-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EXItCwmM4DcEhRkH6odYEbnb8u4Gqu4zxp3j+vDauSJpu+Cu6yvgkyP1RK511Sm+ Fn2FyX65zK5Kv5E8G4YaWA== 0000914233-98-000100.txt : 19980817 0000914233-98-000100.hdr.sgml : 19980817 ACCESSION NUMBER: 0000914233-98-000100 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: LA TEKO RESOURCES LTD CENTRAL INDEX KEY: 0000357281 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 870483319 STATE OF INCORPORATION: A1 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-10104 FILM NUMBER: 98690513 BUSINESS ADDRESS: STREET 1: 625 HOWE ST STREET 2: STE 500 CITY: VANCOUVER, B.C. STATE: A1 ZIP: 84101 BUSINESS PHONE: 6046880833 MAIL ADDRESS: STREET 1: 180 EAST 2100 SOUTH STREET 2: STE 204 CITY: SALT LAKE CITY STATE: UT ZIP: 84115 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1998 Commission file number 0-10104 LA TEKO RESOURCES LTD. ---------------------------------------------------- (Exact name of Registrant as specified in its charter) British Columbia, Canada 87-0483319 ------------------------------ ---------------------------------- (State or other Jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 625 Howe St., #500 Vancouver, B.C. V6C 2T6 -------------------------------------- ------------ (Address of principal executive offices) (Zip Code) (604) 688-0833 ------------------------------------------------- (Registrant's telephone number, including area code) N/A Former name, former address and former fiscal year, if changed since last report) 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 X No As of June 30, 1998, the registrant had 25,775,358 shares of its common stock issued and outstanding. LA TEKO RESOURCES LTD. Financial Information ITEM 1- FINANCIAL STATEMENTS The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 1997. The accompanying financial statements have not been examined by independent accountants in accordance with generally accepted auditing standards, but in the opinion of management such financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (EXPRESSED IN U.S. DOLLARS) Three months ended June 30, 1998 and 1997 1998 1997 -------- -------- EXPENSES General and administrative expenses $ 236,226 $345,552 Royalty and lease 37,500 37,500 Operating and mine maintenance costs 65,843 46,616 Depreciation 3,633 15,573 New prospect evaluation 1,093 - --------- -------- 344,295 445,241 --------- -------- Loss from operations before other items (344,295) (445,241) OTHER ITEMS Interest income (net) 124 17,372 Loss on sale of investments (46,469) - Unrealized loss on investments (119,060) - Loss on abandonment of furnishings and equipment - (156) --------- -------- NET LOSS (509,700) (428,025) ========= ======== NET LOSS PER SHARE $ (0.020) (0.018) ========= ======== LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (EXPRESSED IN U.S. DOLLARS) Six months ended June 30, 1998 and 1997 Unaudited 1998 1997 --------- -------- EXPENSES General and administrative expenses $ 364,746 561,476 Royalty and lease 75,000 75,000 Operating and mine maintenance costs 72,724 101,286 Depreciation 7,283 28,564 New prospect evaluation 1,093 - --------- -------- 520,846 766,326 Loss from operations before other items (520,846) (766,326) --------- -------- OTHER ITEMS Interest income (net) 3,323 46,301 Loss on sale of investments (50,868) - Unrealized loss on investments (119,060) - Loss on sale of equipment - (2,924) --------- -------- NET LOSS (687,451) (722,949) ========= ======== NET LOSS PER SHARE $ (0.025) (0.031) ========= ======== LA TEKO RESOURCES LTD. CONSOLIDATED BALANCE SHEETS (EXPRESSED IN U.S. DOLLARS) June 30, 1998 and December 31, 1997 Unaudited June 30, December 31, 1998 1997 --------- -------- CURRENT ASSETS Cash and short-term deposits $ 1,671,871 $ 613,304 Accounts receivable 61,518 93,891 Prepaid expenses 76,606 160,090 ----------- ---------- Total current assets 1,809,995 867,285 Mineral properties and deferred costs 11,258,003 10,985,135 Plant and equipment 50,707 57,593 Investments 540,601 750,913 ----------- ----------- $13,659,306 $12,660,926 =========== =========== CURRENT LIABILITIES Bank demand loan $ - 150,000 Accounts payable and accrued expenses 49,418 84,462 ---------- ----------- 49,418 234,462 SHAREHOLDERS' EQUITY Common capital stock; no par value; authorized: 100,000,000 shares; issued and outstanding: 25,775,358 (1997: 23,467,358) 20,053,092 18,182,217 Accumulated deficit (6,443,204) (5,755,753) ---------- ----------- 13,609,888 12,426,464 ---------- ----------- $13,659,306 $12,660,926 =========== =========== LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (EXPRESSED IN U.S. DOLLARS) For the years ended December 31, 1996 and 1997 and six months ended June 30, 1998 Unaudited Common Stock Accumulated Shares Amount Deficit TOTAL ---------- ---------- ----------- ----------- Balance, December 31, 1995 36,729,449 24,064,475 (5,249,313) $18,815,162 1996 Common stock issued for: Exercise of options 138,780 222,048 - 222,048 Compensatory stock options - 188,125 - 188,125 Net income - - 955,785 955,785 ---------- ---------- ---------- ---------- Balance, December 31, 1996 36,868,229 24,474,648 (4,293,528) 20,181,120 1997 Common stock issued for: Exercise of options 5,000 8,000 - - Compensatory stock options (reduction) - (43,125) - (43,125) Net loss - - (1,462,225) (1,462,225) ---------- ---------- ---------- ---------- Balance, December 31, 1997 36,878,329 24,439,523 (5,755,753) 18,683,770 Six months ended June 30, 1998 Common stock issued for: Cash, net of financing costs 2,200,000 $1,767,200 - 1,767,200 Mineral properties 43,000 38,675 - 38,675 Employee termination payment 65,000 65,000 - 65,000 Net loss - - (687,451) (687,451) ---------- ---------- ---------- ---------- Balance, June 30, 1997 39,186,329 26,310,398 6,443,204) 19,867,194 Less treasury shares (13,410,971) (6,257,306) - (6,257,306) ---------- ---------- ---------- ---------- Balance, June 30, 1997 25,775,358 20,053,092 (6,443,204) $13,609,888 ========== ========== ========== ========== LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF CASH FLOW (EXPRESSED IN U.S. DOLLARS) Six months ended June 30, 1998 and 1997 Unaudited 1998 1997 --------- -------- CASH FLOWS FROM OPERATING ACTIVITIES Net loss $(687,451) (722,949) Charges (credits) to operations not affecting cash: Unrealized loss on marketable securities 119,060 - Shares issued for employee termination payment 65,000 - (Gain) / loss on sale of investments 50,868 - Depreciation 7,283 28,564 Loss on sale of equipment - 2,924 --------- -------- (445,240) (691,461) Net changes Decrease in accounts receivable and pre-paid expenses 115,859 97,696 Decrease in accounts payable and accrued expenses (35,442) (159,238) --------- -------- Net cash used in operating activities (364,823) (753,003) Cash Flows from Investing Activities Proceeds from sale of investments 40,383 - Investment in mineral properties (215,648) - Exploration costs capitalized (57,220) (221,060) Purchase of plant and equipment - (63,268) Proceeds from sale of equipment - 3,456 --------- -------- Net cash used in investing activities (232,485) (280,872) --------- -------- Cash Flows from Financing Activities Reduction of principal on debt - (372,500) Common stock issued: For cash, net of financing costs 1,767,200 8,000 For mineral properties 38,675 - --------- -------- Net cash used in financing activities 1,805,875 (364,500) Net increase (decrease) in cash and cash equivalents 1,208,567 (1,398,375) Cash and cash equivalents, beginning of period 463,304 3,041,205 --------- --------- Cash and cash equivalents, end of period $ 1,671,871 1,642,830 LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF CASH FLOW (EXPRESSED IN U.S. DOLLARS) Six months ended June 30, 1998 and 1997 Unaudited 1998 1997 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION ------- ------- Cash paid during the period for interest $ - 2,396 Cash paid during the period for income taxes $ - - Supplementary Schedule of Non-cash Investing and Financing Activities Depreciation capitalized into deferred costs $ - - Stock issued as bonus compensation $ - - LA TEKO RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN U.S. DOLLARS) Six months ended June 30, 1998 and 1997 Unaudited - See Notice to Reader 1. BASIS OF PRESENTATION These financial statements have been prepared in accordance with U.S. generally accepted accounting principles and are expressed in U.S. dollars. 2. SHARE CAPITAL AUTHORIZED - 100,000,000 shares having no par value ISSUED - 25,775,358 DURING THE PERIOD SHARES ISSUED ARE AS FOLLOWS: Number of shares Price ---------------- ------- Cash net of financing costs 2,200,000 $ 0.85 $1,767,200 Mineral properties 43,000 $ 0.8994 38,675 Employee termination payment 65,000 $ 1.00 65,000 --------- ---------- 2,265,000 $1,870,875 OPTIONS OUTSTANDING AT JUNE 30, 1998: Number Price Expire ------- ----- ------------ 300,000 $1.60 11/16/2000-03 100,000 $2.50 03-14-2001 200,000 $2.41 06/05/2001-04 500,000 $1.85 12-10-2001-04 24,000 $1.60 08/17/1999 100,000 $1.50 07/16/2002-05 50,000 $1.60 12/31/1998 150,000 $1.05 10/08/2002-05 WARRANTS OUTSTANDING AT JUNE 30, 1998: Number Price Expire ------- ----- ------------ 2,133,000 $1.05/$1.25 May 1, 1999/2000 200,000 $1.05/$1.25 April 24, 1999/2000 3. SUBSEQUENT EVENT On July 6, 1998 the company completed an agreement with Camnor Resources Ltd. and Camnor Resources (USA) Inc. (collectively "Camnor") whereby Camnor has the right to earn a 51% interest in La Teko's Discovery Gulch property. In order to earn the 51% interest in the property, Camnor must, over four year period, make payments of US$215,000, including US$10,000 to La Teko on signing, issue 400,000 shares to La Teko, including 50,000 shares on Vancouver Stock Exchange approval, and complete US$800,000 in exploration on the property. The payments include US$140,000 to the underlying vendors and US$75,000 to La Teko. Camnor has committed to a minimum US$75,000 exploration program for 1998. The agreement is subject to regulatory approval. ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL The Company is in the business of exploration and development of mineral properties, with two advanced-stage projects, True North and Ryan Lode, one mid stage project, Scheelite Dome, and three early stage exploration projects. The Company has provided for recent years' operations primarily from the receipt of funds from Newmont Exploration Limited ("Newmont") pursuant to the True North JV Agreement and the cash proceeds from issuance of common stock. It is anticipated that the $1,670,000 cash on hand June 30, 1998 is sufficient to cover expenditures required for the balance of 1998. All dollar amounts included herein respecting Management's Discussion and Analysis are in U.S. dollars except where noted otherwise as Canadian dollars (CAN). CAPITALIZED COSTS Costs of acquisition and deferred exploration expenditures associated with the Company's mineral properties are summarized as follows: PROJECT BALANCE CAPITALIZED ADDITIONS BALANCE DECEMBER 31, 1997 (DELETIONS) 1998 06/ 30/98 ----------------- --------------------- ---------- True North 225,465 96,370 321,835 Ryan Lode 9,770,530 - 9,770,530 Margarita 430,652 103 430,755 Juniper 231,762 13,436 245,198 Twin Buttes 227,671 3,078 230,749 Discovery Gulch 99,055 24,410 123,465 Scheelite Dome -- 135,471 135,471 ---------- --------- ----------- Total Mineral Properties and Deferred Costs 10,985,135 272,868 11,258,003 RESULTS OF OPERATIONS INCOME The Company has not received operating revenues during any of the last three years and will not have income from sales of mineral product in 1998. EXPENSES During the first six months of 1998, the Company expended $273,000 for capitalized costs associated with the acquisition, exploration and development of its mineral properties compared to $221,000 which was expended during the comparable period of 1997. Of this $241,000 was expended in the second quarter, compared to $177,000 expended in the second quarter of 1997. The expenditure is a result of the increased activity on the properties which typically occurs in the second and third quarters and also costs for new acquisitions totaling 7,400 acres to the True North property. Under the terms of the agreement with joint venture partner Newmont Exploration Limited, La Teko contributes its 35% of the initial acquisition cost of new additions to the True North project and thereafter all expenditures will be carried by Newmont until fully vested in the project. The True North property now consists of 17,500 acres. General and administrative expenses, including corporate and project overhead, decreased to $365,000 for the first six months of 1998 as compared to $561,000 for the same six month period for 1997. The decrease reflects the closure the Fairbanks office, the absence of costs incurred in transferring the head office functions from Salt Lake City to Vancouver, which occurred in the first quarter of 1997, and a focused effort to minimize costs. The general and administrative expenses for the second quarter were $236,000 compared to $346,000 in the comparable period in 1997. Operating and mine maintenance costs were $73,000 for the first six months of 1998 as compared to $101,000 in the first six months of 1997, reflecting the operatorship of Silverado Gold Mines, Ltd. ("Silverado") during the first quarter and reduced reclamation and environmental monitoring activities at the Ryan Lode project following a major effort last year. During the second quarter 1998 the costs were $66,000 compared to $47,000 in 1997. The major costs for the reclamation and environmental monitoring activities at the Ryan Lode project will be incurred in the second and third quarters of 1998, as reflected in the second quarter expenditures. The total costs in 1998 are expected to be lower than were incurred in 1997. Royalty and lease payments were identical at $75,000 and $37,500 for the six month periods and second quarters. Net interest income for the first six months of 1998 was $3,000 compared with $46,000 for the comparable six months of 1997. In the second quarter 1998 net interest income was $100 compared with $17,000 in the comparable period in 1997. The decrease in interest income reflects the reduction in term deposits. The Company currently has no debt, having completed the repayment of its outstanding debt last year. Depreciation declined to $7,000 from $29,000 for the first half as some of the equipment required for the Ryan Lode and Fairbanks office was disposed of in 1997. LIQUIDITY AND CAPITAL RESOURCES During the first six months of 1998, the Company has relied on its December 31, 1997 cash on hand of $613,000 and private placements with gross proceeds of $1,870,000 to fund its requirements for general and administrative costs and ongoing exploration and development projects. At June 30, 1998, the Company had working capital of approximately $1,761,000 compared with $1,304,000 for the comparable period in 1997. The Company believes that