-----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, OJIwZbGdo4T27pUEDbjxg2Ip8ngsiICBu+ksP5EFgenheZghnGO9AR0X/IUjY5Ch z8mYHzsjfOLZG4t2ucEQQQ== 0000772320-96-000019.txt : 19961010 0000772320-96-000019.hdr.sgml : 19961010 ACCESSION NUMBER: 0000772320-96-000019 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19961009 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASMYN CORP CENTRAL INDEX KEY: 0000772320 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 840987840 STATE OF INCORPORATION: CO FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-14136 FILM NUMBER: 96640988 BUSINESS ADDRESS: STREET 1: 1335 GREG ST #104 CITY: SPARKS STATE: NV ZIP: 89431 BUSINESS PHONE: 7023315524 MAIL ADDRESS: STREET 1: 1335 GREG STREET STREET 2: SUITE 104 CITY: SPARKS STATE: NV ZIP: 89431 FORMER COMPANY: FORMER CONFORMED NAME: SUMMA METALS CORP DATE OF NAME CHANGE: 19940503 10QSB/A 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________ AMENDMENT TO FORM 10-QSB [ X ] Quarterly report under Section 13 or 15 (d) of the Securities Exchange Act of 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996 ------------- OR [ ] Transition report under section 13 or 15 (d) of the Exchange Act COMMISSION FILE NUMBER 0-14136 CASMYN CORP. (Exact name of registrant as specified in Charter) COLORADO (State or other jurisdiction of incorporation) 84-0987840 (IRS Employer Identification No.) 1335 GREG STREET, UNIT #104 SPARKS, NEVADA 89431 (702) 331-5524 (Address and Telephone Number of Principal Executive Offices) Check whether the issuer (1) filed all reports required to be filed by section 13 or 15 (d) of the Exchange Act during the past 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 September 23, 1996, 9,992,492 shares of the issuer's common stock were outstanding. This report contains 12 pages. There are no exhibits. CASMYN CORP. FORM 10-QSB INDEX Page No. PART I. Financial Information: ---- Condensed Consolidated Balance Sheet - September 30, 1995 and June 30, 1996 (Unaudited) 3 Condensed Consolidated Statements of Operations - Three Months and Nine Months ended June 30, 1996 and 1995 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows - Nine Months ended June 30, 1996 and 1995 (Unaudited) 5 Notes to Condensed Consolidated Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II. Other Information: Item 6 - Exhibits and Reports on Form 8-K 12 Signatures 12 Financial Data Schedule 13 CASMYN CORP. CONDENSED CONSOLIDATED BALANCE SHEET ASSETS
SEPTEMBER 30, JUNE 30, 1996 1995 (UNAUDITED) CURRENT ASSETS: Cash and cash equivalents $ 4,938,945 $5,473,211 Common stock subscriptions receivable 7,125,002 - Accounts receivable, net 593,658 225,702 Inventories 312,069 1,749,845 Prepaid expenses and other assets 93,732 135,000 ---------- ---------- Total Current Assets 13,063,406 7,583,848 ---------- ---------- INVESTMENT IN RELATED PARTY 204,227 204,227 INVESTMENT IN AFFILIATES - 8,367,702 EQUIPMENT AND IMPROVEMENTS, net of accumulated depreciation of $147,959 and $227,696 313,694 2,945,392 MINERAL PROPERTIES 197,227 6,712,458 DUE FROM RELATED PARTIES, NET 58,451 67,066 OTHER ASSETS 572,388 1,622,807 ----------- ----------- TOTAL ASSETS $14,315,661 $27,503,500 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $384,590 $2,617,047 Accrued liabilities 190,052 314,848 Current portion of long-term debt 27,462 - ---------- ---------- Total Current Liabilities 602,104 2,931,895 ---------- ---------- LONG-TERM DEBT 71,298 - ---------- ---------- CONVERTIBLE DEBT 5,000,000 5,000,000 ---------- ---------- Total Liabilites 5,673,402 7,931,895 ---------- ---------- MINORITY INTEREST 498,663 - ---------- ---------- STOCKHOLDERS' EQUITY: Preferred stock, $.10 par value; 20,000,000 shares authorized; 0 and 2,707,000 shares issued and outstanding - 270,700 Common stock, $.04 par value; 300,000,000 shares authorized; 8,604,637 and 7,285,492 shares issued and outstanding 344,185 291,480 Additional paid-in capital 11,859,844 27,854,536 Accumulated deficit ( 4,067,783) ( 8,501,094) Foreign currency translation adjustment 7,350 ( 319,017) Treasury stock, 1,500 shares at cost - ( 25,000) ----------- ----------- Total Stockholders' Equity 8,143,596 19,571,605 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $14,315,661 $27,503,500 =========== ===========
SEE ACCOMPANYING NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS. CASMYN CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND NINE MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
