-----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, HDe3Rk30TKilseZLGPUrpVYAW3djCc0icth6knXkaFlhYS5PhT+DHpmGPiL6XfMK ZzJwXcq7UPdMTyinFzjYtA== 0001170423-06-000013.txt : 20060113 0001170423-06-000013.hdr.sgml : 20060113 20060113141844 ACCESSION NUMBER: 0001170423-06-000013 CONFORMED SUBMISSION TYPE: SB-2 PUBLIC DOCUMENT COUNT: 8 FILED AS OF DATE: 20060113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Crawford Lake Mining Inc. CENTRAL INDEX KEY: 0001337615 IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: SB-2 SEC ACT: 1933 Act SEC FILE NUMBER: 333-131017 FILM NUMBER: 06529334 BUSINESS ADDRESS: STREET 1: 4372 GRETA STREET CITY: BURNABY STATE: A1 ZIP: V5J 1N8 BUSINESS PHONE: 604-435-1141 MAIL ADDRESS: STREET 1: 4372 GRETA STREET CITY: BURNABY STATE: A1 ZIP: V5J 1N8 SB-2 1 crawfordlakesb2.txt FORM SB-2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM SB-2 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 CRAWFORD LAKE MINING INC. --------------------------- (Name of small business issuer in its charter) NEVADA 1000 Applied For - -------------------------- ----------------------------- -------------------- State or jurisdiction of Primary Standard Industrial I.R.S. Employer incorporation or organization Classification Code Number Identification No. Crawford Lake Mining Inc. 4372 Greta Street Burnaby, BC V5J 1N8 Telephone: 604-435-1141 Facsimile: 604-435-0301 -------------------------------------------------------------- (Address and telephone number of principal executive offices) Empire Stock Transfer Inc. 7251 West Lake Mead Blvd Suite 300 Las Vegas, NV 89128 Telephone: 702-562-4091 Facsimile: 702-562-4081 -------------------------------------------------------------- (Name, address and telephone number of agent for service) Approximate date of proposed sale to the public: as soon as practicable after the effective date of this Registration Statement. If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. | X | If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. | | If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. | | If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. | | If delivery of the prospectus is expected to be made pursuant to Rule 434, check the following box. | | 1
CALCULATION OF REGISTRATION FEE - ------------------------------------------------------------------------------------------------------------------- TITLE OF EACH CLASS OF DOLLAR AMOUNT TO BE PROPOSED MAXIUM PROPOSED MAXIMUM AMOUNT OF SECURITIES TO BE REGISTERED OFFERING PRICE PER AGGREGATE OFFERING REGISTRATION FEE (2) REGISTERED SHARE (1) PRICE (2) - ------------------------ ---------------------- ---------------------- ---------------------- --------------------- Common Stock $278,000 $0.10 $278,000 $32.72 - ------------------------ ---------------------- ---------------------- ---------------------- ---------------------
(1) Based on the last sales price on January 21, 2005. (2) Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457 under the Securities Act. THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SECTION 8(a), MAY DETERMINE. SUBJECT TO COMPLETION, Dated January 13, 2006 2 PROSPECTUS CRAWFORD LAKE MINING INC. 2,780,000 SHARES COMMON STOCK ---------------- The selling shareholders named in this prospectus are offering all of the shares of common stock offered through this prospectus. Our common stock is presently not traded on any market or securities exchange. ---------------- The purchase of the securities offered through this prospectus involves a high degree of risk. SEE SECTION ENTITLED "RISK FACTORS" ON PAGES 6-10 The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. The selling shareholders will sell our shares at $0.10 per share until our shares are quoted on the OTC Bulletin Board, and thereafter at prevailing market prices or privately negotiated prices. There is no guarantee that our shares will be quoted on the OTC Bulletin Board. We determined this offering price based upon the price of the last sale of our common stock to investors. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense. ---------------- The Date Of This Prospectus Is: January 13, 2006 3 Table Of Contents
Page Summary 5 Risk Factors 6 - If we do not obtain additional financing, our business will fail 6 - Because we have not commenced business operations, we face a high risk of business failure 6 - Because of the speculative nature of exploration of mining properties, there is substantial risk that our business will fail 7 - - We need to continue as a going concern if our business is to succeed. Our independent auditor has raised doubt about our ability to continue as a going concern 7 - - Because of the inherent dangers involved in mineral exploration, there is a risk that we may incur liability or damages as we conduct our business 7 - - Even if we discover commercial reserves of precious metals on the Little Bonanza Property, we may not be able to successfully obtain commercial production 7 - - If we become subject to burdensome government regulation or other legal uncertainties, our business will be negatively affected 7 - - Because our sole director owns 55.73% of our outstanding stock, they could control and make corporate decisions that may be disadvantageous to other minority stockholders 7 - - Because our president has other business interests, he may not be able or willing to devote a sufficient amount of time to our business operations, causing our business to fail 8 - - Because management has no technical experience in mineral exploration, our business has a high risk of failure 8 - - If a market for our common stock does not develop, shareholders may be unable to sell their shares 8 - - A purchaser is purchasing penny stock which limits the ability to sell stock 8 Use of Proceeds 8 Determination of Offering Price 8 Dilution 9 Selling Securityholders 9 Plan of Distribution 11 Legal Proceedings 12 Directors, Executive Officers, Promoters and Control Persons 12 Security Ownership of Certain Beneficial Owners and Management 13 Description of Securities 13 Interest of Named Experts and Counsel 14 Disclosure of Commission Position of Indemnification for Securities Act Liabilities 14 Organization Within Last Five Years 14 Description of Business 14 Plan of Operations 18 Description of Property 19 Certain Relationships and Related Transactions 19 Market for Common Equity and Related Stockholder Matters 19 Executive Compensation 20 Financial Statements 21 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 39
4 Summary Prospective investors are urged to read this prospectus in its entirety. We intend to be in the business of mineral property exploration. To date, we have not conducted any exploration on our sole exploration target, the Little Bonanza mineral claim located approximately 30 kilometers northeast of the City of Sudbury in the Scadding Township of Ontario, Canada. We acquired a 100% right, interest and title in and to the claim for a cash payment of $7,000, which we paid to the vendor, Klondike Bay Resources. Our objective is to conduct mineral exploration activities on the Little Bonanza claim in order to assess whether it possesses economic reserves of gold, copper, nickel, platinum and palladium. We have not yet identified any economic mineralization on the Little Bonanza claim. Our proposed exploration program is designed to search for an economic mineral deposit. We were incorporated on October 18, 2004 under the laws of the state of Nevada. Our principal offices are located at 470 Granville Street, Suite 1120, Vancouver, British Columbia Canada V6C 1V5. Our telephone number is (604) 435-0301. The Offering: Securities Being Offered Up to 2,780,000 shares of common stock. Offering Price The selling shareholders will sell our shares at $0.10 per share until our shares are quoted on the OTC Bulletin Board, and thereafter at prevailing market prices or privately negotiated prices. We determined this offering price based upon the price of the last sale of our common stock to investors. Terms of the Offering The selling shareholders will determine when and how they will sell the common stock offered in this prospectus. Termination of the Offering The offering will conclude when all of the 2,780,000 shares of common stock have been sold, the shares no longer need to be registered to be sold or we decide to terminate the registration of the shares. Securities Issued and to be Issued 6,280,000 shares of our common stock are issued and outstanding as of the date of this prospectus. All of the common stock to be sold under this prospectus will be sold by existing shareholders. Use of Proceeds We will not receive any proceeds from the sale of the common stock by the selling shareholders. 5 Summary Financial Information Balance Sheet October 31, 2005 (unaudited) Cash $16,732 Total Assets $16,732 Liabilities $6,250 Total Stockholders' Equity $10,482 Statement of Operations From Incorporation on October 18, 2004 to October 31, 2005 (unaudited) Revenue $ 0 Net Loss and Deficit ($23,218) Risk Factors An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below and the other information in this prospectus before investing in our common stock. If any of the following risks occur, our business, operating results and financial condition could be seriously harmed. The trading price of our common stock could decline due to any of these risks, and you may lose all or part of your investment. IF WE DO NOT OBTAIN ADDITIONAL FINANCING, OUR BUSINESS WILL FAIL. Our current operating funds are less than necessary to complete all intended exploration of the Little Bonanza claim, and therefore we will need to obtain additional financing in order to complete our business plan. We currently do not have any operations and we have no income. As well, we will not receive any funds from this registration. Our business plan calls for significant expenses in connection with the exploration of the Little Bonanza claim. While we have sufficient funds to conduct the recommended phase one program at an estimated cost of $5,000 and a portion of the phase two exploration program at an estimated cost of $15,000, we will need additional funds in order to complete recommended exploration on the Little Bonanza claim. Even after completing these two phases of exploration, we will not know if we have a commercially viable mineral deposit. We will require additional financing to sustain our business operations if we are not successful in earning revenues once exploration is complete. We do not currently have any arrangements for financing and may not be able to find such financing if required. BECAUSE WE HAVE NOT COMMENCED BUSINESS OPERATIONS, WE FACE A HIGH RISK OF BUSINESS FAILURE. We have not yet commenced exploration on the Little Bonanza claim. Accordingly, we have no way to evaluate the likelihood that our business will be successful. We were incorporated on October 18, 2004 and to date have been involved primarily in organizational activities and the acquisition of the Little Bonanza claim. We have not earned any revenues as of the date of this prospectus. Potential investors should be aware of the difficulties normally encountered by new mineral exploration companies and the high rate of failure of such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the exploration of the mineral properties that we plan to undertake. These potential problems include, but are not limited to, unanticipated problems relating to exploration, and additional costs and expenses that may exceed current estimates. 6 Prior to completion of our exploration stage, we anticipate that we will incur increased operating expenses without realizing any revenues. We therefore expect to incur significant losses into the foreseeable future. We recognize that if we are unable to generate significant revenues from development of the Little Bonanza Property and the production of minerals from the claim, we will not be able to earn profits or continue operations. There is no history upon which to base any assumption as to the likelihood that we will prove successful, and it is doubtful that we will generate any operating revenues or ever achieve profitable operations. If we are unsuccessful in addressing these risks, our business will most likely fail. BECAUSE OF THE SPECULATIVE NATURE OF EXPLORATION OF MINING PROPERTIES, THERE IS A SUBSTANTIAL RISK THAT OUR BUSINESS WILL FAIL. The search for valuable minerals as a business is extremely risky. The likelihood of our mineral claim containing economic mineralization or reserves of gold, copper, nickel, platinum and palladium is extremely remote. Exploration for minerals is a speculative venture necessarily involving substantial risk. In all probability, the Little Bonanza claim does not contain any reserves and funds that we spend on exploration will be lost. As well, problems such as unusual or unexpected formations and other conditions are involved in mineral exploration and often result in unsuccessful exploration efforts. In such a case, we would be unable to complete our business plan. WE NEED TO CONTINUE AS A GOING CONCERN IF OUR BUSINESS IS TO SUCCEED. OUR INDEPENDENT AUDITOR HAS RAISED SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN. The report of our independent accountant to our audited financial statements for the period ended April 30, 2005 indicates that there are a number of factors that raise substantial doubt about our ability to continue as a going concern. Such factors identified in the report are that we have no source of revenue and our dependence upon obtaining adequate financing. If we are not able to continue as a going concern, it is likely investors will lose all of their investment. BECAUSE OF THE INHERENT DANGERS INVOLVED IN MINERAL EXPLORATION, THERE IS A RISK THAT WE MAY INCUR LIABILITY OR DAMAGES AS WE CONDUCT OUR BUSINESS. The search for valuable minerals involves numerous hazards. As a result, we may become subject to liability for such hazards, including pollution, cave-ins and other hazards against which we cannot insure or against which we may elect not to insure. The payment of such liabilities may have a material adverse effect on our financial position. EVEN IF WE DISCOVER COMMERCIAL RESERVES OF PRECIOUS METALS ON THE LITTLE BONANZA CLAIM, WE MAY NOT BE ABLE TO SUCCESSFULLY COMMENCE COMMERCIAL PRODUCTION. The Little Bonanza claim does not contain any known bodies of mineralization. If our exploration programs are successful in establishing gold of commercial tonnage and grade, we will require additional funds in order to place the Little Bonanza claim into commercial production. We may not be able to obtain such financing. BECAUSE OUR SOLE DIRECTOR OWNS 55.73% OF OUR OUTSTANDING COMMON STOCK, HE COULD MAKE AND CONTROL CORPORATE DECISIONS THAT MAY BE DISADVANTAGEOUS TO OTHER MINORITY SHAREHOLDERS. Our director owns approximately 55.73% of the outstanding shares of our common stock. Accordingly, he will have a significant influence in determining the outcome of all corporate transactions or other matters, including mergers, consolidations, and the sale of all or substantially all of our assets. He will also have the power to prevent or cause a change in control. The interests of our director may differ from the interests of the other stockholders and thus result in corporate decisions that are disadvantageous to other shareholders. 7 BECAUSE OUR PRESIDENT HAS OTHER BUSINESS INTERESTS, HE MAY NOT BE ABLE OR WILLING TO DEVOTE A SUFFICIENT AMOUNT OF TIME TO OUR BUSINESS OPERATIONS, CAUSING OUR BUSINESS TO FAIL. Our president, Mr. John Fiddick, intends to devote approximately 15% of his business time providing his services to us. While Mr. Fiddick presently possesses adequate time to attend to our interests, it is possible that the demands on Mr. Fiddick from his other obligations could increase with the result that he would no longer be able to devote sufficient time to the management of our business. BECAUSE OUR SOLE DIRECTOR HAS NO TECHNICAL EXPERIENCE IN MINERAL EXPLORATION, OUR BUSINESS HAS A HIGHER RISK OF FAILURE. Our sole director has no technical training in the field of geology and specifically in the areas of exploring for, starting and operating a mine. As a result, we may not be able to recognize and take advantage of potential acquisition and exploration opportunities in the sector without the aid of qualified geological consultants. As well, with no direct training or experience, our management may not be fully aware of the specific requirements related to working in this industry. His decisions and choices may not be well thought out and our operations, earnings and ultimate financial success may suffer irreparable harm as a result. IF A MARKET FOR OUR COMMON STOCK DOES NOT DEVELOP, SHAREHOLDERS MAY BE UNABLE TO SELL THEIR SHARES. There is currently no market for our common stock and no certainty that a market will develop. We currently plan to apply for listing of our common stock on the over the counter bulletin board upon the effectiveness of the registration statement, of which this prospectus forms a part. Our shares may never trade on the bulletin board. If no market is ever developed for our shares, it will be difficult for shareholders to sell their stock. In such a case, shareholders may find that they are unable to achieve benefits from their investment. A PURCHASER IS PURCHASING PENNY STOCK WHICH LIMITS HIS OR HER ABILITY TO SELL THE STOCK. The shares offered by this prospectus constitute penny stock under the Exchange Act. The shares will remain penny stock for the foreseeable future. The classification of penny stock makes it more difficult for a broker-dealer to sell the stock into a secondary market, thus limiting investment liquidity. Any broker-dealer engaged by the purchaser for the purpose of selling his or her shares in our company will be subject to rules 15g-1 through 15g-10 of the Exchange Act. Rather than creating a need to comply with those rules, some broker-dealers will refuse to attempt to sell penny stock. Please refer to the "Plan of Distribution" section for a more detailed discussion of penny stock and related broker-dealer restrictions. Forward-Looking Statements This prospectus contains forward-looking statements that involve risks and uncertainties. We use words such as anticipate, believe, plan, expect, future, intend and similar expressions to identify such forward-looking statements. You should not place too much reliance on these forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us described in the "Risk Factors" section and elsewhere in this prospectus. Use Of Proceeds We will not receive any proceeds from the sale of the common stock offered through this prospectus by the selling shareholders. Determination Of Offering Price The selling shareholders will sell our shares at $0.10 per share until our shares are quoted on the OTC Bulletin Board, and thereafter at prevailing market prices or privately negotiated prices. There is no guarantee that our shares will be quoted on the OTC Bulletin Board. We determined this offering price, based upon the price of the last sale of our common stock to investors. 8 Dilution The common stock to be sold by the selling shareholders is common stock that is currently issued and outstanding. Accordingly, there will be no dilution to our existing shareholders. Selling Securityholders The selling shareholders named in this prospectus are offering all of the 2,780,000 shares of common stock offered through this prospectus. These shares were acquired from us in private placements that were exempt from registration under Regulation S of the Securities Act of 1933 and pursuant to a mineral Little Bonanza Property purchase agreement. The shares include the following: 1. 1,200,000 shares of our common stock that the selling shareholders acquired from us in an offering that was exempt from registration under Regulation S of the Securities Act of 1933 and was completed on December 24, 2004; 2. 1,500,000 shares of our common stock that the selling shareholders acquired from us in an offering that was exempt from registration under Regulation S of the Securities Act of 1933 and was completed on January 10, 2005; 3. 80,000 shares of our common stock that the selling shareholders acquired from us in an offering that was exempt from registration under Regulation S of the Securities Act of 1933 and was completed on January 21, 2005; The following table provides as of the date of this prospectus, information regarding the beneficial ownership of our common stock held by each of the selling shareholders, including: 1. the number of shares owned by each prior to this offering; 2. the total number of shares that are to be offered for each; 3. the total number of shares that will be owned by each upon completion of the offering; and 4. the percentage owned by each upon completion of the offering.
