EX-99.1 2 ex991.htm Q2 INTERIM FINANCIAL STATEMENTS
Exhibit 99.1





(A Development Stage Company)

CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and expressed in Canadian Dollars)

FOR THE THREE AND SIX MONTHS ENDED
DECEMBER 31, 2006
 
 
 
 
 

Goldbelt Resources Ltd.
(A Development Stage Company)
Consolidated Balance Sheets
As at December 31, 2006 and June 30, 2006
(Unaudited and expressed in Canadian Dollars)
 
 
    
December 31
2006
$
    
June 30
2006
$
  
ASSETS
              
Current
              
Cash
    
157,738
    
494,181
  
Short term investments (Note 2)
    
9,450,000
    
5,625,000
  
Receivables
    
622,638
    
51,284
  
Deposits and prepaid expenses (Note 3)
    
338,426
    
65,746
  
               
 
    
10,568,802
    
6,236,211
 
 Process plant deposit (Note 3)     -     187,301  
Plant and equipment (Note 3)
    
2,259,867
    
200,622
  
Mineral properties (Note 4)
    
17,382,825
    
14,057,360
  
               
     
30,211,494
    
20,681,494
  
LIABILITIES AND SHAREHOLDERS' EQUITY
              
Current
              
Accounts payable and accrued liabilities
    
891,017
    
370,009
  
Shareholders’ equity
              
Capital stock (Note 5)
    
33,431,121
    
23,242,232
  
Contributed surplus (Note 5)
    
2,277,028
    
1,740,524
  
Deficit
    
(6,387,672
)
  
(4,671,271
)
     
29,320,477
    
20,311,485
  
     
30,211,494
    
20,681,494
  

Nature of operations and going concern (Note 1)
 
The accompanying notes are an integral part of these consolidated financial statements.
-1-
Goldbelt Resources Ltd.
(A Development Stage Company)
Consolidated Statements of Operations and Deficit
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
     
3 months ended December 31
    
6 months ended December 31
     Cumulative from  
     
2006
    
2005
    
2006
    
2005
    
July 1, 2004
  
         
$
$
    
$
  
$
  
 
$
  
Expenses
                                
Professional fees
    
72,408
    
58,497
    
102,748
    
124,674
    
704,706
  
Travel and promotion
    
177,950
    
108,886
    
340,959
    
192,113
    
1,365,293
  
Stock-based compensation
    
43,614
    
398,006
    
387,787
    
419,126
    
2,017,265
  
Consulting fees
    
72,436
    
39,202
    
156,527
    
98,887
    
603,431
  
Salaries and benefits
    
177,154
    
162,315
    
326,664
    
257,077
    
983,447
  
Transfer agent and filing fees
    
6,353
    
3,576
    
18,373
    
3,593
    
181,660
  
Shareholder relations
    
284,990
    
53,978
    
316,584
    
128,659
    
782,099
  
Office and occupancy costs
    
39,512
    
34,585
    
88,745
    
69,493
    
283,222
  
Telecommunications
    
14,238
    
8,329
    
22,204
    
23,907
    
77,475
  
Directors’ fees
    
49,500
    
1,393
    
74,567
    
4,893
    
100,963
  
Amortization
    
5,970
    
4,209
    
10,350
    
7,638
    
28,911
  
Loss before other items
    
(944,125
)
  
(872,976
)
  
(1,845,508
)
  
(1,330,060
)
  
(7,128,472
)
Other income
                                
Foreign exchange gain (loss)
    
(21,151
)
  
25,648
    
(35,445
)
  
109,804
    
125,889
  
Interest income
    
127,298
    
26,990
    
164,552
    
53,384
    
237,048
  
     
106,147
    
52,638
    
129,107
    
163,188
    
362,937
  
Loss for the period
    
(837,978
)
  
(820,338
)
  
(1,716,401
)
  
(1,166,872
)
  
(6,765,535
)
Deficit, beginning of period
    
(5,549,694
)
  
(1,705,190
)
  
(4,671,271
)
  
(1,358,656
)
      
