-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NCge2zELTtaueh/6VM2GnQlaISzZnPSv+Skd9feTdg4lrFVMJo7zH0CVBsjuzNJL aBqpsGR6ebdqFdJuCapCkg== 0001062993-04-001479.txt : 20040916 0001062993-04-001479.hdr.sgml : 20040916 20040916161401 ACCESSION NUMBER: 0001062993-04-001479 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20040915 FILED AS OF DATE: 20040916 DATE AS OF CHANGE: 20040916 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST POINT MINERALS CORP CENTRAL INDEX KEY: 0001177439 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 000000000 STATE OF INCORPORATION: A0 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-49918 FILM NUMBER: 041033917 BUSINESS ADDRESS: STREET 1: 1112 WEST PENDER STREET 906 CITY: VANCOUVER STATE: A1 ZIP: 00000 MAIL ADDRESS: STREET 1: 1112 W PENDER ST STREET 2: STE 906 CITY: VANCOUVER BC STATE: A1 ZIP: 999999999 6-K 1 form6k.htm REPORT OF FOREIGN ISSUER Filed by Automated Filing Services Inc. (604) 609-0244 - First Point Minerals Corp. - Form 6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Period Ended August 31, 2004  File No   0-49918

First Point Minerals Corp.
(Name of Registrant)

Suite 906 – 1112 West Pender Street, Vancouver, B.C. V6E 2S1
(Address of principal executive offices)

Indicate by check mark whether the Registrant files or will file annual reports under cover of
Form 20-F or Form 40-F.    FORM 20-F x          FORM 40-F ¨  

Indicate by check mark whether the Registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.     Yes ¨      No x   


SUBMITTED HEREWITH

Exhibits

  99.1 Press Release dated July 12, 2004
   
  99.2 Press Release dated September 9, 2004
   
  99.3 Financial Statements for six month period ended June 30, 2004
   
  99.4 Management's Discussion and Analysis for the six month period ended June 30, 2004
   
  99.5 Interim Certificate – CEO, August 25, 2004
   
  99.6 Interim Certificate – CFO, August 25, 2004

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Form 6-K to be signed on its behalf by the undersigned, thereunto duly authorized.

First Point Minerals Corp.   
(Registrant)   
   
Dated September 13, 2004  /s/ J. Christopher Mitchell, President and Director 


EX-99.1 2 exhibit99-1.htm PRESS RELEASE DATED JULY 12, 2004 Filed by Automated Filing Services Inc. (604) 609-0244 - First Point Minerals Corp. - Exhibit 99.1
Suite 906 – 1112 West Pender Street 
Vancouver, BC Canada V6E 2S1 
Tel: 604/681-8600 
Fax: 604/681-8799 
e-mail "firstpoint@firstpointminerals.com" 
  TSX Venture Exchange: FPX 
   
   
FOR IMMEDIATE RELEASE  July 12th, 2004 

New Drill Program proposed for First Point's Rio Luna Project

Dr. Peter M D Bradshaw, P. Eng., Executive Chairman of First Point Minerals Corp. (TSXV: FPX) is pleased to update results from the drill program on the Balsamo Target of the Rio Luna Gold Project, Nicaragua. Two additional drill holes have been completed on this target, which is located on the same vein structure as, but about 500 meters west of, the Balsamo East target:

  • Drill Hole RL-28 intersected the main vein over a width of 9.7 meters at a shallow depth, and averaged 1.2 grams/tonne (g/t) gold. Management considers this intersection to be significant, because it is 85 meters west of hole 3 and similar in width to the main vein intersected at greater depth in Drill Hole RL-3.
  • Drill Hole RL-27 intersected anomalous gold values in the vein over 4.1 meters, a width that is similar to that encountered in Drill Hole RL-2, but at a depth that is approximately 50 meters lower.
   SIGNIFICANT DRILL INTERVALS
BALSAMO TARGET AREA
Hole # From  To Meters Gold
(g/t)
 DD-RL-27 102.0   106.1 4.1 0.2
 DD-RL-28   9.5 19.2 9.7 1.2
* DD-RL-1 10.7 11.9 1.2 1.4
35.5 37.7 2.2 0.5
* DD-RL-2 18.5 21.5 3.0 0.1
49.2 53.5 4.3 0.9
* DD-RL-3
including
36.3 45.4 9.1 6.2
42.8 45.4 2.6 19.4 
* DD-RL-4 46.6 47.5 0.9 0.4
55.4 58.0 2.6 0.2

     

*
Previously Released

The first phase of the drill program, totaling 2,400 meters in 28 holes, is now complete. Trenching has been expanded and the second drilling program will commence when the heavy rains begin to abate, which typically occurs in mid August.

Management is very encouraged by the results generated to date, particularly the high grade intercepts in Drill Holes 3 and 9, both presently interpreted to be in the same main El Paraiso Vein, and Drill Holes 21 and 22 in the North Vein, which were completed late in the first phase of drilling. The high grade results, the quartz textures and the geochemistry all indicate that the recently completed drill program intersected the veins near the top of the mineralized zones. This suggests excellent exploration potential exists at depth and along strike and that an expanded work program is warranted. While sometimes variable in structure and grade, low sulphidation epithermal veins host some of the most profitable mines in the Americas. The recent blind discovery of the Dorada Vein at the 2.2 million ounce gold equivalent El Piñon Mine in Chile (Meridian Gold news release June 29, 2004) and the recent discovery at the 3 million ounce El Limon Mine in Nicaragua (Glencairn news release July 5, 2004) support the systematic exploration approach being followed by First Point.


Greater detail on the results to date, including maps and sections, are available on the Company's web site at www.firstpointminerals.com. Select the "Properties" tab and refer to the section captioned "Rio Luna Gold-Silver"

Next Exploration Phase

The next exploration phase has three primary objectives: (i) step-out drill testing both at greater depth and along strike of the high grade intersections; (ii) drill test new vein targets, and (iii) additional trenches to extend the strike of known veins and to follow-up numerous quartz vein boulder trains to locate and sample new veins as further drill targets.

