0001078782-16-002479.txt : 20160325 0001078782-16-002479.hdr.sgml : 20160325 20160325164408 ACCESSION NUMBER: 0001078782-16-002479 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20130531 FILED AS OF DATE: 20160325 DATE AS OF CHANGE: 20160325 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BAKKEN ENERGY CORP. CENTRAL INDEX KEY: 0001438672 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AUTOMOTIVE REPAIR, SERVICES & PARKING [7500] IRS NUMBER: 980453936 STATE OF INCORPORATION: NV FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-152356 FILM NUMBER: 161530029 BUSINESS ADDRESS: STREET 1: CARRERA 40, NO.10A-65 STREET 2: BARRIO EL POBLADO CITY: MEDELL?N STATE: F8 ZIP: 000000 BUSINESS PHONE: 011-57-4-2682451 MAIL ADDRESS: STREET 1: CARRERA 40, NO.10A-65 STREET 2: BARRIO EL POBLADO CITY: MEDELL?N STATE: F8 ZIP: 000000 FORMER COMPANY: FORMER CONFORMED NAME: Orofino Gold Corp DATE OF NAME CHANGE: 20100216 FORMER COMPANY: FORMER CONFORMED NAME: SNT CLEANING INC. DATE OF NAME CHANGE: 20080626 10-K 1 f10k053113_10k.htm FORM 10-K ANNUAL REPORT Form 10-K Annual Report


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 10-K


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended May 31, 2013


Commission file number 333-135354


OROFINO GOLD CORP.

(Exact Name of Registrant as Specified in Its Charter)


Nevada

98-0453936

(State or Other Jurisdiction of

(I.R.S. Employer

Incorporation or Organization)

Identification No.)


Carrera 40, No.10A-65, Barrio El Poblado

Medellìn - Colombia

(Address of Principal Executive Offices & Zip Code)


011-011-57.4.2682451

(Telephone Number)


Securities registered pursuant to Section 12(b) of the Act:

None


Securities registered pursuant to section 12(g) of the Act:

Common Stock, $.001 par value

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes      .  No  X .

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act

Yes      .  No  X .

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      .  No      .

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.      .

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer      .

 

Accelerated filer      .

 

Non-accelerated filer      .

(Do not check if a smaller reporting company)

 

Smaller reporting company  X .

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes      .  No  X .

 

As of May 31, 2013 the registrant had 245,400,000 shares of common stock issued and outstanding.





OROFINO GOLD CORP.

TABLE OF CONTENTS





Item 1. Business

3

Item 1A. Risk Factors

6

Item 2. Properties

11

Item 3. Legal Proceedings

12

Item 4. Submission of Matters to a Vote of Security Holders

12

Item 5. Market for Common Equity and Related Stockholder Matters

13

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

13

Item 9. Changes in and Disagreements with Accountants on Financial Disclosure

25

Item 9A. Controls and Procedures

25

Item 10. Directors, Executive Officers and Control Persons

26

Item 11. Executive Compensation

27

Item 12. Security Ownership of Certain Beneficial Owners and Management

28

Item 13. Certain Relationships and Related Transactions

28

Item 14. Principal Accounting Fees and Services

28

Item 15. Exhibits

28

Signatures

29










2




Part I


Item 1. Business


Summary


Overview


Orofino Gold Corp. (“Orofino” or the “Company”) was organized under the laws of the State of Nevada on April 12, 2005.  Orofino is a development stage company and has a limited history of operations. The authorized share capital of the Company is 250,000,000 common shares.


Orofino Gold Corp. started operations on September 1, 2007 under the "Clean `N Shine" name. Prior to this, the company had no operations from inception (April 12, 2005) to November 30, 2007. On September 1, 2007, Orofino began operating as a full service automotive car wash, cleaning, detailing, and polishing business. The company has generated revenues from cleaning and car care services specifically, automotive upholstery and leather cleaning and automotive interior and exterior cleaning and washing.


On May 20, 2009, the Company completed a forward stock split of its common stock on a ratio of six shares for every one share of the Company. The record date of the forward stock split was May 15, 2009, the payment date of the forward split was May 19, 2009, and the ex-dividend date of the forward split was May 20, 2009. The forward split was payable as a dividend, thereby requiring no action by shareholders, nor any amendment to the articles of incorporation of the Company. As a result of the forward split, the post forward split number off issued and outstanding shares was 60,000,000.


There are no preferred shares authorized. The Company has issued no preferred shares. The Company has no stock option plan, warrants or other dilutive securities. We are contemplating raising additional capital to finance our business. No final decisions regarding the financing have been made at this time.


On December 5, 2009, the Company passed a resolution to change its name from SNT Cleaning Inc. to Orofino Gold Corp. On December 5, 2009, the Company accepted the resignation of its President, Secretary and director, Robert Denman, and appointed John Martin as a Director of the Company, effective as of equal date. On June 6, 2010 John Martin resigned and Shi Long Ning, a resident of China, was appointed as a director. On February 28, 2011, Ary Pernett, a resident of Colombia; Alfonso Calderon, also a resident of Colombia and Dr, Hans Bocker, a resident of Switzerland joined the board. On January 7, 2011, Salvaldor Rivero, a resident of Germany, was appointed to the board. Presently Alfonso Calderon is the president and Shi Long Ning is the chairman.


The Company has offices in Colombia located at:


Carrera 40, No.10A-65, Barrio El Poblado

Medellìn - Colombia


Information on Directors and Officers:


Ary Pernett


EDUCATION


1973: Ingeniero de Minas y Metalúrgia – Universidad Nacional de Colombia – Medellín

(Mining and Metallurgy Engineer- National University of Colombia)


1977: Course de Reciclage en Géologie – Ecole National Superieur de Géologie – Nancy, France

(Actualization in Geology – National School of Geology – Nancy – France)


1978: Docteur de L´institute National de Lorraine – Nancy – France

           (Fluid Inclusions in Gour Negre – State of Gare in France)


WORK HISTORY


1968 – 1970: Assistant in Petroleum Lab, National University of Colombia, Medellín-Colombia



3




1972 – 1976: Ministery of Mines of Colombia, as Engineer in Technical Assistance for Miners, (Chocó State); Director of Marmato Mines, (Maramto, Caldas State) and Mining Inspecter, (Frontino Gold Mines in Segovia, Antioquia State)


1978 – 1981: National Institute of Geology of Colombia, INGEOMINAS, as field geologist working in the Mining Map of Antioquia


1982- 1984: Carbones de Urabá (Coals of Urabá, a coal Enterprise exploring for Coal in Urabá area, Antioquia State, Colombia


1985 -1992: Personal activity in mining; explotation in alluvial deposits and assistance for small miners


1993 – 2000: CDI Gold Company in the Zancudo Mine, Titiribí, Antioquia State, Colombia, as partner, consultant, and at the ent as resident engineer in the mine site.


2000 – 2010: Personal Business in wood home construction, Cars, Computers, in Mexico


PUBLICATIONS


1980: Mining Map of the State of Antioquia – Ingeominas – Medellín – Colombia


1980: Memory of the Mining Map of the Antioquia State - Ingeominas – Medellín


LANGUAGES


Spanish: 100%


French: 70%


English: 50%


Dr. Hans Bocker


Prof. Bocker lives in Switzerland. He holds two professorships in business administration and applies his dual education in technology and economics/management in many areas. As a cosmopolitan, he works as a consultant, author, finance and business journalist, columnist and IR specialist. He has for decades devoted himself to precious metals and the mining industry. His assignments and interests have taken him to over 60 countries, including many in the Middle and Far East, Africa, Europe, North and South America.


To date, the number of his publications exceeds the 2000 mark, 150 of which are academic. The majority of his articles and papers have been published by the Borsen-Zeitung (11 years of collaboration), the Frankfurter Allgemeine (2 years), Finance and Wirtschaft (over 20 years) and Die Welt (1 year). He can be found under “B” in all additions of: Who’s Who in the World” from 1991 to 2009. He teaches at two elite business schools, works in public and international relations, advises a number of commodity and mining companies and is a member of Rotary International.


Ning Shi Long


Mr. Long is a Professional Software Engineer who has led an experienced team in developing and operating specified information and data systems the last 12 years. His company has designed and successfully commissioned over 20 Software installations at local and national organizations. At Dalian Runbest Technology Development Co. Ltd. he was responsible for the entire design and development of key technology and coding for development of public packaging of a proprietary software technology. The clients of the company are concerned with the fields of finance, government, sci-tech education, medical, communication & energy, manufacturing and public utility. He was responsible for project budgeting and the successful launching of major projects within financial guidelines as per the corporate policies of the responsible ministry.


Attributes:

Attended ShanDong University - Information management and information system

Proficient in Chinese, English, French and Japanese languages.

