Registration No. 333-________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM S-1
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
AVENTERRA EXPLORATIONS, INC.
(Name of small business issuer in its charter)
Nevada
(State or Other Jurisdiction of Organization)
AVENTERRA EXPLORATIONS, INC.
22 Notting Hill Gate, Suite 127
London, England WI1 3JE
44 207 526 2128
(Address and telephone number of registrant's
executive office)
1081
(Primary Standard Industrial Classification Code)
_________________
The Corporation Trust Company of Nevada
6100 Neil Road, Suite 500
Reno, Nevada 89015
(775) 322-0626
(Name, address and telephone
number of agent for service)
Copies to:
The Law Office of Conrad C. Lysiak, P.S.
601 West First Avenue, Suite 903
Spokane, Washington 99201
(509) 624-1475
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
If any of the securities being registered on the Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box:x
If this Form is filed to register additional common stock for an offering under Rule 462(b) of the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
If this Form is a post-effective amendment filed under Rule 462(c) of the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
If this Form is a post-effective amendment filed under Rule 462(d) of the Securities Act, check the following box and list the |
Securities Act registration statement number of the earlier effective registration statement for the same offering.¨ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated Filer | ¨ | Accelerated Filer [ ] | ¨ | |
Non-accelerated Filer | ¨ | Smaller reporting company | x | |
(Do not check if a smaller reporting company) |
CALCULATION OF REGISTRATION FEE | ||||||||||||
Securities to be | Amount To Be | Offering Price Per | Aggregate | Registration Fee | ||||||||
Registered | Registered | Share | Offering Price | [1] | ||||||||
Common Stock by | ||||||||||||
Selling | 3,600,000 | $ | 0.01 | $ | 36,000 | $ | 1.73 | |||||
Shareholders: | ||||||||||||
Total | 3,600,000 | $ | 0.01 | $ | 36,000 | $ | 1.73 | |||||
[1] | Estimated solely for purposes of calculating the registration fee under Rule 457. |
REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933, OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON DATES AS THE COMMISSION, ACTING UNDER SAID SECTION 8(a), MAY DETERMINE.
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Prospectus
AVENTERRA EXPLORATIONS, INC.
3,600,000 Shares of Common Stock
We are registering for sale by selling shareholders 3,600,000 shares of common stock. We will not receive any proceeds from the shares sold by the selling shareholders.
The sales price to the public is fixed at $0.01 per share until such time as the shares of our common stock become traded on the Bulletin Board operated by the Financial Industry Regulatory Authority or another exchange. If our common stock becomes quoted on the Bulletin Board or another exchange, then the sales price to the public will vary according to the selling decisions of each selling shareholder and the market for our stock at the time of resale.
Our shares of common stock are not traded anywhere.
Investing in our common stock involves risks. See "Risk Factors" starting at page 6.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. It is illegal to tell you otherwise.
The date of this prospectus is ____________________.
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TABLE OF CONTENTS | |
Page | |
No. | |
Summary of Prospectus | 5 |
Risk Factors | 6 |
Use of Proceeds | 10 |
Determination of Offering Price | 10 |
Dilution of the Price You Pay for Your Shares | 11 |
Plan of Distribution; Terms of the Offering | 11 |
Management's Discussion and Analysis of Financial Condition or Plan of Operation | 14 |
Business | 17 |
Management | 27 |
Executive Compensation | 28 |
Principal and Selling Shareholders | 30 |
Description of Securities | 32 |
Certain Transactions | 34 |
Litigation | 34 |
Experts | 34 |
Legal Matters | 34 |
Financial Statements | 36 |
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SUMMARY OF OUR OFFERING
Our business
We were incorporated in the State of Nevada on February 27, 2007. We are an exploration stage corporation. The Jam property consists of four contiguous, located, lode mineral claims, Jam 1-4 comprising a total of 82.64 acres. We own the mineral claims. The Jam Claims are motor vehicle accessible from the Town of Goldfield, Nevada by traveling 15 miles south along US Highway 95 to the NV Highway 266 cut-off. Turn right and head west for 20 miles on Hwy 266 to a good dirt road at the Lida Historical Site turn left. Travel for 3.7 miles, go to fork and take the right and go for another 6 miles to junction and go straight ahead. Travel another 2 miles to junction and go straight ahead for another 1.5 miles to the outstanding corral. Go to the line shack on the west end of the corral and take the road leading southeast (uphill) for 0.4 of a mile, Jam 1 post is 15' off the road on the left. We intend to explore f or gold on the property. Our exploration program should take approximately 365 days, weather permitting. If we do not find mineralized material on the property, we do not know what we will do.Mineralized material is a mineralized body which has been delineated by appropriate spaced drilling or underground sampling to support sufficient tonnage and average grade of metals to justify removal.
Our administrative office is located at 22 Notting Hill Gate, Suite 127, London, England, WI1 3JE and our telephone number is 44 207 526 2128 and our registered statutory office is located at 6100 Neil Road, Suite 500, Reno, Nevada 89015. Our fiscal year end is January 31. Our mailing address is 22 Notting Hill Gate, Suite 127, London, England, WI1 3JE.
Management, or affiliates thereof, will not purchase shares in this offering.
The offering
Following is a brief summary of this offering:
Securities being offered by selling shareholders | 3,600,000 shares of common stock | |
Offering price per share | $ 0.01 | |
Net proceeds to us | None | |
Number of shares outstanding before the offering | 8,600,000 | |
Number of shares outstanding after the offering if all of the | 8,600,000 | |
shares are sold |
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Selected financial data
The following financial information summarizes the more complete historical financial information at the end of this prospectus.
As of March 31, 2008 | As of December 31, 2007 | |||||||
(Unaudited) | (Audited) | |||||||
Balance Sheet | ||||||||
Total Assets | $ | 24,321 | $ | 31,267 | ||||
Total Liabilities | $ | 26,471 | $ | 22,810 | ||||
Stockholders Equity | $ | (2,150 | ) | $ | 8,457 | |||
Period from | ||||||||
Quarter Ended | February 27, 2007 (date of | |||||||
March 31, 2008 | inception) to December 31, 2007 | |||||||
(Unaudited) | (Audited) | |||||||
Income Statement | ||||||||
Revenue | $ | -0- | $ | -0- | ||||
Total Expenses | $ | 12,107 | $ | 37,543 | ||||
Net Loss | $ | (12,107 | ) | $ | (37,543 | ) |
RISK FACTORS
Please consider the following risk factors before deciding to invest in our common stock.
Risks associated with AVENTERRA EXPLORATIONS, INC.:
1. Because there is substantial doubt about our ability to continue as a going concern, there is substantial uncertainty we will continue activities in which case you could lose your investment.
Our financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of the Company’s interests in the underlying properties, and the attainment of profitable operations. As at March 31, 2008, the Company has working deficit of $2,150 and an accum ulated deficit of $49,650. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.
