Yumy Candy Co. Inc (YUMFF)

[gharma]

financial report to July 31 released
https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=111179
From page 6

OUTLOOK  
 The Company’s principal asset, the Nixon Fork Gold Mine, has been placed on care and  
 maintenance. This means that the company has no source of operational revenue to fund ongoing  
 operations. The Company is currently in default of its obligations under the Loan Agreement with  
 Waterton Global Value, L.P. Waterton has the right under the Loan Agreement to force the  
 surrender of all or substantially all of its assets, which are primarily the shares of Mystery Creek  
 Resources Inc. This wholly owned subsidiary of the Company holds the Nixon Fork Gold Mine,  
 which constitutes all or substantially all of the assets of the Company. The Company is actively  
 seeking financial options to repay the principal amounts due under the Loan Agreement but as of  
 the date of these statements, no viable options have been identified. As it is in the best interest of  
 the Company and Waterton, Waterton has been supportive of these efforts and delayed exercising  
 its right to seize the assets of the Company and has provided the necessary funds for placing the  
 mine on care and maintenance. However, there is no guarantee that Waterton will continue to  
 forbear on its rights under the Loan Agreement to seize the assets or continue to provide any  
 further funds.  
 The corporate office of the Company has been reduced to a minimal operational status with only  
 the CEO and CFO remaining and the only substantial remaining cost being the office lease. For  
 the Company to continue, the annual audit and year-end financial statements will need to be  
 completed by 28 February 2014. Costs to maintain the Company through the end of the office  
 lease (31January 2015) are estimated at $200,000.  
 If the Company is successful in retaining the Nixon Fork Gold Mine (there is no assurance of  
 this), there are certain ongoing costs to maintaining the mine and certain costs to be paid to  
 complete the transition to the care and maintenance status. A caretaker has been engaged to  
 provide a full time presence at the site who will conduct the monitoring activities required by the  
 regulatory agencies. Costs to complete the transition to complete care and maintenance are  
 estimated to be US$1.3 million and on-going monthly maintenance costs are estimated at  
 US$30,000. There may be additional environmental/closure costs due to requirements of the  
 regulatory agencies that have not been identified at this time.  
 Nothing in the foregoing discussion guarantees a successful result in the search for financial  
 options and the Company is at substantial risk to continue as a going concern.

That closing line is quite the understatement.