GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
CONSOLIDATED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(UNAUDITED – PREPARED BY MANAGEMENT)
The financial statements for the three-month period ended November 30, 2009
have not been reviewed by the Company’s auditors.
GOLDEN GOLIATH RESOURCES LTD. |
(An Exploration Stage Company) |
CONSOLIDATED BALANCE SHEETS |
| |
| | | |
| | NOVEMBER 30 | AUGUST 31 |
| | 2009 | 2009 |
| | (Unaudited) | |
| | |
|
|
ASSETS | |
| |
|
| | |
| |
|
Current | |
| |
|
Cash | $ | 199,148 | $ | 169,781 |
Short-term investments (Note 4) | | 230,000 | | 405,000 |
Accounts receivable (Note 5) | | 62,547 | | 164,327 |
Prepaid expenses | | 6,245 | | 13,149 |
| | | 497,940 | | 752,257 |
| | |
| |
|
Exploration Advances | | 10,961 | | 23,461 |
Mineral Property Acquisition Costs (Note 6) | | 334,773 | | 334,773 |
Mineral Property Exploration Costs (Note 6) | | 7,123,904 | | 7,007,530 |
Property and Equipment (Note 7) | | 99,013 | | 104,200 |
| | | | | |
| | $ | 8,066,591 | $ | 8,222,221 |
| | | | | |
LIABILITIES | | | | |
| | | | | |
Current | | | | |
Accounts payable and accrued liabilities | $ | 70,661 | $ | 39,879 |
| | | | | |
Employment Benefit Obligations | | 26,000 | | 26,000 |
| | | 96,661 | | 65,879 |
| | | | | |
SHAREHOLDERS’ EQUITY | | | | |
| | | | | |
Share Capital (Note 8) | | 19,133,783 | | 19,133,783 |
| | | | | |
Contributed Surplus(Note 8) | | 1,569,184 | | 1,569,184 |
| | | | | |
Deficit | | (12,733,037) |
| (12,546,625) |
| | | 7,969,930 | | 8,156,342 |
| | | | | |
| | $ | 8,066,591 | $ | 8,222,221 |
Approved on behalf of the Board of Directors: |
| | | |
“J. Paul Sorbara” | | “Stephen W. Pearce” |
Director | | Director |
The accompanying notes are integral part of these consolidated financial statements.
GOLDEN GOLIATH RESOURCES LTD. |
(An Exploration Stage Company) |
| |
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT |
(Unaudited) |
| |
| | THREE MONTHS PERIOD ENDED |
| | NOVEMBER 30 |
| | 2009 | 2008 |
| | | |
Expenses |
|
|
| |
|
|
Amortization | $ 5,411 | $ 6,307 |
Automobile | 759 | 641 |
Foreign exchange (gain)/loss | 6,650 | (3,853) |
Management fees | 30,000 | 30,000 |
Consulting fees | 36,321 | 15,000 |
Office and general | 17,755 | 20,117 |
Professional fees | 16,570 | 35,000 |
Investor relations | 4,930 | 14,000 |
Rent and utilities | 13,380 | 15,627 |
Transfer agent and filing fees | 1,726 | 812 |
Travel | 8,361 | 18,328 |
Wages and benefits | 47,547 | 59,258 |
Loss before The Following | 189,410 | 211,237 |
| | | |
Gain from sale of fixed assets | - | (2,302) |
Interest Income | (2,998) | (26,429) |
| |
|
|
Net Loss for the Period | 186,412 | 182,506 |
| | | |
Deficit, Beginning of Period | 12,546,625 | 10,350,442 |
| | | |
Deficit, End of Period | $12,733,037 | $10,532,948 |
| |
|
|
Loss per Share – Basic And Diluted | $ (0.003) | $ (0.003) |
| | | |
Weighted Average Number of Common Shares Outstanding – Basic and Diluted |
60,934,037 |
60,934,037 |
The accompanying notes are integral part of these consolidated financial statements.