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2.Because the probability of an individual prospect ever having reserves is extremely remote, any funds spent on exploration will probably be lost.
The probability of an individual prospect ever having reserves is extremely remote. In all probability, the property does not contain any reserves. As such, any funds spent on exploration will probably be lost which result in a loss of your investment.
3.Our management has limited technical training and experience in mineral activities and consequently our activities, earnings and ultimate financial success could be irreparably harmed.
Our management has limited technical training and experience with exploring for, starting, and operating a mine. With no direct training or experience in these areas, management may not be fully aware of many of the specific requirements related to working within the industry. Management’s decisions and choices may not take into account standard engineering or managerial approaches mineral exploration companies commonly use. Consequently, our activities, earnings and ultimate financial success could suffer irreparable harm due to management’s lack of experience in the industry.
4.We lack an operating history and have losses which we expect to continue into the future. As a result, we may have to suspend or cease activities.
We were incorporated in February 2007, and we have started our proposed business activities, but not realized any revenues. We have no operating history upon which an evaluation of our future success or failure can be made. Our net loss since inception is $49,650. The loss was a result of the payment of fees for staking our claims, incorporation, legal and accounting. Our ability to achieve and maintain profitability and positive cash flow is dependent upon:
¬ | our ability to locate a profitable mineral property |
¬ | our ability to generate revenues |
¬ | our ability to reduce exploration costs. |
Based upon current plans, we expect to incur operating losses in future periods. This will happen because there are expenses associated with the research and exploration of our mineral properties. As a result, we may not generate revenues in the future. Failure to generate revenues will cause us to suspend or cease activities.
5.Because we will have to spend additional funds to determine if we have a reserve, if we can’t raise the money we will have to cease operations and you could lose your investment.
Even if we complete our current exploration program and are successful in identifying a mineral deposit, we will have to spend substantial funds on further drilling and engineering studies before we will know if we have a commercially viable mineral deposit, a reserve.
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6.Because our management only has limited technical training or experience in exploring for, starting, and operating an exploration program, management’s decisions and choices may not take into account standard engineering or managerial approaches mineral exploration companies commonly use. As a result, we may have to suspend or cease activities which will result in the loss of your investment.
Our management has limited experience with exploring for, starting, and operating an exploration program. Further, our management has no direct training or experience in these areas and as a result may not be fully aware of many of the specific requirements related to working within the industry. Management’s decisions and choices may not take into account standard engineering or managerial approaches mineral exploration companies commonly use. Consequently our activities, earnings and ultimate financial success could suffer irreparable harm due to management’s lack of experience in this industry. As a result we may have to suspend or cease activities which will result in the loss of your investment.
7.Because we are small and do no have much capital, we may have to limit our exploration activity which may result in a loss of your investment.
Because we are small and do not have much capital, we must limit our exploration activity. As such we may not be able to complete an exploration program that is as thorough as we would like. In that event, an existing reserve may go undiscovered. Without a reserve, we cannot generate revenues and you will lose your investment.
8.Our geologist has been an officer, director or geologist for over twenty companies that most have not moved forward with exploration activities.
James McLeod, the geologist we hired to register our property, has been an officer, director or geologist for over twenty companies since 1999. Most of these companies have not moved forward with exploration activities, and five have changed businesses and completely abandoned exploration activities.
9.We may not have access to all of the supplies and materials we need to begin exploration which could cause us to delay or suspend activities.
Competition and unforeseen limited sources of supplies in the industry could result in occasional spot shortages of supplies, such as dynamite, and certain equipment such as bulldozers and excavators that we might need to conduct exploration. We have not attempted to locate or negotiate with any suppliers of products, equipment or materials. We will attempt to locate products, equipment and materials after this offering is complete. If we cannot find the products and equipment we need, we will have to suspend our exploration plans until we do find the products and equipment we need.
10.Because Patricia Traczykowski and Matthew Worrall have other outside business activities and each will only be devoting 10% of their time or approximately four hours per week to our activities, our activities may be sporadic which may result in periodic interruptions or suspensions of exploration.
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Because Patricia Traczykowski and Matthew Worrall, our officers and directors have other outside business activities and each will be only be devoting 10% of their time or four hours each week to our activities, our activities may be sporadic and occur at times which are convenient to Ms.Traczykowski and Mr. Worrall. As a result, exploration of the property may be periodically interrupted or suspended.
Risks associated with this offering:
11.Because most our officers and directors are located outside the United States of America, it may be difficult for an investor to enforce within the United States any judgments obtained against us or our officers and sole director.
Our officers and directors are nationals and/or residents of a country other than the United States, and all or a substantial portion of his assets are located outside the United States. As a result, it may be difficult for an investor to effect service of process or enforce within the United States any judgments obtained against us or our officers or sole director, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state thereof. In addition, there is uncertainty as to whether the courts of England and other jurisdictions would recognize or enforce judgments of United States courts obtained against us or our directors and officers predicated upon the civil liability provisions of the securities laws of the United States or any state thereof, or be competent to hear original actions brought in England or other jurisdictions against us or our officers and sole director predicated upon the securities laws of the United States or any state thereof.
12.Because we have only two officers and directors who are responsible for our managerial and organizational structure, in the future, there may not be effective disclosure and accounting controls to comply with applicable laws and regulations which could result in fines, penalties and assessments against us.
We have only two officers and directors. They are responsible for our managerial and organizational structure which will include preparation of disclosure and accounting controls under the Sarbanes Oxley Act of 2002. When these controls are implemented, they will be responsible for the administration of the controls. Should they not have sufficient experience, they may be incapable of creating and implementing the controls which may cause us to be subject to sanctions and fines by the Securities Exchange Committee which ultimately could cause us to lose money.
13.Because there is no public trading market for our common stock, you may not be able to resell your stock.
There is currently no public trading market for our common stock. Therefore there is no central place, such as stock exchange or electronic trading system to resell your shares. If you do want to resell your shares, you will have to locate a buyer and negotiate your own sale.
14.Because we may issue additional shares of common stock, your investment could be subject to substantial dilution.
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We anticipate that any additional funding will be in the form of equity financing from the sale of our common stock. In the future, if we do sell more common stock, your investment could be subject to dilution. Dilution is the difference between what you pay for your stock and the net tangible book value per share immediately after the additional shares are sold by us.
15.Because our securities are subject to penny stock rules, you may have difficulty reselling your shares.
Our shares as penny stocks are covered by section 15(g) of the Securities Exchange Act of 1934 which imposes additional sales practice requirements on broker/dealers who sell the Company’s securities including the delivery of a standardized disclosure document; disclosure and confirmation of quotation prices; disclosure of compensation the broker/dealer receives; and, furnishing monthly account statements. For sales of our securities, the broker/dealer must make a special suitability determination and receive from its customer a written agreement prior to making a sale. The imposition of the foregoing additional sales practices could adversely affect a shareholder’s ability to dispose of his stock.