FOR THE NINE MONTHS FOR THE THREE MONTHS ENDED JUNE 30, ENDED JUNE 30, 1996 1995 1996 1995 --------------------- ---------------------- SALES $1,065,538 $375,270 $405,881 $44,908 COST OF GOODS SOLD 756,732 270,195 323,313 32,334 ---------- --------- --------- ---------- GROSS PROFIT 308,806 105,075 82,568 12,574 ---------- --------- --------- ---------- COSTS AND EXPENSES: Selling, general and administrative expense 4,695,678 3,296,155 1,945,928 1,560,096 Depreciation, depletion and amortization 100,778 167,174 52,595 55,725 Mineral exploration expense 447,647 769,473 105,004 289,799 Research and development 204,113 150,768 38,253 40,205 ---------- ---------- --------- --------- 5,448,216 4,383,570 2,141,780 1,945,825 ---------- ---------- --------- --------- LOSS FROM OPERATIONS ( 5,139,410) (4,278,495) (2,059,212) (1,933,251) OTHER INCOME (EXPENSE): Minority interest in net loss of consolidated subsidiary 498,663 1,991,189 - 801,175 Interest and other income 343,527 85,545 92,016 3,905 Interest expense ( 136,091) ( 9,454) ( 44,071) ( 3,150) ---------- ---------- --------- --------- 706,099 2,067,280 47,945 801,930 ---------- ---------- ---------- ---------- LOSS FROM CONTINUING OPERATIONS (4,433,311) (2,211,215) (2,011,267) (1,131,321) GAIN FROM DISCONTINUED OPERATIONS - 32,429 - - ---------- ---------- ---------- ---------- NET LOSS $(4,433,311)$(2,178,786) $(2,011,267) $(1,131,321) ========== ========== ========== ========== INCOME (LOSS) PER COMMON SHARE: Loss from Continuing Operations $(.71) $(.29) $(.29) $(.15) Income from Discontinued Operations - - - - ---------- ---------- ---------- ---------- NET LOSS $(.71) $(.29) $(.29) $(.15) ========== ========== ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 6,270,719 7,574,827 6,931,264 7,744,010 ========== ========== ========== ==========
SEE ACCOMPANYING NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS. CASMYN CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
1996 1995 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES: NET LOSS $(4,433,311) $ (2,178,786) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, depletion and amortization 100,778 167,174 Minority interest in net loss of consolidated subsidiary ( 498,663) (1,991,189) Compensation expense from stock options 364,560 620,000 Amortization of debt issue costs 45,000 - Other non-cash expense 58,563 190,000 (Increase) decrease in accounts receivable 367,956 ( 9,668) Increase in inventory (1,437,776) ( 59,038) Increase in prepaid expenses and other assets (1,077,425) ( 247,066) Increase in accounts payable and accrued liabilities 2,357,253 87,560 Increase in amounts due from related parties ( 8,615) (1,126,776) ---------- ---------- Net cash used in operating activiites (4,161,680) (4,547,789) ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Investment in mineral properties (6,515,231) - Proceeds from sale of investments in related party - 557,196 Proceed from sale of assets - 209,324 Purchase of equipment and improvements (2,732,476) ( 161,502) Investment in affiliate (1,398,000) - ---------- ---------- Net cash provided by (used in) investing activities (10,645,707) 605,018 ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Issuance of Company common stock 15,791,780 2,571,852 Issuance of Vector Venture Corp. common stock - 325,660 Repayments of long-term debt ( 98,760) ( 33,114) Purchase of treasury shares ( 25,000) - ---------- ---------- Net cash provided by financing activities 15,668,020 2,864,398 ---------- ---------- FOREIGN CURRENCY TRANSLATION ADJUSTMENT ( 326,367) 9,972 ---------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 534,266 $(1,068,401) ========== ========== CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 4,938,945 1,075,876 ---------- ---------- CASH EQUIVALENTS, END OF PERIOD $ 5,473,211 $ 7,475 ========== ==========
DISCLOSURE OF ACCOUNTING POLICY: For purposes of cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents. SEE ACCOMPANYING NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS. CASMYN CORP. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. BASIS OF PRESENTATION The accompanying condensed consolidated financial statements are unaudited; however, in the opinion of management, such statements include all adjustments (which are of a normal, recurring nature) necessary for a fair statement of the results for the interim periods. The financial statements included herein have been prepared by Casmyn Corp. (the "Company") pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included herein are adequate to make the information not misleading. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the Company's consolidated financial statements filed as part of the Company's September 30, 1995 Form 10-KSB. The Form 10-KSB should be read in conjunction with this quarterly report. 