Total Number of Shares to be Total Shares Percent Owned Upon Shares Owned Prior Offered for Owned Upon Completion of this to this Offering Selling Completion of Offering Shareholders this Offering Name of Selling Stockholder Account - -------------------------------------------- -------------------- -------------------- ------------------- -------------------- Bobby-Ann Trask 300,000 300,000 Nil Nil 6759 Willingdon Avenue, Suite 1505 Burnaby, BC V5H 3Y9 Alan Cox 300,000 300,000 Nil Nil 6688 Willingdon Avenue, Suite 313 Burnaby, BC V5H 2V8 Amy J. Young 300,000 300,000 Nil Nil 4329 Greta Street Burnaby, BC V5J 1N9 Robert J. Schumann 300,000 300,000 Nil Nil 6656 Lambert Crescent Delta, BC V4E 1R8 Layne M. Osterman 100,000 100,000 Nil Nil 1305 West 12th Avenue, Suite 303 Vancouver, BC V6H 1M3 Saroj Nagin 100,000 100,000 Nil Nil 3753 Price Street Burnaby, BC V5G 2K9 Mark Frendo 100,000 100,000 Nil Nil 7155 MacPherson Avenue, Suite 56 Burnaby, BC
9
Mahangu Patel 100,000 100,000 Nil Nil 7763 Goodland Street Burnaby, BC V5E 2H7 Donna M. White 100,000 100,000 Nil Nil 4329 Greta Street Burnaby, BC V5J 1N9 Rene Dickenscheid 100,000 100,000 Nil Nil 1683 Renfrew Street Vancouver, BC V5K 4C9 Kevin Mullins 100,000 100,000 Nil Nil 7092 McKay Avenue Burnaby, BC V5J 3S4 Anand Nagin 100,000 100,000 Nil Nil 1200 Alberni Street, Suite 602 Vancouver, BC V6E 1A6 Giuseppe Mandarino 100,000 100,000 Nil Nil 506 Linton Street Coquitlam, BC V3J 6J2 Anna Mandarino 100,000 100,000 Nil Nil 506 Linton Street Coquitlam, BC V6E 6J2 Patrick McGrath 100,000 100,000 Nil Nil 540 Helmcken Street, Suite 610 Vancouver, BC V6B 2E8 Maureen H. Hoechsmann 100,000 100,000 Nil Nil 4382 Greta Street Burnaby, BC V5J 1N8 Pete F. Hoechsmann 100,000 100,000 Nil Nil 4382 Greta Street Burnaby, BC V5J 1N8 David Trask 100,000 100,000 Nil Nil 3431 West 24th Avenue Vancouver, BC V6S 1L3 Sofia Conte 100,000 100,000 Nil Nil 9830 Whalley Ring Rd, Suite 706 Surrey, BC V3T 5S7 Darrell Shuel 10,000 10,000 Nil Nil 16723 Highway, 3A Kootenay Bay, BC V0B 1E0 Terry Fiddick 10,000 10,000 Nil Nil 16388 Jacobson Road Crawford Bay, BC V0B 1E0 Gary Sly 10,000 10,000 Nil Nil 16380 Jacobson Road Crawford Bay, BC V0B 1E0 Jennifer Lee Newcomen 10,000 10,000 Nil Nil 14850 Highway 3A Gray Creek, BC V0B 1S0 Anne Reed 10,000 10,000 Nil Nil 6540 E. Hastings Street, Ste 629 Burnaby, BC V5B 4Z5 Beecham Y. Pearson 10,000 10,000 Nil Nil 867 Hamilton Street, Suite 1906 Vancouver, BC V6B 6B7 Campbell H. Pearson 10,000 10,000 Nil Nil 867 Hamilton Street, Suite 1906 Vancouver, BC V6B 6B7 Tina Santarelli 10,000 10,000 Nil Nil 1007 Winslow Avenue Coquitlam, BC V3J 2E9
Each of the above shareholders beneficially owns and has sole voting and investment over all shares or rights to the shares registered in his or her name. The numbers in this table assume that none of the selling shareholders sells shares of common stock not being offered in this prospectus or purchases additional shares of common stock, and assumes that all shares offered are sold. The percentages are based on 6,280,000 shares of common stock outstanding on the date of this prospectus. 10 None of the selling shareholders: (1) has had a material relationship with us other than as a shareholder at any time within the past three years; (2) has ever been one of our officers or directors; or (3) is a broker-dealer or affiliate of a broker dealer. Plan Of Distribution The selling shareholders may sell some or all of their common stock in one or more transactions, including block transactions. The selling shareholders will sell our shares at $0.10 per share until our shares are quoted on the OTC Bulletin Board, and thereafter at prevailing market prices or privately negotiated prices. We determined this offering price arbitrarily based upon the price of the last sale of our common stock to investors. The shares may also be sold in compliance with the Securities and Exchange Commission's Rule 144. We are bearing all costs relating to the registration of the common stock. These are estimated to be $12,500. The selling shareholders, however, will pay any commissions or other fees payable to brokers or dealers in connection with any sale of the common stock. The selling shareholders must comply with the requirements of the Securities Act and the Exchange Act in the offer and sale of the common stock. In particular, during such times as the selling shareholders may be deemed to be engaged in a distribution of the common stock, and therefore be considered to be an underwriter, they must comply with applicable law and may, among other things: 1. Not engage in any stabilization activities in connection with our common stock; 2. Furnish each broker or dealer through which common stock may be offered, such copies of this prospectus, as amended from time to time, as may be required by such broker or dealer; and 3. Not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities other than as permitted under the Exchange Act. The Securities Exchange Commission has also adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the Nasdaq system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, deliver a standardized risk disclosure document prepared by the Commission, which: o contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; o contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties; o contains a brief, clear, narrative description of a dealer market, including "bid" and "ask" prices for penny stocks and the significance of the spread between the bid and ask price; o contains a toll-free telephone number for inquiries on disciplinary actions; o defines significant terms in the disclosure document or in the conduct of trading penny stocks; and o contains such other information and is in such form (including language, type, size, and format) as the Commission shall require by rule or regulation; 11 The broker-dealer also must provide, prior to proceeding with any transaction in a penny stock, the customer: o with bid and offer quotations for the penny stock; o details of the compensation of the broker-dealer and its salesperson in the transaction; o the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and o monthly account statements showing the market value of each penny stock held in the customer's account. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement. These disclosure requirements will have the effect of reducing the trading activity in the secondary market for our stock because it will be subject to these penny stock rules. Therefore, stockholders may have difficulty selling those securities. Legal Proceedings We are not currently a party to any legal proceedings. Our address for service of process in Nevada is 7251 West Lake Mead Blvd, Suite 300, Las Vegas, NV 89128. Directors, Executive Officers, Promoters And Control Persons Our executive officer and director and his age as of the date of this prospectus is as follows: Directors: Name of Director Age - ---------------------------------------- ---------------- John Fiddick 64 Executive Officers: Name of Officer Age Office - ----------------------- ---------------- --------------------------------------- John Fiddick 64 President, Secretary, Treasurer and Chief Executive Officer Biographical Information Set forth below is a brief description of the background and business experience of our executive officer and director for the past five years. Mr. John Fiddick has acted as our president, secretary, treasurer, chief executive officer and as a director since our incorporation on October 18, 2004. From October 1984 to present, Mr. Fiddick has acted as a commercial account manager for the Vancouver Main Branch of the Bank of Montreal, a Canadian chartered bank. Mr. Fiddick does not have any professional training or technical credentials in the exploration, development and operation of mines. Mr.Fiddick intends to devote approximately 15% of his business time to our affairs. Term of Office Our sole director is appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our sole officer is appointed by our board of directors and hold office until removed by the board. 12 Significant Employees We have no significant employees other than the officers and directors described above. Security Ownership Of Certain Beneficial Owners And Management The following table provides the names and addresses of each person known to us to own more than 5% of our outstanding common stock as of the date of this prospectus, and by the officers and directors, individually and as a group. Except as otherwise indicated, all shares are owned directly.