USE OF PROCEEDS
We will not receive any proceeds from the sale of the shares of common stock in this offering.
All proceeds from the sale of the shares of common stock will be received by the selling shareholders.
DETERMINATION OF OFFERING PRICE
The price of the shares has been determined by our board of directors. We selected the $0.01 price for the sale of our shares of common stock. Currently there is no market for the shares and we wanted to give our shareholders the ability to sell their shares for the price they paid us. If our shares are listed for trading on the Bulletin Board, the price of the shares will be established by the market.
DILUTION
Since all of the shares of common stock being registered are already issued and outstanding, no dilution will result from this offering.
PLAN OF DISTRIBUTION; TERMS OF THE OFFERING
There are forty selling shareholders. They may be deemed underwriters. They may sell some or all of their common stock in one or more transactions, including block transactions:
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¬ | On such public markets or exchanges as the common stock may from time to time be trading; |
¬ | In privately negotiated transactions; |
¬ | Through the writing of options on the common stock; |
¬ | In short sales; or |
¬ | In any combination of these methods of distribution. |
The sales price to the public is fixed at $0.01 per share until such time as the shares of our common stock become traded on the Bulletin Board operated by the Financial Industry Regulatory Authority or another exchange. If our common stock becomes quoted on the Bulletin Board or another exchange, then the sales price to the public will vary according to the selling decisions of each selling shareholder and the market for our stock at the time of resale. In these circumstances, the sales price to the public may be:
¬ | The market price of our common stock prevailing at the time of sale; |
¬ | A price related to such prevailing market price of our common stock; or |
¬ | Such other price as the selling shareholders determine from time to time. |
The shares may also be sold in compliance with the Securities and Exchange Commission's Rule 144. The selling shareholders may also sell their shares directly to market makers acting as principals or brokers or dealers, who may act as agent or acquire the common stock as a principal. Any broker or dealer participating in such transactions as agent may receive a commission from the selling shareholders, or, if they act as agent for the purchaser of such common stock, from such purchaser. The selling shareholders will likely pay the usual and customary brokerage fees for such services. Brokers or dealers may agree with the selling shareholders to sell a specified number of shares at a stipulated price per share and, to the extent such broker or dealer is unable to do so acting as agent for the selling shareholders, to purchase, as principal, any unsold shares at the price required to fulfill the respective br oker's or dealer's commitment to the selling shareholders. Brokers or dealers who acquire shares as principals may thereafter resell such shares from time to time in transactions in a market or on an exchange, in negotiated transactions or otherwise, at market prices prevailing at the time of sale or at negotiated prices, and in connection with such re-sales may pay or receive commissions to or from the purchasers of such shares. These transactions may involve cross and block transactions that may involve sales to and through other brokers or dealers.
We can provide no assurance that all or any of the common stock offered will be sold by the selling shareholders. We are bearing all costs relating to the registration of the common stock, estimated to be $30,000. The selling shareholders, however, will pay commissions or other fees payable to brokers or dealers in connection with any sale of the common stock. The selling shareholders must comply with the requirements of the Securities Act of 1933 and the Securities Exchange Act of 1934 in the offer and sale of the common stock. In particular, during such times as the selling shareholders may be deemed to be engaged in a distribution of the common stock, and therefore be considered to be an underwriter, they must comply with applicable law and may, among other things:
¬ | Not engage in any stabilization activities in connection with our common stock; |
¬ | Furnish each broker or dealer through which common stock may be offered, such as copiesof this prospectus, as amended from time to time, as may be required by such broker or dealer; and |
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3. Not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities other than as permitted under the Securities Exchange Act of 1934.
There is no assurance that any of the selling shareholders will sell any or all of the shares offered by them. Under the securities laws of certain states, the shares may be sold in such states only through registered or licensed brokers or dealers. In addition, in certain states the shares may not be sold unless they have been registered or qualified for sale in that state or an exemption from registration or qualification is available and is met.
Of the 8,600,000 shares of common stock outstanding as of December 31, 2007, 5,000,000 are owned by Patricia Traczykowski, one of our officers and directors and may only be resold pursuant to this registration statement or in compliance with Rule 144 of the Securities Act of 1933.
We have not declared any cash dividends, nor do we intend to do so. We are not subject to any legal restrictions respecting the payment of dividends, except that they may not be paid to render us insolvent. Dividend policy will be based on our cash resources and needs and it is anticipated that all available cash will be needed for our operations in the foreseeable future.
Section 15(g) of the Exchange Act
Our shares are covered by Section 15(g) of the Securities Exchange Act of 1934, as amended, and Rules 15g-1 through 15g-6 and Rule 15g-9 promulgated thereunder. They impose additional sales practice requirements on broker/dealers who sell our securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouses). While Section 15(g) and Rules 15g-1 through 15g-6 apply to brokers-dealers, they do not apply to us.
Rule 15g-1 exempts a number of specific transactions from the scope of the penny stock rules. Rule 15g-2 declares unlawful broker/dealer transactions in penny stocks unless the broker/dealer has first provided to the customer a standardized disclosure document.
Rule 15g-3 provides that it is unlawful for a broker/dealer to engage in a penny stock transaction unless the broker/dealer first discloses and subsequently confirms to the customer current quotation prices or similar market information concerning the penny stock in question.
Rule 15g-4 prohibits broker/dealers from completing penny stock transactions for a customer unless the broker/dealer first discloses to the customer the amount of compensation or other remuneration received as a result of the penny stock transaction.
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Rule 15g-5 requires that a broker/dealer executing a penny stock transaction, other than one exempt under Rule 15g-1, disclose to its customer, at the time of or prior to the transaction, information about the sales persons compensation.
Rule 15g-6 requires broker/dealers selling penny stocks to provide their customers with monthly account statements.
Rule 15g-9 requires broker/dealers to approved the transaction for the customer's account; obtain a written agreement from the customer setting forth the identity and quantity of the stock being purchased; obtain from the customer information regarding his investment experience; make a determination that the investment is suitable for the investor; deliver to the customer a written statement for the basis for the suitability determination; notify the customer of his rights and remedies in cases of fraud in penny stock transactions; and, the FINRA's toll free telephone number and the central number of the North American Administrators Association, for information on the disciplinary history of broker/dealers and their associated persons. The application of the penny stock rules may affect your ability to resell your shares.
The application of the penny stock rules may affect your ability to resell your shares.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This section of the prospectus includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this prospectus. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or out predictions.
We are a start-up, exploration stage corporation and have not yet generated or realized any revenues from our business activities.
Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have not generated any revenues and no revenues are anticipated until we begin removing and selling minerals. Accordingly, we must raise cash from sources other than the sale of minerals found on the property. Our only other source for cash at this time is investment by others in our complete private placement. The cash we raised will allow us to stay in business for at least one year. Our success or failure will be determined by what we find under the ground.
