3rd Quarter Results
Medoro Announces 2007 Third Quarter Results
TORONTO, Nov. 20 /CNW/ - Medoro Resources Ltd. (TSX-V: MRS/AIM: MRL)
announced today results for the three and nine-month periods ended
September 30, 2007. For the quarter, Medoro reported a net loss of
$0.6 million or $0.01 per share as compared to a loss of $0.2 million or $0.00
per share in the third quarter of last year. For the nine months ended
September 30, 2007 the company reported a loss of $2.6 million or $0.05 per
share as compared to a loss of $1.2 million or $0.04 per share in the same
period last year.
The 2007 loss in the quarter largely reflects general and administrative
costs of $0.9 million to support the increased exploration activities compared
to the previous year. At September 30, 2007 the company had cash and
short-term investments of $2.4 million and no debt. Included at page 4 of the
management's discussion and analysis for the third quarter ended September 30,
2007 is disclosure with respect to the company's 2006 acquisition of Panwest
Seas Corporation Ltd. pursuant to which the company acquired rights to the
Lo Increible 4A and 4B properties and information regarding the historical
exploration done on the properties prior to their acquisition by the company.
The company is continuing its diamond drilling program at the La Cruz,
La Sofia and El Tapon prospects in Venezuela, which will provide the basis for
reclassifying the existing historical resources and identifying additional
resources. The company has also completed a geochemical sampling program that
allowed it to start drilling new target areas within the properties using a
recently contracted third drilling rig. As previously announced on
September 17, 2007, the company has acquired nine properties in Mali and plans
to commence a drill program there in the fourth quarter of this year.
The company also announced that it intends to raise approximately
$2.3 million through the sale of up to 3.5 million units on a private
placement basis, and is continuing to look at additional options to raise
equity.
Each unit will be offered at a price of $0.68 per unit and will consist
of one common share of the company and one common share purchase warrant, with
each whole warrant being exercisable for a period of 24 months from the
closing date at an exercise price of $1.00.
The funds will be used for general corporate and working capital
purposes, which may include costs associated with the identification of
potential acquisitions.
The financing is subject to regulatory approval. The Company intends to
apply to have the common shares issuable as part of the units and the common
shares issuable upon exercise of the warrants forming part of the units listed
on the TSX Venture Exchange and admitted to trading on the Alternative
Investment Market (AIM) of the London Stock Exchange plc.
The complete financial statements and management's discussion and
analysis for the third quarter ended September 30, 2007 are available on the
Company's website at www.medororesources.com and on SEDAR at www.sedar.com.
Medoro Resources is a gold exploration and development company focused on
acquiring properties of merit for potential joint ventures with senior
producers. The company holds a 100% interest in the Lo Increible 4A and 4B
concessions in Venezuela and interests in nine gold exploration areas in the
Republic of Mali. Additional information on the company can be found by
visiting the company's website at www.medororesources.com. Medoro's Nominated
Adviser for the purposes of AIM is Canaccord Adams Ltd. (Ryan Gaffney/Robin
Birchall), +44 (0) 20 7050 6500.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Medoro Resources Ltd.
Consolidated statements of operations, deficit and comprehensive loss
three and nine month periods ended September 30,
(Expressed in thousands of Canadian dollars, except share and per share
amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2007 2006 2007 2006
--------------------------------------------- ---------------------------
$ $ $ $
(restated- (restated-
note 2) note 2)
Operating expenses
General and
administrative
(Schedule) 862 833 2,892 2,256
Stock-based
compensation
(Note 5) 123 1,316 156 1,316
--------------------------------------------- ---------------------------
985 2,149 3,048 3,572
--------------------------------------------- ---------------------------
Other income
Accreted interest
on note and shares
receivable - - - 34
Foreign exchange
gain 310 348 204 451
Interest income 1 26 5 156
Other income 51 144 256 260
Gain on sale of
investments - 1,464 - 1,464
--------------------------------------------- ---------------------------
362 1,982 465 2,365
--------------------------------------------- ---------------------------
Net loss and
comprehensive loss
for the period (623) (167) (2,583) (1,207)
Deficit, beginning
of period (32,222) (29,205) (30,262) (28,165)
--------------------------------------------- ---------------------------
Deficit, end of
period (32,845) (29,372) (32,845) (29,372)
--------------------------------------------- ---------------------------
--------------------------------------------- ---------------------------
Basic and diluted
loss per share (0.01) (0.00) (0.05) (0.04)
--------------------------------------------- ---------------------------
--------------------------------------------- ---------------------------
Basic and diluted
weighted average
number of common
shares outstanding 50,359,118 47,262,869 49,730,746 34,124,672
--------------------------------------------- ---------------------------
--------------------------------------------- ---------------------------
Medoro Resources Ltd.