VC++ | proficient | 12 months
Oracle\DB2 | proficient | 48 months
Powerbuilder\Sqlserver\Powerdesigner | expert | 84 months
Java\Asp\Ms Project | average | 6 months



4




Ning Shi Long is a hands on leader and is relied-upon for Leadership and financial control and the company’s direct link to large Chinese/Japanese investment companies and high net worth individuals. Ning Long is also proficient in handling data information systems to provide information to investors and financial institutions.


Labor Force


Over the year ended May 31, 2013 the company has employed casual part-time labor, as required.


Mining Concessions


On April 6, 2010, the Company counter-signed an offer for joint venture-earn-in to option several mining concessions in the Department of Bolivar, Republic of Colombia.  Pursuant to various stages of due diligence it was determined that the best way of obtaining title to the various target mineral properties was to enter into new agreements. On November 15, 2010 the Company entered into four agreements. The terms of the new agreements allow for the Company to acquire an 80% interest in four mining concessions. The agreements were amended on April 18, 2011. However the Company was unable to make the October 1, 2011 payment under the amended formula. On March 1, 2012 the Company amended the acquisition agreements again on a basis of reducing the number of properties from 4 to 2 and reducing the payment schedule. A summary of the terms and ongoing payment obligations are as follows:


Cash payments:


1.

$5,000 as an initial option payment;

2.

$100,000 on or before January 31, 2011 (paid);

3.

$150,000 on or before March 31, 2011 (amended), (paid), (previously February 28, 2011);

4.

$50,000 on April 18, 2011 (amended), (paid) (previously $800,000 on or before March 31, 2011);

5.

$450,000 every six months starting on July 1, 2012 (previously $900,000 every six months starting October 1, 2011, of which the Company may pay one-half of issuing restricted common shares to the vendor at a 10-day average trading price per amendment on April 18, 2011), (previously $800,000 every six months thereafter starting on June 1, 2011).


Share issuances:


1.

24 million shares on or before March 31, 2011 (issued in March 2011)

2.

10 million shares on or before March 31, 2012, (discontinued under March 1, 2012 amendment) and

3.

10 million shares on or before December 31, 2012 (discontinued under March 1, 2012 amendment).


The Company paid a total of $350,000 to independent third parties for consulting services in relation to the signing of the option agreements. The Company incurred a cost of $100,000 paid to a person in the United States for the initial introduction of the mineral concessions and $250,000 paid to some concession holders as the initial payments to pursue an option agreement.


The Company wrote off the acquisition costs and accrued exploration costs at May 31, 2013.


BANKRUPTCY OR SIMILAR PROCEEDINGS


We have not been the subject of a bankruptcy, receivership or similar proceedings.


RESEARCH AND DEVELOPMENT EXPENDITURES


We have not incurred any research or development expenditures since our incorporation.


PATENTS AND TRADEMARKS


We do not own any patents or trademarks.



5




Reports to Securities Holders


We provide an annual report that includes financial information. We will make our financial information equally available to any interested parties or investors through compliance with the disclosure rules of Regulation S-K for a small business issuer under the Securities Exchange Act of 1934. We are subject to disclosure filing requirements including filing Form 10K annually and Form 10Q quarterly. In addition, we will file Form 8K and other proxy and information statements from time to time as required. We do not intend to voluntarily file the above reports in the event that our obligation to file such reports is suspended under the Exchange Act. The public may read and copy any materials that we file with the Securities and Exchange Commission, (“SEC”), at the SEC’s Public Reference Room at 100 F Street NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.


Item 1A. Risk Factors


INVESTING IN OUR SECURITIES INVOLVES A HIGH DEGREE OF RISK AND ANY PROSPECTIVE SHAREHOLDER SHOULD CONSIDER CAREFULLY THE FOLLOWING FACTORS IN EVALUATING THE COMPANY AND ITS BUSINESS.


IF ANY OF THE FOLLOWING RISKS OCCUR, OUR BUSINESS, OPERATING RESULTS AND FINANCIAL CONDITION COULD BE SERIOUSLY HARMED.  THE TRADING PRICE OF OUR SHARES OF COMMON STOCK COULD DECLINE DUE TO ANY OF THESE RISKS, AND YOU MAY LOSE ALL OR PART OF YOUR INVESTMENT.

THE COMPANIES SECURITIES ARE SPECULATIVE BY NATURE AND INVOLVE AN EXTREMELY HIGH DEGREE OF RISK AND SHOULD BE PURCHASED ONLY BY PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. THE FOLLOWING KNOWN RISK FACTORS COULD CAUSE OUR ACTUAL  FUTURE  OPERATING  RESULTS TO DIFFER  MATERIALLY FROM THOSE EXPRESSED IN ANY FORWARD LOOKING STATEMENTS, ORAL OR WRITTEN, MADE BY OR ON BEHALF OF US. IN ASSESSING THESE RISKS, WE SUGGEST THAT YOU ALSO REFER TO OTHER INFORMATION CONTAINED IN THIS DOCUMENT,   INCLUDING OUR FINANCIAL STATEMENTS AND RELATED NOTES.


RISK FACTORS


(a) RISKS RELATED TO OUR BUSINESS


THE COMPANY HAS A LIMITED OPERATING HISTORY UPON WHICH TO BASE AN EVALUATION OF ITS BUSINESS AND PROSPECTS.  WE MAY NOT BE SUCCESSFUL IN OUR EFFORTS TO GROW OUR BUSINESS AND TO EARN INCREASED REVENUES.  AN INVESTMENT IN OUR SECURITIES REPRESENTS SIGNIFICANT RISK AND YOU MAY LOSE ALL OR PART YOUR ENTIRE INVESTMENT.


We have a limited history of operations and we may not be successful in our efforts to grow our business and to increase revenues.  Our business and prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly our car cleaning business.  Sales and operating results are difficult to forecast because they generally depend on the volume and timing of the amount of business transacted - the frequency of which is uncertain. As a result, management may be unable  to  adjust  its  spending  in a  timely  manner  to  compensate  for any unexpected revenue  shortfall.  This inability could cause net losses in a given period to be greater than expected.  An investment in our securities represents significant risk and you may lose all or part your entire investment.


WE HAVE A HISTORY OF LOSSES.  FUTURE LOSSES AND NEGATIVE CASH FLOW MAY LIMIT OR DELAY OUR ABILITY TO BECOME PROFITABLE. IT IS POSSIBLE THAT WE MAY NEVER ACHIEVE PROFITABILITY.  AN INVESTMENT IN OUR SECURITIES REPRESENTS SIGNIFICANT RISK AND YOU MAY LOSE ALL OR PART YOUR ENTIRE INVESTMENT.


We have yet to establish profitable operations or a history of profitable operations.  We anticipate that we will continue to incur substantial operating losses for an indefinite period of time due to the significant costs associated with the development of our business.


Since incorporation, we have expended financial resources on the development of our business.  As a result, losses have been incurred since incorporation. Management expects to experience operating losses and negative cash flow for the foreseeable future. Management anticipates that losses will continue to increase from current levels because the Company  expects to incur  additional  costs and expenses related to: brand  development,  marketing and promotional  activities; the possible  addition of new personnel;  and the  development of  relationships with strategic business partners.



6




The Company’s ability to become profitable depends on its ability to generate and sustain sales while maintaining reasonable expense levels. If the Company does achieve profitability, it cannot be certain that it would be able to sustain or increase profitability on a quarterly or annual basis in the future.


An investment in our securities represents significant risk and you may lose all or part your entire investment.


IF WE DO NOT OBTAIN ADDITIONAL FINANCING, OUR BUSINESS WILL FAIL.


We will need to obtain additional financing in order to complete our business plan because we currently do not have any operations and we have no income.  We do not have any arrangements for financing and we may not be able to find such financing if required. Obtaining additional financing would be subject to a number of factors, including investor sentiment.  These factors may adversely affect the timing, amount, terms, or conditions of any financing that we may obtain or make any additional financing unavailable to us. If we do not obtain additional financing our business will fail.  Please note that the proceeds from the sale of the securities offered in this registration statement will go directly to the selling shareholder and not to the Company.  As such, this offering might negatively affect the Company’s ability to raise needed funds through a primary offering of the Company's securities in the future.


OUR OPERATING RESULTS WILL BE VOLATILE AND DIFFICULT TO PREDICT.  IF THE COMPANY FAILS TO MEET THE EXPECTATIONS OF PUBLIC MARKET ANALYSTS AND INVESTORS, THE MARKET PRICE OF OUR COMMON STOCK MAY DECLINE SIGNIFICANTLY.


Management expects both quarterly and annual operating results to fluctuate significantly in the future.  Because our operating results will be volatile and difficult to predict, in some future quarter our operating results may fall below the expectations of securities analysts and investors. If this occurs, the trading price of our common stock may decline significantly.


