Exhibit C
GOLDEN OASIS EXPLORATION CORP.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited)
THE ACCOMPANYING FINANCIAL STATEMENTS FOR THE QUARTER ENDED JANUARY 31, 2008 HAVE NOT BEEN REVIEWED OR AUDITED BY THE CORPORATION’S AUDITORS.
GOLDEN OASIS EXPLORATION CORP.
INTERIM CONSOLIDATED BALANCE SHEETS
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited)
| ASSETS | | January 31, | | | July 31, | |
| | | 2008 | | | 2007 | |
| |
| Current | | | | | | |
| Cash and equivalents | $ | 280,339 | | $ | 777,667 | |
| Short term investments | | - | | | 502,324 | |
| Prepaid expenses and deposits | | 17,713 | | | 16,226 | |
| Goods and services tax receivable | | 7,735 | | | 15,054 | |
| |
| | | 305,787 | | | 1,311,271 | |
| Equipment and leaseholds – Note 3 | | 25,033 | | | 28,423 | |
| Reclamation Bond | | 66,821 | | | 66,821 | |
| Resource properties – Notes 4 and 6 | | 2,862,639 | | | 1,951,578 | |
| |
| | $ | 3,259,989 | | $ | 3,358,093 | |
| |
| LIABILITIES | | | | | |
| |
| Current | | | | | | |
| Accounts payable and accrued liabilities | $ | 19,881 | | $ | 42,722 | |
| Asset retirement obligation – Note 4 | | 59,059 | | | 27,005 | |
| |
| | | 78,940 | | | 69,727 | |
| |
| SHAREHOLDERS’ EQUITY | | | | | |
| |
| Share capital – Notes 4, 5 and 6 | | 4,285,285 | | | 4,183,285 | |
| Contributed Surplus – Note 5 | | 746,718 | | | 746,718 | |
| Deficit | | (1,850,954 | ) | | (1,641,637 | ) |
| |
| | | 3,181,049 | | | 3,288,366 | |
| |
| | $ | 3,259,989 | | $ | 3,358,093 | |
Nature of Operations – Note 1
Commitments – Notes 4, 5 and 7
Subsequent events – Note 8
| | | | |
APPROVED BY THE DIRECTORS: | | |
| | |
| | |
| | |
(sgd) “Robert Eadie” | Director | | (sgd) “Gary Arca” | Director |
| | |
GOLDEN OASIS EXPLORATION CORP.
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
for the three and six months ended January 31, 2008 and 2007
(Stated in Canadian Dollars)
(Unaudited)
| | | Three months | | | Six months | |
| | | ended January 31, | | | ended January 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| |
| Expenses | | | | | | | | | | | | |
| Accounting and audit fees | $ | - | | $ | - | | $ | 4,310 | | $ | 15,550 | |
| Amortization | | 1,695 | | | 1,993 | | | 3,390 | | | 1,993 | |
| Bank charges and interest | | 289 | | | 41 | | | 985 | | | 788 | |
| Consulting fees – Note 6 | | 22,121 | | | 17,900 | | | 33,516 | | | 46,575 | |
| Insurance | | 4,392 | | | 2,700 | | | 6,567 | | | 5,450 | |
| Legal fees | | 3,683 | | | 60 | | | 17,611 | | | 1,119 | |
| Management fees – Note 6 | | 18,000 | | | 15,000 | | | 36,000 | | | 30,000 | |
| Office and miscellaneous | | 18,969 | | | 23,929 | | | 45,075 | | | 57,165 | |
| Rent – Note 6 | | 7,438 | | | 3,784 | | | 11,304 | | | 7,537 | |
| Shareholder communications | | 11,496 | | | 13,605 | | | 28,289 | | | 132,705 | |
| Transfer agent and filing fees | | 7,568 | | | 6,189 | | | 9,724 | | | 26,606 | |
| Travel | | 4,592 | | | 14,825 | | | 12,530 | | | 42,469 | |
| |
| Loss for the period before other items | | (100,243 | ) | | (100,026 | ) | | (209,301 | ) | | (359,291 | ) |
| Other items | | | | | | | | | | | | |
| Foreign exchange gain (loss) | | 2,478 | | | 980 | | | (6,339 | ) | | (3,247 | ) |