Consolidated balance sheets
(Expressed in thousands of Canadian dollars)
(Unaudited)
September 30, December 31,
2007 2006
-------------------------------------------------------------------------
$ $
Assets
Current assets
Cash 647 910
Short-term investments 1,709 12,520
Prepaid and other assets 1,158 583
-------------------------------------------------------------------------
3,514 14,013
Property, plant and equipment, net (Note 4) 36,874 19,677
-------------------------------------------------------------------------
40,388 33,690
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 1,304 760
Future income taxes 11,189 5,759
-------------------------------------------------------------------------
12,493 6,519
-------------------------------------------------------------------------
Shareholders' equity
Share capital (Note 5) 56,825 53,663
Contributed surplus (Note 5) 3,915 3,770
Deficit (32,845) (30,262)
-------------------------------------------------------------------------
27,895 27,171
-------------------------------------------------------------------------
40,388 33,690
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Nature of operations (Note 1)
Medoro Resources Ltd.
Consolidated statements of cash flows three and nine month
periods ended September 30,
(Expressed in thousands of Canadian dollars)
(Unaudited) Three months Nine months
2007 2006 2007 2006
-------------------------------------------------------------------------
$ $ $ $
(restated- (restated-
note 2) note 2)
Operating activities
Net loss (623) (167) (2,583) (1,208)
Items not affecting
cash
Gain on sale
of investments - (1,464) - (1,464)
Depreciation 42 - 131 -
Stock-based
compensation 123 1,316 156 1,316
Foreign
exchange loss (451) - (960) -
Accreted
interest on
note and shares
receivable - - - (34)
Changes in
non-cash working
capital items
Accounts
receivable - 73 - (340)
Prepaid and
other assets (86) (116) (575) (116)
Accounts
payable and
accrued
liabilities 725 96 544 282
-------------------------------------------------------------------------
(270) (262) (3,287) (1,564)
-------------------------------------------------------------------------
Investing activities
Short-term
investments 3,253 (2,225) 10,811 (9,122)
Cash held in
escrow - 3,130 - -
Acquisition of
Panwest - (1,395) - (1,395)
Proceeds on sale
of Sardinia and
SGM Ricerche - 2,721 - 2,721
Acquisition of
African Gold
Resources S.A (2,461) - (3,269) -
Acquisition of
property, plant
and equipment (2,524) (899) (4,549) (1,414)
-------------------------------------------------------------------------
(1,732) 1,332 2,993 (9,210)
-------------------------------------------------------------------------
Financing activities
Subscription receipts
exchanged for
shares - (3,099) - -
Issuance of warrants - 1,057 - 1,057
Issuance of common
shares for cash 3 1,756 31 10,957
-------------------------------------------------------------------------
3 (286) 31 12,014
-------------------------------------------------------------------------
Net (decrease)
increase in cash (1,999) 784 (263) 1,240
Cash, beginning of
period 2,646 575 910 119
-------------------------------------------------------------------------
Cash, end of period 647 1,359 647 1,359
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SEE NOTE 7 FOR SUPPLEMENTAL CASH FLOW INFORMATION
Medoro Resources Ltd.