2. INVESTMENT IN RELATED PARTY At June 30, 1996, the Company holds 425,750 shares of common stock of Auromar Development Corporation ("Auromar"), a related party. The Company has announced an agreement in principle to merge with Auromar. 3. RELATED PARTY TRANSACTIONS The Company conducts business with various companies that are related through the existence of certain common officers, directors and significant stockholders. These related parties include: Diamond Fontein International Limited; Auromar Development Corp.; Dahya Holdings, Inc.; and Casmyn Research and Engineering, Ltd.. As a result of these related party transactions, cash advances from and to the Company and other transactions, the Company had a net amount due from related parties at June 30, 1996 of $67,066. This amount is non-interest bearing and contains no formal repayment terms. 4. INVENTORIES A summary of inventories follows:
SEPTEMBER 30, 1995 JUNE 30, 1996 ------------------- -------------- Raw Materials and Supplies $ 130,803 $ 978,269 Finished Goods 181,266 771,576 ------------------- -------------- $ 312,069 $ 1,749,845 =================== ==============
5. PROPOSED AUROMAR MERGER On March 29, 1995, the Company announced that it had reached an agreement in principle to effect a merger with Auromar Development Corp. Under the terms of the agreement, as amended October 11, 1995, shareholders of Auromar would receive one (1) share of Casmyn Corp. common stock for two and six tenths (2.6) shares of Auromar common stock. The merger has been approved by the shareholders of Auromar Development Corp. The agreement has been approved by the British Columbia (Canada) Supreme Court. The Company anticipates that this transaction will be completed in the near future. 6. ZIMBABWE ACQUISITIONS Effective January 31, 1996, in accordance with the terms and conditions of a formal Purchase Agreement concluded in August 1995, the Company completed the acquisition of 100% of the shares of a group of five (5) private mining companies controlled by the Muir Family in Zimbabwe through E.W.B. Properties (Private) Limited ("EWB"). The total consideration for this acquisition was $4,071,415 million plus applicable taxes which are currently estimated at approximately $1,018,000. The acquisition includes several mining claims on producing gold mining properties covering approximately 1,200 hectares (approximately 2,965 acres) in the Bubi Greenstone Gold Belt of Zimbabwe. These properties include infrastructure, mining and milling equipment. In a separate transaction, also effective January 31, 1996, the Company completed the acquisition of a 100% interest in the Dawn Mine property from Olympus Gold Mines Ltd. in Zimbabwe for approximately $455,000. The Dawn Mine is adjacent to the mines acquired in the EWB transaction. The acquisitions were accounted for using the purchase method. The purchase price has been allocated to mineral properties. 7. PREFERRED STOCK On October 3, 1995, the Company converted 2,707,000 of its common shares held directly or beneficially by the Company's President, Chief Executive Officer and Chairman of the Board, into 2,707,000 Series A preferred shares. Each Series A preferred share is convertible, at the holder's option, into one share of the Company's common stock and is entitled to receive dividends equal to that of common shares, without preference. Preferred shares are entitled to vote with common shares with the further provision that each preferred share will be entitled to the equivalent of five (5) common share votes. 8. INVESTMENT IN AFFILIATES On May 24, 1996, the Company issued 606,061 commons shares in exchange for 5,680,514 common shares of WestAmerica Corporation ("WestAmerica"), approximately a 65% interest. WestAmerica is engaged in the oil and gas exploration and production business primarily in the states of Oklahoma and Texas. WestAmerica also engages in the securities and investment banking businesses through its ownership of WestAmerica Investment Group, Inc. and its subsidiary WIC, a registered broker dealer. The Company has accounted for the transaction using the equity method since the shares acquired are subject to a repurchase agreement by WestAmerica and have been placed in a voting trust controlled by an officer and director of WestAmerica. As such the Company exercises no effective control over the operations or management of WestAmerica, however, the Company has the ability to appoint two out of five board members. The transaction has been valued at approximately $6,970,000, which was calculated based upon an $11.50 per common share value for the Company's common stock. This value reflects a discount from recent similar sized transactions to compensate for the restricted nature of the shares issued in the transaction On May 7, 1996, the Company entered into a 50:50 joint venture with Newgold Incorporated, a private company based in Reno, Nevada, for the development of the Relief Canyon Mine located in Pershing County, Nevada. The Company had contributed $700,000 and recorded a payable of $698,000 for the remaining interest as of June 30, 1996. 9. SUMMARY OF EQUITY TRANSACTIONS During the nine months ended June 30, 1996, the Company has recorded the following activity in its equity accounts:
