SECURITIES AND EXCHANGE COMMISSION
Washington, DC
FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 AND 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the period ended April 30, 1998
NU-DAWN RESOURCES INC.
----------------------
Translation of Registrants name in English
102 Piper Crescent
Nanaimo, British Columbia
Canada V9T 3G3
Address of principal executive offices
<PAGE>
NU-DAWN RESOURCES INC.
102 Piper Crescent
Nanaimo BC V9T 3G3
Tel: (250) 756-0291 Fax: (250) 756-0298
email: [email protected]
- --------------------------------------------------------------------------------
SCHEDULE "B"
SUPPLEMENTARY INFORMATION
1. FOR THE CURRENT FISCAL YEAR-TO-DATE: APRIL 30, 1998
Refer to April 30, 1998 Financial Statements
(a) Expenditures to non-arms length parties: None
Refer to Note 5: Related Party Transactions of April 30, 1998 Financial
Statements
2. FOR THE QUARTER UNDER REVIEW
(a) Securities issued: 330,166
(b) Options granted: Refer to Note 7. Warrants & Options (B)
3. AS AT THE END OF QUARTER
(a) Authorized share capital: 50,000,000 common shares without par value
(b) Issued share capital: 27,823,270 shares
(c) Summary of warrants and options outstanding:
Warrants........... Refer to Note 7. Warrants & Options (A)
Options............. Refer to Note 7. Warrants & Options (B)
(d) Shares in escrow: 412,500
(e) Directors: Raynerd B. Carson
James Wadsworth
Geoffrey Vantreight
Gary Van Norman
Dr. Stewart Jackson
Nu-Dawn Resources Inc - Quarterly Report - April 30, 1998
<PAGE>
NU-DAWN RESOURCES INC.
102 Piper Crescent
Nanaimo BC V9T 3G3
Tel: (250) 756-0291 Fax: (250) 756-0298
email: [email protected]
- --------------------------------------------------------------------------------
SCHEDULE "C"
FOR THE SECOND QUARTER ENDING APRIL 30, 1998
June 22, 1998
The Directors of Nu-Dawn Resources Inc. report on the Company's affairs for the
second quarter of 1998.
Over the last six months, the management of Nu-Dawn Resources Inc. has
concentrated its efforts on two projects: the Abitibi chrysotile/magnesium
project in Northwestern Quebec, Canada and the gold/base metal project in Costa
Rica.
Chrysotile / Magnesium Project
The Abitibi project is a 150 million ton proven chrysotile fibre deposit, a
deposit which also contains 34% magnesium. With the environmentally conscious
world of the 21st Century, the demand for lighter weight automobiles and
machines makes magnesium the wonder metal of the future. The future demand for
magnesium is forecast to be sufficient to warrant a new producer as large as
Abitibi's project every year. Management is in discussions with major mining
companies to join Nu-Dawn in developing this mega project.
Costa Rica
Nu-Dawn Resources Inc. has entered into an agreement with Minera Oceanica S.A.
and an Indian Mining Co- op in concessions covering 60 square kilometers with a
potential for huge gold/ base metal deposits. Recently, the Company has been in
discussion with the newly elected Costa Rican Government regarding the permits
for further exploration of these concessions. Several Canadian mining companies
have teamed up with the Canadian Embassy to prepare a brief to be presented to
the President of Costa Rica next month. After this meeting, we anticipate
constructive meetings will be held with the Mine's Department.
Progress reports will be issued on these projects as warranted.
ON BEHALF OF THE BOARD
NU-DAWN RESOURCES INC.
per:
(Signed) Raynerd B. Carson
--------------------------
Raynerd B. Carson, President
<PAGE>
NU-DAWN RESOURCES INC.
SECOND QUARTER REPORT
FINANCIAL STATEMENTS
SIX MONTHS ENDED APRIL 30, 1998
PREPARED BY MANAGEMENT .... UNAUDITED
<PAGE>
SCHEDULE "A"
NU-DAWN RESOURCES INC.