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To meet our need for cash we raised money from our private placement. If we find mineralized material and it is economically feasible to remove the mineralized material, we will attempt to raise additional money through a subsequent private placement, public offering or through loans.Mineralized material is a mineralized body which has been delineated by appropriate spaced drilling or underground sampling to support sufficient tonnage and average grade of metals to justify removal.If we do not have enough money to complete our exploration of the property, we will have to find alternative sources, like a second public offering, a private placement of securities, or loans from our officers or others.
Our officers and director are unwilling to make any commitment to loan us any money at this time. At the present time, we have not made any arrangements to raise additional cash. If we need additional cash and can't raise it, we will either have to suspend activities until we do raise the cash, or cease activities entirely. Other than as described in this paragraph, we have no other financing plans.
We do not own any interest in any property, but merely have the right to conduct exploration activities on one property. Even if we complete our current exploration program and it is successful in identifying a mineral deposit, we will have to spend substantial funds on further drilling and engineering studies before we will know if we have a commercially viable mineral deposit, a reserve.
We will be conducting research in the form of exploration of the property. Our exploration program is explained in as much detail as possible in the business section of this prospectus. We are not going to buy or sell any plant or significant equipment during the next twelve months. We will not buy any equipment until have located a reserve and we have determined it is economical to extract the minerals from the land.
We do not intend to interest other companies in the property if we find mineralized materials. We intend to try to develop the reserves ourselves.
If we are unable to complete any phase of exploration because we don’t have enough money, we will cease activities until we raise more money. If we can’t or don’t raise more money, we will cease activities. If we cease activities, we don’t know what we will do and we don’t have any plans to do anything.
We do not intend to hire additional employees at this time. All of the work on the property will be conduct by unaffiliated independent contractors that we will hire. The independent contractors will be responsible for surveying, geology, engineering, exploration, and excavation. The geologists will evaluate the information derived from the exploration and excavation and the engineers will advise us on the economic feasibility of removing the mineralized material.
Milestones
The milestones are as follows:
1. June 2008 to September 2008 - retain our consultant to manage further exploration of the property. - Maximum cost of $5,000. Time of retention 0-90 days.
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2. October 2008 to January 2009 - Trenching. Trenching will cost approximately $14,000 and will be conducted by unrelated subcontractors. Trenching includes grid installation, metal detection, sample collecting and shipping the samples for testing.
3. February 2009 to May 2009 - have an independent third party analyze the samples. We estimate that it will cost $2,000 to analyze the samples and will take 30 days.
All funds for the foregoing activities have been obtained from our private placement.
Limited Operating History; Need for Additional Capital
There is no historical financial information about us upon which to base an evaluation of our performance. We are an exploration stage corporation and have not generated any revenues from activities. We cannot guarantee we will be successful in our business activities. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in the exploration of our properties, and possible cost overruns due to price and cost increases in services.
To become profitable and competitive, we conduct research and exploration of our properties before we start production of any minerals we may find. We are seeking equity financing to provide for the capital required to implement our research and exploration phases.
We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our activities. Equity financing could result in additional dilution to existing shareholders.
Results of Activities
From Inception on February 27, 2007
We acquired the right to explore one property containing four claims. We have staked the property begun exploration activity. We will conduct further exploration in June 2008. As of the date of this prospectus, we have not found mineralized material.
Liquidity and Capital Resources
As of the date of this prospectus, we have yet to generate any revenues from our business activities.
We issued 5,000,000 shares of common stock through a private placement pursuant to Regulation S of the Securities Act of 1933 to Patricia Traczykowski, one of our two officers and directors in February 28, 2007, in consideration of $5,000. The shares were sold to non-US persons and all transactions closed outside the United States of America. This was accounted for as a purchase of shares of common stock.
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In December 28, 2007, we completed a private placement of 3,600,000 restricted shares ofcommon stock pursuant to Reg. S of the Securities Act of 1933 and raised $36,000. All of the shares were sold to non-US persons and all transactions closed outside the United States of America. This was accounted for as a purchase of shares of common stock.
As of March 31, 2008, our total assets were $24,321 and our total liabilities were $26,471.
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BUSINESS
General
We are an exploration stage corporation. We were incorporated in the State of Nevada on February 27, 2007. We are an exploration stage corporation. An exploration stage corporation is one engaged in the search of mineral deposits or reserves which are not in either the development or production stage. We intend to conduct exploration activities on the Jam mineral claims located in Esmeralda County, Nevada.
Our administrative office is located at 22 Notting Hill Gate, Suite 127, London, England, WI1 3JE and our telephone number is 44 207 526 2128 and our registered statutory office is located at 6100 Neil Road, Suite 500, Reno, Nevada 89015.
We conduct our activities through our wholly owned subsidiary corporation, Aventerra Explorations Ltd., a corporation incorporated under the laws of England. Patricia Traczykowski, our president, is the sole officer and director of Aventerra Explorations Ltd.
We have no plans to change our business activities or to combine with another business, and are not aware of any events or circumstances that might cause us to change our plans. Currently, we do not intend to acquire other interests in any other mineral properties. Our business plan is solely to explore one mineral property. If we are successful in our initial endeavors, we may look at other exploration situations.
There is no assurance that a commercially viable mineral deposit exists on the property and further exploration will be required before a final evaluation as to the economic feasibility is determined.
We have no plans to change its business activities or to combine with another business, and is not aware of any events or circumstances that might cause its plans to change.
We have no revenues, have achieved losses since inception, have conducted limited exploration activities, have been issued a going concern opinion and rely upon the sale of our securities and loans from our officer and director to fund operations.
The fee simple title to the property is owned by the United States of America. Mineral Property Services staked the land and has obtained a lease from the BLM. The property is referred to as “Jam Claims”. We have the right to enter on the property with our employees, representatives and agents, and to prospect, explore, test, develop, work and mine the property.
The property is unencumbered and there are no competitive conditions which affect the property. Further, there is no insurance covering the property and we believe that no insurance is necessary since the property is unimproved and contains no buildings or improvements.
- -17-
To date we have performed limited exploration on the property comprised mainly of sampling. As of the date of this prospectus, we have not found mineralized material. . We are presently in the exploration stage and we cannot guarantee that a commercially viable mineral deposit, a reserve, exists in the property until further exploration is done and a comprehensive evaluation concludes economic and legal feasibility.
Claims
The Jam Claims consist of 4 located mineral claims in one contiguous group as follows:
Name | Area (in acres) | Expiration |
Jam 1 | 20.66 | September 1, 2008 |
Jam 2 | 20.66 | September 1, 2008 |
Jam 3 | 20.66 | September 1, 2008 |
Jam 4 | 20.66 | September 1, 2008 |
The property was selected because gold and platinum have been discovered in the area.
The claims are registered in our name.
Location and Access
The Jam Claims comprise a total of 82.64 acres. The Jam Claim is located at latitude is 37 20.325' N and longitude is 117 29.655' W.