A number of factors will cause gross margins to fluctuate in future periods. Factors that may harm our business or cause our operating  results to fluctuate include the following: the inability to obtain new customers at reasonable cost; the ability of competitors to offer new or enhanced services or products;  price competition;  the failure to develop marketing  relationships  with key business partners; increases in our marketing and advertising costs; increased fuel costs and increased  labor costs that can affect demand for cleaning  equipment;  the amount  and timing of  operating  costs and  capital  expenditures  relating  to expansion  of  operations;  a change to or  changes to  government  regulations; seasonality and a general economic slowdown.  Any change in one or more of these factors could reduce our ability to earn and grow revenue in future periods.


THE COSTS OF BEING A PUBLIC COMPANY WILL PUT A STRAIN ON OUR RESOURCES


We are subject to the reporting requirements of the Securities Exchange Act of 1934, or the "Exchange Act," and the Sarbanes-Oxley Act of 2002. The Exchange Act requires that we file annual, quarterly and current reports with respect to our business and financial condition. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures and internal control for financial reporting.  These requirements will place a strain on our systems and resources as well as add additional costs to our business in complying with these regulations.  The cost and effort  required  to stay  compliant  with  these  regulations  will  divert management's attention from other business concerns, which could have a material adverse effect on our business,  financial condition,  results of operations and cash  flows.  If we are unable to  conclude  that our  disclosure  controls  and procedures and internal  control over financial  reporting are effective,  or if our  independent  public  accounting  firm  is  unable  to  provide  us  with an unqualified  report  as to  the  effectiveness  of  our  internal  control  over financial  reporting  in future  years,  investors  may lose  confidence  in our business and the value of our stock may decline.


(b) RISKS RELATED TO THE MINERAL EXPLORATION AND DEVELOPMENT BUSINESS


BECAUSE OF THE SPECULATIVE NATURE OF EXPLORATION AND DEVELOPMENT, THERE IS A SUBSTANTIAL RISK THAT OUR BUSINESS WILL FAIL.

 

The search for valuable natural resources as a business is extremely risky. We can provide investors with no assurance that the properties we have in Colombia contain commercially exploitable reserves. Exploration for natural reserves is a speculative venture involving substantial risk. Few properties that are explored are ultimately developed into producing commercially feasible reserves. 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.



7



 

BECAUSE WE HAVE NOT COMMENCED BUSINESS OPERATIONS, WE FACE A HIGH RISK OF BUSINESS FAILURE DUE TO OUR INABILITY TO PREDICT THE SUCCESS OF OUR BUSINESS


We are in the initial stages of exploration of our mineral concessions and thus have no way to evaluate the likelihood that we will be able to operate our business successfully. To date have been involved primarily in organizational activities, and the acquisition and exploration of the mineral concessions. We have not earned any revenues as of the date of this report.


BECAUSE OF THE UNIQUE DIFFICULTIES AND UNCERTAINTIES INHERENT IN MINERAL EXPLORATION AND THE MINING BUSINESS, WE FACE A HIGH RISK OF BUSINESS FAILURE


Potential investors should be aware of the difficulties normally encountered by early-stage 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.


In addition, 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.


BECAUSE WE ANTICIPATE OUR OPERATING EXPENSES WILL INCREASE PRIOR TO OUR EARNING REVENUES, WE MAY NEVER ACHIEVE PROFITABILITY


Prior to completion of our exploration stage, we anticipate that we will incur increased operating expenses without realizing any revenues. Therefore, we expect to incur significant losses into the foreseeable future. We recognize that if we are unable to generate significant revenues from the exploration of our mineral claims 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 we can provide investors with no assurance 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 ACCESS TO OUR MINERAL CLAIMS MAY BE RESTRICTED BY INCLEMENT WEATHER, WE MAY BE DELAYED IN OUR EXPLORATION


Access to our mineral properties may be restricted through some of the year due to weather in the area. As a result, any attempt to test or explore the property is largely limited to the times when weather permits such activities. These limitations can result in significant delays in exploration efforts. Such delays can have a significant negative effect on our results of operations.


AS WE UNDERTAKE EXPLORATION OF OUR MINERAL CLAIMS, WE WILL BE SUBJECT TO COMPLIANCE WITH GOVERNMENT REGULATION THAT MAY INCREASE THE ANTICIPATED COST OF OUR EXPLORATION PROGRAMS


There are several governmental regulations that materially restrict mineral exploration. We may be required to obtain work permits, post bonds and perform remediation work for any physical disturbance to the land in order to comply with these laws. While our planned exploration program budgets for regulatory compliance, there is a risk that new regulations could increase our costs of doing business and prevent us from carrying out our exploration programs.


(c) RISKS RELATED TO THE AUTOMOTIVE CLEANING INDUSTRY


OUR INDUSTRY IS COMPETITIVE AND IS CHARACTERIZED BY LOW PROFIT MARGINS AND HIGH FIXED COSTS, A MINOR SHORTFALL FROM EXPECTED REVENUE COULD AFFECT THE DEMAND FOR OUR SERVICES, HAVE A SIGNIFICANT IMPACT ON OUR ABILITY TO GENERATE REVENUE, AND POSSIBLY CAUSE OUR BUSINESS TO FAIL.


Our industry is competitive.  Our competitors who provide car wash packages compete for our business.  Aggressive marketing tactics implemented by our competitors could impact our limited financial resources and adversely affect our ability to compete in our market.



8




UNFORESEEN  FUTURE  ENVIRONMENTAL  REGULATIONS COULD CAUSE OUR OPERATING COSTS TO INCREASE,  ADVERSELY  IMPACT  OUR  OPERATING  RESULTS,  AND  POSSIBLY  CAUSE OUR BUSINESS TO FAIL.


Our industry is concerned with environmental issues, specifically the cleanliness and conservation of our finite water resources.


Waste water along with cleaning solvents and chemicals generated from car washing, is discharged directly into storm sewers carrying contaminants directly into our local water-ways. The chemicals used by the washing process and discharged in storm sewers could be seen as environmentally unsafe by environmental bodies and affect future operations of our business. While there are currently no regulations on the disposal of contaminated water, future environmental regulations may be legislated by government that could adversely affect how we discharged wastewater. Our company is at risk to any number of future environmental regulations imposed by government bodies. Any future environmental regulations that we may have to comply with may change the way we operate our business and add unforeseen costs to our business.


UNFORESEEN INDUSTRY TRENDS COULD ADVERSELY IMPACT OUR OPERATING RESULTS.


Industry efforts are focused upon improving the quality of existing methods of auto washing and detailing, however unforeseen industry trends could adversely impact operation results and subsequently cause our business to fail.


OUR QUARTERLY RESULTS ARE SIGNIFICANTLY AFFECTED BY MANY FACTORS, AND OUR RESULTS OF OPERATIONS FOR ANY ONE QUARTER ARE NOT NECESSARILY INDICATIVE OF OUR ANNUAL RESULTS OF OPERATIONS.  THE COMPANY HAS A LIMITED OPERATING HISTORY UPON WHICH TO BASE AN EVALUATION OF ITS BUSINESS AND PROSPECTS.  IT IS POSSIBLE THAT WE MAY NEVER ACHIEVE PROFITABILITY.  AN INVESTMENT IN OUR SECURITIES REPRESENTS SIGNIFICANT RISK AND YOU MAY LOSE ALL OR PART YOUR ENTIRE INVESTMENT.


Our proposed operations are subject to a variety of factors that frequently cause considerable volatility in our earnings, including:


     *

increases in the price for fuel, security and insurance costs

     *

general economic trends

     *

the prosperity of the automotive, transportation, tourism and recreation industries


In addition, seasonal variations in traffic and expenditures could affect our operating results from quarter to quarter. Seasonality can affect demand for cleaning and washing automobiles and, hence our potential sales from quarter to quarter. Our results of operations in any one quarter are not necessarily indicative of our annual results of OPERATIONS. It is possible that we may never earn enough revenue to achieve profitability. An investment in our securities represents significant risk and you may lose all or part your entire investment.


(d) RISKS RELATED TO THE OWNERSHIP OF OUR SECURITIES  


THE TRADING PRICE OF OUR COMMON STOCK MAY DECREASE DUE TO FACTORS BEYOND OUR CONTROL. THESE FACTORS MAY RESULT IN SUBSTANTIAL LOSSES TO INVESTORS IF INVESTORS ARE UNABLE TO SELL THEIR SHARES AT OR ABOVE THEIR PURCHASE PRICE.