SECOND QUARTER REPORT
FINANCIAL STATEMENTS
SIX MONTHS ENDED APRIL 30, 1998
CONTENTS PAGE
-------- ----
BALANCE SHEET 1
STATEMENT OF LOSS AND DEFICIT 2
STATEMENT OF CHANGES IN FINANCIAL POSITION 3
SCHEDULE OF CHANGES IN RESOURCE PROPERTIES 4
NOTES TO FINANCIAL STATEMENTS: 5
- Note 1. Fixed Assets and Deferred Costs 5
- Note 2. Resource Properties 5
- Note 3. Description of Resource Properties 5-6
- Note 4. Long-Term Debt 6
- Note 5. Related Party Transactions 7
- Note 6. Capital Stock 7
- Note 7. Warrants & Options 7-8
- Note 8. Future Operations 8
- Note 9. Comparative Figures 8
PREPARED BY MANAGEMENT -- UNAUDITED
Nu-Dawn Resources Inc - Quarterly Report - April 30, 1998
<PAGE>
NU-DAWN RESOURCES INC.
BALANCE SHEET
for six month period ending April 30, 1998
6 month period 6 month period
ASSETS ended 4/30/98 ended 4/30/97
- ------ ------------- -------------
CASH 106,618 22,608
ACCOUNTS RECEIVABLE 2,086 8,627
DUE FROM RELATED 2,500 488
---------- ----------
111,204 31,723
FIXED ASSETS AND DEFERRED COSTS 1,764,243 2,600,520
(NOTE 1)
RESOURCE PROPERTIES 457,098 1,034,532
---------- ----------
(NOTE 2)
TOTAL ASSETS 2,332,545 3,666,775
========== ==========
LIABILITIES
- -----------
ACCOUNTS PAYABLE 189,875 127,419
LOAN 143,389 0
DUE TO RELATED PARTIES (NOTE 5) (11,641) 33,234
DEFERRED REVENUE 4,952 4,952
---------- ----------
326,575 165,605
LONG TERM DEBT (NOTE 4) 50,000 50,000
---------- ----------
TOTAL LIABILITIES 376,575 215,605
========== ==========
SHAREHOLDERS' EQUITY
CAPITAL STOCK (NOTE 6)
- ----------------------
AUTHORIZED: 50,000 Common Shares no par value
ISSUED: 27,823,270 shares (at 4/30/98) 6,164,874 5,919,823
Advance on Exercise of Warrants 0 0
DEFICIT (PAGE 2) (4,208,904) (2,468,653)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 1,955,970 3,451,170
---------- ----------
TOTAL LIABILITIES AND EQUITY 2,332,545 3,666,775
========== ==========
Page 1
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NU-DAWN RESOURCES INC.
STATEMENT OF LOSS AND DEFICIT
for six month period ending April 30, 1998
6 month period 6 month period
ended 4/30/98 ended 4/30/97
------------- -------------
REVENUE
Revenue 13,157 0
Interest & Sundry Revenue 35 89
---------- ----------
13,192 89
- --------------------------------------------------------------------------------
EXPENSES
Office Administration 6,522 3,215
Professional Fees 757 65,341
Management Fees 0 0
Consulting Fees 12,700 15,150
Regulatory & Transfer Fees 7,898 7,728
Rent 6,000 10,160
Travel & Promotion 6,167 7,838
Wages & Payroll Expense 5,623 20,991
Office Equipment & Rental 778 5,215
Telephone, Fax & Courier 3,699 8,097
Printing & Distribution 1,693 7,336
Interest & Bank Charges 4,155 3,951
Computer & Internet 2,887 3,904
Asbestos Project 10,453 --
Costa Rica - Projects 14,334 68,818
Pan-Oro Project 508 700
Saskatchewan 0 610
Salmo Operations 17,483 47,376
---------- ----------
(101,657) (276,429)
Invested Resource Properties 25,295 114,517
- --------------------------------------------------------------------------------
Net (Loss) for the period (63,170) (161,823)
Net (Deficit) - beginning of period (4,145,734) (2,306,830)
---------- ----------
Net (Deficit) - end of period (4,208,904) (2,468,653)
---------- ----------
Gain (Loss) per share for the period 0.00 (0.09)
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Page 2
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NU-DAWN RESOURCES INC.