| Interest and investment income | | 2,012 | | | 31,243 | | | 6,323 | | | 55,607 | |
| |
| | | 4,490 | | | 32,223 | | | 16 | | | 52,360 | |
| |
| Net loss for the period | | (95,753 | ) | | (67,803 | ) | | (209,317 | ) | | (306,931 | ) |
| |
| Deficit, beginning of period | | (1,755,201 | ) | | (1,417,664 | ) | | (1,641,637 | ) | | (1,178,536 | ) |
| |
| Deficit, end of period | $ | (1,850,954 | ) | $ | (1,485,467 | ) | $ | (1,850,954 | ) | $ | (1,485,467 | ) |
| |
| Basic and diluted loss per share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) |
| |
| Weighted average number of shares outstanding | | 18,054,471 | | | 17,754,471 | | | 18,031,645 | | | 17,681,645 | |
SEE ACCOMPANYING NOTES
GOLDEN OASIS EXPLORATION CORP.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
for the three and six months ended January 31, 2008 and 2007
(Stated in Canadian Dollars)
(Unaudited)
| | | Three months | | | Six months | |
| | | ended January 31, | | | ended January 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| |
| Cash Flows from Operating Activities | | | | | | | | | | | | |
| Net loss for the period | $ | (95,753 | ) | $ | (67,803 | ) | $ | (209,317 | ) | $ | (306,931 | ) |
| Non-cash item: | | | | | | | | | | | | |
| Amortization | | 1,695 | | | 1,993 | | | 3,390 | | | 3,986 | |
| Foreign exchange | | (1,504 | ) | | - | | | (1,587 | ) | | - | |
| |
| | | (92,554 | ) | | (65,810 | ) | | (207,514 | ) | | (302,945 | ) |
| Changes in non-cash working capital items: | | | | | | | | | | | | |
| Prepaid expenses and deposits | | (10,899 | ) | | 4,287 | | | (1,487 | ) | | (3,166 | ) |
| Goods and services tax receivable | | 6,287 | | | (3,566 | ) | | 7,319 | | | 1,762 | |
| Accounts payable and accrued liabilities | | (27,240 | ) | | (22,061 | ) | | (22,841 | ) | | (15,359 | ) |
| |
| | | (124,406 | ) | | (87,150 | ) | | (224,523 | ) | | (319,708 | ) |
| |
| Cash Flows used in Investing Activities | | | | | | | | | | | | |
| Resource properties | | (186,110 | ) | | (157,195 | ) | | (775,129 | ) | | (710,451 | ) |
| Equipment and leaseholds | | - | | | - | | | - | | | (3,828 | ) |
| |
| | | (186,110 | ) | | (157,195 | ) | | (775,129 | ) | | (714,279 | ) |
| |
| Cash Flows from Financing Activity | | | | | | | | | | | | |
| Short term investments | | - | | | - | | | 502,324 | | | - | |
| Issuance of common shares | | - | | | - | | | - | | | - | |
| |
| | | - | | | - | | | 502,324 | | | - | |
| |
| Increase (decrease) in cash and equivalents | | (310,516 | ) | | (244,345 | ) | | (497,993 | ) | | (1,033,987 | ) |
| |
| Cash and equivalents, beginning of period | | 590,855 | | | 2,396,549 | | | 777,667 | | | 3,186,191 | |
| |
| Cash and equivalents, end of period | $ | 280,339 | | $ | 2,152,204 | | $ | 280,339 | | $ | 2,152,204 | |
| |
| Supplementary disclosure of cash flow | | | | | | | | | | | | |
| information | | | | | | | | | | | | |
| Cash paid for: | | | | | | | | | | | | |
| Interest | $ | - | | $ | - | | $ | - | | $ | - | |
| |
| Income taxes | $ | - | | $ | - | | $ | - | | $ | - | |
Non-cash Transactions – Note 4
SEE ACCOMPANYING NOTES
GOLDEN OASIS EXPLORATION CORP.