The Jam Claims are motor vehicle accessible from the Town of Goldfield, Nevada by traveling 15 miles south along US Highway 95 to the NV Highway 266 cut-off. Turn right and head west for 20 miles on Hwy 266 to a good dirt road at the Lida Historical Site turn left. Travel for 3.7 miles, go to fork and take the right and go for another 6 miles to junction and go straight ahead. Travel another 2 miles to junction and go straight ahead for another 1.5 miles to the outstanding corral. Go to the line shack on the west end of the corral and take the road leading southeast (uphill) for 0.4 of a mile, Jam 1 post is 15' off the road on the left.
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MAP 1
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MAP 2
Climate, Local Resources, Infrastructure and Physiography
The area experiences about 4" - 8" of precipitation annually of which about 20% may occur as a snow equivalent this amount of precipitation suggests a climatic classification of arid to semi-arid. The summers can experience hot weather, middle 60's to 70's F average with high spells of 100+F while the winters are generally more severe than the dry belt to the west and can last from December through February. Temperatures experienced during mid-winter average, for the month of January, from the high 20's to the low 40's F with low spells down to -20 F.
The Town of Goldfield offers some of the necessary infrastructure required to base and carry-out an exploration program such as limited accommodations, communications, some equipment and supplies. The towns of Tonopah and Beatty to the north and south of the US Hwy 95 and the NV Hwy 166 junction, respectively offer a larger choice of the essentials required to carry-out exploration work in the mineral claim area. Larger or specialized equipment can be acquired in the City of Las Vegas lying 180 miles by paved road to the south.
The physiography of the Jam property is gently east sloping valley terrain bounded on the east and west at some distance by low, rounded mountainous ranges or hills. Much of this area with many broad open valleys hosts sagebrush, Joshua trees and cacti, such as the prickly pear growing as far north as Goldfield, NV.
The claim area ranges in elevation from 5,480' - 5,600' mean sea level. The physiographic setting of the property can be described as open desert in the valleys within a mosaic of rounded mountains in an interior plateau setting. The surface area has been altered both by some fluvial and more wind erosion and some depositional drift cover effects of in-filling and in situ or residual erosion. Thickness of drift cover in some valleys may vary considerably, but in the proximity of the Jam property it is not thought to be very deep. Surface water occurrences are rare, springs are sparse and subsurface aquifers are accessed when needed by drilling wells where allowed.
History
There is no evidence of previous exploration activity on the property.
Regional Geology
The regional geology of Nevada is depicted as being underlain by all types of rock. These appear to range from oldest to youngest in an east to west direction, respectively. Many of the oldest units are found to occur in the southeast corner of the State along the Colorado River. The bedrock units exhibit a north-south fabric of alternating east-west ranges and valleys. This feature may suggest E-W compression that may have expression as low angle thrust faults. Various types of faulting are recognized in many areas of Nevada and it often plays a larger part in the emplacement of mineral occurrences and ore bodies.
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Local Geology
The local geology about the Jam property which is situated approximately 58 air miles to the south-southwest of Goldfield, Nevada reveals a NE-SW trending, elongate assemblage of Lower Cambrian aged rock units. They are seen to lie in relatively close proximity to a number of Tertiary aged, acidic volcanic or intrusive rock occurrences.
Throughout this local area are a number of fault occurrences that could have set the stage for mineralizing fluids to have affected the underlying rock units.
Property Geology
The geology of the Jam property area may be described as being covered by Quaternary desert wash, collovium, alluvium and playa deposits. This covered mineral claim area within a larger surrounding area of rock exposure and known mineral occurrences exhibiting a good geological setting to conduct mineral exploration. The outcrops flanking the alluvial covered valley underlying the mineral claim area suggests mineral occurrences or structurally prepared bedrock could be sought after in those areas.
Our Proposed Exploration Program
Working with a $21,000 budget, we plan on doing trenching work with a back-hoe to expose bedrock. Metal detecting, soil and rock chip sampling, and geological mapping will be done once the bedrock is exposed. The object of this work will be to determine if there is an economically recoverable gold resource on this property. All sample locations will be marked and mapped. The initial phase of work will provide enough information to allow the company to decide whether or not to proceed to the next phase of exploration.
We have been conducting exploration activities on the property since our inception, but have not discovered mineralized material as of the date of this prospectus.
It will take us two to three weeks to complete the trenching and collect the samples. Samples will be shipped to ALS Chemex of Reno Nevada, certified assayers. It will take another two to three weeks to obtain results from the lab. We will plot all sample locations on enlarged topo maps and provide GPS with these locations.
Funds will be used exclusively for trenching, grid installation, metal detection, sample collecting, supplies, shipping, lab costs, meals, motels, truck fuel and labor.
We must conduct exploration to determine what amount of minerals, if any, exist on our properties and if any minerals which are found can be economically extracted and profitably processed.
The property is undeveloped raw land. Exploration and surveying has not been initiated and will not be completed until we raise additional money. That is because we do not have money to complete exploration.
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Before minerals retrieval can begin, we must explore for and find mineralized material. After that has occurred we have to determine if it is economically feasible to remove the mineralized material. Economically feasible means that the costs associated with the removal of the mineralized material will not exceed the price at which we can sell the mineralized material. We can't predict what that will be until we find mineralized material.
We do not claim to have any minerals or reserves whatsoever at this time on any of the property.
The costs of our work program were provided by James McLeod. We will begin exploration activity in June of 2008, weather permitting.
We cannot provide you with a more detailed discussion of how our exploration program will work and what we expect will be our likelihood of success. That is because we have a piece of raw land and we intend to look for a gold ore body. We may or may not find an ore body. We have the right to prospect, explore, test, develop, work and mine the property. We hope we do, but it is impossible to predict the likelihood of such an event. In addition, the nature and direction of the exploration may change depending upon initial results.
We do not have any plan to take our company to revenue generation. That is because we have not found economic mineralization yet and it is impossible to project revenue generation from nothing.
The following is an outline of the estimated costs of this first phase of exploration of this property:
Consulting Services | $ | 5,000 |
Trenching | $ | 14,000 |
Analyzing Samples | $ | 2,000 |
Competitive Factors
The gold mining industry is fragmented, that is there are many, many gold prospectors and producers, small and large. We do not compete with anyone. That is because there is no competition for the exploration or removal of minerals from the property. We will either find gold on the property or not. If we do not, we will cease or suspend operations. We are one of the smallest exploration companies in existence. We are an infinitely small participant in the gold mining market. Readily available gold markets exist in the United States and around the world for the sale of gold. Therefore, we will be able to sell any gold that we are able to recover.