Amount of Title of Class Name and address beneficial Percent of class of beneficial owner ownership - ----------------------- ------------------------------------------------------- ----------------- ----------------- Common stock John Fiddick 3,500,000 55.73% Common stock All officers and directors as a group that consists 3,500,000 55.73% of one person
The percent of class is based on 6,280,000 shares of common stock issued and outstanding as of the date of this prospectus. Description Of Securities General Our authorized capital stock consists of 75,000,000 shares of common stock at a par value of $0.001 per share. Common Stock As of January 13, 2006, there were 6,280,000 shares of our common stock issued and outstanding that are held by 28 stockholders of record. Holders of our common stock are entitled to one vote for each share on all matters submitted to a stockholder vote. Holders of common stock do not have cumulative voting rights. Therefore, holders of a majority of the shares of common stock voting for the election of directors can elect all of the directors. Two persons present and being, or representing by proxy, shareholders are necessary to constitute a quorum at any meeting of our stockholders. A vote by the holders of a majority of our outstanding shares is required to effectuate certain fundamental corporate changes such as liquidation, merger or an amendment to our articles of incorporation. Holders of common stock are entitled to share in all dividends that the board of directors, in its discretion, declares from legally available funds. In the event of a liquidation, dissolution or winding up, each outstanding share entitles its holder to participate pro rata in all assets that remain after payment of liabilities and after providing for each class of stock, if any, having preference over the common stock. Holders of our common stock have no pre-emptive rights, no conversion rights and there are no redemption provisions applicable to our common stock. Preferred Stock We do not have an authorized class of preferred stock. Dividend Policy We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future. Share Purchase Warrants We have not issued and do not have outstanding any warrants to purchase shares of our common stock. Options We have not issued and do not have outstanding any options to purchase shares of our common stock. 13 Convertible Securities We have not issued and do not have outstanding any securities convertible into shares of our common stock or any rights convertible or exchangeable into shares of our common stock. Interests Of Named Experts And Counsel No expert or counsel named in this prospectus as having prepared or certified any part of this prospectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration or offering of the common stock was employed on a contingency basis, or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant. Nor was any such person connected with the registrant as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee. Cane Clark LLP has provided us with an opinion regarding the valid issuance of our common stock. The financial statements included in this prospectus and the registration statement have been audited by HLB Cinnamon Jang Willoughby & Company, Chartered Accountants, to the extent and for the periods set forth in their report appearing elsewhere in this document and in the registration statement filed with the SEC, and are included in reliance upon such report given upon the authority of said firm as experts in auditing and accounting. Disclosure Of Commission Position Of Indemnification For Securities Act Liabilities Our director and officer is indemnified as provided by the Nevada Revised Statutes and our Bylaws. These provisions provide that we shall indemnify a director or former director against all expenses incurred by him by reason of him acting in that position. The directors may also cause us to indemnify an officer, employee or agent in the same fashion. We have been advised that in the opinion of the Securities and Exchange Commission indemnification for liabilities arising under the Securities Act is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities is asserted by one of our directors, officers, or controlling persons in connection with the securities being registered, we will, unless in the opinion of our legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification is against public policy to a court of appropriate jurisdiction. We will then be governed by the court's decision. Organization Within Last Five Years We were incorporated on October 18, 2004 under the laws of the state of Nevada. On that date, Mr. John Fiddick was appointed as our sole director. As well, Mr. Fiddick was appointed as our president, secretary, treasurer and chief executive officer. Description Of Business In General We intend to commence operations as an exploration stage company. We will be engaged in the acquisition and exploration of mineral properties with a view to exploiting any mineral deposits we discover. We own a 100% beneficial interest in one mineral claim known as the Little Bonanza claim. There is no assurance that a commercially viable mineral deposit exists on the Little Bonanza claim. We do not have any current plans to acquire interests in additional mineral properties, though we may consider such acquisitions in the future. Mineral property exploration is typically conducted in phases. Each subsequent phase of exploration work is recommended by a geologist based on the results from the most recent phase of exploration. We have not yet commenced the initial phase of exploration on the Little Bonanza claim. Once we have completed each phase of exploration, we will make a decision as to whether or not we proceed with each successive phase based upon the analysis of the results of that program. Our director will make this decision based upon the recommendations of the independent geologist who oversees the program and records the results. 14 Our plan of operation is to conduct exploration work on the Little Bonanza claim in order to ascertain whether it possesses economic quantities of gold, copper, nickel and platinum. There can be no assurance that an economic mineral deposit exists on the Little Bonanza claim until appropriate exploration work is completed. Even if we complete our proposed exploration programs on the Little Bonanza claim and we are successful in identifying a mineral deposit, we will have to spend substantial funds on further drilling and engineering studies before we will know if we have a commercially viable mineral deposit. Little Bonanza Claim Purchase Agreement On January 31, 2005, we entered into a mineral purchase and sale agreement with Klondike Bay Resources, a private company owned by Terry Loney of Garson, Ontario, whereby he sold to us a 100% right, interest and title in one mineral claim, located in the Sudbury mining division of Ontario, Canada. We acquired this interest in the Little Bonanza claim by paying Klondike Bay Resources $7,000. Description, Location and Access The Little Bonanza claim is located approximately 30 kilometres northeast of the City of Greater Sudbury, within the Scadding township which lies near the northern boundary of the Algonquin Lake Nipissing eco-region and at the eastern boundary of McLennan Township. Access to the property can be made by travelling east from the community of Skead for approximately three kilometers to Bonanza Lake, then east about one kilometer onto the claim. Alternatively, access can be made via the Wanapitei River by boat which passes through the eastern boundary of the claim. Climate and Topography The property lies in a forested and glaciated area dominated by a mixture of sugar maple wood, yellow birch, poplar, eastern hemlock, eastern white pine and red pine trees. The wet regions comprise of red maple, black ash, white spruce, tamarack and eastern white cedar trees. There are ridged and uneven rock outcrops covered in glacier debris and rocks. There is a mixture of wildlife including the white-tailed deer, wolves, lynxes, moose, black bears, chipmunks, squirrels, beavers, snowshoe hare and rabbit. The humid climate is cool with an average annual temperature of 3.5 degrees Celsius. Average summer temperature ranges from 11.8 degrees Celsius to 23.1 degrees Celsius. In winter the average ranges from -16 degrees Celsius to -6.9 degrees Celsius. The average precipitation is 872 mm and the average depth of 0.40 metres can accumulate over the winter. Title to the Little Bonanza Claim The Little Bonanza property consists of one claim block comprising of twelve unpatented mining claim units covering 192 hectares. A "mining claim block" refers to a specific section of land over which a title holder owns rights to explore the ground and subsurface, and extract minerals. Title to the Little Bonanza claim is registered in the name of Klondike Bay Resources. Claim details are as follows: Claim Name Record Number Expiry Date - --------------------- ------------------- ------------------------- Little Bonanza S3018927 January 27, 2007 The claim was created on January 27, 2005 and is in good standing until January 27, 2007. This means that the claim will expire on January 27, 2006 unless we complete at least $4,800 worth of exploration work on the claim by that date. If this required exploration work is incurred, then the deadline is extended to January 27, 2008. In subsequent years, we must spend at least $200 on the claim to extend the expiry date by one year. 15 Mineralization Rock exposure on the Little Bonanza property is limited to about 15% to 20%. The balance of the property is cover with soil, which is up to several meters thick. The Little Bonanza claim is underlain with several rock types including Nipissing Gabbro, a dark, coarse-grained, intrusive igneous rock chemically equivalent to basalt. It is a plutonic rock, formed when molten magma is trapped beneath the Earth's surface and cools slowly into a hard, coarsely crystalline mass. The claim also includes Sudbury Dyke Swarm and folded Huronian Sediments Huronian Sediments pertains to certain non-fossiliferous rocks on the borders of Lake Huron from the Archaean age (2.5 billion years ago). The youngest rocks in the area are the olivine-magnetite types found in vertical dykes. Olivine-magnetite rocks are silicate minerals containing iron and magnesium which form at high temperature. Silicate minerals contain silicon and oxygen and are glass green in color. Exploration History No known exploration has been conducted on the area covered by the Little Bonanza claim. Geological Report We retained Mr. Scott Jobin-Bevans, a Ph.D. and professional geologist, to complete an evaluation of the Little Bonanza claim and to prepare a geology report on the claim. Based on his review, Mr. Jobin-Bevans concludes that the Little Bonanza claim warrants further exploration due to the geochemistry and inferred geological continuity, as well as the lack of previous exploration. Mr. Jobin-Bevans recommends an initial exploration program consisting of two phases. The first phase would consist of geological mapping and sampling. Geological mapping involves plotting previous exploration data relating to a property on a map in order to determine the best property locations to conduct subsequent exploration work. Geochemical sampling involves gathering rock and soil samples from property areas with the most potential to host economically significant mineralization. All samples gathered are sent to a laboratory where they are crushed and analysed for metal content. The first phase is estimated to cost $5,000 as described below. Budget - Phase I Type of Work Est. Cost (US$) Geological Review $500 Geological Mapping and Sampling $2,500 Report Writing/Consulting $1,500 Operating Supplies $500 ---------------- Sub-Total: $5,000 The second phase would consist of a geographical survey and a follow-up of the initial stage. Geophysical surveying is the search for mineral deposits by measuring the physical property of near-surface rocks, and looking for unusual responses caused by the presence of mineralization. Electrical, magnetic, gravitational, seismic and radioactive properties are the ones most commonly measured. Geophysical surveys are applied in situations where there is insufficient information obtainable from the property surface to allow informed opinions concerning the merit of properties.The second phase would cost approximately $15,000 as outlined below. 16 Budget - Phase II Type of Work Est. Cost (US$) Geographical Survey $7,500 (Targets for Drilling) Follow-up Mapping and sampling $3,500 Report Writing/Consulting $3,000 Operating Supplies $1,000 --------------- Sub-Total: $15,000 TOTAL $US: $20,000 Compliance with Government Regulation We will be required to conduct all mineral exploration activities in accordance with the Mining Act of Ontario. While we do not require any authorization to proceed with the initial two phases of the recommended exploration program, we will be required to obtain work permits from the Ontario Ministry of Northern Development and Mines for any subsequent drilling program and any other exploration work that results in a physical disturbance to the land if the program calls for the disturbance of more than 10,000 square meters of the property surface, or such areas that would total that amount when combined. A work permit is also required for the erection of structures on the property. There is no charge to obtain a work permit under the Mining Act. When our exploration program proceeds to the drilling stage, we may be required to post small bonds if the rights of a private land owner may be affected. We anticipate that the cost of a bond for such a program would not exceed $5,000. We may also be required to file statements of work with the Ministry of Northern Development and Mines. Such statements would be filed following the completion of the exploration and would cost approximately $500. The filing of statements of work would not have any impact on the timing or completion of our exploration program. We will also be required to undertake remediation work on any exploration that results in physical disturbance to the land. The cost of remediation work will vary according to the degree of physical disturbance. We will not incur any regulatory compliance costs in the first two phases of proposed exploration. The amount of these costs for subsequent exploration phases is not known at this time as we do not know the extent of the exploration program that will be undertaken beyond completion of the recommended exploration programs. Because there is presently no information on the size, tenor, or quality of any minerals or reserve at this time, it is impossible to assess the impact of any capital expenditures on earnings or our competitive position. Employees We have no employees as of the date of this prospectus other than our sole director. Research and Development Expenditures We have not incurred any other research or development expenditures since our incorporation. Subsidiaries We do not have any subsidiaries. Patents and Trademarks We do not own, either legally or beneficially, any patents or trademarks. 17 Reports to Security Holders Although we are not required to deliver a copy of our annual report to our security holders, we will voluntarily send a copy of our annual report, including audited financial statements, to any registered shareholder who requests it. We will not be a reporting issuer with the Securities and Exchange Commission until our registration statement on Form SB-2 is declared effective. We have filed a registration statement on Form SB-2, under the Securities Act of 1933, with the Securities and Exchange Commission with respect to the shares of our common stock offered through this prospectus. This prospectus is filed as a part of that registration statement, but does not contain all of the information contained in the registration statement and exhibits. Statements made in the registration statement are summaries of the material terms of the referenced contracts, agreements or documents of the company. We refer you to our registration statement and each exhibit attached to it for a more detailed description of matters involving the company, and the statements we have made in this prospectus are qualified in their entirety by reference to these additional materials. You may inspect the registration statement, exhibits and schedules filed with the Securities and Exchange Commission at the Commission's principal office in Washington, D.C. Copies of all or any part of the registration statement may be obtained from the Public Reference Section of the Securities and Exchange Commission, 100 F Street NE, Washington, D.C. 20002. Please call the Commission at 1-800-SEC-0330 for further information on the operation of the public reference rooms. The Securities and Exchange Commission also maintains a web site at http://www.sec.gov that contains reports, proxy statements and information regarding registrants that file electronically with the Commission. Our registration statement and the referenced exhibits can also be found on this site. Plan Of Operations Our plan of operation for the next twelve months is to complete the recommended phase one and two exploration programs on the Little Bonanza claim consisting of a geological mapping and geochemical sampling. We anticipate that these exploration programs will cost approximately $5,000 and $15,000 respectively. To date, we have not commenced exploration on the Little Bonanza claim. We plan to commence the phase one exploration program on the Little Bonanza claim in the spring of 2006. The program should take approximately one to two months to complete. We will then undertake the phase two work program during the summer of 2006. This program will take approximately one to three months to complete. We do not have any verbal or written agreement regarding the retention of any qualified engineer or geologist for this exploration program. As well, we anticipate spending an additional $15,000 on administrative fees, including fees payable in connection with the filing of this registration statement and complying with reporting obligations. Total expenditures over the next 12 months are therefore expected to be $35,000. While we have enough funds to cover the phase one exploration program and a portion of the phase two program, we will require additional funding in order to proceed with any additional recommended exploration on the Little Bonanza claim. We anticipate that additional funding will be in the form of equity financing from the sale of our common stock or from director loans. We do not have any arrangements in place for any future equity financing or loans. Results Of Operations For The Period From Inception Through October 31, 2005 We have not earned any revenues from our incorporation on October 18, 2004 to October 31, 2005. We do not anticipate earning revenues unless we enter into commercial production on the Little Bonanza claim, which is doubtful. We have not commenced the exploration stage of our business and can provide no assurance that we will discover economic mineralization on the Little Bonanza claim, or if such minerals are discovered, that we will enter into commercial production. We incurred operating expenses in the amount of $23,218 for the period from our inception on October 18, 2004 to October 31, 2005. These operating expenses were comprised of donated rent costs of $2,000, donated services costs of $4,000, mineral property costs of $7,000, office and general expenses of $334 and professional fees of $9,884. 