Notes to the consolidated financial statements
September 30, 2007
(tabular amounts expressed in thousands of Canadian dollars, except share
and per share amounts)
1. Nature of operations
The Company is currently engaged in the exploration and development
of mineral properties; as such, the Company is considered to be in
the development stage.
On May 24, 2006, the Company completed a share consolidation whereby
7 pre-consolidation shares were exchanged for 1 post-consolidation
share. All information related to common shares has been restated to
give effect to the share consolidation.
These financial statements have been prepared under the assumption
that the Company will be able to realize its assets and discharge its
liabilities in the normal course of business rather than through a
process of forced liquidation. Continued operations of the Company
are dependent on the Company's ability to receive continued financial
support, complete equity financings, and successfully acquire an
interest in assets or a business and the ability to generate
profitable operations in the future.
These financial statements have been reviewed by the Company's audit
committee and approved by its Board of Directors.
2. Basis of presentation
These unaudited interim financial statements have been prepared in
accordance with Canadian generally accepted accounting principles for
interim financial statements. Accordingly, they do not include all of
the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the
opinion of management, the accompanying financial information
reflects all adjustments, consisting primarily of normal recurring
adjustments, which are necessary for a fair presentation of results
for the interim periods. Operating results for the nine month period
ended September 30, 2007 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2007.
These interim consolidated financial statements follow the same
accounting policies as the audited consolidated financial statements
of the Company for the year ended December 31, 2006, except for the
new policies disclosed below. Accordingly, these interim consolidated
financial statements should be read in conjunction with the Company's
2006 annual audited consolidated financial statements and notes
thereto.
(i) Restatement of comparative figures
a) The comparative figures have been restated to reflect
adjustments that were recorded in the three month period
ended December 31, 2006 which relate to the three and nine
month periods ended September 30, 2006. The adjustments
include an increase to Stock based compensation of $686,637,
a $173,005 increase in property due to foreign exchange and
the expensing of general and administrative costs that were
capitalized to exploration costs of $149,518 for the three
months ended September 30, 2006 ($346,139 for the nine
months ended September 30, 2006). The adjustment to the
stock based compensation was a result of correcting the fair
value calculation of stock options that were granted during
the three months ended September 30, 2006. There is no
effect on the financial statements reported for the year
ended December 31, 2006. The effects of the restatement are
summarized below:
As at September 30,
2006
---------------------------
Balance sheet As reported As restated
($) ($)
Property Plant
and Equipment 16,608 16,632
Contributed Surplus 2,513 3,199
Deficit 28,514 29,373
For the period ended September 30, 2006
Three Nine
months months
--------------------------- ---------------------------
Statement of
operations and
deficit As reported As restated As reported As restated
($) ($) ($) ($)
General and
administrative 684 833 1,910 2,256
Stock based
compensation 630 1,316 630 1,316
Foreign exchange
gain (loss) 175 348 278 451
Net earnings (loss) 495 (167) (349) (1,208)
Deficit - beginning
of period 29,009 29,206 28,165 28,165
Deficit - end of
period 28,514 29,373 28,514 29,373
Earnings (Loss)
per share 0.01 (0.00) (0.01) (0.04)
Weighted average 51,469,808 34,124,672
Additionally the cash flow statement have been restated to
reflect the impact of the above changes and to remove a non cash
transaction for the purchase of Panwest for the issuance of
shares of $13,626,000 to the supplemental cash flow information
(note 7).
b) Comparative amounts have been reclassified to conform with
the current period's presentation.