Rental Fee Requirement
The Federal government's Continuing Act of 2002 extends the requirement of rental or maintenance fees in place of assessment work for filing and holding mining claims with the BLM. All claimants must pay a yearly maintenance fee of $125 per claim for all or part of the mining claim assessment year. The fee must be paid at the State Office of the Bureau of Land Management by August 31, of each year. We have paid this fee through 2008. The assessment year ends on noon of
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September 1 of each year. The initial maintenance fee is paid at the time the Notice of Location is filed with the BLM and covers the remainder of the assessment year in which the claim was located. There are no exemptions from the initial fee. Some claim holders may qualify for a Small Miner Exemption waiver of the maintenance fee for assessment years after the year in which the claim was located. We do not qualify for a Small Miner Exemption. The following sets forth the BLM fee schedule:
Fee Schedule (per claim) | ||
Location Fee | $ | 30.00 |
Maintenance Fee. | $ | 125.00 |
Service Charges | $ | 10.00 |
Transfer Fee | $ | 5.00 |
Proof of Labor | $ | 5.00 |
Notice of Intent to Hold | $ | 5.00 |
Transfer of Interest | $ | 5.00 |
Amendment | $ | 5.00 |
Petition for Deferment of Assessment Work | $ | 25.00 |
Notice of Intent to Locate on Stock Raising Homestead land | $ | 25.00 |
The BLM regulations provide for three types of operations on public lands: 1. Casual Use level, 2. Notice level and 3. Plan of Operation level.
1. Casual Use means activities ordinarily resulting in no or negligible disturbance of the public lands or resources. Casual Use operations involve simple prospecting with hand tools such as picks, shovels, and metal detectors. Small-scale mining devices such as dry washers having engines with less than 10 brake-horsepower are allowed, provided they are fed using only hand tools. Casual Use level operations are not required to file an application to conduct activities or post a financial guarantee.
2. Notice level operations include only exploration activities in which five or less acres of disturbance are proposed. Presently, all Notice Level operations require a written notice and must be bonded for all activities other than reclamation.
3. Plans of Operation activities include all mining and processing (regardless of the size of the proposed disturbance), plus all other activities exceeding five acres of proposed public land disturbance.
Operators are encouraged to conduct a thorough inventory of the claim to determine the full extent of any existing disturbance and to meet with field office personnel at the site before developing an estimate. The inventory should include photographs taken "before" and "after" any mining activity.
If an operator constructs access or uses an existing access way for an operation and would object to BLM blocking, removing, or claiming that access, then the operator must post a financial guarantee that covers the reclamation of the access.
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Concurrence by the BLM for occupancy is required whenever residential occupancy is proposed or when fences, gates, or signs will be used to restrict public access or when structures that could be used for shelter are placed on a claim. It is the claimant's responsibility to prepare a complete notice or plan of operators.
Mining Claims On State Land
The Nevada law authorizing location of claims on State Lands was repealed in 1998. Acquisition of mineral rights on Nevada trust land can only be accomplished by application for a prospecting permit, mineral lease, or lease of common variety materials.
We will secure all necessary permits for exploration and, if development is warranted on the property, will file final plans of operation before we start further exploration activities. We anticipate no discharge of water into active stream, creek, river, lake or any other body of water regulated by environmental law or regulation. No endangered species will be disturbed. Restoration of the disturbed land will be completed according to law. All holes, pits and shafts will be sealed upon abandonment of the property. It is difficult to estimate the cost of compliance with the environmental law since the full nature and extent of our proposed activities cannot be determined until we conduct further exploration activities and know what that will involve from an environmental standpoint.
We are in compliance with all laws and will continue to comply with the laws in the future. We believe that compliance with the laws will not adversely affect our business operations.
We are responsible to provide a safe working environment, not disrupt archaeological sites, and conduct our activities to prevent unnecessary damage to the property.
We will secure all necessary permits for exploration and, if development is warranted on the property, will file final plans of operation before we conduct further exploration activities. At this point, a permit from the BLM would be required. Also, we would be required to comply with the laws of the state of Nevada and federal regulations. We anticipate no discharge of water into active stream, creek, river, lake or any other body of water regulated by environmental law or regulation. No endangered species will be disturbed. Restoration of the disturbed land will be completed according to law. All holes, pits and shafts will be sealed upon abandonment of the property. It is difficult to estimate the cost of compliance with the environmental law since the full nature and extent of our proposed activities cannot be determined until we conduct further exploration activities and know what that will involve fro m an environmental standpoint.
Exploration stage companies have no need to discuss environmental matters, except as they relate to exploration activities. The only "cost and effect" of compliance with environmental regulations in the State of Nevada is returning the surface to its previous condition upon abandonment of the property. We will only be using "non-intrusive" exploration techniques and will not leave any indication that a sample was taken from the area. We will be required to leave the area in the same condition as we found it.
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We have not allocated any funds for the cost of reclamation of the property. Ms.Traczykowski, our president, has agreed to pay the cost of reclamation should we not find mineralized material.
Subcontractors
We intend to use the services of a consultant who will supervise the subcontractors for manual labor exploration work on our property. We have not selected the consultant as of the date of this prospectus and will not do so until we have completed this offering.
Employees and Employment Agreements
At present, we have no full-time employees. Our officers and directors are part-time employees and each will be devoting about 10% of his time or four hours per week to our operation. Our officers and directors do not have employment agreements with us. We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, we may adopt plans in the future. There are presently no personal benefits available to our officers and directors. Our officers and directors will handle our administrative duties. Because our officers and directors are inexperienced with exploration, they will hire qualified persons to perform our exploration activities. As of today, we have not looked for or talked to any geologists or engineers who will perform work for us in the future. We do not intend to do so until we complete this offering.
Property Interests and Mining Claims in General
Mining claims are subject to the same risk of defective title that is common to all real property interests. Additionally, mining claims are self-initiated and self-maintained and therefore, possess some unique vulnerabilities not associated with other types of property interests. It is impossible to ascertain the validity of unpatented mining claims solely from an examination of the public real estate records and, therefore, it can be difficult or impossible to confirm that all of the requisite steps have been followed for location and maintenance of a claim. If the validity of a patented mining claim is challenged on the grounds that mineralization has not been demonstrated, the claimant has the burden of proving the present economic feasibility of mining minerals located thereon. Such a challenge might be raised when a patent application is submitted or when the government seeks to include the land in an area to be dedicated to another use.
Reclamation
We generally are required to mitigate long-term environmental impacts by stabilizing, contouring, resloping and revegetating various portions of a site after mining and mineral processing operations are completed. These reclamation efforts will be conducted in accordance with detailed plans, which must be reviewed and approved by the appropriate regulatory agencies.
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Government Regulation
Mining operations and exploration activities are subject to various national, state, and local laws and regulations in the United States, which govern prospecting, development, mining, production, exports, taxes, labor standards, occupational health, waste disposal, protection of the environment, mine safety, hazardous substances and other matters. We will obtain the licenses, permits or other authorizations currently required to conduct our exploration program. We believe that we are in compliance in all material respects with applicable mining, health, safety and environmental statutes and the regulations passed thereunder in the Nevada and United States.