The trading price of our common stock is subject to significant fluctuations due to a number of factors, including:


·

our status as a development stage company with a limited  operating history;

·

limited revenues to date, which may make risk-averse investors more inclined to sell their shares on the market more quickly and at greater discounts than may be the case with the shares of a seasoned issuer in the event of negative news or lack of progress and announcements of new products by us or our competitors;

·

the timing and development of products and services that we may offer;

·

general and industry-specific economic conditions;

·

actual or anticipated fluctuations in our operating results;

·

our capital commitments;

·

the loss of any of our key management personnel.



9




In addition, the financial markets have experienced extreme price and volume fluctuations. The market prices of the securities of similar companies have been highly volatile and may continue to be highly volatile in the future, some of which may be unrelated to the operating performance of particular companies.


The sale or attempted sale of a large amount of common stock into the market may also have a significant impact on the trading price of our common stock. Many of these factors are beyond our control and may decrease the market price of our common stock, regardless of our operating performance. In the past, securities class action litigation has often been brought against companies that experience volatility in the market price of their securities. Whether or not meritorious, litigation brought against us could result in substantial costs, divert management's attention and resources and harm our financial condition and results of operations.


WE MAY RAISE ADDITIONAL CAPITAL THROUGH A SECURITIES OFFERING THAT COULD DILUTE YOUR OWNERSHIP INTEREST AND VOTING RIGHTS.


We will need to raise additional capital to fund our business. If we raise additional funds through the issuance of equity, equity-related or convertible debt securities, these securities may have rights, preferences or privileges senior to those of the holders of our common stock. The issuance of additional common stock or securities convertible into common stock will also have the effect of diluting the proportionate equity interest and voting power of holders of our common stock.


OUR INCORPORATION DOCUMENTS AND NEVADA LAW INCLUDE PROVISIONS THAT MAY INHIBIT AN ATTEMPT BY OUR SHAREHOLDER TO CHANGE OUR DIRECTION OR MANAGEMENT, OR MAY INHIBIT A POSSIBLE TAKEOVER THAT SHAREHOLDERS CONSIDER FAVORABLE. THE OCCURRENCE OF SUCH EVENTS COULD LIMIT THE MARKET PRICE OF YOUR STOCK.


Our certificate of incorporation and bylaws contain provisions that could delay or prevent a change in control of our company, such as prohibiting cumulative voting in the election of directors, which would otherwise allow less than a majority of shareholders to elect director candidates. In addition, we are governed by the provisions of Section 203 of Nevada General Corporate Law. These provisions may prohibit large shareholders from merging or combining with us, which may prevent or frustrate any attempt by our shareholders to change our management or the direction in which we are heading. These and other provisions in our amended and restated certificate of incorporation and bylaws and under Nevada law could reduce the price that investors might be willing to pay for shares of our common  stock in the future and result in the market price being lower than it would be without these provisions.


WE WILL NEED TO RAISE ADDITIONAL CAPITAL AND, IN SO DOING, WILL FURTHER DILUTE THE TOTAL NUMBER OF SHARES ISSUED AND OUTSTANDING.


We will need to raise additional capital, in addition to the financing as reported in this registration statement, by issuing additional shares of common stock and will, thereby, increase the number of common shares outstanding. There can be no assurance that this additional capital will be available and, if the capital is available at all, that it will be available on terms acceptable to the Company. The issuances of additional equity securities by the Company may result in a significant dilution in the equity interests of its current security holders. Alternatively, we may have to borrow large sums, and assume debt obligations that require us to make substantial interest and capital payments. If we are able to raise additional capital, we cannot assure that it will be on terms that enhance the value of our common shares. If the Company is unable to obtain financing in the amounts and on terms deemed acceptable, the business and future success of the Company will almost certainly be adversely affected.


WE ARE DEPENDENT ON KEY PERSONNEL.


The Company's success will largely rely on the efforts and abilities of certain key personnel. While the Company does not foresee any reason why such key personnel will not remain with the Company, if for any reason they do not, the Company could be adversely affected. The Company has not purchased key man life insurance for any of these individuals.


AN ACTIVE TRADING MARKET FOR OUR COMMON SHARES MAY NOT DEVELOP.


Our common shares are new issues of securities with no established trading markets or prior trading histories, and there can be no assurance regarding the future development of markets for our common shares, the ability of holders of our common shares to sell or the prices for which holders may be able to sell their holdings of our common shares. Furthermore, the liquidity of, and trading markets for, our common shares may be adversely affected by changes in the car cleaning industry and in the overall economy, as well as by any changes in our financial condition or results of operations.



10




OUR STOCK IS A PENNY STOCK. TRADING OF OUR STOCK MAY BE RESTRICTED BY THE SEC'S PENNY STOCK REGULATIONS AND THE NASD'S SALES PRACTICE REQUIREMENTS, WHICH MAY LIMIT A STOCKHOLDER'S ABILITY TO BUY AND SELL OUR STOCK.


Our common stock is presently considered to be a “penny stock” and is subject to SEC rules and regulations which impose limitations upon the manner in which such shares may be publicly traded and regulates broker-dealer practices in connection with transactions in "penny stocks." Penny stocks generally are 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 the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer's account. In addition, the penny stock rules generally require that prior to a transaction in a penny stock, the broker-dealer make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject to the penny stock rules which may increase the difficulty investors may experience in attempting to liquidate such securities.


FORWARD-LOOKING STATEMENTS


This Form 10-KSB 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 are likely to differ materially from those anticipated in these forward-looking statements for many reasons.


Item 2. Properties


We currently do not own any physical property or own any real property.


Mineral Concessions


Location and Access:


The Senderos de Oro volcanic-plutonic hosted Au-Ag+/-Cu occurrences are located in the Department of Bolívar, ca. 300 km NE of Medellín, at the northern end of Serranía de San Lucas. Access to the area requires five hours of overland travel, from airports at Ocaña or Bucaramanga, along good paved highways and all-season secondary road systems.   Entrance may be facilitated by the reclamation 1000 metre airstrip located within a short distance to the concession area. Electrical energy supplies the active mine areas, as does direct road access to various ports on the nearby Magdalena River.  Minero (small-scale miner) activity beginning in the mid-1980’s has outlined a series of rich gold occurrences extending from Cerro San Carlos to San Martín de Loba, some 50 km to the north.


Government recorded gold production from the region, between 1987 and 1994 is ca. 1,271,000 ounces Au. All production is artisanal in nature, and production continues to this day.



11




Geology, Mineralization, and Exploration Potential


Regional Geology


The Serrania San Lucas, situated due south of the confluence between the rivers Cauca and Magdalena, forms an offset, northeaster-most extension of Colombia’s Cordillera Central.  Sparse regional geologic studies by the Ministry of Mines and Energy, through the 1970’s and early 1980’s have suggested that The Serrania represents a geologic extension of the northern Cordillera Central, underlain by a deformed, Paleozoicaged, metamorphic basement, intruded by Upper Jurassic-Lower Cretaceous aged, batholithic-scale plutons of tonalitic through granitic (generally dioritic to quartz dioritic) affinity, and overlain by associated high-level volcanic, pyroclastic, and derived sedimentary rocks of similar through Cretaceous age.  The region exhibits offset and subdued topographic relief relative to the northern Cordillera Central due to uplift and oblique dextral movement along the Palestina and Magdalena valley fault systems. Regional lithologic contacts strike broadly north-south paralleling the Palestina system at this latitude and are of a mixed structural-stratigraphic nature.  A strong north-easterly tectonic element transects the entire region, reflected by the sub-parallel alignment of numerous drainages and photogeologically-interpreted faults.  A more sporadic set of east-west trending lineaments is noted to transect at least the northern portion of the Serrana.  The tectonic history of this portion of Colombia is complex, and movement and reactivation along any one of these sets of structures may have a multiphase history dating from the late Jurassic through to the late Tertiary (Pliocene) and recent times.


Local Geology


Ground-work to date, documents a mixed sequence of predominantly volcanic rocks of intermediate to felsic composition (including lithic and crystal tuffs of fine to medium grain-size, and common coarser agglomeratic fragmentals).  Fine grained cherty “sinters”, coarse, possible phreatic-style breccias (fine matrix-supported, very angular clasts), and local occurrences of siliciclastic sediments, are also present.  These rocks overly gneissic basement, and\or are intruded by plutons of granodioritic composition exhibiting medium to coarse-grained, equigranular intergrowths of quartz, mixed feldspars, and a mafic phase (chlorite after amphibole).  Local shearing has imposed a “pseudo-gneissic” appearance to the rock manifesting as a lineation observed within the mafic phase.  The relationship between the intrusive rocks and the cover sequence is not understood, and is presently under investigation.


Observed structural orientations appear to reflect regional structural trends with textures in the granitoids and documented fault structures striking, north-south, and additional faulting striking NE-SW.  Notably the volcanic sequence generally lacks a penetrative fabric, and is characterized by a brittle fracture and orthogonally jointed style of high-level deformation.