Deficit, end of period
    
(6,387,672
)
  
(2,525,528
)
  
(6,387,672
)
  
(2,525,528
)
      
Loss per common share
                                
Basic and diluted
    
(0.01
)
  
(0.02
)
  
(0.03
)
  
(0.03
)
      
Weighted average number of
                                
common shares
                                
Basic and diluted
    
61,942,911
    
34,148,963
    
56,814,032
    
34,129,258
        
 
The accompanying notes are an integral part of these consolidated financial statements
-2-
Goldbelt Resources Ltd.
(A Development Stage Company)
Consolidated Statements of Cash Flows
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
     
3 months ended December 31
     6 months ended December 31     Cumulative from  
     
2006
    
2005
    
2006
    
2005
    
July 1, 2004
  
         
$
$
    
$
  
$
  
 
$
  
Cash flows used in operating activities
                        
Loss for the period
    
(837,978
)
  
(820,338
)
  
(1,716,401
)
  
(1,166,872
)
  
(6,765,535
)
Items not affecting cash:
                                
    Amortization
    
5,970
    
4,209
    
10,350
    
7,638
    
28,911
  
    Stock-based compensation
    
43,614
    
398,006
    
387,787
    
419,126
    
2,017,265
  
    Loss (gain) on foreign exchange
    
23,023
    
(8,854
)
  
38,065
    
(96,497
)
  
(104,822
)
Changes in non-cash working capital items:
                                
    Decrease (increase) in accounts receivable
    
(46,121
)
  
(14,189
)
  
(42,717
)
  
(31,766
)
  
(59,744
)
    Increase in deposits and prepaid expenses
    
(81,549
)
  
(17,869
)
  
(71,022
)
  
(22,769
)
  
(110,435
)
    Increase (decrease) in accounts payable and accrued liabilities
    
15,707
    
(374,673
)
  
103,524
    
(491,313
)
  
136,719
  
    Net cash used in operating activities
    
(877,334
)
  
(833,708
)
  
(1,290,414
)
  
(1,382,453
)
  
(4,857,641
)
Cash flows used in investing activities
                        
Acquisition of mineral properties
    
(1,421,729
)
  
(400,107
)
  
(3,237,503
)
  
(2,118,832
)
  
(7,760,261
)
Acquisition of equipment
    
(133,075
)
  
(56,002
)
  
(244,988
)
  
(73,422
)
  
(463,927
)
Process plant expenditures
    
(2,071,648
)
  
-
    
(2,076,144
)
  
-
    
(2,263,445
)
Acquisition of subsidiaries
    
-
    
-
    
-
    
-
    
(2,183,225
)
Short-term investments
    
(5,875,000
)
  
1,179,000
    
(3,825,000
)
  
3,876,000
    
(9,450,000
)
    Net cash provided by (used in) investing activities
    
(9,501,452
)
  
722,891
    
(9,383,635
)
  
1,683,746
    
(22,120,858
)
Cash flows from financing activities
                                
Proceeds on issuance of capital stock
    
2,943,878
    
23,033
    
11,022,135
    
23,033
    
27,630,629
  
Share issue costs
    
-
    
-
    
(684,529
)
  
-
    
(1,552,983
)
Net cash provided by financing activities
    
2,943,878
    
23,033
    
10,337,606
    
23,033
    
26,077,646
  
Increase (decrease) in cash
    
(7,434,908
)
  
(87,784
)
  
(336,443
)
  
324,326
    
(900,853
)
Cash, beginning of period
    
7,592,646
    
516,872
    
494,181
    
104,762
    
1,058,591
  
Cash, end of period
    
157,738
    
429,088
    
157,738
    
429,088
    
157,738
  
 
Supplemental disclosure with respect to cash flows (Note 8)

The accompanying notes are an integral part of these consolidated financial statements.
-3-
Goldbelt Resources Ltd.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
1.     NATURE OF OPERATIONS AND GOING CONCERN

Goldbelt Resources Ltd. (the “Company” or “Goldbelt”) is a Tier 1 listed company on the TSX Venture Exchange (“TSX-V”).