18 We have not attained profitable operations and are dependent upon obtaining financing to pursue exploration activities. For these reasons our auditors believe that there is substantial doubt that we will be able to continue as a going concern. Description Of Property We own the mineral exploration rights relating to the Little Bonanza mineral claim. We do not own any real property interest in the Little Bonanza claim or any other property. Certain Relationships And Related Transactions None of the following parties has, since our date of incorporation, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us: * Any of our directors or officers; * Any person proposed as a nominee for election as a director; * Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our outstanding shares of common stock; * Our sole promoter, John Fiddick; * Any member of the immediate family of any of the foregoing persons. Market For Common Equity And Related Stockholder Matters No Public Market for Common Stock There is presently no public market for our common stock. We anticipate applying for trading of our common stock on the over the counter bulletin board upon the effectiveness of the registration statement of which this prospectus forms a part. However, we can provide no assurance that our shares will be traded on the bulletin board or, if traded, that a public market will materialize. Stockholders of Our Common Shares As of the date of this registration statement, we have 28 registered shareholders. Rule 144 Shares A total of 3,500,000 shares of our common stock are available for resale to the public after December 21, 2005 in accordance with the volume and trading limitations of Rule 144 of the Act. In general, under Rule 144 as currently in effect, a person who has beneficially owned shares of a company's common stock for at least one year is entitled to sell within any three month period a number of shares that does not exceed the greater of: 1. 1% of the number of shares of the company's common stock then outstanding which, in our case, will equal 62,800 shares as of the date of this prospectus; or 2. the average weekly trading volume of the company's common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale. Sales under Rule 144 are also subject to manner of sale provisions and notice requirements and to the availability of current public information about the company. Under Rule 144(k), a person who is not one of the company's affiliates at any time during the three months preceding a sale, and who has beneficially owned the shares proposed to be sold for at least two years, is entitled to sell shares without complying with the manner of sale, public information, volume limitation or notice provisions of Rule 144. As of the date of this prospectus, persons who are our affiliates hold all of the 3,500,000 shares that may be sold pursuant to Rule 144. 19 Registration Rights We have not granted registration rights to the selling shareholders or to any other persons. Dividends There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends. The Nevada Revised Statutes, however, do prohibit us from declaring dividends where, after giving effect to the distribution of the dividend: 1. we would not be able to pay our debts as they become due in the usual course of business; or 2. our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution. We have not declared any dividends, and we do not plan to declare any dividends in the foreseeable future. Executive Compensation Summary Compensation Table The table below summarizes all compensation awarded to, earned by, or paid to our executive officers by any person for all services rendered in all capacities to us for the fiscal period from our inception on October 18, 2004 to October 31, 2005 and the subsequent period to the date of this prospectus. Annual Compensation
Restr Options/SARS LTP payouts Other Stock (#) ($) Name Title Year Salary Bonus Comp. Awarded - ------------------ ---------- --------- ---------- ----------- ---------- ------------ ------------ --------------- John Fiddick Pres, 2005 $0 0 0 0 0 $0 Sec, Treas, CEO, & Dir
Stock Option Grants We have not granted any stock options to the executive officers since our inception. Consulting Agreements We do not have any employment or consulting agreement with our director or officer. We do not pay Mr. Fiddick any amount for acting as a director of the Company. Financial Statements Index to Financial Statements: 1. Report of Independent Registered Public Accounting Firm; 2. Audited financial statements for the period ending April 30, 2005 and unaudited interim financial statements for the period ended October 31, 2005, including: a. Balance Sheets; b. Statements of Operations; c. Statements of Stockholders' Equity; d. Statements of Cash Flows; and e. Notes to Financial Statements 20 Crawford Lake Mining Inc. (An Exploration Stage Company) Index Report of Independent Registered Public Accounting Firm.................F-1 Balance Sheet...........................................................F-2 Statement of Operations.................................................F-3 Statement of Cash Flows.................................................F-4 Statement of Stockholders' Equity.......................................F-5 Notes to the Financial Statements.......................................F-6 21 HLB Cinnamon Jang Willoughby & Company Chartered Accountants A Partnership of Incorporated Professionals REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders of Crawford Lake Mining Inc. (a Pre-exploration Stage Corporation): We have audited the balance sheet of Crawford Lake Mining Inc. as at April 30, 2005 and the statements of operations, cash flows, and stockholders' equity from the date of inception, October 18, 2004 to April 30, 2005. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether these financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the company as at April 30, 2005 and the results of its operations and it's cash flows for the period then ended in conformity with generally accepted accounting principles in the United States. "Cinnamon Jang Willoughby & Company" Chartered Accountants Burnaby, BC January 13, 2006 MetroTower II - Suite 900 - 4720 Kingsway, Burnaby, BC Canada V5H 4N2. Telephone: +1 604 435 4317. Fax: +1 604 435 4319. HLB Cinnamon Jang Willoughby & Company is a member of International. A world-wide organziation of accounting firms and business advisors. F-1 Crawford Lake Mining Inc. (An Exploration Stage Company) Balance Sheet (Expressed in US dollars)
April 31, 2005 $ ASSETS Current Assets Cash 20,656 Prepaid expenses - - ---------------------------------------------------------------------------------------------------------------- Total Assets 20,656 ================================================================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable 500 Accrued liabilities 3,900 - ---------------------------------------------------------------------------------------------------------------- Total Liabilities 4,400 - ---------------------------------------------------------------------------------------------------------------- Commitments and Contingencies (Notes 1) Stockholders' Equity Common Stock, 75,000,000 shares authorized, $0.001 par value 6,280,000 shares issued and outstanding (Note 5) 6,280 Additional Paid in Capital (Note 5) 21,420 Donated Capital (Note 3) 2,400 Deficit Accumulated During the Exploration Stage (13,844) - ---------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 16,256 - ---------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity (Deficit) 20,656 ================================================================================================================
F-2 (The accompanying notes are an integral part of the financial statements) Crawford Lake Mining Inc. (An Exploration Stage Company) Statement of Operations (Expressed in US dollars)
From October 18, 2004 (Date of Inception) to April 30, 2005 $ Revenue - - ---------------------------------------------------------------------------------------------------------------- Expenses Donated rent (Note 3) 800 Donated services (Note 3) 1,600 Mineral property costs 7,000 Office and general 44 Professional fees 4,400 - ---------------------------------------------------------------------------------------------------------------- 13,844 - ---------------------------------------------------------------------------------------------------------------- Net Loss For the Period (13,844) ================================================================================================================ Net Loss Per Share - Basic - ================================================================================================================ Weighted Average Shares Outstanding 4,041,000 ================================================================================================================
F-3 (The accompanying notes are an integral part of the financial statements) Crawford Lake Mining Inc. (An Exploration Stage Company) Statement of Cash Flows (Expressed in US dollars)
From October 18, 2004 (Date of Inception) to April 30, 2005 $ Cash Flows Provided By Operating Activities Net loss for the period (13,844) Adjustments to reconcile net loss to cash: Donated services and expenses 2,400 Change in operating assets and liabilities: Increase in accounts payable and accrued liabilities 4,400 - ---------------------------------------------------------------------------------------------------------------- Net Cash Used By Operating Activities (7,044) - ---------------------------------------------------------------------------------------------------------------- Cash Flows Provided By Financing Activities Proceeds from the issuance of common stock 27,700 - ---------------------------------------------------------------------------------------------------------------- Net Cash Flows Provided By Financing Activities 27,700 - ---------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Cash 20,656 Cash - Beginning of Period - - ---------------------------------------------------------------------------------------------------------------- Cash - End of Period 20,656 ================================================================================================================ Non-Cash Financing Activities - ================================================================================================================ Supplemental Disclosures Interest paid - Income taxes paid - ================================================================================================================
F-4 (The accompanying notes are an integral part of the financial statements) Crawford Lake Mining Inc. (An Exploration Stage Company) Statement of Stockholders' Equity (Deficit) From October 18, 2004 (Date of Inception) to April 30, 2005 (Expressed in US dollars)
Deficit Accumulated Additional During the Paid-in Donated Exploration Common Stock Amount Capital Capital Stage Total # $ $ $ $ $ Balance - October 18, 2004 (Date of Inception) - - - - - - Shares issued for cash at $0.001 per share 4,700,000 4,700 - - - 4,700 Shares issued for cash at $0.01 per share 1,500,000 1,500 13,500 - - 15,000 Shares issued for cash at $0.10 per share 80,000 80 7,920 - - 8,000 Donated services and rent - - - 2,400 - 2,400 Net loss for the period - - - (13,844) (13,844) - ------------------------------------------------------------------------------------------------------------------------------ Balance - April 30, 2005 6,280,000 6,280 21,420 2,400 (13,844) 16,256 ==============================================================================================================================
F-5 (The accompanying notes are an integral part of the financial statements) Crawford Lake Mining Inc. (An Exploration Stage Company) Notes to the Financial Statements April 30, 2005 1. Exploration Stage Company The Company was incorporated in the State of Nevada on October 18, 2004. The Company has acquired a 100% interest in one mineral claim consisting of 12 units located in Ontario, Canada. The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard ("SFAS") No.7, "Accounting and Reporting by Development Stage Enterprises". The Company's principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable. These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of the Company's interests in the underlying properties, and the attainment of profitable operations. As at April 30, 2005, the Company has a working capital deficiency of $16,256, and has accumulated losses of $13,844 since inception. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. The Company will be filing an SB-2 Registration Statement with the United States Securities and Exchange Commission to register 6,280,000 shares of common stock for resale by existing shareholders of the Company. The Company did not receive any proceeds from the resale of shares of common stock by the selling stockholders. 2. Summary of Significant Accounting Policies a) Basis of Presentation These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The Company's fiscal year-end is April 30. b) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. c) Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. d) Comprehensive Loss SFAS No. 130, "Reporting Comprehensive Income," establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at April 30, 2005, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements. F-6 Crawford Lake Mining Inc. (An Exploration Stage Company) Notes to the Financial Statements April 30, 2005 2. Summary of Significant Accounting Policies (continued) e) Cash and Cash Equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. f) Mineral Property Costs The Company has been in the exploration stage since its formation on October 18, 2004 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations. g) Financial Instruments The fair values of cash, accounts payable and accrued liabilities approximate their carrying values due to the immediate or short-term maturity of these financial instruments. h) Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 "Accounting for Income Taxes" as of its inception. Pursuant to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. i) Foreign Currency Translation The Company's functional and reporting currency is the United States dollar. Foreign currency transactions are occasionally undertaken in Canadian dollars and are translated into United States dollars using exchange rates at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are re-measured at each balance sheet date at the exchange rate prevailing at the balance sheet date. Foreign currency exchange gains and losses are charged to operations. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. j) Recent Accounting Pronouncements In December 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 153, "Exchanges of Nonmonetary Assets - An Amendment of APB Opinion No. 29". The guidance in APB Opinion No. 29, "Accounting for Nonmonetary Transactions", is based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included certain exceptions to that principle. SFAS No. 153 amends Opinion No. 29 to eliminate the exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. The provisions of SFAS No. 153 are effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position. F-7 Crawford Lake Mining Inc. (An Exploration Stage Company) Notes to the Financial Statements April 30, 2005 2. Summary of Significant Accounting Policies (continued) j) Recent Accounting Pronouncements (continued) In December 2004, the FASB issued SFAS No. 123R, "Share Based Payment" ("SFAS 123R"), which is a revision of SFAS No. 123 "Accounting for Stock-Based Compensation", and supersedes APB Opinion No. 25, "Accounting for Stock Issued to Employees" and its related implementation guidance. SFAS 123R establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. SFAS 123R focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. SFAS 123R does not change the accounting guidance for share-based payment transactions with parties other than employees provided in SFAS 123 as originally issued and Emerging Issues Task Force Issue No. 96-18, "Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services". SFAS 123R requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award - the requisite service period (usually the vesting period). SFAS 123R requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. Public entities (other than those filing as small business issuers) will be required to apply SFAS 123R as of the first interim or annual reporting period that begins after June 15, 2005. Public entities that file as small business issuers will be required to apply SFAS 123R in the first interim or annual reporting period that begins after December 15, 2005. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position. In March 2005, the SEC staff issued Staff Accounting Bulletin No. 107 ("SAB 107") to give guidance on the implementation of SFAS 123R. The Company will consider SAB 107 during implementation of SFAS 123R. 3. Related Party Transactions During the year ended April 30, 2005 the Company recognized a total of $1,600 for donated services at $400 per month and $800 for donated rent at $200 per month beginning January 1, 2005, provided by the President of the Company. 4. Mineral Properties The Company entered into an Agreement dated January 31, 2005 with Klondike Bay Resources ("Klondike") to acquire a 100% interest in one mineral claim representing 12 units located in Ontario, Canada. To acquire a 100% interest in these claims, the Company paid $7,000, which was charged to operations during the period ended April 30, 2005. 5. Common Shares a) On December 21, 2004 the Company issued 4,700,000 shares of common stock at a price of $0.001 per share for cash proceeds of $4,700. b) On January 10, 2005 the Company issued 1,500,000 shares of common stock pursuant to Regulation S at a price of $0.01 per share for cash proceeds of $15,000. c) On January 21, 2005 the Company issued 80,000 shares of common stock pursuant to Regulation S at a price of $0.10 per share for cash proceeds of $8,000. F-8 Crawford Lake Mining Inc. (An Exploration Stage Company) Notes to the Financial Statements April 30, 2005 6. Income Tax The Company has adopted the provisions of SFAS 109, "Accounting for Income Taxes". Pursuant to SFAS 109 the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefit of net operating losses has not been recognized in the financial statements because the Company cannot be assured that it is more likely than not that it will utilize the net operating losses carried forward in future years. The Company has approximately $11,400 of net operating loss carryforwards available to offset taxable income in future years which expire through fiscal 2025. For the period ended April 30, 2005, the valuation allowance established against the deferred tax assets increased by $3,876. The components of the net deferred tax asset at April 30, 2005, and the statutory tax rate, the effective tax rate and the elected amount of the valuation allowance are indicated below: 2005 $ Net Operating Loss 11,400 Statutory Tax Rate 34% Effective Tax Rate - Deferred Tax Asset 3,876 Valuation Allowance (3,876) - ------------------------------------------------------------ Net Deferred Tax Asset - ============================================================ F-9 Crawford Lake Mining Inc. (An Exploration Stage Company) Balance Sheets (Expressed in US dollars)
