10-Q 1 0001.txt FORM 10Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED AUGUST 31, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission file number 0-12132 SILVERADO GOLD MINES LTD. (Exact name of registrant as specified in its charter) British Columbia, Canada 98-0045034 (State or other jurisdiction of (I.R.S. Employer I.D. No.) incorporation or organization) Suite 505, 1111 West Georgia Street Vancouver, British Columbia, Canada V6E 4M3 (604) 689-1535 (Address of Principal Executive Offices) (Registrant's telephone number) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 13(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for a 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 [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at October 12, 2000 (Common stock (npv)) 29,639,891
SILVERADO GOLD MINES LTD. INTERIM CONSOLIDATED BALANCE SHEETS (EXPRESSED IN U.S. DOLLARS) AS AT (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 ----------------- ----------------- ASSETS CURRENT ASSETS CASH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,063 $ - GOLD INVENTORY. . . . . . . . . . . . . . . . . . . . . . . . 23,487 10,567 ACCOUNTS RECEIVABLE . . . . . . . . . . . . . . . . . . . . . 7,413 79,935 ----------------- ----------------- 48,963 90,502 MINERAL PROPERTIES AND DEVELOPMENT, NET. . . . . . . . . . . . . . . 1,224,200 1,224,200 ----------------- ----------------- BUILDINGS, PLANT AND EQUIPMENT . . . . . . . . . . . . . . . . . . . 2,982,608 2,982,608 LESS ACCUMULATED DEPRECIATION. . . . . . . . . . . . . . . . . . . (1,804,549) (1,538,322) ----------------- ----------------- 1,178,059 1,444,286 $ 2,451,222 $ 2,758,988 ================= ================= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES BANK INDEBTEDNESS. . . . . . . . . . . . . . . . . . . . . . . . $ - $ 2,385 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (NOTE 5). . . . . . . . . . . . . . . . . . . . . . . . 1,143,029 1,162,023 LOANS PAYABLE. . . . . . . . . . . . . . . . . . . . . . . . . . 49,130 49,130 MINERAL CLAIMS PAYABLE . . . . . . . . . . . . . . . . . . . . . 280,375 286,500 DUE TO RELATED PARTIES (NOTE 8). . . . . . . . . . . . . . . . . 359,289 - CONVERTIBLE DEBENTURE, CURRENT PORTION (NOTE 6) . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000 ----------------- ----------------- 3,472,534 3,500,038 LONG TERM LIABILITIES CONVERTIBLE DEBENTURE (NOTE 6) . . . . . . . . . . . . . . . . . 75,000 75,000 SHAREHOLDERS' EQUITY SHARE CAPITAL AUTHORIZED: 100,000,000 COMMON SHARES ISSUED AND OUTSTANDING: AUGUST 31, 2000 - 27,639,891 SHARES . . . . . . . . . . . 45,355,365 44,454,365 NOVEMBER 30, 1999 - 15,873,224 SHARES . . . . . . . . . . - - SHARES TO BE ISSUED . . . . . . . . . . . . . . . 33,485 28,188 DEFICIT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46,844,450) (45,298,603) ----------------- ----------------- (1,455,600) (816,050) ----------------- ----------------- $ 2,451,222 $ 2,758,988 ================= ================= SEE ACCOMPANYING NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SILVERADO GOLD MINES LTD. INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (EXPRESSED IN U.S. DOLLARS) NINE MONTHS ENDED AUGUST 31, 2000 AUGUST 31, 1999 ------------------- ----------------- REVENUE FROM GOLD SALES. . . . . . . $ 6,387 $ 15,859 LESS MINING AND PROCESSING COSTS 10,210 14,601 ------------------- ----------------- (3,823) 1,258 MINERAL PROPERTIES AND DEVELOPMENT EXPENDITURES. . . . . 24,600 258,213 ADMINISTRATIVE EXPENSES. . . . . . . 1,393,674 429,073 INTEREST EXPENSE . . . . . . . . . . 