GOLDEN GOLIATH RESOURCES LTD. |
(An Exploration Stage Company) |
| |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
| |
THREE MONTHS PERIOD ENDED |
| | NOVEMBER 30 |
| | 2009 | 2008 |
| | | |
Cash Provided By (Used For) | |
|
| | |
|
Operating Activities | |
|
Net loss for the period | $ (186,412) | $ (182,506) |
Items not affecting cash: |
|
|
Amortization | 5,411 | 6,307 |
Gain on sale of property and equipment | - | (2,302) |
Change in non-cash working capital items: | | |
Accounts receivable | 101,780 | 61,653 |
Accounts payable and accrued liabilities | 30,782 | (224,599) |
Prepaid expenses | 6,904 | 15,361 |
| | (41,535) | (326,086) |
| |
|
|
Investing Activities |
|
|
Exploration Advances | 12,500 | -
|
Expenditures on mineral properties | (116,374) | (752,132) |
Proceeds from redemption of short term investments | 175,000 | 1,199,366 |
Proceeds from disposal of fixed assets | - | 5,276 |
Purchase of property and equipment | (224) | (20,992) |
| | $ 70,902 | $ 431,518 |
| |
|
|
Increase in Cash | 29,367 | 105,432 |
| | | |
Cash And Cash Equivalents, Beginning Of Period | 169,781 | 119,831 |
| | | |
Cash And Cash Equivalents, End Of period | $ 199,148 | $ 225,263 |
| |
|
|
| |
|
|
The accompanying notes are integral part of these consolidated financial statements.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
1.
GOING CONCERN AND NATURE OF OPERATIONS
Golden Goliath Resources Ltd. (the “Company”) was incorporated under the Company Act of British Columbia on June 12, 1996. The Company is a public company listed on the Toronto Stock Venture Exchange (the “TSX.V”), trading under the “GNG” symbol.
The Company’s principal business activity is the exploration of mineral properties in Mexico. The Company has not yet determined whether these properties contain reserves that are economically recoverable.
These interim consolidated financial statements have been prepared on a going-concern basis, which implies that the Company will continue realizing its assets and discharging its liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities, contingent obligations and commitments in other than the normal course of business and at amounts different from those in these financial statements.
The Company had a loss of $186,412 for the three months ended November 30, 2009, and the Company had a working capital, defined as current assets less current liabilities, as at November 30, 2009, of $401,279, with an accumulated deficit of $12,733,037.
Without additional external funding to meet existing obligations and to finance further exploration and development work on its mineral properties, there is substantial doubt as to the Company’s ability to continue as a going concern. Although the Company has been successful securing financing to date, there can be no assurance that additional funding will be available in the future. The interim consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities that would be necessary if the Company were unable to achieve profitable mining operations or obtain adequate financing. Such adjustments could be material.
The recoverability of amounts shown for mineral properties is dependent upon the discovery of economically recoverable reserves, confirmation of the Company’s interest in the underlying mineral concessions, the ability of the Company to obtain financing to complete the development, and to attain future profitable production from the properties or proceeds from disposition.
2.
SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (“GAAP”) as prescribed by The Canadian Institute of Chartered Accountants (“CICA”).
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
2.
SIGNIFICANT ACCOUNTING POLICIES(continued)
a)
Basis of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Minera Delta S.A. de C.V. of Mexico, and 4247 Investments Ltd. of British Columbia. Significant inter-company balances and transactions have been eliminated on consolidation.
b)
Basis of presentation
The accompanying consolidated financial statements for the interim periods ended November 30, 2009 and 2008, are prepared on the basis of accounting principles generally accepted in Canada and are unaudited, but in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for fair presentation of the financial position, operations and changes in financial results for the interim periods presented. The financial statements for the interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements do not contain the detail or footnote disclosure concerning accounting policies and other matters, which would be included in full year financial statements, and therefore should be read in conjunction with the Company’s audited consolidated financial statements for the year ended August 31, 2009. The accounting policies f ollowed by the Company are set out in Note 2 to the audited financial statements for the year ended August 31, 2009, and have been consistently followed in the preparation of these financial statements except that the Company has adopted the following Canadian Institute of Chartered Accountants guidelines effective for the Company’s first interim period commencing September 1, 2009:
3.
NEWLY ADOPTED ACCOUNTING POLICIES
i)
Section 1535,Capital Disclosures, requires the disclosure of both qualitative and quantitative information that enables users of financial statements to evaluate the Company’s objectives, policies and processes for managing capital. Under this standard, the Company will be required to disclose the following:
•
qualitative information about its objectives, policies and processes for managing capital;
•
summary quantitative data about what it manages as capital;
•
whether during the period it complied with any externally imposed capital requirement to which it is subject; and
•
when the Company has not complied with such externally imposed capital requirements, the consequences of such non-compliance.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
3.