October 31, April 30, 2005 2005 $ $ ASSETS Current Assets Cash 16,732 20,656 - ---------------------------------------------------------------------------------------------------------------- Total Assets 16,732 20,656 ================================================================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable 1,000 500 Accrued liabilities 5,250 3,900 - ---------------------------------------------------------------------------------------------------------------- Total Liabilities 6,250 4,400 - ---------------------------------------------------------------------------------------------------------------- Commitments and Contingencies (Notes 1) Stockholders' Equity Common Stock, 75,000,000 shares authorized, $0.001 par value 6,280,000 shares issued and outstanding (Note 5) 6,280 6,280 Additional Paid in Capital (Note 5) 21,420 21,420 Donated Capital (Note 3) 6,000 2,400 Deficit Accumulated During the Exploration Stage (23,218) (13,844) - ---------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity 10,482 16,256 - ---------------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity 16,732 20,656 ================================================================================================================
(The accompanying notes are an integral part of the financial statements) F-10 Crawford Lake Mining Inc. (An Exploration Stage Company) Statements of Operations (Expressed in US dollars)
From From For the Six October 18, 2004 October 18, 2004 Months Ended (Date of Inception) (Date of Inception) October 31, 2005 to April 30, to October 31, 2005 2005 2005 $ $ $ Revenue - - - - ------------------------------------------------------------------------------------------------------------------------ Expenses Donated rent (Note 3) 1,200 800 2,000 Donated services (Note 3) 2,400 1,600 4,000 Mineral property costs - 7,000 7,000 Office and general 290 44 334 Professional fees 5,484 4,400 9,884 - ------------------------------------------------------------------------------------------------------------------------ 9,374 13,844 23,218 - ------------------------------------------------------------------------------------------------------------------------ Net Loss For the Period (9,374) (13,844) (23,218) ======================================================================================================================== Net Loss Per Share - Basic - - ======================================================================================================================== Weighted Average Shares Outstanding 6,280,000 4,041,000 ========================================================================================================================
(The accompanying notes are an integral part of the financial statements) F-11 Crawford Lake Mining Inc. (An Exploration Stage Company) Statements of Cash Flows (Expressed in US dollars)
From From October 18, 2004 October 18, 2004 For the Six (Date of (Date of Months Ended Inception) Inception) October 31, to April 30, to October 31, 2005 2005 2005 $ $ $ Cash Flows Provided By Operating Activities Net loss for the period (9,374) (13,844) (23,218) Adjustments to reconcile net loss to cash: Donated services and expenses 3,600 2,400 6,000 Change in operating assets and liabilities: Increase in accounts payable and accrued liabilities 1,850 4,400 6,250 - ------------------------------------------------------------------------------------------------------------------------- Net Cash Used By Operating Activities (3,924) (7,044) (10,968) - ------------------------------------------------------------------------------------------------------------------------- Cash Flows Provided By Financing Activities Proceeds from the issuance of common stock - 27,700 27,700 - ------------------------------------------------------------------------------------------------------------------------- Net Cash Flows Provided By Financing Activities - 27,700 27,700 - ------------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Cash (3,924) 20,656 16,732 Cash - Beginning of Period 20,656 - - - ------------------------------------------------------------------------------------------------------------------------- Cash - End of Period 16,732 20,656 16,732 ========================================================================================================================= Supplemental Disclosures Interest paid - - - Income taxes paid - - - - -------------------------------------------------------------------------------------------------------------------------
(The accompanying notes are an integral part of the financial statements) F-12 Crawford Lake Mining Inc. (An Exploration Stage Company) Statement of Stockholders' Equity From October 18, 2004 (Date of Inception) to October 31, 2005 (Expressed in US dollars)
Deficit Accumulated Additional During the Common Paid-in Donated Exploration Stock Amount Capital Capital Stage Total # $ $ $ $ $ Balance - October 18, 2004 (Date of Inception) - - - - - - Shares issued for cash at $0.001 per share 4,700,000 4,700 - - - 4,700 Shares issued for cash at $0.01 per share 1,500,000 1,500 13,500 - - 15,000 Shares issued for cash at $0.10 per share 80,000 80 7,920 - - 8,000 Donated services and rent - - - 2,400 - 2,400 Net loss for the period - - - - (13,844) (13,844) - ------------------------------------------------------------------------------------------------------------------------------ Balance - April 30, 2005 6,280,000 6,280 21,420 2,400 (13,844) 16,256 Donated services and rent - - - 3,600 - 3,600 Net loss for the period - - - - (9,374) (9,374) - ------------------------------------------------------------------------------------------------------------------------------ Balance - October 31, 2005 6,280,000 6,280 21,420 6,000 (23,218) 10,482 ==============================================================================================================================
(The accompanying notes are an integral part of the financial statements) F-13 Crawford Lake Mining Inc. (An Exploration Stage Company) Notes to the Financial Statements October 31, 2005 1. Exploration Stage Company The Company was incorporated in the State of Nevada on October 18, 2004. The Company has acquired a 100% interest in one mineral claim consisting of 12 units located in Ontario, Canada. The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard ("SFAS") No.7, "Accounting and Reporting by Development Stage Enterprises". The Company's principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable. These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of the Company's interests in the underlying properties, and the attainment of profitable operations. As at October 31, 2005, the Company has working capital of $10,482, and has accumulated losses of $23,218 since inception. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. The Company is planning to file an SB-2 Registration Statement with the United States Securities and Exchange Commission to register 6,280,000 shares of common stock for resale by existing shareholders of the Company. The Company will not receive any proceeds from the resale of shares of common stock by the selling stockholders. 2. Summary of Significant Accounting Policies a) Basis of Presentation These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The Company's fiscal year-end is April 30. b) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. c) Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. d) Comprehensive Loss SFAS No. 130, "Reporting Comprehensive Income," establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at October 31, 2005, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements. F-14 Crawford Lake Mining Inc. (An Exploration Stage Company) Notes to the Financial Statements October 31, 2005 2. Summary of Significant Accounting Policies (continued) e) Cash and Cash Equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. f) Mineral Property Costs The Company has been in the exploration stage since its formation on October 18, 2004 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations. g) Financial Instruments The fair values of cash, accounts payable and accrued liabilities approximate their carrying values due to the immediate or short-term maturity of these financial instruments. h) Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 "Accounting for Income Taxes" as of its inception. Pursuant to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. i) Foreign Currency Translation The Company's functional and reporting currency is the United States dollar. Foreign currency transactions are occasionally undertaken in Canadian dollars and are translated into United States dollars using exchange rates at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are re-measured at each balance sheet date at the exchange rate prevailing at the balance sheet date. Foreign currency exchange gains and losses are charged to operations. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. j) Recent Accounting Pronouncements In December 2004, the Financial Accounting Standards Board (FASB) issued SFAS No. 123R, "Share Based Payment" ("SFAS 123R"), which is a revision of SFAS No. 123 "Accounting for Stock-Based Compensation", and supersedes APB Opinion No. 25, "Accounting for Stock Issued to Employees" and its related implementation guidance. SFAS 123R establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. SFAS 123R focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. SFAS 123R does not change the accounting guidance for share-based payment transactions with parties other than employees provided in SFAS 123 as originally issued and Emerging Issues Task Force Issue No. 96-18, "Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services". SFAS 123R requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award - the requisite service period (usually the vesting period). SFAS 123R requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. Public entities (other than those filing as small business issuers) will be required to apply SFAS 123R as of the first interim or annual reporting period that begins after June 15, 2005. Public entities that file as small business issuers will be required to apply SFAS 123R in the first interim or annual reporting period that begins after December 15, 2005. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position. F-15 Crawford Lake Mining Inc. (An Exploration Stage Company) Notes to the Financial Statements October 31, 2005 2. Summary of Significant Accounting Policies (continued) j) Recent Accounting Pronouncements (continued) In March 2005, the SEC staff issued Staff Accounting Bulletin No. 107 ("SAB 107") to give guidance on the implementation of SFAS 123R. The Company will consider SAB 107 during implementation of SFAS 123R. In December 2004, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 153, "Exchanges of Nonmonetary Assets - An Amendment of APB Opinion No. 29". The guidance in APB Opinion No. 29, "Accounting for Nonmonetary Transactions", is based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included certain exceptions to that principle. SFAS No. 153 amends Opinion No. 29 to eliminate the exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. The provisions of SFAS No. 153 are effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position. In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections - A Replacement of APB Opinion No. 20 and SFAS No. 3". SFAS 154 changes the requirements for the accounting for and reporting of a change in accounting principle and applies to all voluntary changes in accounting principle. It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS 154 requires retrospective application to prior periods' financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The provisions of SFAS No. 154 are effective for accounting changes and correction of errors made in fiscal years beginning after December 15, 2005. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position. 3. Related Party Transactions During the six months ended October 31, 2005 the Company recognized a total of $2,400 (April 30, 2005 - $1,600) for donated services at $400 per month and $1,200 (April 30, 2005 - $800) for donated rent at $200 per month, provided by the President of the Company. 4. Mineral Property The Company entered into an Agreement dated January 31, 2005 with Klondike Bay Resources ("Klondike") to acquire a 100% interest in one mineral claim representing 12 units located in Ontario, Canada. To acquire a 100% interest in this claim, the Company paid $7,000, which was charged to operations during the period ended April 30, 2005. 5. Common Shares a) On December 21, 2004 the Company issued 4,700,000 shares of common stock at a price of $0.001 per share for cash proceeds of $4,700. b) On January 10, 2005 the Company issued 1,500,000 shares of common stock pursuant to Regulation S at a price of $0.01 per share for cash proceeds of $15,000. c) On January 21, 2005 the Company issued 80,000 shares of common stock pursuant to Regulation S at a price of $0.10 per share for cash proceeds of $8,000. F-16 Crawford Lake Mining Inc. (An Exploration Stage Company) Notes to the Financial Statements October 31, 2005 6. Income Tax The Company has adopted the provisions of SFAS 109, "Accounting for Income Taxes". Pursuant to SFAS 109 the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefit of net operating losses has not been recognized in the financial statements because the Company cannot be assured that it is more likely than not that it will utilize the net operating losses carried forward in future years. The Company has approximately $11,400 of net operating loss carryforwards available to offset taxable income in future years which expire through fiscal 2025. For the fiscal period ended April 30, 2005, the valuation allowance established against the deferred tax assets increased by $3,876. The components of the net deferred tax asset at April 30, 2005, and the statutory tax rate, the effective tax rate and the elected amount of the valuation allowance are indicated below: April 30, 2005 $ Net Operating Loss 11,400 Statutory Tax Rate 34% Effective Tax Rate - Deferred Tax Asset 3,876 Valuation Allowance (3,876) - ------------------------------------------------------------ Net Deferred Tax Asset - ============================================================ F-17 Changes In And Disagreements With Accountants on Accounting and Financial Disclosure We have had no changes in or disagreements with our accountants. Until ______________, all dealers that effect transactions in these securities whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealer's obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions. Part II Information Not Required In The Prospectus Indemnification Of Directors And Officers Our officers and directors are indemnified as provided by the Nevada Revised Statutes (the "NRS") and our bylaws. Under the NRS, director immunity from liability to a company or its shareholders for monetary liabilities applies automatically unless it is specifically limited by a company's articles of incorporation that is not the case with our articles of incorporation. Excepted from that immunity are: (1) a willful failure to deal fairly with the company or its shareholders in connection with a matter in which the director has a material conflict of interest; (2) a violation of criminal law (unless the director had reasonable cause to believe that his or her conduct was lawful or no reasonable cause to believe that his or her conduct was unlawful); (3) a transaction from which the director derived an improper personal profit; and (4) willful misconduct. Our bylaws provide that we will indemnify our directors and officers to the fullest extent not prohibited by Nevada law; provided, however, that we may modify the extent of such indemnification by individual contracts with our directors and officers; and, provided, further, that we shall not be required to indemnify any director or officer in connection with any proceeding (or part thereof) initiated by such person unless: (1) such indemnification is expressly required to be made by law; (2) the proceeding was authorized by our Board of Directors; (3) such indemnification is provided by us, in our sole discretion, pursuant to the powers vested us under Nevada law; or (4) such indemnification is required to be made pursuant to the bylaws. Our bylaws provide that we will advance all expenses incurred to any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was our director or officer, or is or was serving at our request as a director or executive officer of another company, partnership, joint venture, trust or other enterprise, prior to the final disposition of the proceeding, promptly following request. This advanced of expenses is to be made upon receipt of an undertaking by or on behalf of such person to repay said amounts should it be ultimately determined that the person was not entitled to be indemnified under our bylaws or otherwise. 