These unaudited consolidated financial statements are prepared by management in accordance with Canadian generally accepted accounting principles and follow the same accounting policies and methods of computation as the most recent annual financial statements for the year ended June 30, 2006. In the opinion of management all adjustments required for a fair and consistent preparation are included in these financial statements in accordance with the accounting principles of the Company. They do not include all the information and disclosure required by Canadian generally accepted accounting principles for annual financial statements. These consolidated financial statements should be read in conjunction with the Company’s audited annual consolidated financial statements and notes for the year ended June 30, 2006.

These consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assume that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations.

However, the Company is in the development stage and is subject to the risks and challenges similar to other companies in a comparable stage of development. These risks include, but are not limited to, the dependence on key individuals, successful discovery of economically recoverable reserves, the preservation of the Company’s interest in the underlying mineral claims, the ability of the Company to obtain financing necessary to complete development of the properties, and the future profitable production therefrom or alternatively upon the Company’s ability to dispose of its interests on an advantageous basis and continue as a going concern.

There is no assurance that these initiatives will be successful and as a result there is substantial doubt regarding the going concern assumption. These financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the going concern assumption were not appropriate. These adjustments could be material.

In addition, the properties may be subject to sovereign risk, including political and economic instability, government regulations relating to mining, currency fluctuations and local inflation. Changes in future conditions could require material write-downs of the carrying values.

The Company has adopted accounting guideline AcG 11 relating to enterprises in the development stage which encourages disclosure of cumulative balances from the inception of the development stage in the income statement and cash flow statement. The disclosure of cumulative information in the income statement and statement of cash flows reflect the Company’s operations from July 1, 2004, at which time the Company commenced the acquisition, exploration and development of its existing mineral exploration properties in Burkina Faso.

2.     SHORT TERM INVESTMENTS

Short term investments consist of government investment certificates with weighted average interest rates of 3.9% and maturities up to November 2007.

-4-
Goldbelt Resources Ltd.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
3.     PLANT AND EQUIPMENT
 
    
December 31
    
June 30
  
     
2006
    
2006
  
     
$
  
 
$
  
Cost
              
Process plant(1)
    
1,893,794
    
-
  
Computer equipment
    
62,144
    
38,748
  
Field equipment
    
377,836
    
158,168
  
Office equipment
    
37,755
    
35,830
  
     
2,371,529
    
232,746
  
Less: Accumulated amortization
              
Process plant
    
-
    
-
  
Computer equipment
    
26,953
    
10,890
  
Field equipment
    
59,426
    
5,195
  
Office equipment
    
25,283
    
16,039
  
     
111,662
    
32,124
  
Net book value
              
Process plant
    
1,893,794
    
-
  
Computer equipment
    
35,191
    
27,858
  
Field equipment
    
318,410
    
152,973
  
Office equipment
    
12,472
    
19,791
  
     
2,259,867
    
200,622
  
(1)Process plant
 
On May 9, 2006, the Company entered into an exclusive option agreement with Tanami Gold NL (Australia) (“Tanami”) for the purchase of a used gold processing plant currently located near Darwin in the Northern Territory, Australia for A$2,000,000. A non-refundable deposit of $187,301 (A$200,000) was paid on signing the agreement and the balance of $1,587,525 (A$1,800,000) was paid in full in the current period. The Company has incurred $118,968 in expenditures relating to assessment of plant refurbishment and removal.

A refundable security deposit of $180,722 (A$200,000) was paid to Tanami to meet potential removal expenditures incurred by Tanami. The Company is obligated to dismantle this process plant at an estimated cost of approximately $1.2 million.
-5-
Goldbelt Resources Ltd.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
4.     MINERAL PROPERTIES

The Company currently owns or is in the process of owning the following licenses in Burkina Faso:

Name and region in Burkina Faso
Description
Inata Gold Project, Northern
Belahouro, Northern
Houndé and Bougouriba, Southwestern
Ouedogo, Southeastern
Exploitation License, in progress
Exploration Licenses
Exploration Licenses
Exploration License
 
The Company is subject to an annual minimum exploration expenditure over the three year term of each license. The total commitment on all existing licenses until their respective expiry dates approximates $5.6 million. All licenses are subject to a government royalty of 3% on gross sales and the Inata Gold Project is subject to a an additional royalty of 2.5% payable to a third party.

