Marlowe Regulatory News (MRL)

3 May 2005 06:00

Medoro Resources Announces 2004 Year-end Results TORONTO, May 2 /CNW/ - Medoro Resources Ltd. (TSX-V/AIM:MRL) announcedtoday its 2004 year-end results for the periods ending December 31, 2004.Medoro was formed following the business combination between Full RichesInvestments Limited and a wholly-owned subsidiary of Gold Mines of Sardinia,plc. For the year ended December 31, 2004, Medoro reported a loss of$9.9 million or $0.14 per share as compared to a loss of $0.3 million or $0.07per share in the previous period. The 2004 results largely reflects the losson disposal of the majority of the Gold Mines of Sardinia assets. On October 20, 2004, the company announced the completion of the sale ofmost of its assets in Sardegna to Sargold Resource Corporation for a total of(euro) 6 million plus $1 million in Sargold shares payable over a period of60 months. With this sale, Medoro significantly improved its financialposition, ending the year with cash of $2.4 million, receivables of$10.6 million and no debt. Subsequent to the end of the year, Medoro alsocompleted two private placements for gross proceeds of $4.9 million. With these transactions, Medoro has completed its transformation from anunder-funded, marginally profitable former gold producer to a well-fundedjunior explorer. At Monte Ollasteddu, Gold Fields has completed a geophysicalsurvey to follow up on last year's drilling results and help better identifytargets for this year's program, which is expected to commence as soon asnecessary approvals are obtained. The company continues to seek a jointventure partner for its Pestarena project and is actively pursuing otheropportunities elsewhere in Europe. Financial Statements follow MEDORO RESOURCES LTD. (formerly Full Riches Investments Ltd.) Consolidated Balance Sheets (Expressed in Canadian dollars) ------------------------------------------------------------------------- December 31, October 31, 2004 2003 -------------- -------------- ASSETS CURRENT Cash and cash equivalents $ 2,448,813 $ 3,221,339 Accounts receivable 75,981 9,468 Promissory note (Note 5 (b)) - 50,000 Prepaid and deposits - 1,973 Current portion of note receivable (Note 5 (a)) 747,908 - ------------------------------------------------------------------------- 3,272,702 3,282,780 LOAN RECEIVABLE (Note 3) - 662,925 NOTE AND SHARES RECEIVABLE (Note 5 (a)) 5,882,880 - MINERAL PROPERTIES (Note 6) 5,979,873 - ------------------------------------------------------------------------- $ 15,135,455 $ 3,945,705 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES CURRENT Accounts payable and accrued liabilities $ 401,534 $ 97,762 FUTURE INCOME TAXES (Note 8) 2,130,031 - ------------------------------------------------------------------------- 2,531,565 97,762 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital (Note 7) 29,161,976 6,706,001 Contributed surplus (Note 7) 584,622 - Shares to be issued (Note 3 (e)) - 15,000 Special warrants (Note 3 (b)) - 2,490,905 Subscriptions received (Note 3 (b)) - 1,255,000 Deficit (17,142,708) (6,618,963) ------------------------------------------------------------------------- 12,603,890 3,847,943 ------------------------------------------------------------------------- $ 15,135,455 $ 3,945,705 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MEDORO RESOURCES LTD. (formerly Full Riches Investments Ltd.) Consolidated Statements of Operations and Deficit (Expressed in Canadian dollars) Fourteen months ended Year ended December 31, December 31, 2004 2003 -------------- -------------- OPERATING EXPENSES Amortization $ - $ 97 Bank charges and interest 5,730 5,824 Bridge financing fee - 15,000 Consulting fees 922,425 65,419 Director fees 119,409 - Insurance - 8,000 Investor relations, transfer agent and filing fees 168,921 10,774 Legal and accounting 537,145 68,139 Office 22,330 9,249 Rent 4,000 10,560 Stock-based compensation 160,269 - Telephone 2,080 508 Travel and promotion 527,348 4,935 ------------------------------------------------------------------------- 2,469,657 198,505 ------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Accreted interest on note receivable 162,593 - Foreign exchange gain (loss) 208,575 (2,850) Interest income 44,846 6,516 Loss on disposal of capital assets - (1,844) Other income 3,805 - ------------------------------------------------------------------------- 419,819 1,822 ------------------------------------------------------------------------- NET LOSS FROM CONTINUING OPERATIONS (2,049,838) (196,683) NET LOSS FROM DISCONTINUED OPERATIONS (Note 5) (8,228,907) (150,000) ------------------------------------------------------------------------- NET LOSS FOR THE PERIOD (10,278,745) (346,683) ------------------------------------------------------------------------- DEFICIT, BEGINNING OF PERIOD (6,618,963) (6,272,280) CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING POLICY (Note 2(i)) (245,000) - ------------------------------------------------------------------------- ADJUSTED OPENING BALANCE (6,863,963) (6,272,280) ------------------------------------------------------------------------- DEFICIT, END OF PERIOD $ (17,142,708) $ (6,618,963) ------------------------------------------------------------------------- ------------------------------------------------------------------------- LOSS PER SHARE FROM CONTINUING OPERATIONS $ (0.03) $ (0.03) ------------------------------------------------------------------------- ------------------------------------------------------------------------- LOSS PER SHARE FROM DISCONTINUED OPERATIONS $ (0.12) $ (0.03) ------------------------------------------------------------------------- ------------------------------------------------------------------------- BASIC AND DILUTED LOSS PER SHARE $ (0.15) $ (0.06) ------------------------------------------------------------------------- ------------------------------------------------------------------------- BASIC AND DILUTED WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 68,590,779 5,935,925 ------------------------------------------------------------------------- ------------------------------------------------------------------------- See accompanying Notes to the Consolidated Financial Statements. MEDORO RESOURCES LTD. (formerly Full Riches Investments Ltd.) Consolidated Statements of Cash Flows (Expressed in Canadian dollars) Fourteen months ended Year ended December 31, December 31, 2004 2003 -------------- -------------- OPERATING ACTIVITIES Net loss from continuing operations $ (2,049,838) $ (196,683) Items not affecting cash: Loss on disposal of capital assets - 1,844 Amortization - 97 Stock compensation expense 160,269 - Foreign exchange (gain) loss on note receivable (208,575) 2,850 Accreted interest on note receivable (162,593) - Bridge financing fee - 15,000 ------------------------------------------------------------------------- (2,260,737) (176,892) Changes in non-cash working capital items Accounts receivable (66,513) (8,107) Prepaid and deposits 1,973 2,465 Accounts payable and accrued liabilities 303,772 80,414 ------------------------------------------------------------------------- (2,021,505) (102,120) ------------------------------------------------------------------------- INVESTING ACTIVITIES Acquisition of mineral properties (Note 4) (1,006,042) - Proceeds on disposition of subsidiary, net (Note 5 (a)) 763,130 - Repayment of promissory note 50,000 - Advances to Gold Mines of Sardinia plc - (662,925) ------------------------------------------------------------------------- (192,912) (662,925) ------------------------------------------------------------------------- FINANCING ACTIVITIES Issuance of common shares for cash 7,528,485 - Proceeds from bridge financing - 660,900 Repayment of bridge financing - (660,900) Issuance of special warrants - 2,490,905 Issuance of subscriptions receipts - 1,255,000 ------------------------------------------------------------------------- 7,528,485 3,745,905 ------------------------------------------------------------------------- NET INCREASE IN CASH FROM CONTINUING OPERATIONS 5,314,068 2,980,860 NET DECREASE IN CASH FROM DISCONTINUED OPERATIONS (Note 5 (a)) (6,086,594) - CASH, BEGINNING OF PERIOD 3,221,339 240,479 ------------------------------------------------------------------------- CASH, END OF PERIOD $ 2,448,813 $ 3,221,339 ------------------------------------------------------------------------- ------------------------------------------------------------------------- See accompanying Notes to the Consolidated Financial Statements. MEDORO RESOURCES LTD. (formerly Full Riches Investments Ltd.) Consolidated Statements of Cash Flows (Expressed in Canadian dollars) SUPPLEMENTAL CASH FLOW INFORMATION Fourteen months ended Year ended December 31, December 31, 2004 2003 -------------- -------------- Interest paid $ - $ 5,070 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The following transactions are not reflected in the consolidated statement of cash flows: During the fourteen month period ended December 31, 2004: (i) 44,171,118 common shares, 5,793,918 share purchase warrants and 1,182,888 share purchase options with a value of $8,895,626 were issued in connection with the acquisition of Sardinia Gold Mining SpA (Note 3). (ii) 4,000,000 common shares with a value of $2,200,000 were issued in connection with the acquisition of Miniere di Pestarena srl (Note 4). (iii) 1,000,000 common shares with a value of $180,000 were issued in consideration for services provided in connection with the sale of GMS Australia (Note 5 (a)). (iv) 140,624 common shares with a value of $70,312 as payment for certain liabilities. (v) 75,000 common shares with a value of $15,000 as consideration for a bridge facility (Note 3 (c)). (vi) The Company received a long-term note, payable in cash and shares, with a discounted value of $6,630,788 as consideration on the sale of GMS Australia (Note 5 (a)). See accompanying Notes to the Consolidated Financial Statements. For further information: Peter Volk, Assistant Secretary,(416) 603-4653, info(at)medororesources.com (MRL) ENDMEDORO RESOURCES LTD