Third Quarter Financial Results / Warrants Exercised
3/1/04
PilaGold Inc. is pleased to report on its third quarter financial results:
The Company reported net losses for the nine months ended 2003 and 2002 of $602,135 and $188,139, respectively. Significant items comprising the current period loss include $279,853 for promotion and travel, $91,820 for consulting fees, $72,
140 for salaries, and $62,346 for shareholder communication. The promotion and travel expenses included $177,835 for promotional mailouts, $50,767 for conference registrations and travel, and $51,251 for advertising. The 2002 net loss included promotion and travel expenses of $66,558, salaries of $36,257, management fees of $22,500, regulatory fees of $17,566, and rent and utilities of $17,549. As a result of increased exploration activity over the past year, corporate expenses have increased significantly in the first nine months of fiscal 2003 compared to the same period in fiscal 2002.
The Company spent approximately $2,140,000 on deferred exploration costs on its properties during the nine months ended December 31, 2003, of
which $873,000 was incurred in Guatemala, $1,032,000 in Nicaragua, and $235,000 in the Dominican Republic.
As at December 31, 2003, the Company had working capital of $6,538,794, compared to $1,749,288 as at March 31, 2003. In May 2003, the Company completed a private placement financing by issuing 3,300,000 units at $0.90 per unit to raise $2,970,000. Warrants and stock options exercised during the nine months ended December 31, 2003 provided the Company with an additional $825,225 in working capital.
As a result of the completion of several financings over the past year, management expects that the Company will have sufficient working capital to meet its corporate and exploration commitments over the next 12 months. Actual funding requirements may vary from those planned due to a number of factors, including the progress of exploration and development activity. Management believes it will be able to raise equity capital as required in the long term, but recognizes the uncertainty attached thereto. The Company continues to use various strategies to minimize its dependence on equity capital, including the securing of joint venture partners where appropriate.
PilaGold is also pleased to report that subsequent to the December 31, 2003 quarter, additional warrants were exercised, for proceeds of $1,174,800.
CONTACT: TEL: (604) 801-5432 PilaGold Inc.
FAX: (604) 662-8829 Simon Ridgway, President
TEL: 1-888-627-9378