(ii) Effective January 1, 2007, the Company adopted CICA Handbook
Section 1530, Comprehensive Income, CICA Handbook Section 3855,
Financial Instruments - Recognition and Measurement, CICA
Handbook Section 3861, Financial Instruments - Disclosure and
Presentation, CICA Handbook Section 3865, Hedges, and CICA
Handbook Section 3251, Equity. These accounting policy changes
were adopted on a prospective basis with no restatement of prior
period financial statements. The new standards and accounting
policy changes are as follows:
(a) Comprehensive income (Section 1530)
Comprehensive income is the change in shareholders' equity
during a period from transactions and other events and
circumstances from non-owner sources. In accordance with
this new standard, the Company now reports a statement of
comprehensive income and a new category, accumulated other
comprehensive income, in the shareholders' equity section of
the consolidated balance sheet. The components of this new
category may include unrealized gains and losses on
financial assets classified as available-for-sale, exchange
gains and losses arising from the translation of financial
statements of a self-sustaining foreign operation and the
effective portion of the changes in fair value of cash flow
hedging instruments.
During the nine month period ended September 30, 2007, there
were no changes in shareholders' equity that resulted from
the non-owner sources and consequently, the adoption of the
standard noted above had no effect on the presentation of
the Company's consolidated financial statements.
(b) Financial instruments - recognition and measurement
(CICA Handbook Section 3855) and disclosure and presentation
(CICA Handbook Section 3861)
In accordance with these new standards, the Company now
classifies all financial instruments as either held-for-
trading, available for sale, held-to-maturity, loans and
receivables or other financial liabilities. Financial
instruments classified as held-for-trading are measured at
fair value with unrealized gains and losses recognized in
operating results. Financial instruments classified as
available for sale are measured at fair value with
unrealized gains and losses recognized in other
comprehensive income. Financial instruments classified as
held-to-maturity, loans and receivables or other financial
liabilities are measured at amortized cost.
Upon adoption of these new standards, the Company has
designated its cash and short-term investments as
held-for-trading, which are measured at fair value. Accounts
payable and accrued liabilities and notes payable are
classified as other liabilities, which are measured at
amortized cost. As at September 30, 2007, the Company did
not have any financial assets classified as available for
sale and did not under take any hedging activities
therefore, the adoption of the standard noted above had no
effect on the presentation of the Company's consolidated
financial statements.
(c) Equity (CICA Section 3251)
The Company's adoption of CICA section 3251 resulted in
expanded disclosure of its components of shareholders'
equity.
3. 2006 Acquisition
On July 10, 2006, the Company acquired all of the issued and
outstanding shares of Panwest Seas Corporation Ltd. ("Panwest", (a
company incorporated in the British Virgin Islands), which holds the
right to the Lo Increible 4A and 4B exploration properties located in
the El Callao area of the State of Bolivar, Venezuela for $10,788,545
(including $276,645 in acquisition costs). In consideration for the
acquisition of Panwest, the Company issued 15,140,000 common shares,
paid $1,125,000 (US$1,000,000) in cash and also agreed to pay to the
sellers a royalty of US$15 per ounce of gold on all production from
the Lo Increible 4A and 4B mining properties. The properties are held
under mining contracts granted by Corporacion Venezolana de Guayana.
The common shares issued have been valued at a price of $0.62 per
common share, being the average closing price of the common shares of
the Company for the two days before, the day of, and two days after
the date of announcement of the acquisition agreement on June 12,
2006.
The business combination has been accounted for as a purchase
transaction with the Company as the acquirer of Panwest. The
allocation of the purchase price is based on the consideration paid
and the fair value of Panwest's net assets acquired.
Net assets acquired at fair values is as follows:
$
Mineral properties 16,346
Future income tax liability (5,557)
---------------------------------------------------------------------
10,789
---------------------------------------------------------------------
---------------------------------------------------------------------
Total consideration paid consists of the following:
Cash 1,125
Common shares 9,387
Acquisition costs 277
---------------------------------------------------------------------
10,789
---------------------------------------------------------------------
---------------------------------------------------------------------
4. Property, plant and equipment
a) Asset acquisition
On September 14, 2007 the Company exercised its option to acquire
all the issued and outstanding shares of African Gold Resources,
S.A, a Panamanian company, which holds the options to acquire
seven properties in Mali for $8,626,000 (including $307,564 in
acquisition costs). In consideration for the acquisition of
African Gold Resources, the Company paid $2,962,000 (US$2,810,000)
and issued 5,200,000 common shares.