INTERIM CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
for the period November 2, 2004 (Date of Incorporation) to January 31, 2008
(Stated in Canadian Dollars)
(Unaudited)
| | | | | | | | | Contributed | | | | | | | |
| | | Shares | | | Amount | | | Surplus | | | Deficit | | | Total | |
| |
| Issued for cash | | | | | | | | | | | | | | | |
| At incorporation | - at $1 | 1 | | $ | 1 | | $ | - | | $ | - | | $ | 1 | |
| Pursuant to private placements: | - at $0.01 | 3,000,000 | | | 30,000 | | | - | | | - | | | 30,000 | |
| | - at $0.10 | 4,710,000 | | | 471,000 | | | - | | | - | | | 471,000 | |
| Net loss for the period ended July 31, 2005 | - | | | - | | | - | | | (77,962 | ) | | (77,962 | ) |
| |
| Balance, July 31, 2005 | | 7,710,001 | | | 501,001 | | | - | | | (77,962 | ) | | 423,039 | |
| Issued for cash pursuant to: | | | | | | | | | | | | | | | |
| Initial Public Offering | - at $0.40 | 4,000,000 | | | 1,600,000 | | | - | | | - | | | 1,600,000 | |
| Private placements | - at $0.10 | 20,000 | | | 2,000 | | | - | | | - | | | 2,000 | |
| | - at $0.25 | 314,000 | | | 78,500 | | | - | | | - | | | 78,500 | |
| | -at $0.45 | 5,150,000 | | | 2,317,500 | | | - | | | - | | | 2,317,500 | |
| Exercise of agent’s warrants | - at $0.50 | 8,750 | | | 4,375 | | | - | | | - | | | 4,375 | |
| Issued for agent’s commission | | 251,720 | | | 106,274 | | | - | | | - | | | 106,274 | |
| Agent’s warrants commission charge | | - | | | 564,912 | | | - | | | - | | | 564,912 | |
| Share issue costs | | | | | (1,093,277 | ) | | | | | | | | (1,093,277 | ) |
| Issued for resource property rights | -at $0.40 | 100,000 | | | 40,000 | | | | | | | | | 40,000 | |
| Stock-based compensation charge | | - | | | - | | | 746,718 | | | - | | | 746,718 | |
| Net loss for the year ended July 31, 2006 | | - | | | - | | | - | | | (1,100,574 | ) | | (1,100,574 | ) |
| |
| Balance, July 31, 2006 | | 17,554,471 | | | 4,121,285 | | | 746,718 | | | (1,178,536 | ) | | 3,689,467 | |
| Issued for resource property rights | - at $0.31 | 200,000 | | | 62,000 | | | - | | | - | | | 62,000 | |
| Net loss for the year ended July 31, 2007 | | - | | | - | | | - | | | (463,101 | ) | | (463,101 | ) |
| |
| Balance, July 31, 2007 | | 17,754,471 | | | 4,183,285 | | | 746,718 | | | (1,641,637 | ) | | 3,288,366 | |
| Issued for resource property rights | – at $0.34 | 300,000 | | | 102,000 | | | - | | | - | | | 102,000 | |
| Net loss for the period ended January 31, 2008 | - | | | - | | | - | | | (209,317 | ) | | (209,317 | ) |
| |
| Balance, January 31, 2008 | | 18,054,471 | | $ | 4,285,285 | | $ | 746,718 | | $ | (1,850,954 | ) | $ | 3,181,049 | |
SEE ACCOMPANYING NOTES
GOLDEN OASIS EXPLORATION CORP.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited)
Note 1
Nature and Continuance of Operations
The Company was incorporated on November 2, 2004 under the British Columbia Business Corporations Act as 0707729 B.C. Ltd. and changed its name to Golden Oasis Exploration Corp. on February 18, 2005. The Company completed an Initial Public Offering (“IPO”) on February 27, 2006 and began trading on the TSX Venture Exchange (the “Exchange”) as a publicly listed entity.