Recent re-thinking of the geology of at least the northern San Lucas area superimposes an additional Tertiary magmatic even upon the region. Although not yet strongly evidenced, it attempts to account for the widespread occurrence of relatively flat-lying and undeformed, highlevel volcanic\pyroclastic lithotypes, as described above, which may lie directly upon deformed in intrusive\gneissic basement and lack obvious correlatives in other parts of the northern Cordillera Central.


Item 3. Legal Proceedings


We are not currently involved in any legal proceedings and we are not aware of any pending or potential legal actions.


Item 4. Submission of Matters to a Vote of Security Holders


There were no matters submitted to a vote of the security holders during the year ended May 31, 2013.




12




Part II


Item 5. Market for Common Equity and Related Stockholder Matters


No Public Market for Common Stock


Our common stock is listed for trading under the symbol “ORFG”.


As of the date of this report we have approximately 274 shareholders of record. We have paid no cash dividends and have no outstanding options. We have no securities authorized for issuance under equity compensation plans.


The SEC has 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 quotation system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) 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 to such duties or other requirements of Securities' laws; (c) 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; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type, size and format, as the SEC shall require by rule or regulation. The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with: (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) 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 (d) 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 suitably written statement.


These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock if it becomes subject to these penny stock rules. Therefore, if our common stock becomes subject to the penny stock rules, stockholders may have difficulty selling those securities.


Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations


Forward Looking Statements


This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of our report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions. We are a development stage company and have not developed significant revenue to date to attain profitability.


Results of Operations


We are still in the development stage and have generated minimum revenues to date.


We incurred expenses of $524,135 for the year ended May 31, 2013. These expenses consisted of general operating expenses and professional fees incurred in connection with the day to day operation of our business and the preparation and filing of our periodic reports and for year ends. The main expense is mineral acquisition expense of $450,000. The Company has performed due diligence on the mineral titles and is satisfied that proper ownership has been established.



13




The following table provides selected financial data about our company for the years ended May 31, 2013 and 2012.


Balance Sheet Data:

May 31, 2013

May 31, 2012

Cash

$ nil

$ nil

Total assets

$ 65,796

$ 522,315

Total liabilities

$ 1,422,570

$ 2,116,204

Shareholders’ deficit

$ 1,356,774

$ 1,593,889


Liquidity and Capital Resources


Our cash balance at May 31, 2013 was $nil with outstanding liabilities of $1,422,570. Management believes our current cash balance will be unable to sustain operations for the next 12 months. We will be forced to raise additional funds by issuing new debt or equity securities or otherwise.  If we fail to raise sufficient capital when needed, we will not be able to complete our business plan. We are a developing company and our revenue has not been sufficient to attain profitability.


The Company has been funded by way of loans at an annual rate of interest of 10%. On January 18, 2011 the Company issued convertible debentures to debt holders to issue shares at $0.0075 per share. A total of some 100,342,933 shares are issuable at $0.0075 each to repay debt of some $752,572. A total of $623 010 being loans payable at July 18, 2010 was converted and the balance of $129,562 was loans payable to January 18, 2011. Pursuant to the terms of the convertible notes any shares issued will be restricted shares according to the following paragraphs included in the terms of the agreement.


“Restricted Securities. This Note is, and the shares of Common Stock issuable upon conversion hereof shall be, "restricted securities" within the meaning of SEC Rule 144 promulgated under the Securities Act of 1933 (the "1933 Act"). Holder acknowledges and agrees that it is acquiring this Note and, upon conversion, the shares of Common Stock, without a view to the public distribution or resale of the Note or such shares in violation of applicable federal or state securities laws.


No Registration. This Note has not been, and the shares of Common Stock issuable upon conversion hereof will not be, registered under the 1933 Act or under the securities laws of any other jurisdiction; and therefore, Holder must be able to hold the Note or the shares indefinitely without any transfer, sale or other disposition, unless they are subsequently registered under the 1933 Act and under the securities laws of other applicable jurisdictions or, in the opinion of counsel to the Company, registration is not required under such Act or laws as the result of an available exemption from registration.”


Based on our current operating plan, we do not expect to generate revenue that is sufficient to cover our expenses for at least the next year. In addition, we do not have sufficient cash and cash equivalents to execute our operations for the next year. We will need to obtain additional financing to operate our business for the next twelve months. We will raise the capital necessary to fund our business through a private placement and public offering of our common stock. Additional financing, whether through public or private equity or debt financing, arrangements with shareholders or other sources to fund operations, may not be available, or if available, may be on terms unacceptable to us. Our ability to maintain sufficient liquidity is dependent on our ability to raise additional capital. If we issue additional equity securities to raise funds, the ownership percentage of our existing shareholders would be reduced. New investors may demand rights, preferences or privileges senior to those of existing holders of our common stock. Debt incurred by us would be senior to equity in the ability of debt holders to make claims on our assets. The terms of any debt issued could impose restrictions on our operations. If adequate funds are not available to satisfy either short or long-term capital requirements, our operations and liquidity could be materially adversely affected and we could be forced to cease operations.


Off-Balance Sheet Arrangements


We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.



14




ITEM 8. FINANCIAL STATEMENTS


Orofino Gold Corp.

(A Development Stage Company)

Balance Sheets

(Stated in US Dollars)


Assets

Current Assets

 

May 31, 2013

 

May 31, 2012

 

Unaudited

 

Unaudited

 

 

 

 

 

Cash

$

5,796

$

12,315

Total Current Assets

 

5,796

 

12,315

Non-Current Assets

 

 

 

 

Mineral Properties

 

60,000

 

510,000

Total Non-Current Assets

 

60,000

 

510,000


Total Assets

$

65,796

$

522,315


Liabilities

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accounts Payable

$

94,208

$

227,576

Loans payable

 

613,568

 

1,438,997

Convertible loans

 

714,794

 

449,631

Total Current Liabilities

 

1,422,570

 

2,116,204

Total Liabilities

 

1,422,570

 

2,116,204


Stockholders' Deficiency

 

 

 

 

Common Stock, $0.001 par value

   250,000,000 Common Shares Authorized

   245,400,000 Shares Issued

 

245,400

 

143,900

Additional Paid-in capital

 

1,433,067

 

773,317

Deficit

 

(3,036,077)

 

(2,511,942)

Translation Adjustments

 

836

 

836

Total Stockholders' Deficit

 

(1,356,774)

 

(1,593,889)


Total Liabilities and Stockholders' Equity

$

65,796

$

522,315


The accompanying notes are an integral part of these financial statements.



15




Orofino Gold Corp.

(A Development Stage Company)

Income Statements

(Stated in US Dollars)

Unaudited


 

 

 

 

 

 

From inception

 

 

 

 

 

 

(April 12, 2005)

 

 

For the years ended

 

to

 

 

May 31, 2013

 

May 31, 2012

 

May 31, 2013

Revenue

$

-

$

-

$

116,326


Expenses

 

 

 

 

 

 

Advertising and Promotion

 

1,286

 

9,533

 

77,631

Consulting fees

 

-

 

2,549

 

348,771

General and Administrative

 

12,507

 

206,023

 

280,752

Imputed Interest

 

-

 

-

 

1,967

Interest

 

177,033

 

170,087

 

450,135

Management fees

 

23,000

 

53,000

 

135,000

Mineral exploration expense (recovery)

 

(147,976)

 

399,534

 

787,910

Write off of mineral acquisition cost

 

450,000

 

-

 

950,000

Wages and Salary

 

8,285

 

-

 

120,237

Total Expenses

 

524,135

 

840,726

 

3,152,403


Provision for income tax

 

-

 

-

 

-


Net Income (Loss)

$

(524,135)

$

(840,726)

$

(3,036,077)

 

 

 

 

 

 

 

Basic loss per common share

$

(0.0030)

$

(0.0060)

 

 

Diluted loss per common share

$

(0.0012)

$

(0.0042)

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares

 

173,207,694

 

141,244,178

 

 

Shares issuable for convertible loans

 

268,184,757

 

59,950,800

 

 


The accompanying notes are an integral part of these financial statements.



16




OROFINO GOLD CORP.