Additional Common Common Preferred Paid-in Description Shares Stock Stock Capital - ----------------------------------------------------------------------------- Balances September 30, 1995 8,604,637 $ 344,185 $ - $11,859,844 -------------------------------------------------- Conversion to preferred (2,707,000) ( 108,280) 270,700 ( 162,420) Private placement 750,000 30,000 - 8,779,862 Shares issued in lieu of interest 3,294 132 - 58,431 Deferred compensation - - - 364,560 Exercise of stock options 30,000 1,200 - 198,800 Shares issued for acquisition of affiliate 606,061 24,243 - 6,755,459 Purchase of treasury stock ( 1,500) - - - Foreign currency translation adjustment - - - - Net loss - - - - - ----------------------------------------------------------------------------- Balances at June 30, 1996 (unaudited) 7,285,492 $ 291,480 $ 270,700 $27,854,536 ============================================================================= Foreign Total Currency Stockholders' Accumulated Translation Treasury Equity Description Deficit Adjustment Stock (Deficiency) - ------------------------------------------------------------------------------- Balances September 30,1995 $(4,067,783) $ 7,350 $ - $ 8,143,596 ---------------------------------------------------- Conversion to preferred - - - - Private placement - - - 8,809,862 Shares issued in lieu of interest - - - 58,563 Deferred compensation - - - 364,560 Exercise of stock options - - - 200,000 Shares issued for acquisition of affiliate - - - 6,779,702 Purchase of treasury stock - - (25,000) ( 25,000) Foreign currency translation adjustment - (326,367) - ( 326,367) Net loss (4,333,311) - - (4,333,311) --------------------------------------------------- Balances at June 30, 1996 (unaudited) $(8,501,094) $(319,017) $(25,000) $19,571,605 ===================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS NINE MONTHS ENDED JUNE 30, 1996 COMPARED TO THE NINE MONTHS ENDED JUNE 30, 1995 Revenues for the nine months ended June 30, 1996, were $1,065,538 compared to $375,270 for the nine months ended June 30, 1995. The $690,268 increase was due to an increase of $317,512 in sales of water purification systems and $372,756 from the sale of gold produced in Zimbabwe. Overall gross profit for the nine months ended June 30, 1996 was 29% compared to 28% for the nine months ended June 30, 1995. Gross profit on water purification equipment sales was 32% for the nine month period ended June 30, 1996 compared to a loss in the same period ended June 30, 1995 due to lower freight charges and lower component costs. Gross profit on gold sales was 23.4% for the nine months ended June 30, 1996, there were no gold sales in the nine month period ended June 30, 1995. Costs and expenses were $5,448,216 for the nine months ended June 30, 1996, compared to $4,383,570 for the nine months ended June 30, 1995, an increase of $1,064,646. Compensation and benefits increased $394,757 for the nine month period ended June 30, 1996 compared to the nine month period ended June 30, 1995 due primarily to the Company recording $364,560 in compensation expense related to the granting of 246,000 non-qualified stock options and increased staff levels in the nine month period ended June 30, 1996 compared to the period ended June 30, 1995. Expenses related to professional services, primarily audit and legal increased by $341,556 in the nine month period ended June 30, 1996 compared to the nine month period ended June 30, 1995. Travel related expenses increased $261,781 in the nine month period ended June 30, 1996 compared to the nine month period ended June 30, 1995 due to increased trips to Africa, India and Vietnam related to the Company's operations in those countries. Mineral exploration expense and depreciation decreased a total of $321,826 in the nine month period ended June 30, 1996 compared to the nine months ended June 30, 1995 due to start up of limited gold production at the Zimbabwe mines. This decrease was offset by a increase in research and development related expenses of $53,345. Other general and administrative costs increased $335,033 