STATEMENT OF CHANGES OF FINANCIAL POSITION
for six month period ending April 30, 1998
6 month period 6 month period
OPERATING ACTIVITIES ended 4/30/98 ended 4/30/97
------------- -------------
Net (Loss) for the Period (63,170) (161,823)
Change in Non-Cash Working Capital 372,122 11,860
-------- --------
308,952 (149,963)
- --------------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures Relative to Resource Properties (25,295) (114,517)
Payments on Fixed Assets & Deferred Costs 0 0
Sale of Fixed Assets 0 0
-------- --------
(25,295) (114,517)
- --------------------------------------------------------------------------------
FINANCING ACTIVITIES
Loan 143,389 0
Advances in Related Party Debt 0 40,155
Flow-Through Private Placement 0 0
Private Placement 0 0
-------- --------
Capital Stock Issued 49,525 210,922
Advance on Exercise of Warrants 0 0
192,914 251,077
- --------------------------------------------------------------------------------
Increase (Decrease) in cash - during period 90,743 (13,430)
Cash Position - beginning of period 15,875 36,011
-------- --------
Cash Position - end of period 106,618 22,608
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Page 3
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<TABLE>
<CAPTION>
NU-DAWN RESOURCES INC.
SCHEDULE OF CHANGES IN RESOURCE PROPERTIES
October 31, 1997 to April 30, 1998
- -----------------------------------------------------------------------------------------------------------------
Prince Albert Guanacaste Pan-Oro Asbestos Claims Totals
<S> <C> <C> <C> <C> <C>
Balance, October 31, 1997 $ 55,788 $328,475 $ 37,517 $ 10,023 $431,803
- -----------------------------------------------------------------------------------------------------------------
Consulting -- 40 -- -- 40
Geological Consulting -- -- -- 162 162
Travel -- 3,740 282 291 4,313
Exploration -- 10,067 -- -- 10,067
Option Payments -- -- -- 10,000 10,000
Permits & Fees -- -- -- -- --
Field Crew -- -- -- -- --
Vehicle Expense -- -- -- -- --
Fuel -- -- -- -- --
Repairs -- -- -- -- --
Misc -- 487 226 -- 713
- -----------------------------------------------------------------------------------------------------------------
Balance, April 30, 1998 $ 55,788 $342,809 $ 38,025 $ 20,476 $457,098
=================================================================================================================
Page 4
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. FIXED ASSETS AND DEFERRED COST
H B Mill - 15 year straight- line basis,
commencing on the start of production
Office Equipment - 20% declining balance basis
Motor Vehicles - 20% declining balance basis
- --------------------------------------------------------------------------------
FIXED ASSETS Cost Acc Dep *NBV 1997 *NBV 1996
- --------------------------------------------------------------------------------
H B Mill and freehold land $1,757,855 -- $1,757,855 $2,592,535
Office Equipment 9,803 6,345 3,458 4,323
Motor Vehicles 17,219 14,289 2,930 3,662
================================================================================
$1,784,877 20,634 $1,764,243 $2,600,520
================================================================================
Costs capitalized to the H.B. Mill totalled $15,759 (1996 - $14,013) for the
year. Costs capitalized include property taxes and general maintenance costs,
net of equipment sales. During the year ended October 31, 1997 the Company
recorded a write down of $860,439 to adjust the carrying value of this asset to
management's best estimate of the net recoverable amount.
2. RESOURCE PROPERTIES
Acquisition costs of resource properties together with direct exploration and
development expenditures thereon are deferred in the accounts. When production
is attained these costs will be amortized. When deferred expenditures on
individual producing properties exceed the estimated net realizable value, the
properties are written down to the estimated value. Costs relating to properties
abandoned are written-off when the decision to abandon is made.