NEWLY ADOPTED ACCOUNTING POLICIES (Continued)
ii) Section 3862, Financial Instruments – Disclosures; and Section 3863, Financial Instruments – Presentation consist of a comprehensive series of disclosure requirements and presentation rules applicable to financial instruments. Section 3862 revises and enhances the disclosure requirements for financial instruments and Section 3863 carries forward unchanged the presentation requirements.
Section 3862 requires the Company to provide disclosures in its financial statements that enable users to evaluate:
•
the significance of financial instruments for the Company’s financial position and performance;
•
the nature and extent of risks arising from financial instruments to which the Company is exposed during the period and at the balance sheet date; and
•
how the Company manages those risks.
iii) On June 1, 2007, the Emerging Issues Committee of the CICA issued Abstract No. 166, “Accounting Policy Choice for Transaction Costs” (“EIC-166”). This EIC addresses the accounting policy choice of expensing or adding transaction costs related to the acquisition of financial assets and financial liabilities that are classified as other than held-for-trading. Specifically, it requires that the same accounting policy choice be applied to all similar financial instruments classified as other than held-for-trading, but permits a different policy choice for financial instruments that are not similar. The Company has adopted EIC-166 effective June 1, 2007, which requires retroactive application to all transaction costs accounted for in accordance with CICA Handbook Section 3855, Financial Instruments – Recognition and Measurement. The Company has evaluated the impact of EIC-166 and determined that no adjustments were required.
iv)
The CICA approved amendments to CICA Handbook Section 1400 “General Standards of Financial Statement Presentation”. These amendments require management to assess an entity’s ability to continue as a going concern. When management is aware of material uncertainties related to events or conditions that may cast doubt on an entity’s ability to continue as a going concern, those uncertainties must be disclosed. In assessing the appropriateness of the going concern assumption, the standard requires management to consider all available information about the future, which is at least, but not limited to, twelve months from the balance sheet date. The new requirements of the standard are applicable for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2008.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
3.
NEWLY ADOPTED ACCOUNTING POLICIES (Continued)
v)
Effective September 1, 2008, the Company implemented CICA handbook section 3064, “Goodwill and intangible assets”, which establishes revised standards for recognition, measurement, presentation and disclosure of goodwill and intangible assets by profit-oriented enterprises. The adoption of this new standard did not have a material impact on the Company’s financial statements.
4.
SHORT-TERM INVESTMENTS
As at November 30, 2009, short–term investments in the amount of $ 230,000 (August 31, 2009 - $405,000) were comprised of Canadian investments in guaranteed investment certificates maturing on May 21, 2010 and effective interest rates of 0.7% (August 31, 2009 – 0.7%).
5.
ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following:
| | November 30 | August 31 |
| | 2009 | 2009 |
| | | |
Sales taxes recoverable | $ 15,081 | $ 75,084 |
Interest receivable | 447 | 792 |
Other receivable | 47,019 | 88,451 |
| | $ 62,547 | $ 164,327 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
6.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS
State of Chihuahua, Mexico
| | | | | LOS HILOS | | | | |
| | | | | LAS BOLAS | | | | |
| | | | | EL MANTO | | | | |
| | SAN | OTEROS | BUFALO | DON LAZARO | NOPALERA | | TOTAL | TOTAL |
| | TIMOTEO | LA | LA HERMOSA | AMPLIACION | FLOR DEL | | NOVEMBER 30 | NOVEMBER 30 |
