED
FINANCING FEES . . . . . . . . . . . . . . . . . . . . . . . - 24,562
CHANGES IN NON-CASH OPERATING
WORKING CAPITAL:
DECREASE IN ACCOUNTS RECEIVABLE . . . . . . . . . . . . . . . 72,522 2,220
(INCREASE) DECREASE IN GOLD INVENTORY. . . . . . . . . . . . . (12,920) 14,601
DECREASE IN MINERAL CLAIMS PAYABLE . . . . . . . . . . . . . . (6,125) (3,500)
INCREASE IN EXPENSES TO RELATED PARTIES. . . . . . . . . . . . 359,289 -
INCREASE (DECREASE) IN ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES. . . . . . . . . . . . . . . (18,995) 117,172
------------------- -----------------
(885,856) (428,723)
FINANCING:
BANK INDEBTEDNESS . . . . . . . . . . . . . . . . . . . . . . . (2,385) (4,396)
SHARES ISSUED FOR CASH. . . . . . . . . . . . . . . . . . . . . 901,000 273,035
INCREASE IN LOANS PAYABLE . . . . . . . . . . . . . . . . . . . - 155,000
SHARE SUBSCRIPTIONS RECEIVED. . . . . . . . . . . . . . . . . . 5,304 -
------------------- -----------------
903,919 428,035
INVESTMENTS:
PROCEEDS FROM SALE OF EQUIPMENT . . . . . . . . . . . . . . . . - 5,353
------------------- -----------------
- 5,353
INCREASE IN CASH. . . . . . . . . . . . . . . . . . . . . . . . . . 18,063 4,665
CASH AT BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . - -
------------------- -----------------
CASH AT END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . $ 18,063 $ 269
------------------- -----------------
SUPPLEMENTAL CASH FLOW INFORMATION
INTEREST PAID . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,750 $ -
------------------- -----------------
ISSUE OF SHARES FOR PURCHASE OF
MINERAL PROPERTY, A NON-CASH INVESTING
ACTIVITY NOT REFLECTED IN THE STATEMENTS
OF CASH FLOW. . . . . . . . . . . . . . . . . . . . . . . . . . . $ - $ -
------------------- -----------------
SEE ACCOMPANYING NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
</TABLE>
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<TABLE>
<CAPTION>
SILVERADO GOLD MINES LTD.
INTERIM CONSOLODATED STATEMENTS OF CHANGES IN SHARE CAPITAL
(EXPRESSED IN U.S. DOLLARS) (UNAUDITED)
NINE MONTHS ENDED AUGUST 31, 2000, AND YEARS ENDED NOVEMBER 30, 1999, AND 1998
NUMBER OF SHARE UNAMORATIZED ADVANCES TO
SHARES CAPITAL STOCK RELATED PARTIES
COMPENSATION SECURED BY
EXPENSE COMMON
SHARES IN THE
COMPANY
<S> <C> <C> <C> <C>
BALANCE AS AT NOVEMBER 30, 1997. . . . . . . . . . . . . . . . . . . 80,012,218 $43,084,420 $ (151,612) $ (480,236)
------------ ----------- -------------- -----------------
YEAR ENDED NOVEMBER 30, 1998
SHARE CONSOLIDATION. . . . . . . . . . . . . . . . . . . . . . . (72,010,996)
SHARES ISSUED:
ON EXERCISE OF WARRANTS FOR CASH . . . . . . . . . . . . . . . 255,000 216,200
PRIVATE PLACEMENTS FOR CASH. . . . . . . . . . . . . . . . . . 2,446,668 372,600
PRIVATE PLACEMENT FOR CONSULTING SERVICES: . . . . . . . . . . 125,000 112,500
FAIR VALUE OF SHARES ISSUED FOR
MINERAL PROPERTY . . . . . . . . . . . . . . . . . . . . . . 170,000 289,200
AMORTIZATION OF STOCK COMPENSATION 151,612
CASH RECEIVED ON SALE OF COMMON SHARES 225,448
BY RELATED PARTY
UNCOLLECTED BALANCE RECORDED AS A
RECEIVABLE ALLOWANCE 254,788
------------ ----------- -------------- -----------------
(69,014,328) 990,500 $ 151,612 $ 480,236
BALANCE AS AT NOVEMBER 30, 1998. . . . . . . . . . . . . . . . . . . 10,997,890 44,074,920 - -
------------ ----------- -------------- -----------------
YEARS ENDED NOVEMBER 30, 1999
SHARES ISSUED:
ON EXERCISE OF WARRANTS FOR CASH . . . . . . . . . . . . . . . 4,008,667 250,050
PRIVATE PLACEMENT FOR CASH . . . . . . . . . . . . . . . . . . 866,667 129,395
------------ -----------
4,875,334 379,445 - -
BALANCE AS AT NOVEMBER 30, 1999. . . . . . . . . . . . . . . . . . . 15,873,224 44,454,365 - -
------------ ----------- -------------- -----------------
SHARES ISSUED:
ON EXERCISE OF WARRANTS FOR CASH . . . . . . . . . . . . . . . 3,366,667 190,000
ON EXERCISE OF EMPLOYEE SHARE OPTIONS. . . . . . . . . . . . . 400,000 40,000
PRIVATE PLACEMENT FOR CASH . . . . . . . . . . . . . . . . . . 4,850,000 380,000
------------