The Company is in the exploration stage and has entered into mining option agreements in respect of mineral properties in the United States of America. The recoverability of amounts from the properties will be dependent upon the discovery of economically recoverable reserves, confirmation of the Company’s interest in the underlying properties, the ability of the Company to obtain necessary financing to satisfy the expenditure requirements under the property agreement and to complete the development of the properties and upon future profitable production or proceeds from the sale thereof. The outcome of these matters cannot be predicted with any certainty at this time.
The financial statements have been prepared using Canadian generally accepted accounting principles applicable for a going concern which assumes that the Company will realize its assets and discharge its liabilities in the ordinary course of business. As at January 31, 2008, the Company had not yet achieved profitable operations and has accumulated losses of $1,850,954 since its inception. Its ability to continue as a going concern is dependent upon the ability of the Company to obtain the necessary financing to meet its obligations and pay its liabilities arising from normal business operations when they come due. These financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern and therefore be required to realize on its assets and discharge its liabilities and commitments at amounts different from those reported in the financial statements. Working capital at January 31, 2008 was $226,847, however this may not be adequate to meet the Company’s obligations over the next twelve months. If required, it is anticipated that any additional funding will be in the form of equity financing from the sale of common shares, however there is no guarantee that funding from such financings will be available in amounts sufficient to meet the commitments of the Company.
Subsequent to January 31, 2008, the Company issued securities for gross cash proceeds of $300,000.
Note 2
Interim Reporting
While the information presented in the accompanying interim consolidated financial statements is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. These interim financial statements follow the same accounting policies and methods of their application as the July 31, 2007 annual financial statements. It is suggested that these interim financial statements be read in conjunction with the Company’s July 2007 annual financial statements.
Golden Oasis Exploration Corp.
Notes to the Interim Consolidated Financial Statements
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited) – Page2
Note 3
Equipment and Leaseholds
| | | | |
| | January 31, 2008 |
| | | Accumulated | |
| | Cost | Amortization | Net |
| | | | |
| Computer equipment | $ 9,995 | $ 7,116 | $ 2,879 |
| Furniture and equipment | 26,980 | 9,339 | 17,641 |
| Leasehold improvements | 11,285 | 6,772 | 4,513 |
| | | | |
| | $ 48,260 | $ 23,227 | $ 25,033 |
| | | | |
| | July 31, 2007 |
| | | Accumulated | |
| | Cost | Amortization | Net |
| | | | |
| Computer equipment | $ 9,995 | $ 6,280 | $ 3,715 |
| Furniture and equipment | 26,980 | 7,914 | 19,066 |
| Leasehold improvements | 11,285 | 5,643 | 5,642 |
| | | | |
| | $ 48,260 | $ 19,837 | $ 28,423 |
Note 4
Resource Properties
a)
Summary of Resource Properties
| | | | | |
| | Six months ended January 31, 2008 |
| | Lone | | | |
| | Ranch | Toiyabe | Empress | Total |
| | | | | |
| Balance, beginning of period | $ 308,555 | $ 1,574,230 | $ 68,793 | $ 1,951,578 |
| | | | | |
| Resource properties – acquisition costs | 101,918 | 101,918 | - | 203,836 |
| | | | | |
| Resource properties – deferred expenditures | |
| Claim staking costs | 37,605 | - | - | 37,605 |
| Claim maintenance fees | 18,324 | 22,463 | 7,899 | 48,686 |
| Drilling | - | 288,055 | 106,878 | 394,933 |
| Geological consulting | 14,147 | 68,873 | 26,292 | 109,312 |
| Geophysics | - | 74,621 | - | 74,621 |
| Site restoration | - | - | 33,641 | 33,641 |
| Surveying | - | - | 8,136 | 8,136 |
| | | | | |
| | 70,076 | 454,012 | 182,846 | 706,934 |
| | | | | |
| Balance, end of year | $ 480,549 | $ 2,130,160 | $ 251,639 | $ 2,862,348 |
Golden Oasis Exploration Corp.