Three months ended November 30, 2008 | ORO LEON | ESPERANZA | LA BARRANCA | LA VERDE | TRIGO | OTHERS | 2009 | 2008 |
| | |
| |
| |
| |
| |
| |
|
Acquisition costs | $ | -
| $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -
|
| |
| |
| |
| |
| |
| |
|
|
|
|
|
|
Exploration costs |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Assaying |
| - |
| -
|
| -
|
| 15,686 |
| -
| | - |
| 15,686 |
| 109,354 |
Drilling |
| -
|
| -
|
| -
|
| -
|
| -
| | - |
| -
|
| 499,284 |
Geology and mapping |
| -
|
| -
|
| -
|
| 48,315 |
| -
| | - |
| 48,315 |
| 24,577 |
Property taxes and passage rights |
| -
|
| -
|
| -
|
| -
|
| -
| | -
|
| -
|
| 6,786 |
Salaries |
| -
|
| -
|
| -
|
| -
|
| -
| | -
|
| -
|
| 12 |
Travel |
| -
|
| -
|
| 49 | | 4,130 |
| -
| | 3,058 |
| 7,237 |
| 7,322 |
Road construction and site preparation |
| -
|
| -
|
| -
|
| -
|
| -
| | -
|
| -
|
| 27,872 |
Facilities and other |
| |
| -
|
| 2,103 |
| 9,332 |
| -
| | 33,701 |
| 45,136 |
| 76,924 |
Current costs | | 0 |
| 0 |
| 2,152 |
| 77,463 |
| 0 |
| 36,759 |
| 116,374 |
| 752,131 |
Balance, beginning of period | | 3,544,085 |
| 13,889 |
| 45,285 |
| 3,099,105 |
| 356,063 |
| 283,876 |
| 7,342,303 |
| 7,784,382 |
Balance, end of period | $ | 3,544,085 | $ | 13,889 | $ | 47.437 | $ | 3,176,568 | $ | 356,063 | $ | 320,635 | $ | 7,458,677 | $ | 8,536,513 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Costs summary | | | | | | | | | | | | | | | | |
Acquisition | $ | 69,257 | $ | -
| $ | -
| $ | 187,123 | $ | 3,393 | $ | 75,000 | $ | 334,773 | $ | 334,773 |
Exploration | $ | 3,474,828 | $ | 13,889 | $ | 47,437 | $ | 2,989,445 | $ | 352,670 | $ | 245,635 | $ | 7,123,904 | $ | 8,201,740 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
6. MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS(Continued)
State of Chihuahua, Mexico
OTHERS
| | | | | | | | | OTHERS |
| | | | | | | | | TOTAL |
| | NUEVA | LA | | | | | | NOVEMBER 30 |
Three months ended November 30, 2008 | UNION | REFORMA | CORONA | BECK | EL CHAMIZAL | EL CANARIO | LA CRUZ | 2009 |
| | |
| |
| |
| | | |
|
Acquisition costs | $ | -
| $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| |
|
|
| |
| |
| |
|
|
|
|
|
|
|
|
Exploration costs |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Assaying |
| -
|
| -
|
| - |
| - |
| - |
| - | | - |
| - |
Drilling |
| -
|
| -
|
| - |
| - |
| - | | - | | - |
| - |
Geology and mapping |
| -
|
| -
|
| - |
| - |
| - | | - | | - |
| - |
Property taxes and passage rights |
| -
|
| -
|
| -
|
| |
| | | | | - |
| - |
Salaries |
| -
|
| -
|
| -
|
| - |
| - |
| - | | - |
| - |
Travel |
| 1,471 |
| -
| | -
|
| 570 |
| - |
| - | | 1,017 |
| 3,058 |
Road construction and site preparation |
| -
|
| -
|
| -
|
| - |
| - |
| - | | - |
| - |
Facilities and other |
| 3,766 |
| 523 |
| -
|
| 4,978 |
| - |
| 9,325 | | 15,109 |
| 33,701 |
Current costs |
| 5,237 |
| 523 |
| 0 |
| 5,548 |
| 0 |
| 9,325 |
| 16,126 |
| 36,759 |
Balance, beginning of year |
| 143,489 |
| 75,000 |
| 35,473 |
| 3,007 |
| 15,445 |
| 8,650 |
| 2,812 |
| 283,876 |
Balance, end of year | $ | 148,726 | $ | 75,523 | $ | 35,473 | $ | 8,555 | $ | 15,445 | $ | 17,975 | $ | 18,938 | $ | 320,635 |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Costs summary | | | | | | | | | | | | | | | | |
Acquisition | $ | -
| $ | 75,000 | $ | -
| $ | - | $ | - | $ | - | $ | - | $ | 75,000 |
Exploration | $ | 148,726 | $ | 523 | $ | 35,473 | $ | 8,555 | $ | 15,445 | $ | 17,975 | $ | 18,938 | $ | 245,635 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
6. MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS(Continued)
State of Chihuahua, Mexico
| | | | | | | BUFALO | LOS HILOS | | | |
| | | | | | | LA | LAS BOLAS | NOPALERA | | |
| | | | | | | HERMOSA | EL MANTO | FLOR DEL | | |
| | SAN | | | | OTEROS | LA BARRANCA | DON LAZARO | TRIGO | TOTAL | TOTAL |
| | TIMOTEO | NUEVA | LA | | LA | BECK | AMPLIACION | EL CANARIO | AUGUST 31 | AUGUST 31 |