(i)               A step-out drill program designed to expand the high-grade targets along strike and at depth will commence in August, when weather conditions begin to improve. Initial targets are listed below:

Results from previous drilling                                                               
Target
location
Description of proposed drilling Drill
hole
number
Estimated 
true width
(meters)
Gold
(g/t)
Balsamo East - North vein Along strike to the west and deeper, down dip RL-21
RL-22
3.2
5.2
15.8
13.5
Balsamo East - South vein Initially deeper down dip RL- 8 13.4 1.1
Balsamo Along strike east and west and deeper down dip RL- 3
RL-28
2.6
9.7
19.4
1.2
Santa Rita Along strike east and west RL- 9 1.3 19.0

(ii)              To date only 800 meters of the 8,800 meters of known veins have been drill tested, mostly to shallow depths only. A number of holes will be targeted on previously untested vein targets identified by trenching. This drilling will be coordinated with the higher priority step-out drilling.

  Results from previous
trenching
Target
location
Description of proposed work Meters  Gold
(g/t)
Lomita vein drill holes below the trench 4.9 4.2
Santa Juana drill holes below the trench 6.2 0.9
Filidelfia drill holes below the trench 5.7 0.7

(iii)             Additional trenching has commenced on extensions of known veins and will also follow-up additional targets represented by quartz vein boulders whose sources have not yet been identified.

ON BEHALF OF THE BOARD OF DIRECTORS

"Peter Bradshaw"
Peter M. D. Bradshaw, Executive Chairman

First Point Minerals Corp. is a Canadian precious and base metal exploration and development company with five precious and base metal projects located in the Americas. The Company is currently focusing its activities to explore, define and advance its Rio Luna Gold Project in Nicaragua. For more information please view: www.firstpointminerals.com or phone Ran Davidson, Director of Investor Relations at (604) 681-8600 or toll free at 1-866-FPM-8601.

The TSX Venture Exchange has not reviewed, nor accepts responsibility for the adequacy or accuracy of this news release.


EX-99.2 3 exhibit99-2.htm PRESS RELEASE DATED SEPTEMBER 9, 2004 Filed by Automated Filing Services Inc. (604) 609-0244 - First Point Minerals Corp. - Exhibit 99.2

Suite 906 – 1112 West Pender Street 
Vancouver, BC Canada V6E 2S1 
Tel: 604/681-8600 
Fax: 604/681-8799 
Toll Free Number: 1-866-FPM-8601 
  e-mail "firstpoint@firstpointminerals.com" 
  TSX Venture Exchange: FPX 

FOR IMMEDIATE RELEASE  September 9, 2004 

Second Phase of Drilling Started at Rio Luna, New Veins Discovered.

Dr. Peter M D Bradshaw, P. Eng., Executive Chairman of First Point Minerals Corp. (TSXV: FPX) is pleased to announce that the second phase drill program has commenced on the Rio Luna gold property in Nicaragua. The initial holes of this program will test both the down dip and along strike extensions of the North vein of the Balsamo East target where two holes from the first phase of drilling, as previously announced, returned 15.8 grams/tonne (g/t) gold over 3.2 meters (including 0.3 meters of 87.7 g/t) and 13.5 g/t gold over 5.2meters (including 1.2 meters of 57.6 g/t gold).

This second phase of drilling will total approximately 1,000 meters in five to seven holes. The program was previously announced in First Point's July 12th news release and can be viewed at the Company's web site www.firstpointminerals.com. The drill core will be sent to the CAS laboratory in Honduras with checks by ACME in Vancouver. Assay results will be announced as they are received.

Trenching completed over the past two months has identified several new veins in the El Paraiso vein system (sub-parallel to the main Anillo structure) near the Balsamo East, Balsamo, Balsamo West and Santa Juana targets. These include:

a.     
The Pablo vein, which is located approximately 100m SW from the Anillo vein. The Pablo vein is close to the Balsamo and Balsamo West targets and has been traced for 1.4 kilometers (km) and remains open in both directions. The highest grab sample from the vein to date is 6.9 g/t gold. Systematic trenching and sampling will commence shortly.
 
b.     
The Silvia vein, which is located approximately 200m NE from the Anillo vein, and striking towards the high grade intersections at Balsamo East. The Silvia vein has been traced discontinuously for 1.7km. Systematic trenching and sampling is in progress.
 
c.     
Several other veins have been discovered between the Pablo and Silvia veins. Investigation of these has been given a lower priority at the moment.

The location of these new veins can be seen on the Company's web site at www.firstpointminerals.com (see fig.2 under Rio Luna gold project), together with the existing drill holes. Some of the veins are now shown in different orientations from those previously plotted, based on updated interpretations as new information has been added. It is also apparent from this map that less than 10% of the strike extent of the known veins have been drilled. Together with the


drilling program, the Company is continuing its aggressive trenching and sampling program to gain a more detailed understanding of the gold content, location, strike and dip of the veins in order to select the next drill targets.

A total of 12km of epithermal quartz veining has now been identified at the Company's 90 square km Rio Luna gold project with a number of priority gold targets identified along these veins. First Point has an option to earn 100% interest in the Rio Luna gold project from Terra Nova Resources Inc. Work is progressing with several crews to prioritize these targets and to define an efficient drilling campaign.

The qualified person supervising work on this project is Dr. Peter Bradshaw, P. Eng.

First Point Minerals Corp. is a Canadian precious and base metal exploration and development company with five precious and base metal projects located in the Americas. The Company is currently focusing its activities to explore, define and advance its Rio Luna gold project in Nicaragua. For more information please view: www.firstpointminerals.com or phone Ran Davidson, Director of Investor Relations at (604) 681-8600 or toll free at 1-866-FPM-8601.

ON BEHALF OF THE BOARD OF DIRECTORS

"Peter Bradshaw"

Peter M. D. Bradshaw, Executive Chairman

The TSX Venture Exchange has not reviewed, nor accepts responsibility for the adequacy or accuracy of this news release.


EX-99.3 4 exhibit99-3.htm FINANCIAL STATEMENTS FOR SIX MONTH PERIOD ENDED JUNE 30, 2004 Filed by Automated Filing Services Inc. (604) 609-0244 - First Point Minerals Corp. - Exhibit 99.3

FIRST POINT MINERALS CORP.

FINANCIAL STATEMENTS

SECOND QUARTER 2004


August 25, 2004

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited interim financial statements of First Point Minerals Corp. (the "Company") have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditor.


FIRST POINT MINERALS CORP.