39 Our bylaws also provide that no advance shall be made by us to any officer in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly made: (a) by the board of directors by a majority vote of a quorum consisting of directors who were not parties to the proceeding; or (b) if such quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, that the facts known to the decision- making party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner that such person did not believe to be in or not opposed to our best interests. Other Expenses Of Issuance And Distribution The estimated costs of this offering are as follows: Securities and Exchange Commission registration fee $ 29.90 Transfer Agent fees $ 1,000.00 Accounting and auditing fees and expenses $ 7,000.00 Legal fees and expenses $ 3,000.00 Edgar filing fees $ 1,500.00 ---------- Total $12,529.90 ========== All amounts are estimates other than the Commission's registration fee. We are paying all expenses of the offering listed above. No portion of these expenses will be borne by the selling shareholders. The selling shareholders, however, will pay any other expenses incurred in selling their common stock, including any brokerage commissions or costs of sale. Recent Sales Of Unregistered Securities We completed an offering of 3,500,000 shares of our common stock at a price of $0.001 per share to our president, John Fiddick, on December 21, 2004. The total amount received from this offering was $3,500. These shares were issued pursuant to Regulation S of the Securities Act. We completed an offering of 1,200,000 shares of our common stock at a price of $0.001 per share to a total of four purchasers on December 24, 2004. The total amount received from this offering was $1,200. These shares were issued pursuant to Regulation S of the Securities Act. The purchasers in this offering were as follows: Name of Subscriber Number of Shares ------------------------------------------------ ---------------------- Bobby-Ann Trask 300,000 Alan Cox 300,000 Amy J. Young 300,000 Robert J. Schumann 300,000 We completed an offering of 1,500,000 shares of our common stock at a price of $0.01 per share to a total of fifteen purchasers on January 10, 2005. The total amount received from this offering was $15,000. We completed this offering pursuant to Regulation S of the Securities Act. The purchasers in this offering were as follows: Name of Subscriber Number of Shares ------------------------------------------------ ---------------------- Layne M. Osterman 100,000 Saroj Nagin 100,000 Mark Frendo 100,000 Mahangu Patel 100,000 Donna M. White 100,000 40 Rene Dickenschied 100,000 Keving Mullins 100,000 Anand Nagin 100,000 Giuseppe Mandarino 100,000 Anna Mandarino 100,000 Patrick McGrath 100,000 Maureen H. Hoechsmann 100,000 Pete F Hoechsmann 100,000 David Trask 100,000 Sofia Conte 100,000 We completed an offering of 80,000 shares of our common stock at a price of $0.10 per share to a total of eight purchasers on January 21, 2005. The total amount received from this offering was $8,000. We completed this offering pursuant to Regulation S of the Securities Act. The purchasers in this offering were as follows: Name of Subscriber Number of Shares ------------------------------------------------ ---------------------- Darrell Shuel 10,000 Terry Fiddick 10,000 Gary Sly 10,000 Jennifer Lee Newcomen 10,000 Anne Reed 10,000 Beecham Y. Pearson 10,000 Campbell H. Pearson 10,000 Tina Santarelli 10,000 Regulation S Compliance Each offer or sale was made in an offshore transaction; Neither we, a distributor, any respective affiliates nor any person on behalf of any of the foregoing made any directed selling efforts in the United States; Offering restrictions were, and are, implemented; No offer or sale was made to a U.S. person or for the account or benefit of a U.S. person; Each purchaser of the securities certifies that it was not a U.S. person and was not acquiring the securities for the account or benefit of any U.S. person; Each purchaser of the securities agreed to resell such securities only in accordance with the provisions of Regulation S, pursuant to registration under the Act, or pursuant to an available exemption from registration; and agreed not to engage in hedging transactions with regard to such securities unless in compliance with the Act; The securities contain a legend to the effect that transfer is prohibited except in accordance with the provisions of Regulation S, pursuant to registration under the Act, or pursuant to an available exemption from registration; and that hedging transactions involving those securities may not be conducted unless in compliance with the Act; and We are required, either by contract or a provision in its bylaws, articles, charter or comparable document, to refuse to register any transfer of the securities not made in accordance with the provisions of Regulation S pursuant to registration under the Act, or pursuant to an available exemption from registration; provided, however, that if any law of any Canadian province prevents us from refusing to register securities transfers, other reasonable procedures, such as a legend described in paragraph (b)(3)(iii)(B)(3) of Regulation S have been implemented to prevent any transfer of the securities not made in accordance with the provisions of Regulation S. 41 Exhibits Exhibit Number Description 3.1 Articles of Incorporation 3.2 Bylaws 5.1 Legal opinion of Cane Clark LLP 10.1 Mineral property purchase agreement dated January 31, 2005 23.1 Consent of HLB Cinnamon Jang Willoughby & Company 99.1 Location map The undersigned registrant hereby undertakes: 1. To file, during any period in which it offers or sells securities, a post-effective amendment to this registration statement to: a. include any prospectus required by Section 10(a)(3) of the Securities Act of 1933; b. reflect in the prospectus any facts or events which, individually or together, represent a fundamental change in the information set forth in this registration statement; and notwithstanding the forgoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the commission pursuant to Rule 424(b) if, in the aggregate, the changes in the volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration Statement; and c. include any additional or changed material information on the plan of distribution. 2. That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. 3. To remove from registration by means of a post-effective amendment any of the securities being registered hereby which remain unsold at the termination of the offering. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the provisions above, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities, other than the payment by us of expenses incurred or paid by one of our directors, officers, or controlling persons in the successful defense of any action, suit or proceeding, is asserted by one of our directors, officers, or controlling person sin connection with the securities being registered, we will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification is against public policy as expressed in the Securities Act, and we will be governed by the final adjudication of such issue. 42 Signatures In accordance with the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form SB-2 and authorized this registration statement to be signed on its behalf by the undersigned, in the City of Vancouver, Province of British Columbia on January 13, 2006. Crawford Lake Mining Inc. By: /s/ John Fiddick ------------------------------ John Fiddick President, Secretary, Treasurer, Chief Executive Officer and Director In accordance with the requirements of the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on the dates stated: SIGNATURE CAPACITY IN WHICH SIGNED DATE /s/ John Fiddick President, Secretary, Treasurer, Chief January 13, 2006 - ----------------- Executive Officer, principal accounting John Fiddick officer, principal financial officer and Director 43
EX-3.1 2 ex31.txt EXHIBIT 3.1 ARTICLES OF INCORPORATION OF CRAWFORD LAKE MINING INC. FIRST. The name of the corporation is CRAWFORD LAKE MINING INC. SECOND. The registered office of the corporation in the State of Nevada is located at 7151 West Lake Mead Boulevard, Suite 300 Las Vegas, Nevada, 89128. The corporation may maintain an office, or offices, in such other places within or without the State of Nevada as may be from time to time designated by the Board of Directors or the By-Laws of the corporation. The corporation may conduct all corporation business of every kind and nature outside the State of Nevada as well as within the State of Nevada. THIRD. The objects for which this corporation is formed are to engage in any lawful activity, FOURTH. The total number of common stock authorized that may be issued by the Corporation is seventy five million (75,000,000) shares of stock with a par value of one tenth of one cent ($0.001) per share and no other class of stock shall be authorized. The corporation may from time issued said shares for such consideration as the Board of Directors may fix. FIFTH. The governing board of the corporation shall be known as directors, and the number of directors may from time to time be increased or decreased in such manner as shall be provided by the By-Laws of this corporation, providing that the number of directors shall not be reduced to fewer than one (1). The first Board of Directors shall be one (1) in number and the name and post office address of this Director is: Name: Leah Finke Address: 7251 West Lake Mead Blvd Suite 300 Las Vegas, Nevada 89128 SIXTH. The capital stock of the corporation, after the amount of the subscription price or par value, has been paid in, shall not be subject to assessment to pay the debts of the corporation. SEVENTH. The name and post office address of the Incorporator signing the Articles of Incorporation is as follows: Name: Leah Finke Address: 7251 West Lake Mead Blvd., Suite 300 Las Vegas, Nevada, 89128 EIGHTH. The Resident Agent for this corporation shall be Empire Stock Transfer Inc. The address of the Resident Agent and the registered or statutory address of this corporation in the State of Nevada shall be: 7251 West Lake Mead Blvd., Suite 300, Las Vegas, Nevada, 89128. NINTH. The corporation is to have perpetual existence. TENTH. The Board of Directors shall adopt the initial By-laws of the corporation. The Board of Directors shall also have the power to alter, amend or repeal the By-laws, or to adopt new By-laws, except as otherwise may be specifically provided in the By-laws. ELEVEN. No Director or Officer of the corporation shall be personally liable to the corporation or any of its stockholders for damages for breach of fiduciary duty as a Director or Officer involving any act or omission of any such Director or Officer; provided, however, that the foregoing provision shall not eliminate or limit the liability of a Director or Officer (i) for acts or omissions which involve intentional misconduct, fraud or a knowing violation of the law, or (ii) the payment of dividends in violation of Section 78.300 of the Nevada Revised Statutes. Any repeal or modification of this Article by the Stockholders of the corporation shall be prospective only, and shall not adversely affect any limitations on the personal liability of a Director or Officer of the corporation for acts or omissions prior to such repeal or modification. TWELVETH. The corporation reserves the right to amend, alter, change or repeal any provision contained in the Articles of Incorporation, in the manner now or hereafter prescribed by statute, or by the Articles of Incorporation, and all rights conferred upon stockholders herein are granted subject to this reservation. I, the undersigned, being the Incorporator hereinbefore named for the purpose of forming a corporation pursuant to General Corporation Law of the State of Nevada, do make and file these Articles of Incorporation, hereby declaring and certifying that the facts herein stated are true, and accordingly have hereunto set my hand this October 18, 2004. /s/ Leah Finke ---------------------------- Leah Finke Incorporator EX-3.2 3 ex32.txt EXHIBIT 3.2 BYLAWS of CRAWFORD LAKE MINING INC. (the "Corporation") ARTICLE I: MEETINGS OF SHAREHOLDERS Section 1 - Annual Meetings - --------------------------- The annual meeting of the shareholders of the Corporation shall be held at the time fixed, from time to time, by the Board of Directors. Section 2 - Special Meetings - ---------------------------- Special meetings of the shareholders may be called by the Board of Directors or such person or persons authorized by the Board of Directors. Section 3 - Place of Meetings - ----------------------------- Meetings of shareholders shall be held at the registered office of the Corporation, or at such other places, within or without the State of Nevada as the Board of Directors may from time to time fix. Section 4 - Notice of Meetings - ------------------------------ A notice convening an annual or special meeting which specifies the place, day, and hour of the meeting, and the general nature of the business of the meeting, must be faxed, personally delivered or mailed postage prepaid to each shareholder of the Corporation entitled to vote at the meeting at the address of the shareholder as it appears on the stock transfer ledger of the Corporation, at least ten (10) days prior to the meeting. Accidental omission to give notice of a meeting to, or the non-receipt of notice of a meeting by, a shareholder will not invalidate the proceedings at that meeting. Section 5 - Action Without a Meeting - ------------------------------------ Unless otherwise provided by law, any action required to be taken at a meeting of the shareholders, or any other action which may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if written consents are signed by shareholders representing a majority of the shares entitled to vote at such a meeting, except however, if a different proportion of voting power is required by law, the Articles of Incorporation or these Bylaws, than that proportion of written consents is required. Such written consents must be filed with the minutes of the proceedings of the shareholders of the Corporation. Section 6 - Quorum - ------------------ a) No business, other than the election of the chairman or the adjournment of the meeting, will be transacted at an annual or special meeting unless a quorum of shareholders, entitled to attend and vote, is present at the commencement of the meeting, but the quorum need not be present throughout the meeting. b) Except as otherwise provided in these Bylaws, a quorum is two persons present and being, or representing by proxy, shareholders of the Corporation. c) If within half an hour from the time appointed for an annual or special meeting a quorum is not present, the meeting shall stand adjourned to a day, time and place as determined by the chairman of the meeting. Section 7 - Voting - ------------------ Subject to a special voting rights or restrictions attached to a class of shares, each shareholder shall be entitled to one vote for each share of stock in his or her own name on the books of the corporation, whether represented in person or by proxy. Section 8 - Motions - ------------------- No motion proposed at an annual or special meeting need be seconded. Section 9 - Equality of Votes - ----------------------------- In the case of an equality of votes, the chairman of the meeting at which the vote takes place is not entitled to have a casting vote in addition to the vote or votes to which he may be entitled as a shareholder of proxyholder. Section 10 - Dispute as to Entitlement to Vote - ---------------------------------------------- In a dispute as to the admission or rejection of a vote at an annual or special meeting, the decision of the chairman made in good faith is conclusive. Section 11 - Proxy - ------------------ a) Each shareholder entitled to vote at an annual or special meeting may do so either in person or by proxy. A form of proxy must be in writing under the hand of the appointor or of his or her attorney duly authorized in writing, or, if the appointor is a corporation, either under the seal of the corporation or under the hand of a duly authorized officer or attorney. A proxyholder need not be a shareholder of the Corporation. b) A form of proxy and the power of attorney or other authority, if any, under which it is signed or a facsimiled copy thereof must be deposited at the registered office of the Corporation or at such other place as is specified for that purpose in the notice convening the meeting. In addition to any other method of depositing proxies provided for in these Bylaws, the Directors may from time to time by resolution make regulations relating to the depositing of proxies at a place or places and fixing the time or times for depositing the proxies not exceeding 48 hours (excluding Saturdays, Sundays and holidays) preceding the meeting or adjourned meeting specified in the notice calling a meeting of shareholders. ARTICLE II: BOARD OF DIRECTORS Section 1 - Number, Term, Election and Qualifications - ----------------------------------------------------- a) The first Board of Directors of