| | ORO LEON | UNION | REFORMA | CORONA | ESPERANZA | EL CHAMIZAL | LA VERDE | LA CRUZ | 2009 | 2008 |
| | |
| |
| |
| |
| | | |
| |
|
Acquisition costs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ |
| $ |
| $ |
| $ | - |
| | | | |
| | | | | | | |
| |
| |
| |
| |
|
Exploration costs | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
Assaying | | 58,255 | | - | | - | | - | | - | | - | | 94,154 | | - | | 152,409 | | 382,773 |
Drilling | | - | | - | | - | | - | | - | | - | | 434,750 | | - | | 434,750 | | 2,750,769 |
Geology and mapping | | 12,534 | | 350 | | - | | - | | - | | - | | 79,580 | | - | | 92,464 | | 267,914 |
Property taxes and passage rights | | 2,288 | | 591 | | 10,233 | | - | | 2,214 | | 16,068 | | 4,340 | | 12,091 | | 47,825 | | 58,938 |
Salaries | | - | | 11 | | - | | - | | - | | - | | 238 | | - | | 249 | | 78,808 |
Travel | | 6,629 | | 8,078 | | - | | - | | - | | 509 | | 16,257 | | 8 | | 31,481 | | 11,688 |
Road construction and site preparation | | 6,041 | | - | | 5,832 | | - | | - | | - | | 29,355 | | - | | 41,228 | | 198,084 |
Facilities and other | | 17,246 | | 22,566 | | - | | - | | - | | 10,823 | | 140,052 | | 2,488 | | 193,175 | | 272,384 |
Current costs | | 102,993 | | 31,596 | | 16,065 | | - | | 2,214 | | 27,400 | | 798,726 | | 14,587 | | 993,581 | | 4,021,358 |
Write down | | - | | - | | (1,435,660) | | - | | - | | - | | - | | - | | (1,435,660) | | - |
Balance, beginning of year | | 3,441,092 | | 111,893 | | 1,494,595 | | 35,473 | | 11,675 | | 36,337 | | 2,300,379 | | 352,938 | | 7,784,382 | | 3,763,023 |
Balance, end of year | $ | 3,544,085 | $ | 143,489 | $ | 75,000 | $ | 35,473 | $ | 13,889 | $ | 63,737 | $ | 3,099,105 | $ | 367,525 | $ | 7,342,303 | $ | 7,784,381 |
| | | | | | | | | | | | | | | | | | | | |
|
Costs summary | | | | | | | | | | | | | | | | | | | |
|
Acquisition | $ | 69,257 | $ | - | $ | 75,000 | $ | - | $ | - | $ | - | $ | 187,123 | $ | 3,393 | $ | 334,773 | $ | 334,773 |
Exploration | $ | 3,474,828 | $ | 143,489 | $ | - | $ | 35,473 | $ | 13,889 | $ | 63,737 | $ | 2,911,982 | $ | 364,132 | $ | 7,007,530 | $ | 7,449,608 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
6.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS (Continued)
The Company has an extensive property portfolio of mining concessions, acquired mainly through staking, in the Uruachic District of Mexico covering approximately 10,000 hectares. The Company has various net smelter returns on specific claims forming a part of the Company’s properties. The net smelter returns range from 1% to 3%, which have buyouts ranging from US$250,000 to US$2,000,000.
In September 2007, the Company optioned a 60% interest in La Cruz Property to a company which undertook to make cash payments to the Company totaling US $300,000 (40,000 received) and spend US $450,000 on the property over a period of three years. The agreement was terminated in 2008.
In April 2007, the Company signed an agreement to acquire the Todos Santos 50 hectare mining concession for approximately $25,000. In April 2007 and July 2007, the Company paid $9,754 to bring the property into good standing with the Mexican authorities and paid $15,000 to complete the acquisition.
In May 2007 and amended October 2007, the Company optioned the Corona and El Chamizal properties to a company which undertook to spend $500,000 and $200,000 on the respective properties over a period of three years and issue 300,000 and 150,000 shares respectively to the Company over a period of three years from when the company lists its shares on a stock exchange. As of November 30, 2009 the shares have not been listed on the stock exchange or been received.
7.
PROPERTY AND EQUIPMENT
| | NOVEMBER 30, 2009 |
| |
| ACCUMULATED |
|
| | COST | AMORTIZATION | NET |
Equipment | $ | 71,340 | $ | 38,001 | $ | 33,339 |
Vehicles | | 91,416 |
| 44,659 |
| 46,757 |
Land | | 18,917 |
| - |
| 18,917 |
| | | |
|
|
| |
| | $ | 181,673 | $ | 82,660 | $ | 99,013 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
7.