CONSOLIDATED BALANCE SHEETS
June 30, 2004 and December 31, 2003

ASSETS  
      June 30     December 31  
      2004     2003  
      (Unaudited)     (Audited)  
CURRENT           
             Cash    $ 789,331   $ 1,869,354  
             Accounts and advances receivable      64,514     30,339  
             Prepaid expenses and deposits      30,213     33,571  
               
      884,058     1,933,264  
               
FUNDS IN TRUST      61,246     61,246  
INVESTMENT  (Note 3)    864,073     -  
CAPITAL ASSETS  (Note 4)    32,728     31,086  
MINERAL PROPERTIES  (Note 5)    2,975,073     3,348,973  
               
      4,817,178     5,374,569  
               
LIABILITIES  
               
CURRENT           
             Accounts payable and accrued liabilities      56,447     16,784  
               
               
SHAREHOLDERS' EQUITY  
               
SHARE CAPITAL  (Note 6)    10,243,150     10,114,236  
CONTRIBUTED SURPLUS      309,438     278,697  
DEFICIT      (5,791,857 )    (5,035,148
               
      4,760,731     5,357,785  
               
    $ 4 ,817,178   $ 5,374,569  

APPROVED BY THE DIRECTORS     
     
     
/s/ Peter M.D. Bradshaw    /s/  Robert A. Watts 
      Director           Director 

See notes to the consolidated financial statements


FIRST POINT MINERALS CORP.

CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
(Unaudited, prepared by management)

FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30

    Three Months     Six Months  
    Ended June 30     Ended June 30  
    2004     2003     2004     2003  
                         
EXPENSES                 
             Accounting, legal and audit  $ 2,814   $ 2,322   $ 3,287   $ 19,560  
             Amortization    2,354     2,595     4,308     4,223  
             Communications    808     919     1,849     1,633  
             Management fees    23,500     8,800     39,500     18,400  
             Office and administration    2,910     (1,883   10,109     1,335  
             Rent    5,894     4,254     11,055     8,507  
             Stock-based compensation    28,140     -     30,741     -  
             Travel and promotion    15,565     15,721     29,938     28,478  
             Trust and filing fees    15,503     17,441     27,327     23,081  
             Wages and benefits    2,723     10,965     25,022     20,422  
             General exploration    56,484     91,093     232,743     155,130  
                         
LOSS BEFORE OTHER ITEMS    156,695     152,227     415,879     264,691  
                         
OTHER ITEMS:                 
             Interest income    (6,536 )    (4,578   (15,049 )    (9,639
             Loss/(gain) on foreign exchange    (6,199 )    6,412     (5,337 )    1,217  
             Loss on disposal of mineral                 
                          property (Note 5)    -     -     361,216     -  
                         
NET LOSS FOR THE PERIOD    143,960     154,061     756,709     256,269  
DEFICIT, BEGINNING OF PERIOD    5,647,897     4,267,060     5,035,148     4,164,852  
                         
DEFICIT, END OF PERIOD  $ 5,791,857   $ 4,421,121   $ 5,791,857   $ 4,421,121  
                         
LOSS PER SHARE  $ (0 .00 )  $ (0.01 $ (0.02 )  $ (0.01
                         
WEIGHTED AVERAGE NUMBER OF SHARES                 
             OUTSTANDING    31,257,850     23,636,987     31,203,674     23,456,987  

See notes to the consolidated financial statements


FIRST POINT MINERALS CORP.

Consolidated statements of changes in cash position
(Unaudited, prepared by management)

FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30

    Three Months     Six Months   
    Ended June 30     Ended June 30   
    2004      2003     2004      2003  
                         
CASH PROVIDED BY (USED FOR):                 
OPERATING ACTIVITIES                 
             Net loss for the period  $ (143,960 )  $ (154,061 $ (756,709 )  $ (256,269
             Add items not involving cash                 
                          Amortization    1,333     2,595     30,741     4,223  
                          Stock-based compensation    28,140     -     3,287     -  
                          Disposal of mineral                 
                                       property (Note 5)    -     -     1,136,636     -  
                         
    (114,487 )    (151,466   413,955     (252,046
CHANGES IN NON-CASH WORKING                 
       CAPITAL COMPONENTS:                 
             Accounts receivable    (35,111 )    (22,373   (34,175 )    (301
             Prepaid expenses    13,286     2,981     3,358     12,243  
             Accounts payable and accrued                 
                          liabilities    (102,178 )    69,772     39,663     80,148  
                         
    (238,490 )    (101,086   422,801     (159,956
                         
FINANCING ACTIVITIES *                 
             Common shares issued for cash    -     77,460     26,414     236,210  
                         
INVESTING ACTIVITIES *                 
             Equity in development company    -     -     (864,073 )    -  
             Mineral Exploration    (382,176 )    (110,366   (660,236 )    (425,827
             Purchase of capital assets    (1,934 )    (929   (4,929 )    (6,533
                         
    (384,110 )    (111,295   (1,529,238 )    (432,360
                         
NET CASH (USED) DURING PERIOD    (622,600 )    (134,921   (1,080,023 )    (356,106
             CASH, BEGINNING OF PERIOD    1,411,931     725,148     1,869,354     946,333  
                         
             CASH, END OF PERIOD  $ 789,331   $ 90,227   $ 789,331   $ 590,227  

· Supplemental Disclosure of non---cash financing and investing activitiess

During the Second quarter of 2004, the Company issued 500,000 (2003 – nil) common shares at an aggregate value of $102,500 (2003 – nil) in connection with mineral property acquisition agreements

See notes to the consolidated financial statements


FIRST POINT MINERALS CORP.
Notes to the Unaudited Consolidated Financial Statements
(Prepared by management)

June 30, 2004 and 2003

1.      NATURE AND CONTINUANCE OF OPERATIONS
 
 
The Company is incorporated under the Alberta Business Corporations Act and is involved in the acquisition and exploration of property interests that are considered potential sites of economic mineralization. At the date of the financial statements, the Company has not identified a known body of commercial grade ore on any of its properties and the ability of the Company to recover the costs it has incurred to date on these properties is dependent upon the Company being able to identify a commercial ore body, to finance its exploration and development costs and to resolve any environmental, regulatory, or other constraints which may hinder the successful development of the property.
 
 
These unaudited interim financial statements have been prepared by management on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future. The financial statements have not been audited, reviewed or otherwise verified as to the accuracy or completeness of information. Readers are cautioned that these statements may not be appropriate for their purposes.

      June 30, 2004     December 31, 2003  
               
  Deficit  $ (5,791,857 $ (5,035,148
  Working Capital  $ 827,611   $ 1,916,480  

2.      SIGNIFICANT ACCOUNTING POLICIES
 
  Basis of Accounting
 
 
The accompanying unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles ("GAAP") in Canada on a basis consistent with those outlined in the Company's audited financial statements for the year ended December 31, 2003. They do not include all of the information and disclosures required by Canadian GAAP for audited financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included in these financial statements. These unaudited interim financial statements should be read in conjunction with the most recent audited annual financial statements of the Company, including the notes thereto.
 