(A Development Stage Company)

STATEMENTS OF STOCKHOLDER’S EQUITY

From inception (April 12, 2005) to May 31, 2013

(Stated in US Dollars)

Unaudited


 

Common Stock

 

 

 

 

 

 

 

 

 

Shares

 

Amount

 

Paid in

capital

 

Translation adjustments

 

Retained

deficit

 

Total Equity

Shares issued to founders on April 12, 2005 at $0.0001 per share

60,000,000

$

60,000

$

(59,000)

$

-

$

-

$

(59,000)

Net (Loss) for period ending May 31, 2006

-

 

-

 

-

 

-

 

(800)

 

(800)

Balance, May 31, 2006

60,000,000

$

60,000

$

(59,000)

$

-

$

(800)

$

(59,800)

Net (Loss) for period ending May 31, 2007

-

 

-

 

-

 

-

 

(200)

 

(200)

Balance, May 31, 2007

60,000,000

$

60,000

$

(59,000)

$

-

$

(1,000)

$

-

Contributed Capital

-

 

-

 

7,500

 

-

 

-

 

7,500

Translation Adjustments for period ending May 31,2008

-

 

-

 

-

 

(111)

 

-

 

(111)

Net (Loss) for period ending May 31, 2008

-

 

-

 

-

 

-

 

(39,779)

 

(39,779)

Balance, May 31, 2008

60,000,000

$

60,000

$

(51,500)

$

(111)

$

(40,779)

$

(32,390)

Translation Adjustments for period ending May 31,2009

-

 

-

 

-

 

947

 

-

 

947

Net (Loss) for the period ending May 31, 2009

-

 

-

 

-

 

-

 

(33,887)

 

(33,887)

Balance, May 31, 2009

60,000,000

$

60,000

$

(51,500)

$

836

$

(74,666)

$

(65,330)

Contributed Capital

-

 

-

 

1,967

 

-

 

-

 

1,967

Net (Loss) for the period ending May 31, 2010

-

 

-

 

-

 

-

 

(564,808)

 

(564,808)

Balance, May 31, 2010

60,000,000

$

60,000

$

(49,533)

$

836

$

(639,474)

$

(628,171)

Shares issued in settlement of debt

10,200,000

 

10,200

 

163,800

 

-

 

-

 

174,000

Shares issued for convertible debt

46,450,000

 

46,450

 

301,925

 

-

 

-

 

348,375

Shares issued for mineral concessions

24,000,000

 

24,000

 

336,000

 

-

 

-

 

360,000

Net (Loss) for the period ending May 31, 2011

-

 

-

 

-

 

-

 

(1,031,742)

 

(1,031,742)

Balance, May 31, 2011

140,650,000

$

140,650

$

752,192

$

836

$

(1,671,216)

$

(777,538)

Shares issued for convertible debt

3,250,000

 

3,250

 

21,125

 

-

 

-

 

24,375

Net (Loss) for the period ending May 31, 2012

-

 

-

 

-

 

-

 

(840,726)

 

(840,726)

Balance, May 31, 2012

143,900,000

$

143,900

$

773,317

$

836

$

(2,511,942)

$

(1,593,889)

Shares issued for convertible debt

101,500,000

 

101,500

 

659,750

 

-

 

-

 

761,250

Net (Loss) for the period ending May 31, 2013

-

 

-

 

-

 

-

 

(524,135)

 

(524,135)

Balance, May 31, 2013

245,400,000

$

245,400

$

1,433,067

$

836

$

(3,036,077)

$

(1,356,774)


The accompanying notes are an integral part of these financial statements.



17




Orofino Gold Corp.

(A Development Stage Company)

Statements of Cash Flows

(Stated in US Dollars)

Unaudited


 

 

 

 

 

 

From inception

 

 

For the years ended

 

(April 12, 2005) to

 

 

May 31, 2013

 

May 31, 2012

 

May 31, 2013

Operating Activities

 

 

 

 

 

 

Net income (loss)

$

(524,135)

$

(489,383)

$

(3,036,077)

Adjustments to reconcile net income to net cash

 

 

 

 

 

 

Imputed interest on related party loan

 

-

 

-

 

1,967

Accrued interest on loans

 

177,032

 

67,168

 

450,134

Write off mineral property costs

 

450,000

 

-

 

950,000

Shares issued for services

 

-

 

-

 

78,000

Accounts payable

 

 (133,367)

 

111,711

 

118,504

Prepaid expenses

 

-

 

(17,885)

 

-

Net cash used in operating activities

 

(30,470)

 

(328,389)

 

(1,437,472)

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

Loans

 

23,951

 

328,389

 

1,583,932

Contributed Capital

 

-

 

-

 

7,500

Common shares issued

 

-

 

-

 

1,000

Net cash provided by financing activities

 

23,951

 

328,389

 

1,592,432

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

Acquisition of mineral properties

 

-

 

-

 

(150,000)

Net cash provided by investing activities

 

-

 

-

 

(150,000)

 

 

 

 

 

 

 

Effect of exchange rate on cash

 

-

 

-

 

836

Cash at beginning of period

 

12,315

 

-

 

-

Cash at end of period

$

5,796

$

-

$

5,796

 

 

 

 

 

 

 

Cash Paid For:

 

 

 

 

 

 

Interest

$

-

$

-

$

-

Income Tax

$

-

$

-

$

-

Non-Cash Activities

 

 

 

 

 

 

Shares issued in Lieu of Payment for Service

$

-

$

-

$

174,000

Stock issued for convertible debentures and interest

$

761,250

$

-

$

  1,134,000

Share issued for mineral property acquisition

$

-

$

-

$

360,000


The accompanying notes are an integral part of these financial statements.



18



Orofino Gold Corp.

Notes to the Financial Statements


1.

ORGANIZATION AND DESCRIPTION OF BUSINESS


Orofino Gold Corp. ("Orofino" or the "Company") was organized under the laws of the State of Nevada on April 12, 2005. Orofino started operations on September 1, 2007 under the "Clean 'N Shine" name operating as a full service automotive car wash, cleaning, detailing, and polishing business generating some revenues. With limited opportunities available the Company decided to look at mineral resources as an alternative business. On May 20, 2009, the Company completed a forward stock split of its common stock on a ratio of six shares for every one share of the Company. The record date of the forward stock split was May 15, 2009, the payment date of the forward split was May 19, 2009, and the ex-dividend date of the forward split was May 20, 2009. As a result of the forward split, the post forward split number off issued and outstanding shares was 60,000,000. On December 5, 2009, the Company passed a resolution to change its name from SNT Cleaning Inc. to Orofino Gold Corp.


The Company is an exploration stage gold mining company with its efforts initially focused on what it believes to be under-explored mineral concessions and larger scale development of existing high grade artisanal mining operations. The Company has achieved no operating revenues to date.


2.

SIGNIFICANT ACCOUNTING POLICIES


Basis of presentation


These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). A summary of the significant accounting policies are as follows:


Use of estimates


Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses for the periods presented. Actual results could differ from those estimates.


Comprehensive income


The Company has adopted ASC Topic 220, "Comprehensive Income." Comprehensive income is comprised of net income (loss) and all changes to stockholders' equity (deficit), except those related to investments by stockholders, changes in paid-in capital and distribution to owners. In accordance with FASB ASC Topic 220 "Comprehensive Income," comprehensive income consists of net income and other gains and losses affecting stockholder's equity that are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation gains and losses and minimum pension liability. Since inception other comprehensive income has consisted of translation gains and losses.


Mineral properties


All exploration expenditures are expensed as incurred. Costs of acquisition and option costs of mineral rights are capitalized upon acquisition. Mine development costs incurred to develop new ore deposits, to expand the capacity of mines or to develop mine areas substantially in advance of production are also capitalized once proven and probable reserves exist, and the property is determined to be a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. If the Company does not continue with exploration after the completion of the feasibility study, the cost of mineral rights will be expensed at that time. Costs of abandoned projects, including related property and equipment costs, are charged to mining costs. To determine if these costs are in excess of their recoverable amount, periodic evaluations of the carrying value of capitalized costs and any related property and equipment costs are performed. These evaluations are based upon expected future cash flows and/or estimated salvage value.




19






Orofino Gold Corp.

Notes to the Financial Statements


2.

SIGNIFICANT ACCOUNTING POLICIES continued


Fair Value of Financial Instruments


The Company adopted FASB ASC 820-Fair Value Measurements and Disclosures, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an impact on the Company's financial position or operating results, but did expand certain disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:


Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data

Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity's own assumptions.


The Company did not have any Level 2 or Level 3 assets or liabilities as of May 31, 2013.


The Company discloses the estimated fair values for all financial instruments for which it is practicable to estimate fair value. As of the date of the financial statements, the fair value short-term financial instruments including prepaid, and accounts payable and accrued expenses, approximates book value due to their short-term duration.


Basic and diluted loss per share


Basic net earnings (loss) per common share are computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net earnings (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents.


Income taxes


Income taxes are accounted for in accordance with the provisions of FASB ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.