RESOURCE PROPERTIES 4/31/98 1997 1996
- --------------------------------------------------------------------------------
GOODENOUGH & YMIR -- -- 175,012
TRITON -- -- 285,136
PRINCE ALBERT 55,788 55,788 242,160
GUANACASTE (MINA MARIO) 342,809 328,475 168,753
SUKUT -- -- 15,049
PAN-ORO 38,025 37,517 33,905
ASBESTOS CLAIMS 20,476 -- --
================================================================================
TOTALS $457,098 $431,803 $920,015
================================================================================
3. DESCRIPTION OF RESOURCE PROPERTIES
(a) Goodenough and Ymir, British Columbia
The Company has a 100% interest in certain mineral claims located in the Nelson
Mining Division, British Columbia, subject to a 15% net profit interest, and has
freehold title to the land. During the year ended October 31, 1997, the Company
wrote down the balance of its interest in this resource property.
(b) Triton, Ontario
The Company has a 50% interest in certain mineral claims located in MacMurchy
Township of the Larder Lake Mining Division, Ontario. A third party has agreed
to maintain the good standing of the mineral claims. During the year ended
October 31, 1997, the Company wrote down the balance of its interest in this
property.
Page 5
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(c) Prince Albert, Saskatchewan
The Company has entered into an option agreement to acquire a 100% interest,
subject to a 5% net profit royalty, in certain mineral claims in the Prince
Albert Mining District, Saskatchewan. To maintain its interest in the agreement,
the Company is required to pay $2,000 annually for ten years to July 2003.
The Company had a 100% interest in certain mineral exploration permits issued by
Saskatchewan Energy and Mines in the Southern Mining district of Saskatchewan.
During the year, the Company allowed the permits to lapse and wrote off the
investment in those permits. The remaining balance of $55,788 represents the
Company's interest in the option in the Prince Albert Mining District.
(d) Mina Mario Project-Guanacaste, Costa Rica
Pursuant to an option agreement dated October 23, 1995, and amended February 27,
1996, between the Company and Minera Oceanica, S.A., the Company acquired an
option for the mineral and surface rights on Concession 6622 situated in the
Central Gold Belt in the Juntas de Abangores District of Guanacaste Province in
Costa Rica, subject to a 10% royalty in favor of Minera Oceanica, S.A. on
operating profits derived from the property, or US$100,000 per year, whichever
is the greatest. Finder's fees in the amount of $22,500 have been included in
resource properties.
(e ) Pan-Oro, Panama
During 1995, the Company entered into a Letter of Agreement with Grande Portage
Resources Ltd. to enter into a joint-venture agreement to develop mineral
concessions in north-western Panama. The agreement has not yet been concluded
and regulatory approval remains outstanding. The Company has a 90% ownership
interest in Pan-Oro S.A., a Panamanian corporation. Resource properties include
$21,000 in costs charged by Pan-Oro S.A.
(f) Sukut Project-Limon, Costa Rica
The Company entered into an agreement dated April 24, 1996 for the mineral
exploration permit (ID# 6200) over an area of eighteen square kilometres within
the Bri Bri Indian Reservation situated in the Province of Limon, County of
Talamance, District of Bratsi. There has been a moratorium placed on any mining
activity by the Asamblea Legislativa de Costa Rica. During the year the permit
was withdrawn from the optionor by the Costa Rican authorities. Therefore, the
Company has written down its interest in this property.
(g) Asbestos Claims, Quebec
The Company entered into an option agreement dated October 8, 1997 with Vant
Resources Inc. for the Asbestos "A" claims in Maizerets, Quebec and the
Exploration Claims in Soissons, Quebec. In order to exercise the option, the
Company must pay the optionor an aggregate of $1,070,000 as follows:
1. $10,000 on execution of this Agreement (paid);
2. $10,000 on or before March 15, 1998;
3. $50,000 on or before September 15, 1998; and
4. $1,000,000 on or before September 15, 1999.
After the Company has recovered all its preproduction expenditures on the
property it shall pay to the optionor a royalty equal to 5% of the net profits
arising from commercial production. At any time after the commencement of
commercial production, the optionor can surrender its royalty to the Company in
consideration of shares of the Company with a market value of $500,000 at the
date of surrender.
4. LONG-TERM DEBT
This amount is unsecured, non-interest bearing, and will be repaid at a rate of
10% of the net profits of the H B Mill at the time it goes into production.