 
The Company has not changed any of its existing accounting policies, nor has it adopted any new accounting policies since its last fiscal year end.
 
 
Stock-Based Compensation
 
 
The Company records compensation associated with stock options granted to directors, officers, employees and consultants using a fair value measured basis and records the expense as the options vest with the recipients.
 
 
Comparative Figures
 
 
Certain comparative figures have been reclassified to conform with the current period's presentation.


FIRST POINT MINERALS CORP.
Notes to the Unaudited Consolidated Financial Statements
(Prepared by management)

3.      INVESTMENT
 
 
The Company entered into an agreement (the "Shareholder Agreement") effective January 16, 2004 with a Michigan limited liability company, Menominee River Exploration Co., LLC ("MREC") and seven individuals, being the owners of MREC (the "Initial US Investors"). Pursuant to the terms of the Shareholder Agreement, MREC and the Company transferred MREC's Back Forty project in Michigan and First Point's Cedros Property in Honduras to a new company, Aquila Resources Corp. ("Aquila"). In addition, First Point agreed to provide the management services needed to take Aquila public on a Canadian stock exchange and to use its best efforts to arrange for certain funds to be raised for Aquila.
 
 
As consideration for the foregoing transactions, First Point was to receive 2,215,569 Aquila common shares, of which 1,000,000 shares have been issued and are held in a special escrow account pending the Honduran government completing transfer of title to the Cedros property to Aquila. The balance of the shares, being 1,215,569 shares, will be issued to First Point following the completion of Aquila's Initial Public Offering, at which time Aquila will be listed for trading on a Canadian stock exchange. First Point also purchased 253,209 common shares of Aquila at $0.35 per share. Concurrently, the Initial US Investors purchased 889,649 common shares of Aquila at the same price. Subsequently, Aquila completed a small private placement in which certain investors purchased an additional 565,321 common shares. As a result of the foregoing transactions, at the end of the second quarter, the Company owned or held conditional rights to an aggregate of 2,468,778 shares of Aquila having a deemed value (at $0.35 per share) of $864,073, representing an ownership interest in Aquila of 21.1%.
 
4.      EQUIPMENT

        June 30, 2004        December 31, 2003 
        Accumulated         
    Cost    Amortization    Net Book Value    Net Book Value 
         
  Computers  37,355    25,382    11,973    12,724 
  Office furniture and equipment  74,347    53,592    20,755    18,362 
                 
    111,702    78,974    32,728    31,086 

5.     
MINERAL PROPERTIES
 
 
HONDURAS
 
 
Cacamuya Property
 
 
The Company acquired an option in July 1999 to purchase a 60% interest in the Cacamuya Property in southern Honduras from Minera Battle Mountain Gold Company ("BMG"). BMG has subsequently become a wholly- owned subsidiary of Newmont Gold Company.
 
 
To earn its interest, the Company was required to incur US$1,000,000 in exploration expenditures (completed) and to issue 700,000 common shares to BMG by July 2004. Of these, 200,000 shares had been issued as at March 31, 2004, and the remaining 500,000 were issued to BMG in June 2004. BMG retains a 0.6% NSR royalty interest in the property.
 
 
The Company also has an option to earn the remaining 40% interest in this property from a wholly-owned Honduran subsidiary of Breakwater Resources Ltd. by issuing 500,000 common shares at such time as the Honduran government enacts the regulations to the new Honduran mining code and converts title to the property. Breakwater Resources will retain a sliding scale royalty of 0.4% of the gross sale proceeds starting at US$325


FIRST POINT MINERALS CORP.
Notes to the Unaudited Consolidated Financial Statements
(Prepared by management)

5.     
MINERAL PROPERTIES (Continued)
 
 
HONDURAS (Continued)
 
 
per ounce of gold and rising to a maximum of 1.2% of the gross sale proceeds at US$400 per ounce of gold for all gold production, and 0.4% of the gross sale proceeds starting at US$5.25 per ounce of silver and rising to a maximum of 1.2% of the gross sale proceeds at US$7.00 per ounce of silver for all silver production.
 
 
Cedros Property
 
 
As part of the Shareholder Agreement (see note 3), the Company agreed to transfer its Cedros zinc-silver property in Honduras to Aquila in return for 2,215,569 Aquila common shares. The carrying value of the Cedros property was $1,136,636. The Company placed a deemed value of $775,420 on the Aquila shares issuable in consideration for the transfer of the Cedros property and accordingly, has recorded a loss of $361,216 on the disposal of the Cedros property.
 
 
Guayape Property
 
 
Late in the first quarter of 2004, the Company acquired an exploration concession from the Honduran government covering the Guayape Property. A total of $4,791 in deferred exploration expenditures were incurred on this concession in the second quarter (being an aggregate of $7,935 since the project was acquired in the first quarter).
 
 
NICARAGUA
 
 
Rio Luna Property
 
 
In December 2002, the Company entered into an option agreement to acquire a 100% interest in the Rio Luna Property from Novaterra Resources Inc. ("NRI") and Inversiones de Terra Nova S.A. ("Intersa"), a subsidiary of NRI. To keep the option agreement in good standing the Company must make a cash payment to NRI of US$10,000 prior to or on the second anniversary date of the option agreement and must issue an additional 60,000 common shares of the Company to NRI prior to or on the third anniversary date. Expenditures on this project during the quarter totalled $352,724 (2003 - $60,007). Expenditures for the half year totalled $597,692 (2003 - $84,597).
 
 
EL SALVADOR, HONDURAS, NICARAGUA
 
 
Exploration and Property Option Agreement
 
 
In February 2003, the Company entered into an exploration and property option agreement with BHP Billiton World Exploration Inc. ("BHPBilliton") whereby the parties agreed to complete a US$200,000 exploration program in El Salvador, Honduras and Nicaragua (the "Target Area") to explore for copper-gold deposits, with the Company as operator of the program. BHPBilliton subscribed to a private placement of First Point units at $0.42 per unit, being the equivalent of US$50,000, and contributed an additional US$50,000 in cash to the exploration budget. The Company contributed an aggregate of US$150,000 to the exploration budget.
 
 
Cumulative expenditures reached US$200,000 late in the first quarter of 2004. The parties have agreed to fund additional expenditures on a 50/50 basis, up to a maximum of US$243,066. Cumulative expenditures from project inception to the end of the second quarter of 2004 are US$234,926, exclusive of a 7.5% management fee the Company is entitled to receive for managing the exploration program.
 