8,616,667
BALANCE AS AT MAY 31, 2000 (UNAUDITED) . . . . . . . . . . . . . . . 24,489,891 $45,064,365 $ - $ -
------------ ----------- -------------- -----------------
SHARES ISSUED:
ON EXERCISE OF WARRANTS FOR CASH . . . . . . . . . . . . . . . 2,350,000 211,000
PRIVATE PLACEMENT FOR CASH . . . . . . . . . . . . . . . . . . 800,000 80,000
------------
3,150,000
------------
BALANCE AS AT AUGUST 31, 2000 (UNAUDITED). . . . . . . . . . . . . . 27,639,891 $45,355,365 $ - $ -
------------ -----------
SEE ACCOMPANYING NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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<PAGE>
SILVERADO GOLD MINES LTD.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS) (UNAUDITED) AUGUST 31, 2000
1. BASIS OF PRESENTATION
The interim consolidated financial statements as at August 31, 2000 and 1999 and
for the three and nine month periods ended August 31, 2000 and 1999 included
herein are unaudited; however, such information reflects all adjustments
(consisting solely of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of the financial results for the
interim periods. These interim consolidated financial statements are presented
in accordance with United States generally accepted accounting principles. The
interim financial statements have been prepared consistent with the accounting
policies described in the Company's Annual Report on Form 10-K and should be
read in conjunction therewith.
These financial statements have been prepared on a going concern basis, which
assumes the realization of assets and settlement of liabilities in the normal
course of business. The application of the going concern concept and the
recovery of amounts recorded as mineral properties and development and
buildings, plant and equipment is dependent on the Company's ability to obtain
the continued forbearance of certain creditors, to obtain additional financing
to fund its operations and acquisition, exploration and development activities,
the discovery of economically recoverable ore on its properties, and the
attainment of profitable operations. Current uncertainty with regard to these
matters raises substantial doubt about the Company's ability to continue as a
going concern, and the financial statements do not include any adjustments that
might result from the outcome of this uncertainty. The Company plans to continue
to raise capital through private placements and warrants issued.
At August 31, 2000 the Company had a working capital deficiency of $3,423,578
including a $2,000,000 convertible debenture which matured on July 2, 1999, but
was not repaid. The Company was granted a deferral of these payments as it is
currently in negotiations to restructure its obligation. The Company has not
made required interest payments on the convertible debenture of $426,667 to
August 31, 2000.
In addition, the Company is in arrears of required mineral claims and option
payments for certain of its mineral properties at August 31, 2000, in the amount
of $280,375. (November 30, 1999: $286,500).
2. GOLD INVENTORY
Gold inventory is valued at the lower of weighted average cost and estimated net
realizable value. At August 31, 2000 and November 30, 1999, gold is valued at
net realizable value.
3. MINERAL PROPERTIES AND DEVELOPMENT
The Company confines its exploration activities to areas from which gold has
previously been produced or to properties which are contiguous to such areas
and have demonstrated mineralization. Accordingly, the Company capitalizes the
costs of acquiring mineral claims until such time as the
<PAGE>
properties are placed into production or abandoned. At that time, costs are
amortized on a units of production basis or written off, as appropriate.
Exploration costs and option payments are expensed as incurred commencing in
1998.
4. BUILDINGS PLANT AND EQUIPMENT
Buildings, plant and equipment are stated at cost. Depreciation is provided on
buildings, plant and equipment using the straight-line method based on estimated
lives of 3 to 20 years.