Foreign Currency Translation and Transactions


The Company's functional currency is US dollars. Foreign currency balances are translated into US dollars as follows: Monetary assets and liabilities are translated at the period-end exchange rate. Non-monetary assets are translated at the rate of exchange in effect at their acquisition, unless such assets are carried at market or nominal value, in which case they are translated at the period-end exchange rate. Revenue and expense items are translated at the average exchange rate for the period. Foreign exchange gains and losses in the period are included in operations. The assets and liabilities arising from these operations are translated at current exchange rates and related revenues and expenses at the exchange rates in effect at the time the revenue or expense is incurred. Resulting translation adjustments, if material, are accumulated as a separate component of accumulated other comprehensive income in the statement of stockholders 'deficit while foreign currency transaction gains and losses are included in operations.



20






Orofino Gold Corp.

Notes to the Financial Statements


2.

SIGNIFICANT ACCOUNTING POLICIES continued


Convertible debt


The Company reviews the terms of convertible debt and equity instruments to determine whether there are conversion features or embedded derivative instruments including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. In circumstances where the convertible instrument contains more than one embedded derivative instrument, including conversion options that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single compound instrument. Also, in connection with the sale of convertible debt and equity instruments, the Company may issue free standing warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. When convertible debt or equity instruments contain embedded derivative instruments that are to be bifurcated and accounted for separately, the total proceeds allocated to the convertible host instruments are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the convertible instruments themselves, usually resulting in those instruments being recorded at a discount from their face amount. When the Company issues debt securities, which bear interest at rates that are lower than market rates, the Company recognizes a discount, which is offset against the carrying value of the debt. Such discount from the face value of the debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to income. In addition, certain conversion features are recognized as beneficial conversion features to the extent the conversion price as defined in the convertible note is less than the closing stock price on the issuance of the convertible notes. Fees incurred in the placement of the convertible notes are deferred and recognized over the life of the debt agreement as an adjustment to interest expense using the interest method.


New Accounting Standards


In May 2011, the FASB issued ASU 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs," ("ASU 2011-04"). This standard results in a common requirement between the FASB and the International Accounting Standards Board for measuring fair value and disclosing information about fair value measurements. ASU 2011-04 is effective for fiscal years and interim periods beginning after December 15, 2011. We do not expect the adoption of this accounting pronouncement to have any effect on our financial position and results of operations.


In June 2011, the FASB issued ASU 2011-05, "Comprehensive Income: Presentation of Comprehensive Income." ASU 2011-05 will require companies to present the components of net income and other comprehensive income either as one continuous statement or as two consecutive statements. ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. ASU 2011-05 does not change the items which must be reported in other comprehensive income, how such items are measured or when they must be reclassified to net income. ASU 2011-05 will be effective for the first interim and annual periods beginning after December 15, 2011. Further, in December 2011, the FASB issued ASU 2011-12, "Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05." The Company believes the adoption of this guidance concerns disclosure only and will not have a material impact on its financial statements.


Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, management has not determined whether implementation of such proposed standards would be material to our financial statements.



21






Orofino Gold Corp.

Notes to the Financial Statements


3.

GOING CONCERN


In the course of the Company’s exploration activities, the Company has sustained losses and expects such losses to continue unless and until the Company can achieve net operating revenues. Future issuances of the Company’s equity or debt securities will be required in order for the Company to continue to finance its operations and continue as a going concern. The Company currently has no revenue from operations and has incurred cumulative net losses of $3,036,077 since its inception. The Company’s financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business. Realization values may be substantially different from carrying values as shown and the Company’s financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the amount and classification of liabilities that might be necessary if the Company is unable to continue as a going concern.


4.

PREPAID EXPENSE


The Company's attorney received a retainer of $25,000 of which $19,204 has been expensed leaving a balance of $5,796 for future work.


5.

MINERAL PROPERTIES


On April 6, 2010, the Company counter-signed an offer for joint venture-earn-in to option several mining concessions in the Department of Bolivar, Republic of Colombia. Pursuant to various stages of due diligence it was determined that the best way of obtaining title to the various target mineral properties was to enter into new agreements. On November 15, 2010 the Company entered into four agreements. The terms of the new agreements allowed for the Company to acquire an 80% interest in four mining concessions. The agreements were amended on April 18, 2011. However the Company was unable to make the October 1, 2011 payment under the amended formula. On March 1, 2012 the Company amended the acquisition agreements again on a basis of reducing the number of properties from 4 to 2 and reducing the payment schedule. A summary of the terms and ongoing payment obligations are as follows:


Cash payments:


1. $5,000 as an initial option payment;

2. $100,000 on or before January 31, 2011 (paid);

3. $150,000 on or before March 31, 2011 (amended), (paid), (previously February 28, 2011);

4. $50,000 on April 18, 2011 (amended), (paid) (previously $800,000 on or before March 31, 2011);

5. $450,000 every six months starting on July 1, 2012 (previously $900,000 every six months starting October 1, 2011, of which the Company may pay one-half of issuing restricted common shares to the vendor at a 10-day average trading price per amendment on April 18, 2011), (previously $800,000 every six months thereafter starting on June 1, 2011).


Share issuances:


1.

24 million shares on or before March 31, 2011 (issued in March 2011)

2.

10 million shares on or before March 31, 2012, (discontinued under March 1, 2012 amendment) and

3.

10 million shares on or before December 31, 2012 (discontinued under March 1, 2012 amendment).


The Company paid a total of $350,000 to independent third parties for consulting services in relation to the signing of the option agreements. The Company incurred a cost of $100,000 paid to a person in the United States for the initial introduction of the mineral concessions and $250,000 paid to some concession holders as the initial payments to pursue an option agreement.


6.

LOANS PAYABLE


The Company has loans payable to various independent third parties on the basis of being unsecured, payable on demand and bearing interest at the rate of 10% per annum.


 

May 31, 2013

 

May 31, 2012

$

612,435

$

1,438,997



22





Orofino Gold Corp.

Notes to the Financial Statements


7.

CONVERTIBLE LOANS


On January 18, 2011 the Company concluded agreements to convert a portion of loans payable into 10% convertible promissory notes on the basis that the principal balance and unpaid interest at the rate of 10% per annum be convertible into shares of the Company's restricted common stock at the conversion price of $0.0075 per share. The holder is limited to convert no more than 4.99% of the issued and outstanding common stock at the time of conversion.


 

 

May 31,

2013

 

May 31,

2012

Balance, at beginning of period

$

449,631

$

424,088

Convertible debt additions

 

325,470

 

-

Accrued interest

 

46,985

 

49,918

 

 

822,086

 

474,006

Converted into shares

 

(101,250)

 

(24,375)

Balance, end of period

$

720,836

$

449,631

Conversion price

$

0.0075

$

0.0075

Number of shares issuable

 

92,600,000

 

59,950,800


8.

CAPITAL STOCK


Common Stock


The company issued to the founders 10,000,000 common shares of stock for $1,000. On May 20, 2009, the Company completed a 6-for-1 forward stock split (the Forward Split") of the Company's common stock in the form of a stock dividend. All share and per share information has been retroactively adjusted to reflect the Forward Split. The par value of the Company's common stock was unchanged by the Forward Split.


On October 14, 2010, the Company increased its total authorized shares of common stock from 75,000,000 to 250,000,000, par value $0.001 per share.


On June 10, 2010 the Company issued 600,000 restricted shares to two parties for services at a value of $0.13 per share.


On August 17, 2010 the Company issued 3,600,000 restricted shares at $0.01 each pursuant to an assignment of debt dated October 31, 2009.


On August 18, 2010 the Company issued 6,000,000 restricted shares at $0.01 each pursuant to the retirement of debt as at February 17, 2010.


On March 8, 2011 the Company issued 24,000,000 restricted shares at $0.015 each pursuant to the acquisition of mineral properties.


On March 8, 2011 the Company issued 46,450,000 restricted shares at $0.0075 each to fourteen parties pursuant to the exercise of convertible debt.


On March 28, 2011 the Company issued 5,000,000 warrants at $0.10 each for cash consideration of $500,000. The warrants may be exercised to purchase 5,000,000 shares at $1.00 each until December 31, 2012 or may be surrendered for the receipt of 2,500,000 restricted shares.


On August 23, 2011 the Company issued 550,000 restricted shares at $0.0075 each to two parties pursuant to the exercise of convertible debt.



23






Orofino Gold Corp.

Notes to the Financial Statements


9. RELATED PARTY TRANSACTIONS


The following expenses were incurred with directors and officers of the Company


 

 

For the

 

For the

 

 

year ended

 

year ended

 

 

May 31,

 

May 31,

 

 

2013

 

2012

Management fees

$

-

$

53,000

Total

$

-

$

53,000


As at May 31, 2013 accounts payable included $mil (May 31, 2012 - $22,000) owing to officers and directors.


The amounts charged to the Company for the services provided have been determined by negotiation among the parties. These transactions were in the normal course of operations and were measured at the exchange amount which is the amount of consideration established and agreed to by the related parties.