Notes to the Interim Consolidated Financial Statements
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited) – Page3
Note 4
Resource Properties – (cont’d)
a)
Summary of Resource Properties – (cont’d)
| | | | | |
| | Year ended July 31, 2007 |
| | Lone | | | |
| | Ranch | Toiyabe | Empress | Total |
| | | | | |
| Balance, beginning of period | $ 89,662 | $ 343,731 | - | $ 433,393 |
| | | | | |
| Resource properties – acquisition costs | 64,639 | 64,639 | 13,892 | 143,170 |
| | | | | |
| Resource properties – deferred expenditures | |
| Claim staking costs | - | - | 22,439 | 22,439 |
| Claim maintenance fees | - | 32,921 | - | 32,921 |
| Drilling | - | 868,097 | - | 868,097 |
| Geological consulting | 28,221 | 107,477 | 18,967 | 154,665 |
| Geophysics | 79,565 | 50,736 | 4,236 | 134,537 |
| Geology | 31,012 | 64,168 | 9,259 | 104,439 |
| Site Restoration | - | 27,005 | - | 27,005 |
| Travel | 15,456 | 15,456 | - | 30,912 |
| | | | | |
| | 154,254 | 1,165,860 | 54,901 | 1,375,015 |
| | | | | |
| Balance, end of year | $ 308,555 | $ 1,574,230 | $ 68,793 | $ 1,951,578 |
b)
Environmental Protection Practices
The Company is subject to laws and regulations relating to environmental matters in all jurisdictions in which it operates, including provisions relating to property reclamation, discharge of hazardous material and other matters. The Company may also be held liable should environmental problems be discovered that were caused by former owners and operators of its properties and properties in which it has previously had an interest. The Company is not aware of any existing environmental problems related to any of its current or former properties.
Included in the carrying value of the mineral properties is $60,646 representing an estimate of a liability for asset retirement obligations that arose as a result of drilling activities during fiscal 2008 and 2007 on the Toiyabe and Empress Properties. The fair value of the liability of $60,646 was determined to be equal to the estimated drill site remediation costs. As at January 31, 2008, the Company has not commenced development at any property and, accordingly, a reasonable estimate of the timing of the cash flows cannot be made.
Golden Oasis Exploration Corp.
Notes to the Interim Consolidated Financial Statements
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited) – Page4
Note 4
Resource Properties – (cont’d)
b)
Environmental Protection Practices – (cont’d)
During fiscal year July 31, 2006, the Company posted non-interest bearing bonds of $27,794 (US$24,577) with the State of Nevada government mineral resource agencies as security for these obligations. During fiscal year July 31, 2007, the Company posted additional non-interest bearing bonds of $39,027 (US$35,000).
c)
Lone Ranch
Pursuant to an option agreement dated January 23, 2005 and amended May 15, 2005 and November 30, 2005, the Company has the right to acquire a 100% undivided interest, subject to a 3% net smelter royalty (“NSR”), in 54 mining claims located in Ferry County, Washington State, United States of America (“Lone Ranch”). Consideration for the interest is US$510,000, reimbursement of the optionor’s costs associated with the acquisition of the property, issuance of 400,000 common shares of the Company and the Company must incur exploration expenditures of US$1,400,000 on the property as follows:
Consideration:
-
US$25,000 (paid) and 50,000 common shares (issued) upon regulatory approval;
-
US$30,000 (paid) and 100,000 common shares (issued) by August 15, 2006;
-
US$45,000 (paid) and 150,000 common shares (issued) by August 15, 2007;
-
US$60,000 and 100,000 common shares by August 15, 2008;
-
US$80,000 by August 15, 2009;
-
US$100,000 by August 15, 2010; and
-
US$170,000 by August 15, 2011.
Exploration Expenditures:
-
US$50,000 by August 15, 2006 (incurred);
-
US$125,000 by August 15, 2007 (incurred);
-
US$175,000 by August 15, 2008;
-
US$275,000 by August 15, 2009;
-
US$350,000 by August 15, 2010; and
-
US$425,000 by August 15, 2011.