 
Until such time as a property has been acquired, all expenditures incurred under this agreement are being expensed.


FIRST POINT MINERALS CORP.
Notes to the Unaudited Consolidated Financial Statements
(Prepared by management)

5.     
MINERAL PROPERTIES (Continued)
 
 
EL SALVADOR, HONDURAS, NICARAGUA (Continued)
 
 
Exploration and Property Option Agreement (Continued)
 
 
The properties currently controlled by the Company in Honduras and Nicaragua are excluded from the agreement with BHPBilliton. In addition, any copper-gold deposit identified pursuant to this agreement, unless the copper constitutes more than 25% of the economic value of the deposit, will belong 100% to the Company, and BHPBilliton will have no interest in such deposit.
 
6.     
SHARE CAPITAL
 
 
Authorized share capital consists of an unlimited number of common shares without par value and an unlimited number of first and second preferred shares.

    Number of       
    Common       
    Shares     
  Common shares:         
  Issued at December 31, 2002  22,839,954    8,015,161   
           
  Private placements (1)  6,178,000    1,510,260   
  Warrants exercised  1,950,000    557,950   
  Shares issued for a prepaid expense  30,500    10,065   
  Options exercised  50,000    16,000   
  Mineral property acquisition  15,000    4,800   
    8,223,500    2,099,075   
           
  Issued at December 31, 2003  31,063,454    10,114,236   
           
  Warrants exercised  90,000    26,414   
  Mineral property acquisition  500,000    102,500   
           
  Issued at June 30, 2004  31,653,454    10,243,150   

 

(1) net of share issue costs of $64,500
   
a)      Stock options:
 
 
The Company has an incentive stock option plan that conforms to the requirements of the TSX Venture Exchange and that has been approved by the shareholders. Options to purchase common shares have been granted to directors, officers, employees and consultants of the Company at exercise prices determined by the market value of the common shares on the date of the grant. A summary of the options outstanding at June 30, 2004 follows:


FIRST POINT MINERALS CORP.
Notes to the Unaudited Consolidated Financial Statements
(Prepared by management)

6. SHARE CAPITAL (continued) 
   
a) Stock options (continued) 

      Exercise Price         
  Number       Expiry   
  Outstanding     Date   
  50 ,000   0.32    August 1, 2004   
  620,000   0.39    December 27, 2004   
  50,000   0.55    April 30, 2005   
  315,000   0.50    June 27, 2005   
  75,000   0.19    Januar y 16, 2007   
  305,000   0.20    Januar y 22, 2007   
  50,000   0.53    June 4, 2007   
  460,000   0.55    June 27, 2007   
  150,000   0.34    November 4, 2008   
  710,000   0.35    December 12, 2008   
  40,000   0.33    Februar y 1, 2009   
  175,000   0.20    April 15, 2009   
   
  3 ,000,000          

    Weighted-Average    Number   Weighted-Average   
    Exercise Price    of Options   Contractual   
          Remaining Life   
               
  Balance, December 31, 2002  0.41    2,274,000   3.03   
               
  Granted  0.36    910,000      
  Exercised  0.53    (50,000    
  Cancelled  0.20    (100,000    
               
  Balance, December 31, 2003  0.395    3,034,000   2.80   
               
  Granted  0.33    40,000      
    0.20    175,000      
  Expired  0.45    (199,000    
    0.53    (50,000    
               
  Balance, June 30, 2004  0.382    3,000,000   2.69   

 
The fair value of options reported as compensation expense in the current quarter has been estimated using the Black-Scholes Option Pricing Model. A total of 185,000 options vested during the quarter. Stock-based compensation expense of $28,410 was recorded during the current quarter (2003 – nil). The assumptions used to determine the fair value of the stock options that were granted during the first and second quarters of 2004 and that vested during the second quarter are set out in the following table:

    Granted in First   Granted in Second  
    Quarter 2004   Quarter 2004  
           
  Risk free interest rate  3.64%   3.78%  
  Volatility  132.3   124.2  
  Term (in years)  5   5  
  Vesting terms  25% per quarter   Fully vested  


FIRST POINT MINERALS CORP.
Notes to the Unaudited Consolidated Financial Statements
(Prepared by management)

6. SHARE CAPITAL (continued) 
   
a) Stock options (continued) 
   
Option pricing models require the input of highly subjective assumptions, particularly as to the expected price volatility of the stock. Changes in these assumptions can materially affect the fair value estimate and therefore it is management's view that the existing models do not necessarily provide a single reliable measure of the fair value of the Company's stock option grants. 
   
b) Warrants outstanding at June 30, 2004 are summarized as follows: 

           
Number    Exercise Price   Expiry 
Outstanding    $   Date 
82 ,987    0.65     July 2, 2004 
89,000    0.62 (1)   April 28, 2005 
3,100,000    0.30     December 9, 2005 
3,271,987         

Note: Exercise price of these warrants increased from $0.52 per share on April 28, 2004

7.     
LOSS PER SHARE
 
 
Loss per share has been calculated using the weighted-average number of common shares outstanding during the period. Diluted loss per share has not been calculated as it is anti-dilutive.
 
8.     
RELATED PARTY TRANSACTIONS
 
 
During the quarter, the Company paid companies controlled by Company officers an aggregate of $23,500 (2003 – $8,800) for management and administrative services.
 
9.     
SUPPLEMENTARY NOTES
 
 
As at August 25, 2004, there were 31,653,454 common shares outstanding. There were also 3,000,000 options outstanding with exercise prices ranging from $0.19 to 0.55 per share and expiry dates extending to April 15, 2009 and 3,189,000 warrants outstanding with exercise prices ranging from $0.30 to $0.62 per share and expiry dates extending to December 9, 2005.


EX-99.4 5 exhibit99-4.htm MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2004 Filed by Automated Filing Services Inc. (604) 609-0244 - First Point Minerals Corp. - Exhibit 99.4

MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management's Discussion and Analysis ("MD&A") reviews the activities of First Point Minerals Corp. ("First Point", or the "Company") and compares the financial results for the second quarter and first six months of 2004 with those of the corresponding periods in 2003. In order to gain a more complete understanding of First Point's financial condition and results of operations, this MD&A should be read in conjunction with the financial statements and accompanying notes for the relevant periods, copies of which are filed on the SEDAR website.

First Point prepares its financial statements in accordance with Canadian generally accepted accounting principles, and these statements are filed with the relevant regulatory authorities in Canada. All monetary amounts are in Canadian dollars unless otherwise noted.