123,750 120,000 ------------------- ----------------- LOSS FOR THE PERIOD. . . . . . . . . (1,545,847) (806,028) ACCUMULATED DEFICIT AT BEGINNING OF PERIOD. . . . . . . (45,298,603) (43,849,212) ------------------- ----------------- ACCUMULATED DEFICIT AT END OF PERIOD. . . . . . . . . . $ (46,844,450) $ (44,655,240) =================== ================= LOSS PER SHARE . . . . . . . . . . . $ (0.060) $ (0.062) =================== ================= THREE MONTHS ENDED AUGUST 31, 2000 AUGUST 31, 1999 REVENUE FROM GOLD SALES. . . . . . . $ 6,387 - LESS MINING AND PROCESSING COSTS 10,210 - ------------------- ----------------- (3,823) - - - MINERAL PROPERTIES AND DEVELOPMENT EXPENDITURES. . . . . 24,600 11,897 ADMINISTRATIVE EXPENSES. . . . . . . 726,090 124,735 INTEREST EXPENSE . . . . . . . . . . 40,000 40,000 ------------------- ----------------- LOSS FOR THE PERIOD. . . . . . . . . (794,513) (176,632) ACCUMULATED DEFICIT AT BEGINNING OF PERIOD. . . . . . . (46,049,937) (44,478,608) ------------------- ----------------- ACCUMULATED DEFICIT AT END OF PERIOD. . . . . . . . . . $ (46,844,450) $ (44,655,240) =================== ================= LOSS PER SHARE . . . . . . . . . . . $ (0.034) $ (0.013) =================== =================
SILVEVERADO GOLD MINES LTD. INTERIM CONSOLODATED STATEMENTS OF CASH FLOW (EXPRESS IN U.S. DOLLARS) (UNAUDITED) NINE MONTHS ENDED AUGUST 31, 2000 AUGUST 31, 1999 ------------------- ----------------- CASH PROVIDED BY (USED FOR): OPERATIONS: LOSS FOR THE PERIOD . . . . . . . . . . . . . . . . . . . . . . $ (1,545,847) $ (806,028) ITEMS NOT INVOLVING CASH DEPRECIATION. . . . . . . . . . . . . . . . . . . . . . . . . 266,220 222,250 AMORTIZATION OF DEFERRED FINANCING FEES . . . . . . . . . . . . . . . . . . . . . . . - 24,562 CHANGES IN NON-CASH OPERATING WORKING CAPITAL: DECREASE IN ACCOUNTS RECEIVABLE . . . . . . . . . . . . . . . 72,522 2,220 (INCREASE) DECREASE IN GOLD INVENTORY. . . . . . . . . . . . . (12,920) 14,601 DECREASE IN MINERAL CLAIMS PAYABLE . . . . . . . . . . . . . . (6,125) (3,500) INCREASE IN EXPENSES TO RELATED PARTIES. . . . . . . . . . . . 359,289 - INCREASE (DECREASE) IN ACCOUNTS PAYABLE AND ACCRUED LIABILITIES. . . . . . . . . . . . . . . (18,995) 117,172 ------------------- ----------------- (885,856) (428,723) FINANCING: BANK INDEBTEDNESS . . . . . . . . . . . . . . . . . . . . . . . (2,385) (4,396) SHARES ISSUED FOR CASH. . . . . . . . . . . . . . . . . . . . . 901,000 273,035 INCREASE IN LOANS PAYABLE . . . . . . . . . . . . . . . . . . . - 155,000 SHARE SUBSCRIPTIONS RECEIVED. . . . . . . . . . . . . . . . . . 5,304 - ------------------- ----------------- 903,919 428,035 INVESTMENTS: PROCEEDS FROM SALE OF EQUIPMENT . . . . . . . . . . . . . . . . - 5,353 ------------------- ----------------- - 5,353 INCREASE IN CASH. . . . . . . . . . . . . . . . . . . . . . . . . . 18,063 4,665 CASH AT BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . - - ------------------- ----------------- CASH AT END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . $ 18,063 $ 269 ------------------- ----------------- SUPPLEMENTAL CASH FLOW INFORMATION INTEREST PAID . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,750 $ - ------------------- ----------------- ISSUE OF SHARES FOR PURCHASE OF MINERAL PROPERTY, A NON-CASH INVESTING ACTIVITY NOT REFLECTED IN THE STATEMENTS OF CASH FLOW. . . . . . . . . . . . . . . . . . . . . . . . . . . $ - $ - ------------------- ----------------- SEE ACCOMPANYING NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SILVERADO GOLD MINES LTD. INTERIM CONSOLODATED STATEMENTS OF CHANGES IN SHARE CAPITAL (EXPRESSED IN U.S. DOLLARS) (UNAUDITED) NINE MONTHS ENDED AUGUST 31, 2000, AND YEARS ENDED NOVEMBER 30, 1999, AND 1998 NUMBER OF SHARE UNAMORATIZED ADVANCES TO SHARES CAPITAL STOCK RELATED PARTIES COMPENSATION SECURED BY EXPENSE COMMON SHARES IN THE COMPANY BALANCE AS AT NOVEMBER 30, 1997. . . . . . . . . . . . . . . . . . . 