5. ACCOUNTS PAYABLE
Accounts payable and accrued liabilities are detailed in the following table:
AUGUST 31, 2000 NOVEMBER 30,
(UNAUDITED) 1999
ACCOUNTS PAYABLE $ 520,362 $ 659,356
ACCRUED INTEREST 426,667 306,667
ACCRUED RECLAMATION EXPENSES 196,000 196,000
$ 1,143,029 $ 1,162,023
========= =========
6. CONVERTIBLE DEBENTURE
In July, 1994, the Company issued a convertible callable debenture for
$2,000,000 with interest payable at the rate of 8.0% per annum on December 31,
and June 30, each year. The debenture is unsecured and was due on July 2, 1999.
The Company has not made required interest payments of $426,667 to August 31,
2000 which has been recorded as a current liability. The Company was granted a
deferral of these payments as it is currently in negotiations to restructure its
obligation.
On February 15, 1999, the Company issued a convertible debenture for $75,000
with interest payable at the rate of 5% per annum on March 1 of each year. The
debenture is due on February 28, 2002. The required interest payment of $3,750
was made on April 14, 2000.
7. SHARE CAPITAL
(A) DIRECTOR AND EMPLOYEE OPTIONS. The Company has 3,100,000 (November 30,
1999 - 3,500,000) outstanding options to acquire common shares with an exercise
price of $0.10 per share until December 1, 2004; and 350,000 outstanding options
to acquire common shares with an exercise price of $0.35 per share until
December 1, 2004, all in accordance with the terms and conditions of its
December 12, 1994 Stock Option Plan.
(B) WARRANTS. The Company has 3,700,000 warrants outstanding to purchase
common shares at prices in the range of $0.10 - $0.40.
<PAGE>
(C) OTHER SHARE TRANSACTIONS. The Company has reserved 295,192 common shares
for issuance upon the potential conversion of the convertible debentures.
8. RELATED PARTY TRANSACTIONS
The Company has had related party transactions with Tri-Con Mining Ltd., Tri-Con
Mining Inc., Tri-Con Mining Alaska Inc. collectively the "Tri-Con Mining Group";
and Anselmo Holdings Ltd., all of which are controlled by a director of the
Company, and Kintana Resources Ltd., a company related by virtue of common
directors.
The Tri-Con Group are operations, exploration and development contractors, and
have been employed by the Company under contract since 1972 to carry out all its
field work and to provide administrative and management services. Under the
current contract of January, 1997, work is charged at cost plus 15% for
operations and cost plus 25 percent for exploration and development. Cost
includes a 15 percent charge for office overhead. Services of the directors of
the Tri-Con Group are charged at a rate of Cdn. $75 per hour. Services of the
directors of the Tri-Con Group who are also Directors of the Company are not
charged. At November 30, 1999, the Company had paid $241,265 (1998 - $363,667)
to the Tri-Con Group for exploration, development and administration services to
be performed during fiscal 2000 on behalf of the Company. The amounts have been
written-off in the respective years as a receivable allowance.
The aggregate amounts paid to the Tri-Con Group each year by category, including
amounts relating to the Grant Mine Project and Nolan properties, for
disbursements and for services rendered by the Tri-Con Group personnel working
on the Company's projects, and including interest charged on outstanding balance
at the Tri-Con Group's borrowing costs are shown below:
<TABLE>
<CAPTION>
2000 1999 1998
--------- --------- -----------
<S> <C> <C> <C>
Operations and Field Services . . . . . . $126,377 $ 24,562 $ 192,706
Exploration and Development Services. . . 84,252 214,211 1,160,169
Administrative and Management
Services. . . . . . . . . . . . . . . . . 148,660 58,200 321,513
$359,289 $296,973 $1,674,388
--------- --------- -----------
Amount of total charges in excess of Tri-
Con costs incurred. . . . . . . . . . . . $ 0.00 $ 54,526 $ 248,858
--------- --------- -----------
Excess amount charged as a percentage
of actual costs incurred. . . . . . . . . 0.00% 24.0% 17.5%
--------- --------- -----------
</TABLE>
<PAGE>
During fiscal 1998, the Tri-Con Group sold all of the 2,119,934 common shares
held in the Company for net proceeds of $225,448. The Company received $225,448
from the Tri-Con Group as part payment of the $480,236 advance receivable at
November 30, 1997. The remaining unpaid amount was written off as a receivable
allowance.
9. COMMITMENTS
The Company has a lease agreement for office premises for a term of 10 years
commencing April 1, 1994, with an approximate annual rate of $122,000 (Cdn.)
including operating costs.
10. LITIGATION
A former employee of the Tri-Con Group has initiated a claim against that
company for wrongful dismissal / breach of contract in the amount of $150,000.