 
                
Houndé
        
 
                
Bougouriba and
        
 
    
Inata Project
    
Belahouro
    
Ouedogo
        
 
    
Permit
    
Permits
    
Permits
    
Total
  
     
$
    
$
    
$
    
$
  
Balance - June 30, 2005
    
9,741,320
    
-
    
499,883
    
10,241,203
  
Acquisition from Resolute
    
1,183,613
    
-
    
51,681
    
1,235,294
  
Assay and sampling
    
165,311
    
-
    
68,308
    
233,619
  
Drilling
    
382,266
    
-
    
-
    
382,266
  
Environmental studies
    
93,911
    
-
    
746
    
94,657
  
Geophysical
    
14,387
    
-
    
-
    
14,387
  
General and administrative
    
321,155
    
-
    
60,971
    
382,126
  
Hydrogeology
    
15,442
    
-
    
-
    
15,442
  
Project engineering
    
386,915
    
-
    
-
    
386,915
  
Resource and mine engineering
    
275,209
    
-
    
-
    
275,209
  
Salaries and benefits
    
418,044
    
4,968
    
114,924
    
537,936
  
Taxes
    
14,815
    
24,337
    
23,618
    
62,770
  
Travel and fuel
    
175,091
    
-
    
20,445
    
195,536
  
Expenditures in fiscal 2006
    
3,446,159
    
29,305
    
340,693
    
3,816,157
  
Balance - June 30, 2006
    
13,187,479
    
29,305
    
840,576
    
14,057,360
  
Assay and sampling
    
273,088
    
90,665
    
76,154
    
439,907
  
Drilling
    
1,038,834
    
378,342
    
247,579
    
1,664,755
  
Environmental studies
    
454
    
-
    
-
    
454
  
Geophysical
    
98,474
    
-
    
-
    
98,474
  
General and administrative
    
227,862
    
136,581
    
49,273
    
413,716
  
Project engineering
    
74,563
    
-
    
-
    
74,563
  
Resource and mine engineering
    
103,236
    
-
    
-
    
103,236
  
Salaries and benefits
    
196,546
    
84,660
    
41,411
    
322,617
  
Taxes
    
6,333
    
12,883
    
5,827
    
25,043
  
Travel and fuel
    
106,113
    
71,994
    
4,593
    
182,700
  
Expenditures in fiscal 2007
    
2,125,503
    
775,125
    
424,837
    
3,325,465
  
Balance - December 31, 2006
    
15,312,982
    
804,430
    
1,265,413
    
17,382,825
  

 
-6-
Goldbelt Resources Ltd.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
5.     CAPITAL STOCK AND CONTRIBUTED SURPLUS
     
Capital Stock
        
 
    
Number
          
Contributed
  
 
    
of
Shares
    
Amount
$
    
Surplus
$
  
Authorized
                    
Unlimited number of common shares without par value
            
Balance, June 30, 2005
    
34,109,552
    
11,737,625
    
652,792
  
Private placement
    
1,538,462
    
1,000,000
    
-
  
Exercise of warrants
    
10,588,235
    
6,882,353
    
-
  
Shares issued for mineral properties
    
1,900,453
    
1,235,294
    
-
  
Shares issued for settlement of debt
    
1,670,000
    
1,808,169
    
-
  
Exercise of agents’ compensation warrants
    
255,398
    
166,009
    
-
  
Exercise of options
    
660,000
    
66,000
    
-
  
Exercise of agents’ compensation options
    
565,647
    
294,132
    
-
  
Stock-based compensation
    
-
    
-
    
1,217,332
  
Agents’ compensation
    
-
    
-
    
25,000
  
Exercise of options
    
-
    
154,600
    
(154,600
)
Share issue costs
    
-
    
(101,950
)
  