80,012,218 $43,084,420 $ (151,612) $ (480,236) ------------ ----------- -------------- ----------------- YEAR ENDED NOVEMBER 30, 1998 SHARE CONSOLIDATION. . . . . . . . . . . . . . . . . . . . . . . (72,010,996) SHARES ISSUED: ON EXERCISE OF WARRANTS FOR CASH . . . . . . . . . . . . . . . 255,000 216,200 PRIVATE PLACEMENTS FOR CASH. . . . . . . . . . . . . . . . . . 2,446,668 372,600 PRIVATE PLACEMENT FOR CONSULTING SERVICES: . . . . . . . . . . 125,000 112,500 FAIR VALUE OF SHARES ISSUED FOR MINERAL PROPERTY . . . . . . . . . . . . . . . . . . . . . . 170,000 289,200 AMORTIZATION OF STOCK COMPENSATION 151,612 CASH RECEIVED ON SALE OF COMMON SHARES 225,448 BY RELATED PARTY UNCOLLECTED BALANCE RECORDED AS A RECEIVABLE ALLOWANCE 254,788 ------------ ----------- -------------- ----------------- (69,014,328) 990,500 $ 151,612 $ 480,236 BALANCE AS AT NOVEMBER 30, 1998. . . . . . . . . . . . . . . . . . . 10,997,890 44,074,920 - - ------------ ----------- -------------- ----------------- YEARS ENDED NOVEMBER 30, 1999 SHARES ISSUED: ON EXERCISE OF WARRANTS FOR CASH . . . . . . . . . . . . . . . 4,008,667 250,050 PRIVATE PLACEMENT FOR CASH . . . . . . . . . . . . . . . . . . 866,667 129,395 ------------ ----------- 4,875,334 379,445 - - BALANCE AS AT NOVEMBER 30, 1999. . . . . . . . . . . . . . . . . . . 15,873,224 44,454,365 - - ------------ ----------- -------------- ----------------- SHARES ISSUED: ON EXERCISE OF WARRANTS FOR CASH . . . . . . . . . . . . . . . 3,366,667 190,000 ON EXERCISE OF EMPLOYEE SHARE OPTIONS. . . . . . . . . . . . . 400,000 40,000 PRIVATE PLACEMENT FOR CASH . . . . . . . . . . . . . . . . . . 4,850,000 380,000 ------------ 8,616,667 BALANCE AS AT MAY 31, 2000 (UNAUDITED) . . . . . . . . . . . . . . . 24,489,891 $45,064,365 $ - $ - ------------ ----------- -------------- ----------------- SHARES ISSUED: ON EXERCISE OF WARRANTS FOR CASH . . . . . . . . . . . . . . . 2,350,000 211,000 PRIVATE PLACEMENT FOR CASH . . . . . . . . . . . . . . . . . . 800,000 80,000 ------------ 3,150,000 ------------ BALANCE AS AT AUGUST 31, 2000 (UNAUDITED). . . . . . . . . . . . . . 27,639,891 $45,355,365 $ - $ - ------------ ----------- SEE ACCOMPANYING NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SILVERADO GOLD MINES LTD. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN U.S. DOLLARS) (UNAUDITED) AUGUST 31, 2000 1. BASIS OF PRESENTATION The interim consolidated financial statements as at August 31, 2000 and 1999 and for the three and nine month periods ended August 31, 2000 and 1999 included herein are unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial results for the interim periods. These interim consolidated financial statements are presented in accordance with United States generally accepted accounting principles. The interim financial statements have been prepared consistent with the accounting policies described in the Company's Annual Report on Form 10-K and should be read in conjunction therewith. These financial statements have been prepared on a going concern basis, which assumes the realization of assets and settlement of liabilities in the normal course of business. The application of the going concern concept and the recovery of amounts recorded as mineral properties and development and buildings, plant and equipment is dependent on the Company's ability to obtain the continued forbearance of certain creditors, to obtain additional financing to fund its operations and acquisition, exploration and development activities, the discovery of economically recoverable ore on its properties, and the attainment of profitable operations. Current uncertainty with regard to these matters raises substantial doubt about the Company's ability to continue as a going concern, and the financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company plans to continue to raise capital through private placements and warrants issued. At August 31, 2000 the Company had a working capital deficiency of $3,423,578 including a $2,000,000 convertible debenture which matured on July 2, 1999, but was not repaid. The Company was granted a deferral of these payments as it is currently in negotiations to restructure its obligation. The Company has not made required interest payments on the convertible debenture of $426,667 to August 31, 2000. In addition, the Company is in arrears of required mineral claims and option payments for certain of its mineral properties at August 31, 2000, in the amount of $280,375. (November 30, 1999: $286,500). 