The optionor has also granted the Company the right to purchase up to one-half of the NSR (or 1.5%) on the basis of US$1,500,000 per each 1% of the royalty. If the Company does not incur the exploration expenditures as specified, the unpaid portions are to be paid to the optionor.
During the period ended January 31, 2008, the Company staked an additional 83 claims in the areas surrounding the Lone Ranch Property.
Golden Oasis Exploration Corp.
Notes to the Interim Consolidated Financial Statements
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited) – Page5
Note 4
Resource Properties – (cont’d)
d)
Toiyabe
Pursuant to an option agreement dated January 23, 2005 and amended May 15, 2005 and November 30, 2005, the Company has the right to acquire a 100% undivided interest, subject to a 3% NSR, in 165 mining claims located in Lander County, Nevada, United States of America (“Toiyabe”). Consideration for the interest is US$1,000,000, reimbursement of the optionor’s costs associated with the acquisition of the property, issuance of 500,000 common shares of the Company and the Company must incur exploration expenditures of US$2,500,000 on the property as follows:
Consideration:
-
US$25,000 (paid) and 50,000 common shares (issued) upon regulatory approval;
-
US$30,000 (paid) and 100,000 common shares (issued) by August 15, 2006;
-
US$45,000 (paid) and 150,000 common shares (issued) by August 15, 2007;
-
US$60,000 and 200,000 common shares by August 15, 2008;
-
US$80,000 by August 15, 2009;
-
US$100,000 by August 15, 2010;
-
US$120,000 by August 15, 2011;
-
US$140,000 by August 15, 2012; and
-
US$400,000 by August 15, 2013.
Exploration Expenditures:
-
US$125,000 by August 15, 2006 (incurred);
-
US$175,000 by August 15, 2007 (incurred);
-
US$200,000 by August 15, 2008 (incurred);
-
US$275,000 by August 15, 2009 (incurred);
-
US$325,000 by August 15, 2010 (incurred);
-
US$375,000 by August 15, 2011 (incurred);
-
US$400,000 by August 15, 2012; and
-
US$625,000 by August 15, 2013.
The optionor has also granted the Company the right to purchase up to one-half of the NSR (or 1.5%) on the basis of US$2,000,000 per each 1% of the royalty. If the Company does not incur the exploration expenditures as specified, the unpaid portions are to be paid to the optionor.
Golden Oasis Exploration Corp.
Notes to the Interim Consolidated Financial Statements
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited) – Page6
Note 4
Resource Properties – (cont’d)
e)
Empress
Pursuant to a property option agreement dated April 17, 2006, a company with a director in common (“Optionee”) had the right to acquire a 100% undivided interest in mining claims located in Esmeralda County, Nevada, United States of America (“Empress”). By an assignment of mineral property option agreement dated February 20, 2007, the Company has been assigned the right to acquire a 100% undivided interest in Empress and agreed to be bound by the terms of the April 17, 2006 agreement. In consideration for the interest the Optionee will retain a 3% NSR, and was reimbursed US$6,000 in acquisition costs and US$2,000 in mapping costs incurred. Consideration to the Optionor for the interest is US$546,000, payable as follows:
Consideration:
-
US$6,000 by April 30, 2007 (paid);
-
US$10,000 by April 30, 2008;
-
US$15,000 by April 30, 2009
-
US$15,000 by April 30, 2010; and
-
US$500,000 by April 30,2011.
The Optionee has also granted the Company the right to purchase up to one-half of the NSR (or 1.5%) on the basis of US$2,000,000 per each 1% of the royalty. The company must elect to complete any purchase of the NSR within the 60 days of the completion of a positive production study.
Note 5
Share Capital
a)
Authorized:
Unlimited common shares without par value
b)
Escrow Shares:
As of January 31, 2008, the Company has 1,485,000 shares held in escrow. Their release being subject to the policies of the Exchange.
c)
Stock Options and Stock Based Compensation
The Company approved a share option plan which allows for options to be granted of up to 10% of the outstanding shares. The options will be exercisable for a maximum of 5 years from the date of grant.