Page 6
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5. RELATED PARTY TRANSACTIONS
At Beginning of Period (13,418)
- --------------------------------------------------------------------------------
Dydar Resources Ltd. - Incurred as Loans 0
- --------------------------------------------------------------------------------
Dydar Resources Ltd. - Incurred as Services (1,777)
================================================================================
At End of Period January 31, 1998 (11,641)
- --------------------------------------------------------------------------------
(b) Administrative consulting fees paid to director totaled $ 5,060.00 for
period October 31, 1997 to April 30, 1998
6. CAPITAL STOCK
(A) The changes in capital stock during this period are recorded as follows:
<TABLE>
<CAPTION>
April 30, 1998 April 30, 1997
-------------------------- ---------------------------
ISSUED:
# of shares Amount # of shares Amount
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
At Beginning of Period 27,493,104 $6,115,349 25,134,993 $5,708,900
- ----------------------------------------------------------------------------------------------------------------------
Debt settlement pursuant to exercise of option 0 0 0 210,922
- ----------------------------------------------------------------------------------------------------------------------
Private Placement 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------
Flow-through private placement 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------
For cash pursuant to exercise of option 330,166 49,525 0 0
======================================================================================================================
Issued at end of period 27,823,270 6,164,874 26,189,603 $5,919,823
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
(B) Outstanding at this period end:
AUTHORIZED ISSUED
- --------------------------------------------- ----------------------------
CLASS PAR VALUE NUMBER NUMBER VALUE
- --------------------------------------------------------------------------------
Common NPV 50,000,000 27,823,270 $6,164,874
- --------------------------------------------------------------------------------
7. WARRANTS & OPTIONS
(A) As of April 30, 1998
(i) Issued 500,000 non-transferable share purchase warrants pursuant to a
private placement agreement dated May 29, 1996, were issued at a price of
$0.50 per share. Each unit consisting of one common share and one
non-transferable share purchase warrant entitling the holder to purchase an
additional common share for a period of two years at a price of $0.50 per
share during the first year and $0.60 per share during the second
(ii) Pursuant to a private placement agreement dated April 29, 1997, 1,000,000
non-transferable shares were issued at a price of $0.15 per share with
non-transferable share purchase warrants to purchase 1,000,000 shares at
$0.15 per share for a one year period and $0.18 per share in the second
year. As at October 31, 1997, 696,499 of the share purchase warrants
remained unexercised. April 15, 1998, 330,166 share purchase warrants were
issued for cash pursuant to exercise of option.
Page 7
<PAGE>
(B) Stock Options outstanding to directors and employees at April 30, 1998 :
Number of Shares Exercise Price Expiry Date
---------------- -------------- -----------
1,200,000 $0.15 August 20,2002
100,000 $0.15 July 15, 2001
100,000 $0.15 October 8, 2002
INSIDER REPORT (as of January 31, 1998):
(i) 10,588,441 common shares held by Curitiba S.A.
(ii) 1,668,500 common shares held by a director of the Company
(iii) 116,000 common shares held by a director of the Company
(iii) 612,500 common shares held by a director of the Company
(C) Shares in Escrow : 412,500 common shares
(D) List of directors as at April 30, 1998:
Raynerd B. Carson Geoffrey Vantreight
James Wadsworth Dr. Stewart A. Jackson
Gary Van Norman
8. FUTURE OPERATIONS
These financial statements have been prepared with integrity and on the going
concern bass of accounting. The company is currently operating at a loss and has
an accumulated deficit of $4,208,904. The company's movements toward
streamlining its methods of operation and management have shown to be a positive
effort and in foresight will prove beneficial in every related aspect.
9. COMPARATIVES FIGURES
Certain figures have been accentuated, reclassified, or integrated to conform to
the current quarter's presentation of this financial statement. The information
released in this report is accurate and congruent with proper accounting
records.
Page 8
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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, thereto duly authorized.
NU-DAWN RESOURCES INC.
By: /s/ Raynerd B. Carson
---------------------------------
Raynerd B Carson, President
Date: June 30 , 1998