2. GOLD INVENTORY Gold inventory is valued at the lower of weighted average cost and estimated net realizable value. At August 31, 2000 and November 30, 1999, gold is valued at net realizable value. 3. MINERAL PROPERTIES AND DEVELOPMENT The Company confines its exploration activities to areas from which gold has previously been produced or to properties which are contiguous to such areas and have demonstrated mineralization. Accordingly, the Company capitalizes the costs of acquiring mineral claims until such time as the properties are placed into production or abandoned. At that time, costs are amortized on a units of production basis or written off, as appropriate. Exploration costs and option payments are expensed as incurred commencing in 1998. 4. BUILDINGS PLANT AND EQUIPMENT Buildings, plant and equipment are stated at cost. Depreciation is provided on buildings, plant and equipment using the straight-line method based on estimated lives of 3 to 20 years. 5. ACCOUNTS PAYABLE Accounts payable and accrued liabilities are detailed in the following table: AUGUST 31, 2000 NOVEMBER 30, (UNAUDITED) 1999 ACCOUNTS PAYABLE $ 520,362 $ 659,356 ACCRUED INTEREST 426,667 306,667 ACCRUED RECLAMATION EXPENSES 196,000 196,000 $ 1,143,029 $ 1,162,023 ========= ========= 6. CONVERTIBLE DEBENTURE In July, 1994, the Company issued a convertible callable debenture for $2,000,000 with interest payable at the rate of 8.0% per annum on December 31, and June 30, each year. The debenture is unsecured and was due on July 2, 1999. The Company has not made required interest payments of $426,667 to August 31, 2000 which has been recorded as a current liability. The Company was granted a deferral of these payments as it is currently in negotiations to restructure its obligation. On February 15, 1999, the Company issued a convertible debenture for $75,000 with interest payable at the rate of 5% per annum on March 1 of each year. The debenture is due on February 28, 2002. The required interest payment of $3,750 was made on April 14, 2000. 7. SHARE CAPITAL (A) DIRECTOR AND EMPLOYEE OPTIONS. The Company has 3,100,000 (November 30, 1999 - 3,500,000) outstanding options to acquire common shares with an exercise price of $0.10 per share until December 1, 2004; and 350,000 outstanding options to acquire common shares with an exercise price of $0.35 per share until December 1, 2004, all in accordance with the terms and conditions of its December 12, 1994 Stock Option Plan. (B) WARRANTS. The Company has 3,700,000 warrants outstanding to purchase common shares at prices in the range of $0.10 - $0.40. (C) OTHER SHARE TRANSACTIONS. The Company has reserved 295,192 common shares for issuance upon the potential conversion of the convertible debentures. 