Pretty straight forward and mostly as expected. Negative cash, 0 revenue and little disclosure. If we do get the 10K before the end of June, I hate to say it, but I will have to admit the change of auditors was a great move. OUCH!!!!!!!!!
Ok now to something not so good on the Q
LIQUIDITY AND FINANCIAL CONDITION
WORKING CAPITAL
At At
September 30, December 31, Increase/
2011 2010 (Decrease)
---------- ---------- ----------
Current Assets $ 15,841 $ 147,251 $ (131,410)
Current Liabilities 381,042 91,592 289,450
---------- ---------- ----------
Working Capital (deficit) $ (365,201) $ 55,659 $ (420,860)
========== ========== ==========
The decrease in working capital is a result of short-term loans obtained during
the nine month period ended September 30, 2011 used to purchase $195,076 of
exploration equipment and finance operations.
CASH FLOWS
Nine Months Ended
September 30,
----------------------------
2011 2010
---------- ----------
Net Cash (used) in Operating Activities $ (669,993) $ (73,551)
Net Cash (used) in Investing Activities (195,075) --
Net Cash Provided by Financing Activities 783,658 73,529
---------- ----------
INCREASE/(DECREASE) IN CASH DURING THE PERIOD $ (81,410) $ (22)
========== ==========
We have been aggressive in working to obtain capital through both sales of stock
and borrowings to fund our operations. During October 2010 we acquired our
subsidiary with its Pampana River concession and began dredging operations. We
have used over 50% of the cash raised to directly finance those operations.
We anticipate that additional funding will be required in the form of equity
financing from the sale of our common stock. At this time, we cannot provide
investors with any assurance that we will be able to raise sufficient funding
from the sale of our common stock or through a loan from our directors to meet
our obligations over the next twelve months.. There are a substantial amount of
warrants that when exercised could provide a significant amount of additional
equity funding that will assist in the future exploration and development of our
Company's mining businesses in both Ghana and Sierra Leone, however, there is no
guarantee that investors will exercise any of these warrants or that we will be
successful at raising additional capital.
Since warrants are not getting exercised, we see some issues. It appears they are out of money. It also appears clear they have intent on another round of dilution pending the results of the warrant expiration in July.
As of Sep 30th they were down to 113k in cash. I hope they have at least separated 1 or two ounces of gold over the last year of operations. Not even any money on sampling, artisan gold projects.
I hope things are a bit better than they appear since Oct. 1st.