it has sufficient working capital to cover expenditures required for the balance of 1998. During the first six months of 1998, cash flows from operating activities used approximately $365,000 and investing activities $232,000, primarily respecting capitalized exploration costs offset to a limited extent by the proceeds from the sale of investments. During the six months of the comparable period in 1997, cash flows from operating activities used approximately $753,000 and investing activities $281,000, again primarily respecting capitalized exploration costs. Remaining cash requirements for 1998 will be provided for from current cash reserves. The Company will receive no further cash payments from Newmont under the True North JV Agreement. Beyond 1998, the Company may require additional capital for ongoing administrative, exploration, development and acquisition activities. In order to meet such long-term needs, it will be necessary to obtain required capital from the sale of securities, possible new joint ventures or similar arrangements, project financing or other sources. There can be no assurance that any required additional funds will be available or can be obtained on terms favorable to the Company. The Company has outstanding options to purchase an aggregate of 1,424,000 shares of common stock at an average exercise price of $1.80 per share, for a total of $ 2,562,900 and outstanding warrants to purchase an aggregate of 2,333,000 shares of common stock at an exercise price of $1.05 per share in 1999 for a total of $ 2,449,650 or $1.25 per share in 2000 for a total of $2,916,250, but cannot predict whether any material number of either options or warrants will be exercised. PROJECTED 1998 REQUIREMENTS The Company has budgeted approximately $1,600,000 to continue with the True North project under joint venture with Newmont, fund the continuation of basic activities at the Ryan Lode property and other prospects and to meet other ongoing operating expenses. Notwithstanding Newmont's announcement of its intent to continue with the True North Joint Venture the decisions by Newmont respecting its True North activities are beyond the ability of the Company to predict or control. Newmont is planning substantial additional exploration and development work during 1998, including $2.1 million for pre-feasibility studies through the full year and $1.5 million for exploration through the end of June. Provisions of the joint venture agreement are such that Newmont may withdraw from the joint venture at its sole discretion. In the event of termination by Newmont, the Company will re-acquire, at no cost, Newmont's 65% interest in the True North project, including subsequently acquired acreage, together with all exploration data, and the Company will then become obligated for the continuing carrying costs and expenses of the True North project. Newmont may also elect to attempt to sell an interest in the joint venture agreement, in which case the Company has the right of first opportunity to acquire Newmont's interest. Under the terms of the private placement with Kinross Gold Corporation ("Kinross") La Teko has granted Kinross a right of first refusal to finance the purchase of Newmont's interest in the True North Project in the event such interest is offered to La Teko through La Teko's right of first opportunity as defined under the terms of the joint venture agreement between La Teko and Newmont. Under the agreement between La Teko and Kinross, if Newmont elects to sell all or part of its 65% interest in True North (the "Newmont Interest") and if Kinross elects to finance La Teko to acquire the Newmont Interest, Kinross will advance the funds necessary for La Teko to acquire the Newmont Interest by means of a 120 day interest-free loan (the "Loan"), secured by the Newmont Interest. At the election of either La Teko or Kinross, La Teko would repay the Loan by conveying the Newmont Interest to Kinross, provided that La Teko may elect to retain 15/65ths of the Newmont Interest. In such case, La Teko would repay the remainder of the Loan in cash or, at La Teko's option, by issuing shares to Kinross at a 10% premium to market. COMMITMENTS AND CONTINGENCIES Operations are subject to certain lease and royalty obligations. The Company carries insurance against property damage including insurance on its machinery and equipment and motor vehicles and also comprehensive general liability and liability policies applicable to motor vehicles. The Company has elected not to insure against business interruption. The Company cannot insure for environmental pollution and has elected not to insure for mine cave-ins, flooding, earthquake and other possible natural hazards consistent with industry practice. The Company may in the future be exposed to contingencies and liabilities relating to the foregoing that may arise under governmental regulations relating to the environment. The Company is not aware of any existing material contingencies respecting compliance