8. RELATED PARTY TRANSACTIONS The Company has had related party transactions with Tri-Con Mining Ltd., Tri-Con Mining Inc., Tri-Con Mining Alaska Inc. collectively the "Tri-Con Mining Group"; and Anselmo Holdings Ltd., all of which are controlled by a director of the Company, and Kintana Resources Ltd., a company related by virtue of common directors. The Tri-Con Group are operations, exploration and development contractors, and have been employed by the Company under contract since 1972 to carry out all its field work and to provide administrative and management services. Under the current contract of January, 1997, work is charged at cost plus 15% for operations and cost plus 25 percent for exploration and development. Cost includes a 15 percent charge for office overhead. Services of the directors of the Tri-Con Group are charged at a rate of Cdn. $75 per hour. Services of the directors of the Tri-Con Group who are also Directors of the Company are not charged. At November 30, 1999, the Company had paid $241,265 (1998 - $363,667) to the Tri-Con Group for exploration, development and administration services to be performed during fiscal 2000 on behalf of the Company. The amounts have been written-off in the respective years as a receivable allowance. The aggregate amounts paid to the Tri-Con Group each year by category, including amounts relating to the Grant Mine Project and Nolan properties, for disbursements and for services rendered by the Tri-Con Group personnel working on the Company's projects, and including interest charged on outstanding balance at the Tri-Con Group's borrowing costs are shown below:
2000 1999 1998 --------- --------- ----------- Operations and Field Services . . . . . . $126,377 $ 24,562 $ 192,706 Exploration and Development Services. . . 84,252 214,211 1,160,169 Administrative and Management Services. . . . . . . . . . . . . . . . . 148,660 58,200 321,513 $359,289 $296,973 $1,674,388 --------- --------- ----------- Amount of total charges in excess of Tri- Con costs incurred. . . . . . . . . . . . $ 0.00 $ 54,526 $ 248,858 --------- --------- ----------- Excess amount charged as a percentage of actual costs incurred. . . . . . . . . 0.00% 24.0% 17.5% --------- --------- -----------
During fiscal 1998, the Tri-Con Group sold all of the 2,119,934 common shares held in the Company for net proceeds of $225,448. The Company received $225,448 from the Tri-Con Group as part payment of the $480,236 advance receivable at November 30, 1997. The remaining unpaid amount was written off as a receivable allowance. 9. COMMITMENTS The Company has a lease agreement for office premises for a term of 10 years commencing April 1, 1994, with an approximate annual rate of $122,000 (Cdn.) including operating costs. 10. LITIGATION A former employee of the Tri-Con Group has initiated a claim against that company for wrongful dismissal / breach of contract in the amount of $150,000. The Company has been named as a co-defendant in the suit. No provision for this litigation has been made in these financial statements and the amount of the loss, if any, for this lawsuit, would be accounted for prospectively. Range Minerals Corporation has sued Silverado Gold Mines Ltd. and Silverado Gold Mines Inc. for $185,665. The lawsuit pertains to required payments covering the Ester Dome Property. Silverado Gold Mines Ltd. and Silverado Gold Mines Inc. have denied the claim of Range Minerals Corporation and have counter claimed for the return of 50,000 shares and $88,000 previously paid to Range Minerals Corporation, and such further additional relief as the court may deem to be just and equitable under the circumstances. No provision for this litigation has been made in these financial statements and the amount of the loss, if any, for this lawsuit, would be accounted for prospectively. 11. SUBSEQUENT EVENTS Subsequent to August 31, 2000, a director and officer of the Company exercised options to purchase 1,950,000 shares of the Company at $0.10 per share in consideration for a reduction of amounts payable to Tri-Con Mining Ltd. of $195,000. The director is a significant shareholder of Tri-Con Mining Ltd. On September 27, 2000 50,000 share purchase warrants were exercised at a price of $0.10 per share and the Company issued 50,000 shares from the treasury for proceeds of $5,000. ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is management's discussion and analysis of certain factors which have significantly affected the Company's financial position and operating results during the period included in the accompanying condensed consolidated financial statements. NINE MONTHS 2000 V. 1999 ---------------------------- Loss for the nine-month period ended August 31, 2000 was $1,545,847 or $0.060 per share compared to $806,028 or $0.062 per share for the nine-month period ended August 31, 1999. Loss for the quarter was $794,513 or $0.034 per share compared to $176,632 or $0.013 per share for the quarter ended August 31, 1999. The Company commenced production on its Nolan Placer property during the quarter ended August 31, 2000 and incurred a loss of $3,823 on sales of $6,387. One time set up costs were fully absorbed during this period. Expenditures during the nine months ended August 31, 2000 were $1,542,024 up from $807,286 in the comparable period due mainly to an increase in promotion expenditures. $901,000 in cash was received for share issuances during the first nine months of 2000. The Company is moving towards commercialization of the new oil fuel substitute process known as low-rank coal-water fuel. The fuel would be produced at the Company's 100% owned and paid up Grant Mill facility once it has undergone a retrofit. Additionally the Company continued summer gold production and development at its Nolan gold mine. LIQUIDITY AND CAPITAL RESOURCES AT AUGUST 31, 2000 --------------------------------------------------------- During the first nine months of 2000 the Company received cash of $901,000 from share subscriptions. The Company plans to raise capital through gold sales from its 100% owned Nolan Gold Mine as well as through private placements and warrant issues. The Company has a working capital deficiency of $3,782,860 at August 31, 2000 up from $3,409,536 at November 30, 1999. ITEM 3. None PART II - OTHER INFORMATION ITEM 1 LEGAL PROCEEDINGS A former employee of the Tri-Con Group has initiated a claim against that company for wrongful dismissal / breach of contract in the amount of $150,000. The Company has been named as a co-defendant in the suit. Range Minerals Corporation has sued Silverado Gold Mines Ltd. and Silverado Gold Mines Inc. for $185,665. The lawsuit pertains to required payments covering the Ester Dome Property. Silverado Gold Mines Ltd. and Silverado Gold Mines Inc. have denied the claim of Range Minerals Corporation and have counter claimed for the return of 50,000 shares and $88,000 previously paid to Range Minerals Corporation, and such further additional relief as the court may deem to be just and equitable under the circumstances. No provision for this litigation has been made in these financial statements and the amount of the loss, if any, for this lawsuit, would be accounted for prospectively. ITEM 2 CHANGES IN SECURITIES AND USE OF PROCEEDS. During the third quarter of 2000 the company received proceeds from the issue of 3,150,000 unregistered shares. ITEM 3 DEFAULTS UPON SENIOR SECURITIES In July, 1994, the Company issued a convertible callable debenture for $2,000,000 with interest payable at the rate of 8.0% per annum on December 31, and June 30, each year. The debenture is unsecured and was due on July 2, 1999. The Company has not made required interest payments of $426,667 to August 31, 2000 which has been recorded as a current liability. The Company was granted a deferral of these payments as it is currently in negotiations to restructure its obligation ITEM 4 None. ITEM 5 OTHER INFORMATION. None. ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K. None. Pursuant to the requirements 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. SILVERADO GOLD MINES LTD. /S/ G.L. ANSELMO G.L. Anselmo President / CEO / CFO