The Company has been named as a co-defendant in the suit. No provision for this
litigation has been made in these financial statements and the amount of the
loss, if any, for this lawsuit, would be accounted for prospectively.
Range Minerals Corporation has sued Silverado Gold Mines Ltd. and Silverado Gold
Mines Inc. for $185,665. The lawsuit pertains to required payments covering the
Ester Dome Property. Silverado Gold Mines Ltd. and Silverado Gold Mines Inc.
have denied the claim of Range Minerals Corporation and have counter claimed for
the return of 50,000 shares and $88,000 previously paid to Range Minerals
Corporation, and such further additional relief as the court may deem to be just
and equitable under the circumstances. No provision for this litigation has
been made in these financial statements and the amount of the loss, if any, for
this lawsuit, would be accounted for prospectively.
11. SUBSEQUENT EVENTS
Subsequent to August 31, 2000, a director and officer of the Company exercised
options to purchase 1,950,000 shares of the Company at $0.10 per share in
consideration for a reduction of amounts payable to Tri-Con Mining Ltd. of
$195,000. The director is a significant shareholder of Tri-Con Mining Ltd.
On September 27, 2000 50,000 share purchase warrants were exercised at a price
of $0.10 per share and the Company issued 50,000 shares from the treasury for
proceeds of $5,000.
<PAGE>
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain factors which
have significantly affected the Company's financial position and operating
results during the period included in the accompanying condensed consolidated
financial statements.
NINE MONTHS 2000 V. 1999
----------------------------
Loss for the nine-month period ended August 31, 2000 was $1,545,847 or $0.060
per share compared to $806,028 or $0.062 per share for the nine-month period
ended August 31, 1999. Loss for the quarter was $794,513 or $0.034 per share
compared to $176,632 or $0.013 per share for the quarter ended August 31, 1999.
The Company commenced production on its Nolan Placer property during the quarter
ended August 31, 2000 and incurred a loss of $3,823 on sales of $6,387. One time
set up costs were fully absorbed during this period.
Expenditures during the nine months ended August 31, 2000 were $1,542,024 up
from $807,286 in the comparable period due mainly to an increase in promotion
expenditures. $901,000 in cash was received for share issuances during the first
nine months of 2000.
The Company is moving towards commercialization of the new oil fuel substitute
process known as low-rank coal-water fuel. The fuel would be produced at the
Company's 100% owned and paid up Grant Mill facility once it has undergone a
retrofit. Additionally the Company continued summer gold production and
development at its Nolan gold mine.
LIQUIDITY AND CAPITAL RESOURCES AT AUGUST 31, 2000
---------------------------------------------------------
During the first nine months of 2000 the Company received cash of $901,000 from
share subscriptions. The Company plans to raise capital through gold sales from
its 100% owned Nolan Gold Mine as well as through private placements and warrant
issues. The Company has a working capital deficiency of $3,782,860 at August 31,
2000 up from $3,409,536 at November 30, 1999.
ITEM 3. None
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS
A former employee of the Tri-Con Group has initiated a claim against that
company for wrongful dismissal / breach of contract in the amount of $150,000.
The Company has been named as a co-defendant in the suit.
Range Minerals Corporation has sued Silverado Gold Mines Ltd. and Silverado Gold
Mines Inc. for $185,665. The lawsuit pertains to required payments covering the
Ester Dome Property. Silverado Gold Mines Ltd. and Silverado Gold Mines Inc.
have denied the claim of Range Minerals Corporation and have counter claimed for
the return of 50,000 shares and $88,000 previously paid to Range Minerals
Corporation, and such further additional relief as the court may deem to be just
and equitable under the circumstances. No provision for this litigation has
been made in these financial statements and the amount of the loss, if any, for
this lawsuit, would be accounted for prospectively.
ITEM 2 CHANGES IN SECURITIES AND USE OF PROCEEDS.
During the third quarter of 2000 the company received proceeds from the issue of
3,150,000 unregistered shares.
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
In July, 1994, the Company issued a convertible callable debenture for
$2,000,000 with interest payable at the rate of 8.0% per annum on December 31,
and June 30, each year. The debenture is unsecured and was due on July 2, 1999.
The Company has not made required interest payments of $426,667 to August 31,
2000 which has been recorded as a current liability. The Company was granted a
deferral of these payments as it is currently in negotiations to restructure its
obligation
ITEM 4
None.
ITEM 5 OTHER INFORMATION.
None.
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K.
None.
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.
SILVERADO GOLD MINES LTD.
/S/ G.L. ANSELMO
G.L. Anselmo
President / CEO / CFO