The Company has granted directors and employees common stock purchase options. Each stock option allows the holder to purchase one share of the Company at the exercise price.
Golden Oasis Exploration Corp.
Notes to the Interim Consolidated Financial Statements
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited) – Page7
Note 5
Capital Stock – (cont’d)
c)
Stock Options and Stock Based Compensation – (cont’d)
Summary of stock option activities is as follows:
| | |
| | Weighted |
| Number | Average |
| of | Exercise |
| Shares | Price |
Outstanding and Exercisable at July 31, 2006 | 1,733,000 | $0.50 |
Granted | - | - |
Cancelled | (13,000) | $0.65 |
| | |
Options outstanding and exercisable at July 31, 2007 and January 31, 2008 | 1,720,000 | $0.50 |
Outstanding and exercisable stock options at January 31, 2008 are as follows:
| | |
| Average Remaining | Weighted Average |
Number | Contractual Life | Exercise Price |
Outstanding | (in Years) | Per Share |
| | |
800,000 | 2.79 | $0.40 |
403,000 | 3.09 | $0.50 |
517,000 | 3.18 | $0.65 |
| | |
1,720,000 | 2.98 | $0.50 |
d)
Warrants
Summary of share warrant activity is as follows:
| |
| |
Balance at July 31, 2006 | 6,458,110 |
Issued | - |
Exercised | - |
Balance outstanding at July 31, 2007 and January 31, 2008 | 6,458,110 |
Golden Oasis Exploration Corp.
Notes to the Interim Consolidated Financial Statements
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited) – Page8
Note 5
Capital Stock – (cont’d)
d)
Warrants
As at January 31, 2008, the following share purchase warrants were outstanding:
| | |
Number of Shares | Exercise Price | Expiry Date |
|
|
|
2,861,250 | $0.50 | February 27, 2008 |
3,596,860 | $0.55 | April 4, 2008 |
6,458,110 | | |
These warrants entitle the holders thereof the right to acquire one common share for each warrant held.
Note 6
Related Party Transactions
The Company incurred the following costs with directors and companies controlled by directors of the Company:
| | | |
| Six Months Ended January 31, |
| |
| 2008 | 2007 |
| | |
Consulting | $ 15,000 | $ 35,000 |
Management fees | 36,000 | 30,000 |
Resource properties – property payments | 101,835 | 67,278 |
– geological consulting | 41,660 | 52,415 |
| $ 194,495 | $ 184,693 |
These expenditures were measured by the exchange amount, which are the amounts agreed upon by the transacting parties.
During the period ended January 31, 2008, the Company issued 300,000 shares to a company controlled by a director pursuant to resource property acquisition agreements (Note 4) at a fair value of $102,000.
During the year ended July 31, 2007 the Company issued 200,000 shares to a Company controlled by a director pursuant to resource property acquisition agreements at a value of $62,000.
Golden Oasis Exploration Corp.
Notes to the Interim Consolidated Financial Statements
January 31, 2008
(Stated in Canadian Dollars)
(Unaudited) – Page9
Note 7
Commitments
The Company entered into a lease agreement for its premises expiring in February, 2010, which requires future lease payments during the Company’s fiscal years as follows:
| | |
| | |
July 2008 | | $ 15,012 |
2009 | | 5,012 |
2010 | | 8,757 |
| | |
| | $ 38,781 |
Note 8
Subsequent events
Subsequent to January 31, 2008:
a)
2,861,250 warrants, originally issued on February 27, 2006, expired unexercised.
b)
the Company announced a non-brokered private placement of 2,000,000 common shares at a price of $0.15 per share for proceeds of $300,000. This private placement, is subject to approval from the Exchange and will be subject to an undetermined finder’s fee.
c)
the Company granted 220,000 incentive stock options to directors, officers and consultants, exercisable at a price of $0.20 per share for a period of five years.