the Corporation, and all subsequent Boards of the Corporation, shall consist of not less than one (1) and not more than nine (9) directors. The number of Directors may be fixed and changed from time to time by ordinary resolution of the shareholders of the Corporation. b) The first Board of Directors shall hold office until the first annual meeting of shareholders and until their successors have been duly elected and qualified or until there is a decrease in the number of directors. Thereinafter, Directors will be elected at the annual meeting of shareholders and shall hold office until the annual meeting of the shareholders next succeeding his or her election, or until his or her prior death, resignation or removal. Any Director may resign at any time upon written notice of such resignation to the Corporation. c) A casual vacancy occurring in the Board may be filled by the remaining Directors. d) Between successive annual meetings, the Directors have the power to appoint one or more additional Directors but not more than 1/2 of the number of Directors fixed at the last shareholder meeting at which Directors were elected. A Director so appointed holds office only until the next following annual meeting of the Corporation, but is eligible for election at that meeting. So long as he or she is an additional Director, the number of Directors will be increased accordingly. e) A Director is not required to hold a share in the capital of the Corporation as qualification for his or her office. Section 2 - Duties, Powers and Remuneration - ------------------------------------------- a) The Board of Directors shall be responsible for the control and management of the business and affairs, property and interests of the Corporation, and may exercise all powers of the Corporation, except for those powers conferred upon or reserved for the shareholders or any other persons as required under Nevada state law, the Corporation's Articles of Incorporation or by these Bylaws. b) The remuneration of the Directors may from time to time be determined by the Directors or, if the Directors decide, by the shareholders. Section 3 - Meetings of Directors - --------------------------------- a) The President of the Corporation shall preside as chairman at every meeting of the Directors, or if the President is not present or is willing to act as chairman, the Directors present shall choose one of their number to be chairman of the meeting. b) The Directors may meet together for the dispatch of business, and adjourn and otherwise regulate their meetings as they think fit. Questions arising at a meeting must be decided by a majority of votes. In case of an equality of votes the chairman does not have a second or casting vote. Meetings of the Board held at regular intervals may be held at the place and time upon the notice (if any) as the Board may by resolution from time to time determine. c) A Director may participate in a meeting of the Board or of a committee of the Directors using conference telephones or other communications facilities by which all Directors participating in the meeting can hear each other and provided that all such Directors agree to such participation. A Director participating in a meeting in accordance with this Bylaw is deemed to be present at the meeting and to have so agreed. Such Director will be counted in the quorum and entitled to speak and vote at the meeting. d) A Director may, and the Secretary on request of a Director shall, call a meeting of the Board. Reasonable notice of the meeting specifying the place, day and hour of the meeting must be given by mail, postage prepaid, addressed to each of the Directors and alternate Directors at his or her address as it appears on the books of the Corporation or by leaving it at his or her usual business or residential address or by telephone, facsimile or other method of transmitting legibly recorded messages. It is not necessary to give notice of a meeting of Directors to a Director immediately following a shareholder meeting at which the Director has been elected, or is the meeting of Directors at which the Director is appointed. e) A Director of the Corporation may file with the Secretary a document executed by him waiving notice of a past, present or future meeting or meetings of the Directors being, or required to have been, sent to him and may at any time withdraw the waiver with respect to meetings held thereafter. After filing such waiver with respect to future meetings and until the waiver is withdrawn no notice of a meeting of Directors need be given to the Director. All meetings of the Directors so held will be deemed not to be improperly called or constituted by reason of notice not having been given to the Director. f) The quorum necessary for the transaction of the business of the Directors may be fixed by the Directors and if not so fixed is a majority of the Directors or, if the number of Directors is fixed at one, is one Director. g) The continuing Directors may act notwithstanding a vacancy in their body but, if and so long as their number is reduced below the number fixed pursuant to these Bylaws as the necessary quorum of Directors, the continuing Directors may act for the purpose of increasing the number of Directors to that number, or of summoning a shareholder meeting of the Corporation, but for no other purpose. h) All acts done by a meeting of the Directors, a committee of Directors, or a person acting as a Director, will, notwithstanding that it be afterwards discovered that there was some defect in the qualification, election or appointment of the Directors, shareholders of the committee or person acting as a Director, or that any of them were disqualified, be as valid as if the person had been duly elected or appointed and was qualified to be a Director. i) A resolution consented to in writing, whether by facsimile or other method of transmitting legibly recorded messages, by all of the Directors is as valid as if it had been passed at a meeting of the Directors duly called and held. A resolution may be in two or more counterparts which together are deemed to constitute one resolution in writing. A resolution must be filed with the minutes of the proceedings of the directors and is effective on the date stated on it or on the latest date stated on a counterpart. j) All Directors of the Corporation shall have equal voting power. Section 4 - Removal - ------------------- One or more or all the Directors of the Corporation may be removed with or without cause at any time by a vote of two-thirds of the shareholders entitled to vote thereon, at a special meeting of the shareholders called for that purpose. Section 5 - Committees - ---------------------- a) The Directors may from time to time by resolution designate from among its members one or more committees, and alternate members thereof, as they deem desirable, each consisting of one or more members, with such powers and authority (to the extent permitted by law and these Bylaws) as may be provided in such resolution. Each such committee shall serve at the pleasure of the Board of Directors and unless otherwise stated by law, the Certificate of Incorporation of the Corporation or these Bylaws, shall be governed by the rules and regulations stated herein regarding the Board of Directors. b) Each Committee shall keep regular minutes of its transactions, shall cause them to be recorded in the books kept for that purpose, and shall report them to the Board at such times as the Board may from time to time require. The Board has the power at any time to revoke or override the authority given to or acts done by any Committee. ARTICLE III: OFFICERS Section 1 - Number, Qualification, Election and Term of Office - -------------------------------------------------------------- a) The Corporation's officers shall have such titles and duties as shall be stated in these Bylaws or in a resolution of the Board of Directors which is not inconsistent with these Bylaws. The officers of the Corporation shall consist of a president, secretary, treasurer, and also may have one or more vice presidents, assistant secretaries and assistant treasurers and such other officers as the Board of Directors may from time to time deem advisable. Any officer may hold two or more offices in the Corporation, and may or may not also act as a Director. b) The officers of the Corporation shall be elected by the Board of Directors at the regular annual meeting of the Board following the annual meeting of shareholders. c) Each officer shall hold office until the annual meeting of the Board of Directors next succeeding his or her election, and until his or her successor shall have been duly elected and qualified, subject to earlier termination by his or her death, resignation or removal. Section 2 - Resignation - ----------------------- Any officer may resign at any time by giving written notice of such resignation to the Corporation. Section 3 - Removal - ------------------- Any officer appointed by the Board of Directors may be removed by a majority vote of the Board, either with or without cause, and a successor appointed by the Board at any time, and any officer or assistant officer, if appointed by another officer, may likewise be removed by such officer. Section 4 - Remuneration - ------------------------ The remuneration of the Officers of the Corporation may from time to time be determined by the Directors or, if the Directors decide, by the shareholders. Section 5 - Conflict of Interest - -------------------------------- Each officer of the Corporation who holds another office or possesses property whereby, whether directly or indirectly, duties or interests might be created in conflict with his or her duties or interests as an officer of the Corporation shall, in writing, disclose to the President the fact and the nature, character and extent of the conflict and abstain from voting with respect to any resolution in which the officer has a personal interest. ARTICLE V: SHARES OF STOCK Section 1 - Certificate of Stock - -------------------------------- a) The shares of the Corporation shall be represented by certificates or shall be uncertificated shares. b) Certificated shares of the Corporation shall be signed, either manually or by facsimile, by officers or agents designated by the Corporation for such purposes, and shall certify the number of shares owned by the shareholder in the Corporation. Whenever any certificate is countersigned or otherwise authenticated by a transfer agent or transfer clerk, and by a registrar, then a facsimile of the signatures of the officers or agents, the transfer agent or transfer clerk or the registrar of the Corporation may be printed or lithographed upon the certificate in lieu of the actual signatures. If the Corporation uses facsimile signatures of its officers and agents on its stock certificates, it cannot act as registrar of its own stock, but its transfer agent and registrar may be identical if the institution acting in those dual capacities countersigns or otherwise authenticates any stock certificates in both capacities. If any officer who has signed or whose facsimile signature has been placed upon such certificate, shall have ceased to be such officer before such certificate is issued, it may be issued by the Corporation with the same effect as if he were such officer at the date of its issue. c) If the Corporation issued uncertificated shares as provided for in these Bylaws, within a reasonable time after the issuance or transfer of such uncertificated shares, and at least annually thereafter, the Corporation shall send the shareholder a written statement certifying the number of shares owned by such shareholder in the Corporation. d) Except as otherwise provided by law, the rights and obligations of the holders of uncertificated shares and the rights and obligations of the holders of certificates representing shares of the same class and series shall be identical. e) If a share certificate: (i) is worn out or defaced, the Directors shall, upon production to them of the certificate and upon such other terms, if any, as they may think fit, order the certificate to be cancelled and issue a new certificate; (ii) is lost, stolen or destroyed, then upon proof being given to the satisfaction of the Directors and upon and indemnity, if any being given, as the Directors think adequate, the Directors shall issue a new certificate; or (iii) represents more than one share and the registered owner surrenders it to the Corporation with a written request that the Corporation issue in his or her name two or more certificates, each representing a specified number of shares and in the aggregate representing the same number of shares as the certificate so surrendered, the Corporation shall cancel the certificate so surrendered and issue new certificates in accordance with such request. Section 2 - Transfers of Shares - ------------------------------- a) Transfers or registration of transfers of shares of the Corporation shall be made on the stock transfer books of the Corporation by the registered holder thereof, or by his or her attorney duly authorized by a written power of attorney; and in the case of shares represented by certificates, only after the surrender to the Corporation of the certificates representing such shares with such shares properly endorsed, with such evidence of the authenticity of such endorsement, transfer, authorization and other matters as the Corporation may reasonably require, and the payment of all stock transfer taxes due thereon. b) The Corporation shall be entitled to treat the holder of record of any share or shares as the absolute owner thereof for all purposes and, accordingly, shall not be bound to recognize any legal, equitable or other claim to, or interest in, such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise expressly provided by law. Section 3 - Record Date - ----------------------- a) The Directors may fix in advance a date, which must not be more than 60 days permitted by the preceding the date of a meeting of shareholders or a class of shareholders, or of the payment of a dividend or of the proposed taking of any other proper action requiring the determination of shareholders as the record date for the determination of the shareholders entitled to notice of, or to attend and vote at, a meeting and an adjournment of the meeting, or entitled to receive payment of a dividend or for any other proper purpose and, in such case, notwithstanding anything in these Bylaws, only shareholders of records on the date so fixed will be deemed to be the shareholders for the purposes of this Bylaw. b) Where no record date is so fixed for the determination of shareholders as provided in the preceding Bylaw, the date on which the notice is mailed or on which the resolution declaring the dividend is adopted, as the case may be, is the record date for such determination. Section 4 - Fractional Shares - ----------------------------- Notwithstanding anything else in these Bylaws, the Corporation, if the Directors so resolve, will not be required to issue fractional shares in connection with an amalgamation, consolidation, exchange or conversion. At the discretion of the Directors, fractional interests in shares may be rounded to the nearest whole number, with fractions of 1/2 being rounded to the next highest whole number, or may be purchased for cancellation by the Corporation for such consideration as the Directors determine. The Directors may determine the manner in which fractional interests in shares are to be transferred and delivered to the Corporation in exchange for consideration and a determination so made is binding upon all shareholders of the Corporation. In case shareholders having fractional interests in shares fail to deliver them to the Corporation in accordance with a determination made by the Directors, the Corporation may deposit with the Corporation's Registrar and Transfer Agent a sum sufficient to pay the consideration payable by the Corporation for the fractional interests in shares, such deposit to be set aside in trust for such shareholders. Such setting aside is deemed to be payment to such shareholders for the fractional interests in shares not so delivered which will thereupon not be considered as outstanding and such shareholders will not be considered to be shareholders of the Corporation with respect thereto and will have no right except to receive payment of the money so set aside and deposited upon delivery of the certificates for the shares held prior to the amalgamation, consolidation, exchange or conversion which result in fractional interests in shares. ARTICLE VI: DIVIDENDS a) Dividends may be declared and paid out of any funds available therefor, as often, in such amounts, and at such time or times as the Board of Directors may determine and shares may be issued pro rata and without consideration to the Corporation's shareholders or to the shareholders of one or more classes or series. b) Shares of one class or series may not be issued as a share dividend to shareholders of another class or series unless such issuance is in accordance with the Articles of Incorporation and: (i) a majority of the current shareholders of the class or series to be issued approve the issue; or (ii) there are no outstanding shares of the class or series of shares that are authorized to be issued as a dividend. ARTICLE VII: BORROWING POWERS a) The Directors may from time to time on behalf of the Corporation: (i) borrow money in such manner and amount, on such security, from such sources and upon such terms and conditions as they think fit, (ii) issue bonds, debentures and other debt obligations either outright or as security for liability or obligation of the Corporation or another person, and (iii) mortgage, charge, whether by way of specific or floating charge, and give other security on the undertaking, or on the whole or a part of the property and assets of the Corporation (both present and future). b) A bond, debenture or other debt obligation of the Corporation may be issued at a discount, premium or otherwise, and with a special privilege as to redemption, surrender, drawing, allotment of or conversion into or exchange for shares or other securities, attending and voting at shareholder meetings of the Corporation, appointment of Directors or otherwise, and may by its terms be assignable free