This MD&A contains certain forward-looking information. All information, other than historical facts included herein, including without limitation data regarding potential mineralization, exploration results and future plans and objectives of First Point is forward-looking information that involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in the forward-looking information.

The forward-looking information is only made as of the date of this MD&A, August 25, 2004 (the "Report Date")

1.            Overview

First Point was incorporated as a junior capital pool company in the province of Alberta on February 2, 1995 and established itself as a mineral exploration company in June 1996. The Company's exploration efforts at the present time are focused on the exploration and development of precious metal properties in Central America, principally in Honduras and Nicaragua, with five mineral properties and several exploration projects in Central America. First Point is also doing reconnaissance exploration in Peru.

Effective January 16, 2004, First Point entered into an agreement (the "Shareholders Agreement") with Menominee River Exploration Co. LLC, a Michigan limited liability company, ("MREC") and certain individuals who are the shareholders of MREC for the purposes of advancing First Point's Cedros property in Honduras and MREC's Back Forty property in the Upper Peninsula of Michigan. A new company, Aquila Resources Corp. ("Aquila"), was formed under the Canada Business Corporations Act and First Point and MREC have contributed the Cedros and Back Forty properties, respectively, to Aquila. Aquila's principal focus will be on zinc and copper deposits with commercially important gold and/or silver credits.

As consideration for First Point contributing the Cedros property to Aquila and providing the management services required to take Aquila public by means of a listing on a Canadian stock exchange, Aquila agreed to issue 2,215,569 of its common shares to First Point. The Company has placed a value of $775,420 on these shares. Of these shares, 1,000,000 have been placed in a special escrow pending the Honduras government transferring title to the Cedros property to Aquila and 1,215,569 shares are to be issued to First Point when Aquila's shares begin to trade publicly. First Point also subscribed for 253,208 common shares at $0.35 per share. The Company's aggregate shareholding in Aquila is 2,468,777 common shares, representing an ownership interest of approximately 21.1%, with an aggregate cost basis of $864,073. This is the amount shown on the balance sheet as the carrying value of First Point's investment in Aquila.

1


MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

2.            Results of Operations

First Point explores for precious metal deposits, none of which have been advanced to the point where a production decision can be made. The Company has no producing properties, and no sales or revenues.

The net loss for the quarter ended June 30, 2004 was $143,960 (2003 - $154,061). There were two significant increases in expenses as compared to the prior year's second quarter: (a) stock-based compensation was $28,140 (2003 - $nil), being the fair value of stock options that vested during the second quarter (none vested in the prior year's second quarter); (b) management fees in the second quarter of 2004 were $23,500 (2003 - $8,800). The increase in management fees results from having an increased portion of the services needed to manage the Company's affairs provided under contractual arrangements rather than performed by employees. General exploration expenditures for the second quarter of 2004 of $56,484 (2003 - $91,093) were lower because the Company's technical resources were directed at the Rio Luna project (where exploration expenditures were capitalized) instead of to general exploration, where such costs would have been expensed.

For the half year ended June 30, 2004, the net loss was $756,709 (2003 - $256,269). The largest component of the increase was the write-off of $361,216 of deferred exploration expenditures (2003 - $nil), being the difference between the carrying value of the Cedros property ($1,136,636 at December 31, 2003) and the $775,420 deemed value of the 2,215,569 Aquila common shares issuable to the Company as consideration for transferring title to the Cedros property to Aquila. The next largest increase in expenses for the first half of 2004 was general exploration, a reflection of the expenditures incurred under the agreement with BHP Billiton. The bulk of those expenditures were incurred after the first half of 2003. The consolidated statements of project and general exploration expenses for the six months ended June 30, 2004 and 2003 on pages 3 and 4 following provide details on the nature of the Company's exploration expenditures. Accounting, legal and audit expenses of $3,287 (2003 - $19,560) were lower in part because the 2003 period included legal costs associated with negotiating the arrangements with BHP Billiton.

Nicaraguan operations:

The Company incurred gross expenditures on the Rio Luna property during the first half of 2004 of $597,692 (2003 - $ 84,597).

First Point entered into an option to purchase agreement in December 2002 to acquire a 100% interest in the Rio Luna property. Geological reconnaissance and trenching on the property during 2003 identified 8.8 kilometers of strike length in several vein systems. Late in the first quarter of 2004, the Company started a drilling program on four areas: Balsamo, Balsamo East, Santa Rita and El Rodeo. Most of the drilling took place during the second quarter, with the result that drilling expenditures of $331,015 for this program constituted approximately 55% of total expenditures on the Rio Luna project during the first half of the year. The program, which consisted of 2,400 meters of core drilling in 28 holes, was suspended early in the third quarter due to the onset of adverse weather conditions.

2


MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

STATEMENT OF PROJECT AND GENERAL EXPLORATION EXPENDITURES
SIX MONTHS ENDED JUNE 30, 2004

  PROJECT DEFERRED EXPLORATION    GENERAL EXPLORATION   TOTAL  
  HONDURAS   NICARAGA          Cent & So        
  Cacamuya    Guayape    Cedros   Rio Luna    BHP Billit   America   Other    
                         
  $   $   $   $   $   $   $   $  
                                 
BALANCE - December 31, 2003  1,973,594    -    1,136,636   238,743    -   -   -   3,348,973  
                                 
Property Acquisition and Option Costs  126,831                    126,831  
Field - Community Relations  2,196        15     77       2,290  
Field – Drilling            331,015          331,015  
Field - Food & Accommodation  375        96   14,420    7,548   1,727   70   24,236  
Field – Labour  9,214    227    53   24,203    24,360   78     58,135  
Field - Office Rent & Communication  921        1,000   2,871    1,242   336     6,370  
Field – Supplies      59   4,748    2,680   213     7,706  
Field - Transportation & Freight  1,698    367    434   21,302    24,994   2,733     51,528  
Assaying & Analysis            11,842    34,652   4,276     50,770  
Computer Usage  150          1,830    1,040   1,300   460   4,780  
Environmental & Reclamation            34          34  
Geological & Technical Services            43,353    16,313   8,293     67,959  
Legal & Accounting Fees  1,321    4,774    2,166   2,174      840     11,275  
Office Costs/Communications  37    19        196   3,871     4,129  
Property Taxes  4,698    1,442      4,338      2,851     13,329  
Salaries/Employee Benefits  4,822          45,757    27,555   42,959   14,954   136,047  
Travel & Accommodation  630          6,653    3,107   2,778   83   13,251  
General Administration  4,212    1,104    617   83,144    17,568   11,676   2,516   120,837  
Recoverable Expenses                (35,043     (35,043 ) 
                                 