PROPERTY AND EQUIPMENT(continued)
| | AUGUST 31, 2009 |
| |
| ACCUMULATED |
|
| | COST | AMORTIZATION | NET |
Equipment | $ | 71,117 | $ | 36,758 | $ | 34,359 |
Vehicles | | 91,415 |
| 40,491 |
| 50,924 |
Land | | 18,917 |
| - |
| 18,917 |
| | | |
| |
| |
| | $ | 181,449 | $ | 77,249 | $ | 104,200 |
8.
SHARE CAPITAL
Authorized
The authorized share capital of the Company consists of an unlimited number of common shares without par value.
Issued and Fully Paid
| | NUMBER OF SHARES |
AMOUNT |
| |
| |
|
Balance, August 31, 2007 | 60,754,037 | | 18,905,829 |
| | | | |
Issued for options exercised | 180,000 | | 45,000 |
Fair value of options allocated to shares on exercise | - | | 182,954 |
| | | | |
Balance, August 31 and November 30, 2009 | 60,934,037 | $ | 19,133,783 |
a)
Outstanding Warrants
As at November 30, 2009, the Company had no share purchase warrants outstanding.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
8.
SHARE CAPITAL (Continued)
b)
Stock Options
A summary of changes in stock options is presented below:
| | | WEIGHTED |
| | NUMBER | AVERAGE |
| | OF | EXERCISE |
| | SHARES | PRICE |
| | | |
|
Balance, August 31, 2008 | 4,925,000 | $ | 0.36 |
Expired | (430,000) | | 0.36 |
Granted | 1,150,000 | | 0.10 |
Cancelled | (175,000) | | 0.38 |
Balance, August 31, 2009 | 5,470,000 | $ | 0.31 |
Expired | (515,000) | | 0.30 |
Balance, November 30, 2009 | 4,955,000 | $ | 0.31 |
The following summarizes information about stock options outstanding at November 30, 2009:
OPTIONS OUTSTANDING | | OPTIONS EXERCISABLE |
| | WEIGHTED | | | | |
| | AVERAGE | WEIGHTED | | | WEIGHTED |
NUMBER | REMAINING | AVERAGE | | NUMBER | AVERAGE |
OF | CONTRACTUAL | EXERCISE | | OF | EXERCISE |
OPTIONS | LIFE | PRICE | | OPTIONS | PRICE |
| | | | | | | |
4,955,000 | 2.29 years | $0.31 | | 4,955,000 | $ | 0.31 |
c)
Contributed Surplus
The following table summarizes the Company’s Contributed Surplus:
Balance, August 31, 2008 | $ 1,511,676 |
Stock options granted | 57,507 |
| | |
Balance, August 31, and November 30, 2009 | $ 1,569,183 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009 AND 2008
(Unaudited – prepared by management)
9.
RELATED PARTY TRANSACTIONS
a)
Accounts payable and accrued liabilities include $30 (2008 - $nil) due to a company controlled by a director.
b)
During the three months ended November 30, 2009, the Company paid $30,000 (2008 - $30,000) recorded as management fees for geological and management services to a company controlled by a director.
c)
During the three months ended November 30, 2009, the Company paid $11,426 (2008 - $13,893) in respect of office and administration costs to a management company controlled by a director of the Company.
d) During the three months ended November 30, 2009, the Company paid $15,000 (2008 - $15,000) in consulting fees to a director of the Company.
10.
SUBSEQUENT EVENTS
On December 14, 2009, the Company announced an amendment to a private placement previously announced October 5, 2009. The total number of units was increased from 20,000,000 to 25,000,000 units at a price of $0.15 per unit. Each unit will consist of one common share and one half of one share purchase with each whole warrant entitling the holder to purchase one additional common share for a period of two years at a price of $0.25. Once resale restrictions on the shares have expired and upon the Company’s shares trading at or above a weighted average trading price of $0.40 for 20 consecutive trading days, the Company may give notice that the warrants will expire 30 days from the date of providing such notice (in writing to warrant holders and via a news release). Finder’s fees of 8% cash and 8% warrants having the same terms as the warrants under the units may be paid. The financing is s ubject to regulatory approval.
The Company closed the first tranche of the private placement on January 22, 2010 issuing 12,641,466 shares and 6,320,733 warrants for total consideration of $1,896,220.