for the nine months ended June 30, 1996 compared to 1995 due primarily to higher costs related to business activities in Vietnam, increased costs related to the U.S. rollout of water purification products and expenses incurred at the Zimbabwe mining properties. Other income, exclusive of minority interest, was $207,436 for the nine month period ended June 30, 1996, compared to $76,091 for the nine months ended June 30, 1995, an increase of $131,345. This increase was due primarily to interest income earned on short term investments made by the Company offset by interest expense. Minority interest in the net loss of VETI decreased by $1,492,526 for the nine months ended June 30, 1996 due to a limitation on the amount of loss which could be absorbed by the minority shareholders. The Company anticipates that expenditures related to upgrading the newly acquired mining properties in Zimbabwe will exceed revenues derived from the sale of gold from the mines. The Company is in the process of preparing a capital improvement budget for the Zimbabwe properties. Additionally, the Company anticipates that expense levels experienced in the nine months ended June 30, 1996 relating to active exploration programs in in various countries will continue for the foreseeable future. The Company charges to expense all mineral resource exploration and development costs until the mineral property to which they relate is determined to have proven reserves for which recovery is economically feasible. Costs are then capitalized until the mineral property to which they relate is placed into production, sold, abandoned or written down where there is an impairment in value. Capitalized costs are to be charged to future operations on a unit-of-production basis. The Company estimates that total gold resources at the Turk Mines are 5,000,000 ounces. Independent engineering studies are currently underway which may cause this estimate to change. The gold occurs in sulfides, oxides and old mill tailings. THREE MONTHS ENDED JUNE 30, 1996 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 1995 Revenues for the three months ended June 30, 1996 were $405,881 compared to $44,908 for the three months ended June 30, 1995. The $360,973 increase is due primarily to the sale of gold produced at the Zimbabwe mine of $267,378 and an increase in sales of water purification equipment Costs and expenses were $2,141,780 for the three months ended June 30, 1996 compared to $1,945,825 for the three months ended June 30, 1995, an increase of $195,955. Compensation and benefits increased $114,493 for the three month period ended June 30, 1996 compared to the three month period ended June 30, 1995 due primarily to $121,520 in compensation expense related to certain non-qualified stock options. Expenses related to professional services, primarily legal, audit and marketing increased by $121,339 in the three month period ended June 30, 1996 compared to the three month period ended June 30, 1995. Provision for impairment of foreign investments was $150,000 for the three months ended June 30,1996, there was no provsion in the three month period ended June 30, 1995. Depreciation and research and development expense increased marginally in the three months ended June 30, 1996 compared to the prior year three month period. These increases were partially offset by a decrease in mineral exploration expenses of $184,795 due to commencment of mining operations at the Zimbabwe mining properties. Minority interest in the net loss of VETI decreased by $875,600 for the three months ended June 30, 1996 due to a limitation on the amount of losses that could be absorbed by the minority shareholders. Other income, exclusive of minority interest, was $47,945 for the three month period ended June 30, 1996, compared to $755 for the three months ended June 30, 1995, an increase of $47,190. This increase is due to increased interest income on investments. CAPITAL RESOURCES AND LIQUIDITY At June 30, 1996, the Company's working capital was $4,516,863, including $5,473,211 in cash and cash equivalents. The Company's mineral resource development business segment has acquired certain mineral properties in South Africa and on January 31, 1996 concluded the acquisition of certain mining properties and assets in Zimbabwe for $4,526,415 cash plus applicable taxes of $1,017,854 to be paid upon assessment subject to certain adjustments. In addition, the water purification business segment has begun sales and marketing programs in North America and in various third world countries. Management anticipates that the net use of cash by operations will increase during the foreseeable future due