-
  
Balance, June 30, 2006
    
51,287,747
    
23,242,232
    
1,740,524
  
Private placement
    
7,600,000
    
7,980,000
    
-
  
Exercise of warrants
    
4,714,932
    
2,944,118
    
-
  
Exercise of agents’ compensation warrants
    
26,923
    
19,115
    
-
  
Exercise of agents’ compensation options
    
158,283
    
79,142
    
-
  
Stock-based compensation
                
387,787
  
Agents’ compensation
    
-
    
-
    
188,000
  
Exercise of options
    
-
    
39,283
    
(39,283
)
Share issue costs - agents’ compensation
    
-
    
(188,000
)
  
-
  
Share issue costs
    
-
    
(684,769
)
  
-
  
Balance, December 31, 2006
    
63,787,885
    
33,431,121
    
2,277,028
  
 
Private placements

Year ended June 30, 2006
On January 13, 2006, the Company completed a private placement by issuing 1,538,462 common shares at $0.65 per share for gross proceeds of $1,000,000. The Company paid commissions and issuance costs of $76,950; and granted 107,692 common share purchase warrants valued at $25,000 and exercisable at $0.71 per share until January 13, 2007.

Period to December 31, 2006
On September 27, 2006, the Company completed a private placement by issuing 7,600,000 common shares at $1.05 per share for gross proceeds of $7,980,000. The Company paid commissions and issuance costs of $684,769; and granted 532,000 common share purchase warrants exercisable at $1.17 per share until September 27, 2007.

-7-
Goldbelt Resources Ltd.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
5.     CAPITAL STOCK AND CONTRIBUTED SURPLUS (continued)

The Company recorded a fair value of $188,000 for the 532,000 agents’ compensation warrants granted using the Black-Scholes option pricing model. This amount was recorded as cost of share issue and contributed surplus. The valuation was calculated with the following assumptions: risk free interest rate of 3.9%; annualized volatility factor of the expected market price of the Company’s common stock of 80%; expected life of the options of 1 year, and expected dividend yield of 0%.
 
Stock option plan

 
    
Options
    
Weighted Average
Exercise Price
  
     
December 31
2006
    
June 30
2006
    
December 31
2006 
    
June 30
2006
  
Outstanding, beginning of period
Granted
Exercised
    
5,110,000
-
-
    
1,985,000
3,785,000
(660,000
)
  
0.67
-
-
    
0.43
0.69
(0.10
)
Outstanding, end of period
    
5,110,000
    
5,110,000
    
0.67
    
0.67
  
 
 
 
Number
Exercise
Expiry
Fiscal year granted
of Options
Price $
Date
2005
375,000
0.48
December 1, 2007
 
150,000
0.25
July 12, 2009
 
800,000
0.72
March 9, 2010
2006
500,000
0.54
September 26, 2010
 
925,000
0.62
November 25, 2010
 
1,550,000
0.69
December 16, 2010
 
150,000
0.71
January 9, 2011
 
660,000
0.89
February 10, 2011
Total
5,110,000
    
 
The Company has a stock option plan (the “Plan”) whereby, from time to time at the discretion of the Board of Directors, stock options are granted to directors, officers, employees and certain consultants to the lesser of 9,000,000 and 10% of the issued common shares. The exercise price of each option is based on the market price of the Company’s common stock at the date of grant less an applicable discount, subject to a minimum price of $0.10. The Board of Directors determines the vesting period at their discretion. As at December 31, 2006, options to acquire 5,110,000 common shares, were outstanding, of which 4,081,250 were exercisable.
 
-8-
Goldbelt Resources Ltd.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
5.     CAPITAL STOCK AND CONTRIBUTED SURPLUS (continued)

In fiscal 2006, the Company estimated a fair value of $1,589,700 for the 3,785,000 options granted using the Black-Scholes option pricing model. The valuation was calculated with the following assumptions: weighted average risk free interest rate of 3.9%; annualized volatility factor of the expected market price of the Company’s common stock of 70%; expected life of the options of 5 years, and expected dividend yield of 0%. The unamortized balance at June 30, 2006 was $424,803, of which $43,614 and $387,787 was amortized in the three month and six month period ended December 31, 2006 respectively. The unamortized balance at December 31, 2006 was $37,016.