Our mineral exploration program is subject to the regulations of the Bureau of Land Management. The prospecting on the property is provided under the existing 1872 Mining Law and all permits for exploration and testing must be obtained through the local Bureau of Land Management (BLM) office of the Department of Interior. Obtaining permits for minimal disturbance as envisioned by this exploration program will require making the appropriate application and filing of the bond to cover the reclamation of the test areas. From time to time, an archeological clearance may need to be contracted to allow the testing program to proceed.
Environment Regulations
Our activities are subject to various federal and state laws and regulations governing protection of the environment. These laws are continually changing and, in general, are becoming more restrictive. We intend to conduct business in a way that safeguards public health and the environment. We will conduct our operational compliance with applicable laws and regulations.
Changes to current state or federal laws and regulations in Nevada, where we intend to operate could in the future require additional capital expenditures and increased operating and/or reclamation costs. Although we are unable to predict what additional legislation, if any, might be proposed or enacted, additional regulatory requirements could impact the economics of our projects.
.
During 2007 or 2008, there were no material environmental incidents or non-compliance with any applicable environmental regulations.
MANAGEMENT
Officers and Directors
Our directors serves until his successor is elected and qualified. Each of our officers is elected by the board of directors to a term of one (1) year and serves until his or her successor is duly elected and qualified, or until he or she is removed from office. The board of directors has no nominating, auditing or compensation committees.
The name, age and position of our officers and directors are set forth below:
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Name | Age | Position Held |
Patricia Traczykowski | 46 | President, Principal Executive Officer, Treasurer, |
22 Notting Hill Gate, Suite 127 | Principal Financial Officer, Principal Accounting | |
London, England | Officer, and a member of the Board of Directors. | |
WI1 3JE | ||
Matthew Worrall | 33 | Secretary and a member of the Board of Directors. |
31 Queen Victoria Rd. Totley | ||
Sheffield, UK S17 4HT |
Ms.Traczykowski will serve until our next annual meeting of the stockholders. The Board of Directors elects officers and their terms of office are at the discretion of the Board of Directors.
Background of our Officers and Directors
Patricia Traczykowski has been our president, chief executive officer, treasurer, chief financial officer and member of our board of directors since our inception on February 27, 2007. Also, on June 4, 2007, Ms. Traczykowski has been the sole officer and director of our wholly owned subsidiary corporation, Aventerra Explorations Ltd., a corporation organized under the laws of England. In addition, from March 2007 to present, Ms. Traczykowski set up her own consultancy company, called Community Regeneration Consultancy, which is focused on delivering economic development and regeneration projects in London, England. Clients include London New Deal for Communities (NDC), Cheswold Park Hospital, London Chamber of Commerce and London Primary Care Trust (NHS). From June 2004 to February 2007, Ms. Traczykowski worked as the Project Manager for the London Chamber of Commerce where she was responsible in assisting certain disadvantaged communities raise their standards of living by implementing sustainable economic programs. Prior to this position, Ms. Traczykowski was a Personal Advisor to Reed in Partnership, which is a government funded employment and enterprise project in London, England. From November 2003 to June 2004 her role at Reed in Partnership was to assist parents who are dependent on Social Income, and aid them back into sustainable employment. Before this, Ms. Traczykowski worked as a Training Consultant with Norwich Union, in London, England. From January 2002 to November 2003, she worked at a Senior Staff level in charge of staff training and managing the Business Learning Center.
Matthew Worrall has been our secretary and a member of our board of directors since our inception on February 27, 2007. Since July 2006, Mr. Worrell formed his own contracting company in Sheffield, England, where he is a property developer. Since July 2996, Mr. Worrell has been a partner in a media company in Bolsover, England called Imagex. Imagex is a one stop solution for a company’s design, marketing, and IT needs. From October 2005 to June 2006 Mr. Worrall worked as a Senior Account Manager for Ideasbynet, in Sheffield, England, a company which focuses on business-to-business promotional gift sales. From September 1992 to October 2005, Mr. Worrall worked at Boatworld in Sheffield, England in boat accessory sales, staffing, and inventory control.
During the past five years, Ms. Traczykowski and Mr. Worrall have not been the subject of the following events:
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1. Any bankruptcy petition filed by or against any business of which Ms. Traczykowski. and Mr. Worrall were general partners or executive officers either at the time of the bankruptcy or within two years prior to that time.
2. Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.
3. An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Ms. Traczykowski’s and Mr. Worrall’s involvement in any type of business, securities or banking activities.
4. Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
Audit Committee Financial Expert
We do not have an audit committee financial expert. We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive. Further, because we are only beginning our commercial operations, at the present time, we believe the services of a financial expert are not warranted.
Conflicts of Interest
There are no conflicts of interest.
EXECUTIVE COMPENSATION
The following table sets forth the compensation paid by us for the last three fiscal years ending December 31, 2007 for each or our officers. This information includes the dollar value of base salaries, bonus awards and number of stock options granted, and certain other compensation, if any. The compensation discussed addresses all compensation awarded to, earned by, or paid or named executive officers.
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Executive Officer Compensation Table
Non-equity | Nonqualified | ||||||||
Incentive | Deferred | ||||||||
Name and | Stock | Option | Plan | Compensation | All Other | ||||
Principal | Salary | Bonus | Awards | Awards | Compensation | Earnings | Compensation | Total | |
Position | Year | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) | US$) |
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) |
Patricia Traczykowski | 2008 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
President | 2007 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
2006 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Matthew Worrall | 2008 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Secretary | 2007 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
2006 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
We have no employment agreements with any of our officers. We do not contemplate entering into any employment agreements until such time as we begin profitable operations.
The compensation discussed herein addresses all compensation awarded to, earned by, or paid to our named executive officers.
There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our officers and directors other than as described herein.
Compensation of Directors
Members of our board of directors are not compensated for their services as directors. The board has not implemented a plan to award options to any directors. There are no contractual arrangements with any member of the board of directors. We have no director's service contracts.
Director's Compensation Table
Nonqualified | |||||||
Fees | Non-Equity | Deferred | |||||
Earned or | Stock | Option | Incentive Plan | Compensation | All Other | ||
Paid in Cash | Awards | Awards | Compensation | Earnings | Compensation | Total | |
Name | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) |
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) |
Patricia Traczykowski | 2008 | 0 | 0 | 0 | 0 | 0 | 0 |
Matthew Worrell | 2008 | 0 | 0 | 0 | 0 | 0 | 0 |
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Long-Term Incentive Plan Awards
We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance.
Indemnification
Under our Articles of Incorporation and Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a lawsuit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Nevada.
Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Nevada law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.
PRINCIPAL AND SELLING SHAREHOLDERS
The following table sets forth, as of the date of this prospectus, the total number of shares owned beneficially by our directors, officers and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The table also reflects what their ownership will be assuming completion of the sale of all shares in this offering . The stockholders listed below have direct ownership of their shares and possesses sole voting and dispositive power with respect to the shares.