to expenditures on mineral resource development projects in South Africa, mineral exploration and facility upgrades at the Zimbabwe mining properties and development of various markets for VETI's water purification technologies. The Company will use current cash and cash equivalents to fund the on-going projects in the short term and anticipates that it will be able to secure additional debt and/or equity financing, to fund longer term projects. As evidence of the Company's ability to secure debt and/or equity financing in the six month period ended March 31, 1996 the Company has received $8,815,555, net of commissions and other expenses related to the transaction, through issuance of 750,000 shares of restricted common stock in an exempt private transaction. Net Cash Used in Operating Activities. Net cash used in operating activities was $4,161,707 for the nine months ended June 30, 1996 compared to $4,547,789 for the nine months ended June 30, 1995. The decrease in net cash used in operations was due principally to a decrease in minority interest in the net loss of VETI of $1,492,526 offset by increases in the net loss because of active exploration programs conducted on mineral properties in fiscal 1996 and expenses related to sales of water purification systems. Net Cash Used in Investing Activities. Net cash used in investing activities was $10,645,680 for the nine months ended June 30, 1996 compared to net cash provided by investing activities of $605,018 for the nine months ended June 30, 1995. The increase in net cash used in investing activities was due to the purchase of certain mineral properties and assets in Zimbabwe, and purchases of equipment and improvements, primarily related to a water bottling plant under construction in Vietnam. Net Cash Provided by Financing Activities. Net cash provided by financing activities was $15,668,020 for the nine months ended June 30, 1996 compared to $2,864,398 for the nine months ended June 30, 1995. The increase is due to the Company receiving $15,791,780 from the collection of funds, net of costs, from private placements of common stock of the Company and VETI, offset by the repayment of long-term debt of $98,760 and the purchase of treasury stock of $25,000. The Company is organized with a relatively small, highly trained staff and anticipates that the overall staff level will remain low in the foreseeable future because the majority of mineral resource exploration and development activities are performed by independent contractors on a project by project basis. In addition, the Company employs approximately 300 people in its mining facilities in Zimabawe. The Company believes that these arrangements will not require a significant investment by the Company in either personnel or facilities. PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K A. Exhibits None B. Forms 8-K 1. The Company filed an 8-K on April 3, 1996, reporting that on March 29, 1996, through an offshore securities subscription agreement executed in reliance upon the "safe harbor" afforded by Regulation S as promulgated by the Securities and Exchange Commission, under the Securities Act of 1933, as amended, that it completed the sale 750,000 units for net proceeds of $8,892,090 to twelve (12) accredited foreign investors. Each unit consists of one share of the Company's common stock plus one warrant; two warrants plus $13.00 will entitle the holder to purchase one share of the Company's common stock. 2. The Company filed an 8-K on May 30, 1996 (amended July 18, 1996 to provide financial statements of WestAmerica and pro forma financial information), reporting that on May 24, 1996, it acquired 5,680,514 shares of restricted common stock of WestAmerica Corporation ("WestAmerica") for 606,061 shares of its restricted common stock. The transaction results in the Company holding approximately 65% of the outstanding common stock of WestAmerica. The Company has delivered an irrevocable proxy to a director of WestAmerica to vote these restricted shares, as a result the Company has not obtained voting control of WestAmerica howeverthe Company will account for the transaction using the equity method. SIGNATURES 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 hereunto duly authorized. Casmyn Corp. /s/ Dennis E. Welling October 8, 1996 By _____________________________ Dennis E. Welling, Controller EX-27 2 FINANCIAL DATA SCHEDULE
5 0000772320 CASMYN CORP. 1,000 9-MOS SEP-30-1996 OCT-01-1995 JUN-30-1996 5473 0 226 0 1750 7584 3173 (228) 27504 2931 0 5000 271 291 19009 27405 1066 1066 757 757 5448 0 136 (4433) 0 (4433) 0 0 0 (4433) (.71) (.71)
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