TOTAL EXPLORATION EXPENDITURES  157,109    7,935    4,440   597,692    126,289   83,931   18,083   995,479  
                                 
WRITEOFF: GENERAL EXPLORATION          (4,440     (126,289 (83,162 (18,083 (232,743 ) 
                    DEFERRED EXPLORATION          (1,136,636 )           (1,136,636 ) 
                         
NET DEFERRED EXPLORATION  157,109    7,935    (1,136,636 ) 597,692    0   0   0   (373,900 ) 
                         
BALANCE – June 30, 2004  2,130,703    7,935    0   836,435    0   0   0   2,975,073  

3


MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

STATEMENT OF PROJECT AND GENERAL EXPLORATION EXPENDITURES
SIX MONTHS ENDED JUNE 30, 2003

  PROJECT DEFERRED EXPLORATION    GENERAL EXPLORATION   TOTAL  
  HONDURAS    NICARAGUA    BHP   Cent & So        
  Cacamuya    Cedros     Rio Luna   Chaparral    Billiton   America   Other    
                                 
      $     $   $   $   $  
                                 
BALANCE - December 31, 2002  1,584,214    1,126,110    28,362    -    -   -   -   2,738,686  
                                 
Property Acquisition and Option Costs  11,370    2,273                  13,643  
Field – Community Relations          65              65  
Field – Drilling  196,465                      196,465  
Field - Food & Accommodation  2,838        4,548    147    3,401   4,437   22   15,391  
Field – Labour  22,470        16,697        10   206     39,383  
Field - Office Rent & Communication  2,630    975    500    75    609   152     4,943  
Field – Supplies  1,794        3,314    32    1,462   607     7,208  
Field - Transportation & Freight  6,490        10,164    319    1,498   7,097     25,567  
Field - Trenching          5,567              5,567  
Assaying & Analysis  6,291        6,940    293    2,579       16,842  
Computer Usage  1,590    30    883        820   1,870   850   6,043  
Environmental & Reclamation  724        588              1,312  
Geological & Technical Services  4,909        4,636        4,292   16,216     30,053  
Legal & Accounting Fees  13                      13  
Office Costs/Communications  1,898        265        737   511   9   3,421  
Property Taxes          5,764              5,764  
Salaries/Employee Benefits  40,223    887    14,330        15,476   50,500   20,418   141,834  
Travel & Accommodation  2,834        1,645        1,650   2,644   381   9,153  
General Administration  33,343    217    8,692    99    3,515   9,942   2,483   58,291  
                                 
TOTAL EXPLORATION  335,882    4,382    84,597    966    34,208   96,760   24,163   580,958  
EXPENDITURES                         
                                 
WRITE OFF: GENERAL EXPLORATION          (34,208 (96,760 (24,163 (155,130 ) 
                     DEFERRED EXPLORATION          -   -   -   -  
                                 
NET DEFERRED EXPLORATION  335,882    4,382    84,597    966    -   -   -   425,827  
                                 
BALANCE – June 30, 2003  1,920,096    1,130,492    112,959    966    -   -   -   3,164,513  

4


MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

In the latter stages of the program, drilling revealed the presence of a second vein in the Balsamo East target area, which is now believed to contain at least two major, moderate to steep south-dipping epithermal quartz breccia veins and stockwork zones. Drilling will resume late in the third quarter, when the rains begin to abate and ground conditions improve. Hand trenching and geologic mapping have continued throughout the rainy season.

Honduran operations:

First Point's deferred exploration expenditures on the Cacamuya property during the first six months of 2004 were $157,109 (2003 - $335,882). The 2004 figure consisted largely of the deemed value ($102,500) of 500,000 First Point shares issued to exercise the option to acquire a 60% interest in this property from Minera Battle Mountain Gold. The 2003 expenditures included $196,465 in drilling expenses. No drilling was done on this project during the first half of 2004, as the Company's exploration personnel were deployed to work on the Rio Luna project and the BHP Billiton reconnaissance program during much of the period. As there was no drilling in the 2004 period, expenditures for field labour, salaries and benefits in this period were substantially lower than in the prior year's first half. In addition, since general administration expenses are allocated to individual projects and general exploration activities on a prorata basis using total expenditures excluding G&A costs, the portion of general administration expenses allocated to Cacamuya for the first half of 2004 was correspondingly lower, as compared to the amount allocated in the 2003 period.

BHP Billiton exploration and property option agreement:

The Company's net expenditures under the BHP Billiton agreement during the first half of 2004 were $126,289 (2003 - $34,208). Field work did not commence until the second quarter of 2003 and as a consequence, expenditures for the half year ending June 30, 2003 were modest. The original budget for the exploration program was US$200,000 and cumulative expenditures were US $201,642 through March 31, 2004, exclusive of a 7.5% management fee payable to the Company for acting as manager of the project. During the second quarter of 2004 an additional US$52,000 of expenditures were authorized. It is anticipated that a further modest increase in expenditures will be authorized prior to the end of the third quarter. The $35,043 of recoverable expenditures represents amounts recoverable from BHP for its share of the expenditures incurred through June 30, 2004 in excess of the originally authorized US$200,000.

Aquila Resources Corp.:

The Company vended the Cedros zinc-silver property in Honduras to Aquila Resources Corp. for 2,214,569 Aquila common shares, pursuant to an agreement effective January 16, 2004. The carrying value of the Cedros property on the Company's books was $1,136,636, whereas the Aquila shares issuable in consideration of the transfer of the property had a deemed value of $775,420, resulting in a loss of $361,216 on the transaction. The Cedros property had been kept on a "care and maintenance" basis for the past several years, awaiting higher metal prices. The Company is of the view that shareholder value from this property would best be enhanced by transferring ownership to an entity focused on exploring and developing base metal properties.

Aquila also acquired the Back Forty zinc-gold deposit in Michigan, and intends to build, over time, a portfolio of base metal properties. Preliminary discussions have been held with prospective sources of financing for the purposes of funding an aggressive exploration program, directed primarily at advancing the Back Forty project.