10.

INCOME TAXES


No provision for federal income taxes has been recognized for the years ended May 31, 2011 and 2010 as the Company incurred a net operating loss for income tax purposes in each year and has no carryback potential. Deferred tax assets and liabilities at May 31, 2011 and 2010 totaled a net deferred tax asset of $505,000 and $350,000, respectively. At May 31, 2011 and 2010, the Company provided a full valuation allowance due to uncertainty regarding the realizability of these tax assets.


At May 31, 2011, the Company has net operating loss carry forwards totaling approximately $2.2 million for federal income tax purposes, which may be carried forward in varying amounts until the time when they begin to expire in 2029 through 2031.


11.

SUBSEQUENT EVENTS


Nil



24






Item 9. Changes in and Disagreements with Accountants on Financial Disclosure


None.


Item 9A. Controls and Procedures


Management’s Report On Internal Control Over Financial Reporting


Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the company’s principal executive and principal financial officers and effected by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:


-   

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

-

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

-

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.


Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.


As of May 31, 2013 management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.


The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; and (3) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by our Chief Executive Officer in connection with the review of our financial statements as of May 31, 2013.


Management believes that the material weaknesses set forth in items (2) and (3) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.


This annual report does not include an attestation report of the Corporation's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Corporation's registered public accounting firm pursuant to temporary rules of the SEC that permit the Corporation to provide only the management's report in this annual report.



25






Management’s Remediation Initiatives


In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures:


We will create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to us. And, we plan to appoint one or more outside directors to our board of directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management when funds are available to us.


Management believes that the appointment of one or more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on our Board.


Changes in internal controls over financial reporting


There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.


Item 9B. Other Information.


None.


PART III


Item 10. Directors, Executive Officers and Control Persons


The names, ages and titles of our executive officers and director are as follows:


Name and Address of Executive Officer and/or Director  

Age

Position

Shi Long Ning

34

Chairman and Director


Term of Office


Our director is appointed to hold office until the next annual meeting of our stockholders or until his successor is elected and qualified, or until he resigns or is removed in accordance with the provisions of the State of Nevada Statutes. Our officer is appointed by our Board of Directors and holds office until removed by the Board.


Significant Employees


We have no significant executive employees other than our officer and directors who devotes up to 20 hours per week to company matters. We also have part-time employees that we use as required to operate our business.


Our officers and directors have not been the subject of any order, judgment, or decree of any court of competent jurisdiction, or any regulatory agency permanently or temporarily enjoining, barring, suspending or otherwise limited him from acting as an investment advisor, underwriter, broker or dealer in the securities industry, or as an affiliated person, director or employee of an investment company, bank, savings and loan association, or insurance company or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any securities.


Our officers and directors have not been convicted in any criminal proceeding (excluding traffic violations) nor is he subject of any currently pending criminal proceeding.  



26






We conduct our business through agreements with consultants and arms-length third parties. We pay our consulting geologist the usual and customary rates received by geologists performing similar consulting services.


Code of Ethics


Our board of directors adopted our code of ethical conduct that applies to all of our employees and directors, including our principal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions.


We believe the adoption of our Code of Ethical Conduct is consistent with the requirements of the Sarbanes-Oxley Act of 2002.


Our Code of Ethical Conduct is designed to deter wrongdoing and to promote:


·

Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

·

Full, fair, accurate, timely and understandable disclosure in reports and documents that we file or submit to the Securities & Exchange Commission and in other public communications made by us;

·

Compliance with applicable governmental laws, rules and regulations;

·

The prompt internal reporting to an appropriate person or persons identified in the code of violations of our Code of Ethical Conduct; and

·

Accountability for adherence to the Code.


Item 11. Executive Compensation


Management Compensation


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 past three years ending May 31, 2013:


 

 

Annual Compensation

Long Term Compensation

Name

Title

Year

Salary

($)

Bonus

Other Annual

Compensation

Restricted

Stock

Awarded

Options/*

SARs (#)

LTIP

payouts

($)

All Other

Compensation

Ary Pernett

Past

President,

and Director

2013

2012

2011

$23,000

$53,000

$38,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Shi Long Ning

President

2013

2012

2011

$nil

$nil

$nil

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0


There are no current employment agreements between the company and its officer/director.


There are no annuity, pension or retirement benefits proposed to be paid to the officer or director or employees in the event of retirement at normal retirement date pursuant to any presently existing plan provided or contributed to by the company or any of its subsidiaries, if any.



27






Item 12. Security Ownership of Certain Beneficial Owners and Management


The following table sets forth certain information concerning the number of shares of our common stock owned beneficially as of May 31, 2013 by: (i) each person (including any group) known to us to own more than five percent (5%) of any class of our voting securities, (ii) our director, and or (iii) our officer. Unless otherwise indicated, the stockholder listed possesses sole voting and investment power with respect to the shares shown.


TITLE OF CLASS

NAME OF BENEFICIAL OWNER

SHARES OF COMMON STOCK

PERCENT OF CLASS

Common

Qu Hua Zhang
64-3-71-4 Lubo Street
Shahe Kou District

Liaoning Province

Dalian

30,000,000

22%

Common

Grove Street Path Inc.

Global Bank Tower

11th Floor, Office 1102

Panama

24,000,000

17%


Item 13. Certain Relationships and Related Transactions


None of our directors, or officers, any proposed 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 all of our outstanding shares, any promoter, or any relative or spouse of any of the foregoing persons has any material interest, direct or indirect, in any transaction since our incorporation or in any presently proposed transaction which, in either case, has or will materially affect us other then the transactions described below.


Our management is involved in other business activities and may, in the future become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between our business and their other business interests. In the event that a conflict of interest arises at a meeting of our directors, a director who has such a conflict will disclose his interest in a proposed transaction and will abstain from voting for or against the approval of such transaction.


Item 14. Principal Accounting Fees and Services


For the year ended May 31, 2013, the total fees charged to the company for audit services, audit-related services and tax services including quarterly reviews, were $nil.


PART IV


Item 15. Exhibits


Exhibit

Number

Description


31.1

Sec. 302 Certification of Chief Executive Officer

31.2

Sec. 302 Certification of Chief Financial Officer

32.1

Sec. 906 Certification of Chief Executive Officer

32.2

Sec. 906 Certification of Chief Financial Officer




28






Signatures


Pursuant to the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


May 31, 2013

Orofino Gold Corp.



                

By: /s/ Shi Long Ning

Shi Long Ning, President and Chief Executive Officer


In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


May 31, 2013

Orofino Gold Corp.


                

By: /s/ Shi Long Ning

Shi Long Ning, President, Treasurer and Chief Financial Officer

(Principal Executive Officer and Principal Accounting Officer)




29


EX-31.1 2 f10k053113_ex31z1.htm EXHIBIT 31.1 SECTION 302 CERTIFICATION Exhibit 31.1 Section 302 Certification


Exhibit 31.1


CERTIFICATION


I, Shi Long Ning, certify that:


1. I have reviewed this report on Form 10-K of Orofino Gold Corp.


2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and


5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):


a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and


b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: May 31, 2013



/s/ Shi Long Ning

Orofino Gold Corp.
Principal Executive Officer




EX-31.2 3 f10k053113_ex31z2.htm EXHIBIT 31.2 SECTION 302 CERTIFICATION Exhibit 31.2 Section 302 Certification


Exhibit 31.2


CERTIFICATION


I, Shi Long Ning, certify that:


1. I have reviewed this report on Form 10-K of Orofino Gold Corp.


2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and


5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):


a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and


b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: May 31, 2013


/s/ Shi Long Ning
Orofino Gold Corp.
Principal Financial and Accounting Officer




EX-32.1 4 f10k053113_ex32z1.htm EXHIBIT 32.1 SECTION 906 CERTIFICATION Exhibit 32.1 Section 906 Certification


Exhibit 32.1


CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Annual Report of Orofino Gold Corp.  (the “Company”) on Form 10-K for the period ending May 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Shih Long Ning, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:


(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


IN WITNESS WHEREOF, the undersigned has executed this certification as of May 31, 2013.


By: /s/ Shi Long Ning
Shi Long Ning
Chief Executive Officer





EX-32.2 5 f10k053113_ex32z2.htm EXHIBIT 32.2 SECTION 906 CERTIFICATION Exhibit 32.2 Section 906 Certification


Exhibit 32.2


CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Annual Report of Orofino Gold Corp.  (the “Company”) on Form 10-K for the period ending May 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Shih Long Ning, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:


(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


IN WITNESS WHEREOF, the undersigned has executed this certification as of May 31, 2013.


By: /s/ Shi Long Ning
Shi Long Ning
Chief Financial Officer