 
Warrants and agents’ compensation options
The following table reflects the continuity of warrants and compensation options to acquire common shares of the Company at December 31, 2006:
Expiry Date
    
Exercise
Price
    
Balance
June 30,
    
Issued
    
Exercised Cancelled
    
Balance
December
  
      $  
 
2006
                
31,2006
  
March 3, 2007
    
0.50
    
1,882,353
    
-
    
(1,882,353
)
  
-
  
March 3, 2007
    
0.65
    
1,882,353
    
-
    
(1,882,353
)
  
-
  
March 3, 2007
    
1.00
    
125,000
    
-
    
-
    
125,000
  
March 3, 2007
    
0.65
    
500
    
79,141
(2)
  
-
    
79,641
  
March 3, 2007
    
0.50
    
835,123
(1)
  
-
    
(237,424
)
 (2)
597,699
  
January 13, 2007
    
0.71
    
53,846
    
-
    
(26,923
)
  
26,923
  
January 13, 2008
    
0.65
    
180,995
    
-
    
(180,995
)
  
-
  
January 13, 2008
    
0.845
    
180,995
    
-
    
(180,995
)
  
-
  
January 17, 2008
    
0.75
    
294,118
    
-
    
(294,118
)
  
-
  
January 17, 2008
    
0.98
    
294,118
    
-
    
(294,118
)
  
-
  
September 27, 2007
    
1.17
    
-
    
532,000
    
 -
    
532,000
  
           
5,729,401
    
611,141
    
(4,979,279
)
  
1,361,263
  
 
(1)      
The Company issued 1,068,550 units as agents’ compensation options on the March 3, 2005 private placement. Each agent’s compensation option is exercisable at $0.50 into one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at an exercise price of $0.65 until March 3, 2007. If the closing price of the shares of the Company on the TSX-V exceeds $0.95 for 21 consecutive trading days, warrant holders may be given written notice of a period of 30 days within which to exercise the share purchase warrants, failing which they will then expire.
(2)      
The amount includes 158,283 common shares and 79,141 whole warrants issued upon exercise of 158,283 agents’ options.
 
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Goldbelt Resources Ltd.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
For the three and six month periods ended December 31, 2006 and 2005
(Unaudited and expressed in Canadian Dollars)
6.     RELATED PARTY TRANSACTIONS

The following table discloses the related party transactions, which were measured at the exchange amounts, for the financial periods as follows:

    Type of  
3 months ended December 31
6 months ended December 31
Related party
    
fees
    
2006
    
2005
    
2006
    
2005
  
               
$
$
        
$
$
  
Directors
    
Consulting
    
59,500
    
23,000
    
89,500
    
54,000
  
Director related entities
    
Professional
    
-
    
12,000
    
-
    
24,000
  
           
59,500
    
35,000
    
89,500
    
78,000
  
 
7.     SEGMENTED INFORMATION

All of the Company’s operations are in the mineral resource exploration industry with its principal business activity in the acquisition and development of mineral resource properties. The Company has mineral resource properties in Burkina Faso, a used processing plant in Australia and office equipment in Canada. Geographic information is as follows:
   
December 31
  
June 30
  
     
2006
    
2006
  
         
$
$
  
Equipment and mineral properties:
              
Burkina Faso
    
17,722,575
    
14,234,022
  
Australia
    
1,893,794
    
-
  
Canada
    
26,323
    
23,960
  
     
19,642,692
    
14,257,982
  
 
8.      SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS
The significant non-cash transactions during the period ended December 31, 2006 included issuance of 532,000 (2005: 107,692) agents’ compensation warrants valued at $188,000 ($25,000) as agents’ compensation on a private placement (Note 5).

9.     COMPARATIVE FIGURES

Certain comparative figures have been reclassified, where necessary, to conform to the current period’s presentation.
 
 
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