of its previous activities with environmental requirements. The Company has implemented procedures to minimize the possibility of chemical spills, especially in its drilling and Ryan Lode operations. CHANGING PRICES, CURRENCY EXCHANGE RATES AND INFLATION The value of the Company's properties and its proposed operations have been and will continue to be affected generally by changes in gold prices and general market conditions. The Company's ability to obtain exploration capital through joint ventures or other arrangements with other mining firms and attract additional capital, if required, through the sale of securities or borrowings on attractive terms are also affected by gold prices and general market conditions. Such prices are subject to substantial fluctuations that are beyond the ability of the Company to control or predict. Although certain of the Company's costs and expenses are affected by the level of inflation, inflation has not had a significant effect on the Company's operations. Similarly, the Company's operations, all of which except for its executive offices are located in the United States, are not materially affected by fluctuations in the exchange rate between Canadian and US dollars. OTHER The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on the results of operations or financial position of the Company. Based on that review, the Company believes that none of these pronouncements will have significant effects on current or future operations. PART II PART II. OTHER INFORMATION ITEM 2. CHANGES IN SECURITIES UNREGISTERED SALES During the quarter ended June 30, 1998, the Company sold securities without registration under the Securities Act of 1933 (the "Securities Act") in the following transactions: 1. In April, the Company sold 2,000,000 shares of common stock to Kinross Gold Corporation in a private placement for $0.85 per share. 2. In May, the Company issued 43,000 shares of common stock valued at $1.00 per share in connection with acquisition of property respecting the Scheelite Dome project. 3. In June, the Company issued 65,000 shares of common stock valued at $1.00 per share in settlement of a debt. 4. In June, the Company sold to Thermo Dynamics, Inc., a company owned by John R. Hardesty, a director of the Company, 200,000 shares at $0.85 per share in a private placement. Except as otherwise noted, the securities issued in the transactions described above were issued in reliance on the exemption from the registration and prospectus delivery requirements of the Securities Act provided in S 4(2) thereof. Each purchaser was provided with business and financial information respecting the Company and was provided with the opportunity to obtain additional information in order to verify the information provided or to further inform themselves respecting the Company. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS On June 2, 1998, at the annual meeting of the Company's shareholders, the shareholders approved the following matters submitted to them for consideration: (1) Fixed the number of directors at seven: For 12,903,236 Against 166,050 Abstain 35,418 (2) Elected directors of the Company as follows: Gerald G. Carlson For: 13,850,171 Robert W. Gentry For: 13,118,403 John R. Hardesty For: 13,852,921 John S. Auston For: 13,852,421 Douglas R. Beaumont For: 13,850,221 Gordon J. Fretwell For: 13,850,671 Stuart Havenstrite For: 13,121,153 (3) Appointed Bedford Curry, Chartered Accountants, Vancouver, B.C., Canada, as auditors of the Company as follows: For 12,950,086 Against 107,500 Abstain 47,118 (3) Approved and ratified stock options and amendments to stock options For 11,369,425 Against 1,650,061 Abstain 79,218 Item 6 - EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits The following exhibits are included a part of this report: Exhibit No. SEC Reference No. Title of Document Location - ---------- ----------------- ----------------------- ----------- 27.01 27 Financial Data Schedule This filing (B) REPORTS ON FORM 8-K During the quarter ended June 30, 1998 the Company filed the following reports on Form 8-K: DATE OF EVENT REPORTED ITEM REPORTED - ---------------------- --------------------- April 8, 1998 Item 5. Other events April 24, 1998 Item 5. Other events April 28, 1998 Item 5. Other events May 5, 1998 Item 5. Other events June 2, 1998 Item 5. Other events SIGNATURES In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. LA TEKO RESOURCES LTD. (Registrant) Date: August 14, 1998 By /s/ Gerry C. Carlson Chief Executive Officer, President, Chief Financial and Accounting Officer, and Director EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF JUNE 30, 1998, AND STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS DEC-31-1998 JAN-01-1998 JUN-30-1998 1,671,871 0 0 138,124 0 1,809,995 11,869,439 (20,128) 13,659,306 49,418 0 19,800,402 0 0 (6,190,514) 13,659,306 0 0 0 (520,846) (169,928) 0 3,323 (687,451) 0 (687,451) 0 0 0 (687,451) (0.025) (0.025)
-----END PRIVACY-ENHANCED MESSAGE-----