from equities between the Corporation and the person to whom it was issued or a subsequent holder thereof, all as the Directors may determine. ARTICLE VIII: FISCAL YEAR The fiscal year end of the Corporation shall be fixed, and shall be subject to change, by the Board of Directors from time to time, subject to applicable law. ARTICLE IX: CORPORATE SEAL The corporate seal, if any, shall be in such form as shall be prescribed and altered, from time to time, by the Board of Directors. The use of a seal or stamp by the Corporation on corporate documents is not necessary and the lack thereof shall not in any way affect the legality of a corporate document. ARTICLE X: AMENDMENTS Section 1 - By Shareholders - --------------------------- All Bylaws of the Corporation shall be subject to alteration or repeal, and new Bylaws may be made by a majority vote of the shareholders at any annual meeting or special meeting called for that purpose. Section 2 - By Directors - ------------------------ The Board of Directors shall have the power to make, adopt, alter, amend and repeal, from time to time, Bylaws of the Corporation. ARTICLE XI: DISCLOSURE OF INTEREST OF DIRECTORS a) A Director who is, in any way, directly or indirectly interested in an existing or proposed contract or transaction with the Corporation or who holds an office or possesses property whereby, directly or indirectly, a duty or interest might be created to conflict with his or her duty or interest as a Director, shall declare the nature and extent of his or her interest in such contract or transaction or of the conflict with his or her duty and interest as a Director, as the case may be. b) A Director shall not vote in respect of a contract or transaction with the Corporation in which he is interested and if he does so his or her vote will not be counted, but he will be counted in the quorum present at the meeting at which the vote is taken. The foregoing prohibitions do not apply to: (i) a contract or transaction relating to a loan to the Corporation, which a Director or a specified corporation or a specified firm in which he has an interest has guaranteed or joined in guaranteeing the repayment of the loan or part of the loan; (ii) a contract or transaction made or to be made with or for the benefit of a holding corporation or a subsidiary corporation of which a Director is a director or officer; (iii) a contract by a Director to subscribe for or underwrite shares or debentures to be issued by the Corporation or a subsidiary of the Corporation, or a contract, arrangement or transaction in which a Director is directly or indirectly interested if all the other Directors are also directly or indirectly interested in the contract, arrangement or transaction; (iv) determining the remuneration of the Directors; (v) purchasing and maintaining insurance to cover Directors against liability incurred by them as Directors; or (vi) the indemnification of a Director by the Corporation. c) A Director may hold an office or place of profit with the Corporation (other than the office of Auditor of the Corporation) in conjunction with his or her office of Director for the period and on the terms (as to remuneration or otherwise) as the Directors may determine. No Director or intended Director will be disqualified by his or her office from contracting with the Corporation either with regard to the tenure of any such other office or place of profit, or as vendor, purchaser or otherwise, and, no contract or transaction entered into by or on behalf of the Corporation in which a Director is interested is liable to be voided by reason thereof. d) A Director or his or her firm may act in a professional capacity for the Corporation (except as Auditor of the Corporation), and he or his or her firm is entitled to remuneration for professional services as if he were not a Director. e) A Director may be or become a director or other officer or employee of, or otherwise interested in, a corporation or firm in which the Corporation may be interested as a shareholder or otherwise, and the Director is not accountable to the Corporation for remuneration or other benefits received by him as director, officer or employee of, or from his or her interest in, the other corporation or firm, unless the shareholders otherwise direct. ARTICLE XII: ANNUAL LIST OF OFFICERS, DIRECTORS AND REGISTERED AGENT The Corporation shall, within sixty days after the filing of its Articles of Incorporation with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of incorporation occurs each year, file with the Secretary of State a list of its president, secretary and treasurer and all of its Directors, along with the post office box or street address, either residence or business, and a designation of its resident agent in the state of Nevada. Such list shall be certified by an officer of the Corporation. ARTICLE XIII: INDEMNITY OF DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS a) The Directors shall cause the Corporation to indemnify a Director or former Director of the Corporation and the Directors may cause the Corporation to indemnify a director or former director of a corporation of which the Corporation is or was a shareholder and the heirs and personal representatives of any such person against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, actually and reasonably incurred by him or them including an amount paid to settle an action or satisfy a judgment inactive criminal or administrative action or proceeding to which he is or they are made a party by reason of his or her being or having been a Director of the Corporation or a director of such corporation, including an action brought by the Corporation or corporation. Each Director of the Corporation on being elected or appointed is deemed to have contracted with the Corporation on the terms of the foregoing indemnity. b) The Directors may cause the Corporation to indemnify an officer, employee or agent of the Corporation or of a corporation of which the Corporation is or was a shareholder (notwithstanding that he is also a Director), and his or her heirs and personal representatives against all costs, charges and expenses incurred by him or them and resulting from his or her acting as an officer, employee or agent of the Corporation or corporation. In addition the Corporation shall indemnify the Secretary or an Assistance Secretary of the Corporation (if he is not a full time employee of the Corporation and notwithstanding that he is also a Director), and his or her respective heirs and legal representatives against all costs, charges and expenses incurred by him or them and arising out of the functions assigned to the Secretary by the Corporation Act or these Articles and each such Secretary and Assistant Secretary, on being appointed is deemed to have contracted with the Corporation on the terms of the foregoing indemnity. c) The Directors may cause the Corporation to purchase and maintain insurance for the benefit of a person who is or was serving as a Director, officer, employee or agent of the Corporation or as a director, officer, employee or agent of a corporation of which the Corporation is or was a shareholder and his or her heirs or personal representatives against a liability incurred by him as a Director, officer, employee or agent. CERTIFIED TO BE THE BYLAWS OF: CRAWFORD LAKE MINING INC. per: /s/ John Fiddick ----------------------- John Fiddick, Secretary EX-5.1 4 ex51.txt EXHIBIT 5.1 CANE CLARK LLP 3273 E. Warm Springs Las Vegas, NV 89120 Kyleen E. Cane* Bryan R. Clark^ Chad Wiener+ Scott P. Doney~ Telephone: 702-312-6255 Facsimile: 702-944-7100 Email: bclark@caneclark.com
January 13, 2006 Crawford Lake Mining, Inc. 4372 Greta Street Burnaby, BC V5J 1N8 CANADA Re: Crawford Lake Mining, Inc., Registration Statement on Form SB-2 Ladies and Gentlemen: We have acted as counsel for Crawford Lake Mining, Inc., a Nevada corporation (the "Company"), in connection with the preparation of the registration statement on Form SB-2 (the "Registration Statement") to be filed with the Securities and Exchange Commission (the "Commission") pursuant to the Securities Act of 1933, as amended (the "Act"), relating to the offering of 2,780,000 shares of the Company's common stock. In rendering the opinion set forth below, we have reviewed: (a) the Registration Statement and the exhibits attached thereto dated January 13, 2006; (b) the Company's Articles of Incorporation; (c) the Company's Bylaws; (d) certain records of the Company's corporate proceedings as reflected in its minute books; and (e) such statutes, records and other documents as we have deemed relevant. In our examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, and conformity with the originals of all documents submitted to us as copies thereof. In addition, we have made such other examinations of law and fact, as we have deemed relevant in order to form a basis for the opinion hereinafter expressed. Based upon the foregoing, we are of the opinion that the common stock to be sold by the selling shareholders is validly issued, fully paid and non-assessable. This opinion is based on Nevada general corporate law. Very truly yours, CANE CLARK LLP /s/ Bryan R. Clark - ----------------------------- Bryan R. Clark, Attorney and Managing Partner *Licensed Nevada, California, Washington and Hawaii Bars; ^ Nevada, Colorado and District of Columbia Bars + Illinois, and Wisconsin State Bars ~Nevada We hereby consent to the use of this opinion as an Exhibit to the Registration Statement and to all references to this Firm under the caption "Interests of Named Experts and Counsel" in the Registration Statement. Very truly yours, CANE CLARK LLP /s/ Bryan R. Clark - ----------------------------- Bryan R. Clark, Attorney and Managing Partner BRC:jb
EX-10.1 5 ex101.txt EXHIBIT 10.1 MINERAL PROPERTY PURCHASE AGREEMENT THIS AGREEMENT dated for reference January 31, 2005. BETWEEN: KLONDIKE BAY RESOURCES, of 326 Penman Avenue, Garson, Ontario, P3L 1S5; and (the "Vendor") OF THE FIRST PART AND: CRAWFORD LAKE MINING INC., a company incorporated pursuant to the laws of Nevada with an office at 4372 Greta Street, Burnaby, British Columbia, V5J 1N8; (the "Purchaser") OF THE SECOND PART W H E R E A S : A. The Vendor is the owner of one mining claim consisting of twelve units covering 192 hectares located approximately 30 kilometres northeast of the City of Sudbury in the Scadding Township of Ontario, known as the Little Bonanza Property and recorded under claim number S-3018927 (the "Claim"); B. The Vendor has agreed to sell and the Purchaser has agreed to purchase a 100% right, interest and title in and to the Claim upon the terms and conditions hereinafter set forth; NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants and provisos herein contained, THE PARTIES HERETO AGREE AS FOLLOWS: 1. VENDOR'S REPRESENTATIONS 1.1 The Vendor represents and warrants to the Purchaser that: (a) The Vendor is the registered and beneficial owner of the Claim and holds the right to transfer title to the Claim and to explore and develop the Claim; (b) The Vendor holds the Claim free and clear of all liens, charges and claim of others, and the Vendor has a free and unimpeded right of access to the Claim and has use of the Claim surface for the herein purposes; 2 (c) The Claim has been duly and validly located and recorded in a good and miner-like manner pursuant to the laws of Ontario and is in good standing in Ontario as of the date of this Agreement; (d) There are no adverse claims or challenges against or to the Vendor's ownership of or title to the Claim nor to the knowledge of the Vendor is there any basis therefore, and there are no outstanding agreements or options to acquire or purchase the Claim or any portion thereof; (e) The Vendor has the full right, authority and capacity to enter into this Agreement without first obtaining the consent of any other person or body corporate and the consummation of the transaction herein contemplated will not conflict with or result in any breach of any covenants or agreements contained in, or constitute a default under, or result in the creation of any encumbrance under the provisions of any indenture, agreement or other instrument whatsoever to which the Vendor is a party or by which he is bound or to which he is subject; and (f) No proceedings are pending for, and the Vendor is unaware of any basis for, the institution of any proceedings which could lead to the placing of either Vendor in bankruptcy, or in any position similar to bankruptcy. 1.2 The representations and warranties of the Vendor set out in paragraph 1.1 above form a part of this Agreement and are conditions upon which the Purchaser has relied in entering into this Agreement and shall survive the acquisition of any interest in the Claim by the Purchaser. 2. THE PURCHASER'S REPRESENTATIONS The Purchaser warrants and represents to the Vendor that it is a body corporate, duly incorporated under the laws of the state of Nevada with full power and absolute capacity to enter into this Agreement and that the terms of this Agreement have been authorized by all necessary corporate acts and deeds in order to give effect to the terms hereof. 3. SALE OF CLAIM The Vendor hereby sells, grants and devises to the Purchaser a 100% undivided right, title and interest in and to the Claim in consideration of the Purchaser paying $7,000 to the Vendor upon the closing of this Agreement. 4. CLOSING The sale and purchase of the interest in the Claim shall be closed concurrently with the execution of this Agreement. 3 5. COVENANTS OF THE PURCHASER The Purchaser shall perform all work on the Claim in a miner-like manner and shall comply with all laws, regulations and permitting requirements of Canada and Ontario including compliance with all: (a) environmental statutes, guidelines and regulations; (b) work permit conditions for lakes and streams; and (c) work restrictions relating to forest fire hazards. 7. FORCE MAJEURE If the Purchaser is prevented from or delayed in complying with any provisions of this Agreement by reason of strikes, labour disputes, lockouts, labour shortages, power shortages, fires, wars, acts of God, governmental regulations restricting normal operations or any other reason or reasons beyond the control of the Purchaser, the time limited for the performance of the various provisions of this Agreement as set out above shall be extended by a period of time equal in length to the period of such prevention and delay, and the Purchaser, insofar as is possible, shall promptly give written notice to the Vendor of the particulars of the reasons for any prevention or delay under this section, and shall take all reasonable steps to remove the cause of such prevention or delay and shall give written notice to the Vendor as soon as such cause ceases to exist. 8. ENTIRE AGREEMENT This Agreement constitutes the entire agreement to date between the parties hereto and supersedes every previous agreement, communication, expectation, negotiation, representation or understanding, whether oral or written, express or implied, statutory or otherwise, between the parties with respect to the subject matter of this Agreement. 9. NOTICE 9.1 Any notice required to be given under this Agreement shall be deemed to be well and sufficiently given if delivered to the other party at its respective address first noted above, and any notice given as aforesaid shall be deemed to have been given, if delivered, when delivered, or if mailed, on the fourth business day after the date of mailing thereof. 9.2 Either party may from time to time by notice in writing change its address for the purpose of this paragraph. 10. RELATIONSHIP OF PARTIES Nothing contained in this Agreement shall, except to the extent specifically authorized hereunder, be deemed to constitute either party a partner, agent or legal representative of the other party. 4 11. FURTHER ASSURANCES The parties hereto agree to do or cause to be done all acts or things necessary to implement and carry into effect the provisions and intent of this Agreement. 12. TIME OF ESSENCE Time shall be of the essence of this Agreement. 13. TITLES The titles to the respective sections hereof shall not be deemed a part of this Agreement but shall be regarded as having been used for convenience only. 14. CURRENCY All funds referred to under the terms of this Agreement shall be funds designated in the lawful currency of the United States of America. 15. NONSEVERABILITY This Agreement shall be considered and construed as a single instrument and the failure to perform any of the terms and conditions in this Agreement shall constitute a violation or breach of the entire instrument or Agreement and shall constitute the basis for cancellation or termination. 16. APPLICABLE LAW The situs of the Agreement is Vancouver, British Columbia, and for all purposes this Agreement will be governed exclusively by and construed and enforced in accordance with the laws prevailing in the Province of British Columbia. 17. ENUREMENT This Agreement shall enure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns. IN WITNESS WHEREOF this Agreement has been executed as of the day and year first above written. CRAWFORD LAKE MINING INC. /s/ Terry Loney per: /s/ John Fiddick - ------------------------------ ------------------------------ Authorized Signatory John Fiddick, President Klondike Bay Resources EX-23.1 6 ex231.txt EXHBIT 23.1 HLB Cinnamon Jang Willoughby & Company Chartered Accountants A Partnership of Incorporated Professionals Consent of Independent Registered Public Accounting Firm We have issued our report, dated June 14, 2005, accompanying the financial statements and schedules from the date of inception on October 18, 2004 to April 30, 2005 of Crawford Lake Mining Inc. included in the Registration Statement Form SB-2. We hereby consent to the use of the aforementioned report in the Registration Statement filed with the Securities and Exchange Commission on January 13, 2006. "Cinnamon Jang Willoughby & Company" Chartered Accountants Burnaby, BC January 13, 2006 MetroTower II - Suite 900 - 4720 Kingsway, Burnaby, BC Canada V5H 4N2. Telephone: +1 604 435 4317. Fax: +1 604 435 4319. HLB Cinnamon Jang Willoughby & Company is a member of International. A world-wide organziation of accounting firms and business advisors. 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