The cash consideration consisted of $808,000 (US$720,000) paid on
April 23, 2007 for the option to acquire all of the issued and
outstanding shares of African Gold Resources S.A, and $2,154,000
(US$2,090,000) cash paid on the exercise of the option. The
Company will also assume African Gold's obligations under the
option arrangements it has entered into with the holders of the
properties, including cash payments totalling US$224,000 and a one
time payment of US$9.00 per ounce of measured gold resources and
US$4.00 per ounce of indicated gold resources. The agreement also
provides that if any of the individual properties contain an
aggregate of 500,000 ounces or more of measured and indicated gold
resources, then Gold Resources will receive a one-time payment of
US$6.00 per ounce of measured gold resources and US$4.00 per ounce
of indicated gold resources.
The common shares issued have been valued at a price of $0.60 per
common share, being the closing price on the day of the exercise
of the Company's option to acquire African Gold Resources S.A.
The total costs capitalized to Mineral Properties on the asset
acquisition were as follow:
$
Cash paid for the option to purchase African Gold
Resources S.A 808
Cash paid on the exercise of the option 2,154
Common shares issued 3,120
Acquisition costs 308
Future income tax liability 6,389
------------------------------------------------------------------
12,779
------------------------------------------------------------------
------------------------------------------------------------------
b) The following table summarizes the Company's property, plant and
equipment as at September 30, 2007 and December 31, 2006:
September 30, 2006
------------------------------------------------------------------
Accumulated Net book
Cost depreciation value
------------------------------------------------------------------
$ $ $
Mineral properties
Lo Increible A and B 22,369 - 22,369
Mali properties 13,620 - 13,620
Plant and equipment
Lo Increible A and B 622 171 451
Mali properties 431 431
Other 3 - 3
------------------------------------------------------------------
37,045 171 36,874
------------------------------------------------------------------
------------------------------------------------------------------
December 31, 2006
------------------------------------------------------------------
Accumulated Net book
Cost depreciation value
------------------------------------------------------------------
$ $ $
Mineral properties
Lo Increible A and B 19,180 - 19,180
Plant and equipment 558 61 497
------------------------------------------------------------------
19,738 61 19,677
------------------------------------------------------------------
------------------------------------------------------------------
During the nine months ended September 30, 2007, $65,751 of
depreciation of plant and equipment used in exploration activities
have been capitalized in mineral properties.
5. Share capital
(a) Common shares
Authorized: an unlimited number of common shares with no par
value
Issued and outstanding
Number of Contributed
shares Amount surplus
-----------------------------------------------------------------
$ $
Balance, December 31, 2005 17,816,425 34,111 587
Issued on acquisition of
Panwest (Note 3) 15,140,000 9,387 -
Private placement
(Note 5 (b)) 14,285,714 8,305 890
Private placement
(Note 5 (c)) 2,150,000 1,852 962
Exercise of stock options 7,142 8 (2)
Stock-based compensation - - 1,333
-----------------------------------------------------------------
Balance, December 31, 2006 49,399,281 53,663 3,770
Issued on acquisition of
African Gold Resources
(Note 4) 5,200,000 3,120
Exercise of stock options 70,000 42 (11)
Stock-based compensation - - 156
-----------------------------------------------------------------
Balance, September 30,
2007 54,669,281 56,825 3,915
-----------------------------------------------------------------
-----------------------------------------------------------------
(b) On February 28, 2006, the Company completed a private placement
of 14,285,714 common shares at $0.70 per share for net proceeds
of $9,195,045. In connection with the private placement, 857,143
agent compensation warrants were issued. Each agent compensation
warrant entitled the holder to purchase one common share of the
Company at a price of $0.70 per common share until August 28,
2007. All securities issued as part of this placement were
subject to a four-month hold. The agent compensation warrants
were fair valued using an option pricing model with the following
assumptions: no dividends are paid, a volatility of the Company's
share price of 140%, an expected life of the warrants of
18 months and an annual risk free rate of 3.96%.