5


MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Back Forty is an advanced stage exploration project focusing on gold and massive sulfide targets. Early in 2002, drill testing of a geophysical anomaly resulted in the discovery of the LK massive sulfide zinc/gold deposit. Subsequent drilling in 2003 defined a potentially economic resource of zinc and gold rich massive sulfide mineralization, plus adjacent gold rich sections low in sulfides. The massive sulfide lenses show impressive widths and continuity. The potential to expand the three massive sulfide zones is excellent. The Main Zone massive sulfides remain open down plunge to the west, and ground geophysical surveys indicate probable extension in this direction for at least another 425 meters. The Tuff Zone massive sulfide is open at depth and along strike to the east, and has not been drilled along its surface projections where there is potential for enriched gossans similar to the East Zone. In addition there are impressive gold intercepts in a variety of host rocks peripheral to massive sulfide mineralization suggest strong potential for "gold only" style mineralization.

3.            Summary of Quarterly Results

The following tables summarize information derived from the Company's financial statements for each of the eight most recently completed quarters:

    Quarter Ended:             June 30   Mar. 31   Dec. 31   Sep. 30   June 30   Mar. 31   Dec. 31   Sep. 30  
    Year:             2004   2004   2003   2003   2003   2003   2002   2002  
                                       
(a) Net sales or total revenue ($000s)   $Nil   $Nil   $Nil   $Nil   $Nil   $Nil   $Nil   $Nil  
(b)  Income (loss) from continuing operations:                  
  (i) in total (000s)   $(157 $(259 $(456 $(155 $(152 $(107 $(277 $( 81
  (ii) per share(1)   $(0.00 $(0.00 $(0.02 $(0.01 $(0.01 $(0.00 $(0.02 $0.00
(c)  Net income or loss:                  
  (i) in total (000s)   $(144 $(613 $(456 $(158 $(154 $(102 $(278 $( 72
  (ii) per share(1)   $(0.00 $(0.02 $(0.02 $(0.01 $(0.01 $(0.00 $(0.02 $(0.00

              (1) Fully diluted loss per share amounts have not been calculated as they would be anti-dilutive.

4.            Liquidity and Capital Resources

First Point finances its activities primarily by the private placement of securities. There is no assurance that equity funding will be accessible to First Point at the times and in the amounts required to fund the Company's activities, as there are many conditions that are beyond the ability of First Point to control that will have a bearing on the level of investor interest in purchasing the Company's securities.

Debt financing has not been used to fund the Company's property acquisitions and exploration activities and First Point has no current plans to use debt financing. The Company has no "standby" credit facilities, nor any off-balance sheet arrangements and it does not use hedges or other financial derivatives.

Cash and Financial Conditions:

The Company's cash position was $789,311 at June 30, 2004 ($1,869,354 at December 31, 2003).

The Company's working capital was $827,611 at June 30, 2004 ($1,916,480 at December 31, 2003).

6


MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Investing Activities:

During the second quarter of 2004, the Company's cash flow used for investing activities was $384,110 (2003 - $111,295). For the first six months of 2004, cash flow used for investing activities was $1,529,238 (2003 - $432,360), of which $864,073 (2003 - $Nil) was the investment in Aquila, and $660,236 (2003 - $425,827) was for exploration expenditures that were deferred.

Financing Activities:

The Company had no financing activities in the second quarter of 2004 (2003 - $77,460). During the first half of 2004, the Company received $26,414 from the exercise of warrants. In the comparable 2003 period, a total of $236,211 was received from the exercise of options and warrants and the private placement with BHP Billiton.

In a non-cash transaction in the second quarter of 2004 the Company issued 500,000 shares with a deemed value of $102,500 to complete the exercise of an option to acquire a 60% interest in the Cacamuya property in Honduras.

Outlook:

It is anticipated that for the foreseeable future, First Point will rely on the equities markets to meet its financing needs. The Company will also consider entering into joint venture arrangements to advance its projects.

For the second half of 2004, management has budgeted approximately $175,000 for the next phase of drilling at Rio Luna, which will consist of 1,000 meters of diamond drilling. Favourable results from this program will result in an additional appropriation of funds for a follow-on drilling program. Corporate administrative and overhead costs for the balance of the year are estimated at approximately $450,000. The Company's working capital will be used to fund these exploration, G&A and overhead expenditures.

Outstanding share data as at the Report Date:

First Point had 31,653,454 shares outstanding, or 37,792,454 shares on a fully diluted basis on the Report Date. There are 3,189,000 warrants outstanding with conversion prices of $0.30 to $0.62 per share that expire at various dates ranging to December 9, 2005. In addition, there are 2,950,000 stock options outstanding under the Company's incentive stock option plan. The stock options are exercisable at prices ranging from $0.19 to $0.55 per share, with expiry dates ranging to April 15, 2009. If the holders were to acquire all 6,139,000 shares issuable upon conversion of all warrants and exercise of all incentive stock options outstanding, the Company would receive an additional $2,130,430.

6.            Transactions with related parties

During the second quarter, First Point paid $23,500 (2003 - $8,800) to companies controlled by certain officers of the Company for management and administrative services.

These transactions were in the normal course of operations and were measured at the agreed amount, which was the amount of consideration established and agreed to with the related parties.

7


EX-99.5 6 exhibit99-5.htm INTERIM CERTIFICATE Filed by Automated Filing Services Inc. (604) 609-0244 - First Point Minerals Corp. - Exhibit 99.5

Interim Certificate

 

               I, Peter M.D. Bradshaw, Executive Chairman and Chief Executive Officer of First Point Minerals Corp., certify that:

  1.      I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings) of First Point Minerals Corp., (the issuer) for the interim period ending June 30, 2004;
 
  2.      Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with the respect to the period covered by the interim filings;
 
  3.      Based on my knowledge, the interim financial statement together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the periods presented in the interim filings.

Date: August 25, 2004

/s/  Peter M.D. Bradshaw 
  Executive Chairman and Chief Executive Officer 


EX-99.6 7 exhibit99-6.htm INTERIM CERTIFICATE Filed by Automated Filing Services Inc. (604) 609-0244 - First Point Minerals Corp. - Exhibit 99.6

Interim Certificate

 

               I, J. Christopher Mitchell, President and Chief Financial Officer of First Point Minerals Corp., certify that:

  1.      I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings) of First Point Minerals Corp., (the issuer) for the interim period ending June 30, 2004;
 
  2.      Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with the respect to the period covered by the interim filings;
 
  3.      Based on my knowledge, the interim financial statement together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the periods presented in the interim filings.

Date: August 25, 2004

 

/s/  J. Christopher Mitchell 
  President and Chief Financial Officer 


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-----END PRIVACY-ENHANCED MESSAGE-----