(c) On July 21, 2006, the Company completed a private placement with
Gold Fields Ltd. of 2,150,000 units at a price of $1.40 for net
proceeds of $2,813,943. Each unit consisted of a share and
one-half of a warrant, with each whole warrant being exercisable
for two years at a price of $2.80. The warrants were fair valued
using an option pricing model with the following assumptions: no
dividends are paid, a volatility of the Company's share price of
134%, an expected life of the warrants of two years and an annual
risk free rate of 4.16%.
(d) Warrants
September 30, December 31,
2007 2006
-----------------------------------------------------------------
Weighted Weighted
average average
Number of exercise Number of exercise
warrants price warrants price
-----------------------------------------------------------------
$ $
Balance,
outstanding
beginning of
period 4,628,232 2.14 2,837,089 2.38
Issued on
private
placement - - 1,932,143 1.87
Warrants
expired during
the period (3,000,000) 1.40 (141,000) 3.92
-----------------------------------------------------------------
Balance, end
of period 1,628,232 1.76 4,628,232 2.14
-----------------------------------------------------------------
-----------------------------------------------------------------
The following table summarizes information concerning outstanding
and exercisable warrants at September 30, 2007:
Outstanding
and Exercise
exercisable price Expiry date
--------------------------------------------
$
553,232 4.90 December 17, 2008
1,075,000 2.80 May 8, 2008
--------------------------------------------
1,628,232
--------------------------------------------
--------------------------------------------
(e) Incentive stock option plan
The Company has an incentive stock option plan. Under the plan,
the exercise price of each option should not be less than the
discounted market price as defined in the policies of the TSX
Venture Exchange, and an option's maximum term is five years.
Options may be granted by the board of directors at any time, to
directors, senior officers or employees of the Company and
consultants to the Company or any of its designated affiliates,
who, by the nature of their position or duties are, in the
opinion of the board, upon recommendation of the Compensation
Committee, in a position to contribute to the success of the
Company.
A summary of the changes in the Company's incentive stock option
plan for the nine months ended September 30, 2007 and the year
ended December 31, 2006 are as follows:
September 30, December 31,
2007 2006
-----------------------------------------------------------------
Weighted Weighted
average average
exercise exercise
Options price Options price
-----------------------------------------------------------------
$ $
Outstanding,
beginning of
period 4,638,571 0.92 720,097 3.64
Options granted 257,000 0.73 3,970,000 0.52
Options
cancelled (40,714) 0.71 (44,384) 8.05
Options
exercised (70,000) 0.51 (7,142) 0.77
-----------------------------------------------------------------
Outstanding,
end of period 4,784,857 0.92 4,638,571 0.92
-----------------------------------------------------------------
-----------------------------------------------------------------
The following table summarizes information concerning outstanding
and exercisable options at September 30, 2007:
Options outstanding and exercisable
----------------------------------------
Weighted Weighted
average average
Number remaining exercise
outstanding life in years price
$
382,857 1.06 4.90
2,144 1.02 2.66
272,856 1.88 1.26
100,000 4.65 0.91
90,000 3.88 0.82
77,000 4.99 0.70
80,000 4.28 0.53
3,725,000 3.80 0.51
10,000 4.07 0.48
45,000 4.05 0.45
----------------------------------------
4,784,857 3.52 0.92
----------------------------------------
----------------------------------------
The fair value of options issued by the Company in 2007 and 2006
was determined using the Black-Scholes option pricing model using
the following weighted average assumptions:
September 30, December 31,
2007 2006
Weighted average risk-free rate 4.14% 4.10%
Dividend yield Nil Nil
Volatility factor of the expected
market price of the Company's shares 194% 110%
Average expected option life - years 2.5 2.5
Weighted average grant date fair value
per share of options issued during
the period $0.56 $0.34
6. Related party transactions
During the nine month periods ended September 30, 2007 and 2006, the
Company paid the following amounts to related parties:
(a) Consulting fees of $ nil (2006 - $50,058) to a company in which a
director of the Company is an officer; and
(b) Consulting fees of $283,652 (2006 - $337,637) to directors of the
Company.
(c) The Company paid $14,060 (2006 - $Nil) to a related party
controlled by three directors of the Company in respect of its
office lease in Caracas, Venezuela.
These transactions are in the normal course of operations and are
measured at the exchange amounts, which is the amount of
consideration established and agreed to by the related parties.
7. Supplemental cash flow information
Three Months ended Nine months ended
2007 2006 2007 2006
---------------------------------------------------------------------
a) Interest paid $ - $ - $ - $ -
Income taxes
paid - - - -
b) Non-cash
transactions
Acquisition
of Panwest
(note 3) (13,626) (13,626)
Acquisition
of African
Gold Resources
S.A (note 4) (9,509) (9,509)
Issue of
common shares 3,120 13,626 3,432 13,626
Increase in
future tax
liability 6,389 6,389
8. Segmented information
(a) The Company currently operates in one reportable operating
segment, being the acquisition and exploration of mineral
properties.
(b) As at September 30, 2007 the Company's mineral properties are in
Venezuela and Mali. As at September 30, 2006 all of the Company's
mineral properties were in Venezuela. During the year ended
December 31, 2006, the Company disposed of all its properties in
Italy. The Company's assets and results of operations by
geographic areas are as follows:
As at September 30, 2007
-------------------------------------------------------------------------
Venezuela Mali Canada Total
-------------------------------------------------------------------------
Property, plant and
equipment $ 22,820 $ 14,051 $ 3 $ 36,874
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total assets $ 23,922 $ 14,366 $ 2,100 $ 40,388
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months ended
September 30, 2007
-------------------------------------------------------------------------
Venezuela Mali Canada Total
-------------------------------------------------------------------------
General and
administrative
expenses $ 191 $ 101 $ 570 $ 862
Stock based
compensation - - 123 123
Other income (loss) 785 17 (440) 362
-------------------------------------------------------------------------
Net earnings (loss) $ 594 $ (84) $ (1,133) $ (623)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Capital Expenditures
net of non-cash
transactions $ 1,557 $ 3,428 $ - $ 4,985
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Nine months ended
September 30, 2007
-------------------------------------------------------------------------
Venezuela Mali Canada Total
-------------------------------------------------------------------------
General and
administrative
expenses $ 600 $ 101 $ 2,191 $ 2,892
Stock based
compensation - - 156 156
Other income (loss) 1,346 17 (898) 465
-------------------------------------------------------------------------
Net earnings (loss) $ 746 $ (84) $ (3,245) $ (2,583)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Capital Expenditures
net of non-cash
transactions $ 3,276 $ 4,542 $ - $ 7,818
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Medoro Resources Ltd.
Consolidated schedules of general and administrative expenses
three and nine month periods ended September 30,
(Expressed in thousands of Canadian dollars)
(Unaudited)
Three months Nine months
2007 2006 2007 2006
----------------------------------------------- -------------------------
$ $ $ $
(restated- (restated-
note 2) note 2)
General and
administrative
Office and
administration 321 221 742 623
Consulting fees 261 362 997 642
Director fees 20 22 63 53
Investor relations,
transfer agent and
filing fees 25 65 125 295
Legal and accounting fees 72 89 272 254
Salaries and benefits 121 78 443 245
Travel and promotion 19 (22) 172 114
Depreciation 21 17 65 26
Bank charges and interest 2 1 13 4
----------------------------------------------- -------------------------
862 833 2,892 2,256
----------------------------------------------- -------------------------
----------------------------------------------- -------------------------
For further information: Nelson Lee, Chief Financial Officer, (416) 603-4653,
nlee(at)medororesources.com
(MRL)
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