Number of | Percentage of | Number of Shares | Percentage of | |||
Shares | Ownership | After Offering | Ownership After the | |||
Name and Address | Before the | Before the | Assuming all of the | Offering Assuming all | ||
Beneficial Owner [1] | Offering | Offering | Shares are Sold | of the Shares are Sold | ||
Patricia Traczykowski | 5,000,000 | 58.14 | % | 5,000,000 | 58.14 | % |
22 Notting Hill Gate, #127 | ||||||
London, England | ||||||
WI1 3JE |
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Matthew Worrall | 0 | 0.00 | % | 0 | 0.00 | % |
31 Queen Victoria Rd. Totley | ||||||
Sheffield, UK S17 4HT | ||||||
All officers and directors | 5,000,000 | 58.14 | % | 5,000,000 | 58.14 | % |
as group (2 persons) |
[1] | The persons named above may be deemed to be a "parent" and "promoter" of our company. Ms. Traczykowski and Mr. Worrall are our only promoters of our company. |
Securities authorized for issuance under equity compensation plans.
We have no equity compensation plans.
Selling Shareholders
The following table sets forth the name of each selling shareholder, the total number of shares owned prior to the offering, the percentage of shares owned prior to the offering, the number of shares offered, and the percentage of shares owned after the offering, assuming the selling shareholder sells all of his shares and we sell the maximum number of shares.
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Percentage | ||||||
of shares | ||||||
owned after the | ||||||
Total number of | Percentage of | Number of | offering assuming | |||
shares owned | shares owned | shares being | all of the share are | |||
Name | prior to offering | prior to offering | offered | sold in the offering | ||
Aspey, Oliver | 90,000 | 0.01% | 90,000 | 0.0% | ||
Barker, Marjorie | 90,000 | 0.01% | 90,000 | 0.0% | ||
Barker, Michael | 90,000 | 0.01% | 90,000 | 0.0% | ||
Bowey, Thomas | 90,000 | 0.01% | 90,000 | 0.0% | ||
Brett, Christopher | 90,000 | 0.01% | 90,000 | 0.0% | ||
Brown, Heather | 90,000 | 0.01% | 90,000 | 0.0% | ||
Bulcroft, Rebecca | 90,000 | 0.01% | 90,000 | 0.0% | ||
Burns, James | 90,000 | 0.01% | 90,000 | 0.0% | ||
Case, Greg | 90,000 | 0.01% | 90,000 | 0.0% | ||
Creswick, Thomas | 90,000 | 0.01% | 90,000 | 0.0% | ||
Davies, Andrew | 90,000 | 0.01% | 90,000 | 0.0% | ||
Davison, Jadie | 90,000 | 0.01% | 90,000 | 0.0% | ||
Flanaghan, Scott | 90,000 | 0.01% | 90,000 | 0.0% | ||
Gill, Wayne | 90,000 | 0.01% | 90,000 | 0.0% | ||
Graham, Melanie | 90,000 | 0.01% | 90,000 | 0.0% | ||
Greaves, David | 90,000 | 0.01% | 90,000 | 0.0% | ||
Harwood, Jon | 90,000 | 0.01% | 90,000 | 0.0% | ||
Higham, Thomas | 90,000 | 0.01% | 90,000 | 0.0% | ||
Hill, Christopher | 90,000 | 0.01% | 90,000 | 0.0% | ||
Howe, Richard | 90,000 | 0.01% | 90,000 | 0.0% | ||
Mallinson, Mathew | 90,000 | 0.01% | 90,000 | 0.0% | ||
Matarrelli, Ivana | 90,000 | 0.01% | 90,000 | 0.0% | ||
McHugh, Alan | 90,000 | 0.01% | 90,000 | 0.0% | ||
McLenaghan, Mark | 90,000 | 0.01% | 90,000 | 0.0% | ||
McMinn, Sheila | 90,000 | 0.01% | 90,000 | 0.0% | ||
Melia, Michael | 90,000 | 0.01% | 90,000 | 0.0% | ||
Neale, Gareth | 90,000 | 0.01% | 90,000 | 0.0% | ||
Paone, Assunta | 90,000 | 0.01% | 90,000 | 0.0% | ||
Plank, Richard | 90,000 | 0.01% | 90,000 | 0.0% | ||
Reid, Douglas | 90,000 | 0.01% | 90,000 | 0.0% | ||
Robinson, Graeme | 90,000 | 0.01% | 90,000 | 0.0% | ||
Santos, Ben | 90,000 | 0.01% | 90,000 | 0.0% | ||
Smith, Leanne | 90,000 | 0.01% | 90,000 | 0.0% | ||
Taylor, Odhran | 90,000 | 0.01% | 90,000 | 0.0% | ||
Tzouvanni, Michael | 90,000 | 0.01% | 90,000 | 0.0% | ||
Valler-Feltham, Joshua | 90,000 | 0.01% | 90,000 | 0.0% | ||
Vesty, Mathew | 90,000 | 0.01% | 90,000 | 0.0% | ||
Waddington, Charlotte | 90,000 | 0.01% | 90,000 | 0.0% | ||
Webster, Christopher | 90,000 | 0.01% | 90,000 | 0.0% | ||
White, Frased | 90,000 | 0.01% | 90,000 | 0.0% | ||
Total | 3,600,000 | 41.86% | 3,600,000 | 0.0% |
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Other than investing money with us, the foregoing selling security holders have had no material relationship with us during the last three years.
All of persons named as selling security holders exercise voting and/or dispositive powers with respect to the securities to be offered for resale by our selling security holders.
No selling shareholder is an affiliate of a registered broker dealer.
The following is a summary of the issuances of all shares pursuant to Reg. S of the Act.
a) | On February 28, 2007, we issued 5,000,000 shares of common stock to Patricia Traczykowski, one of our officers and directors in consideration of $0.001 per share or a total of $5,000. We issued the foregoing restricted shares of common stock pursuant to the exemption from registration contained in Reg. S of the Securities Act of 1933. The transaction took place outside the United States of America and Ms.Traczykowski is a non-US person. |
b) | On December 28, 2007, we issued 3,600,000 shares of common stock to forty individuals in consideration of $0.01 per share or a total of $36,000. The 3,600,000 shares so issued are being registered in this offering. The foregoing 3,600,000 shares of common stock were issued as restricted securities pursuant to Reg. S of the Securities Act of 1933 in that all of the sales took place outside the United States of America with non-US persons. |
Future Sales of Shares
A total of 8,600,000 shares of common stock are issued and outstanding. Of the 8,600,000 shares outstanding, all are restricted securities as defined in Rule 144 of the Securities Act of 1933. 3,600,000 are being offered for resale by the selling shareholders described above.
Shares purchased in this offering will be immediately resalable without any restriction of any kind.
DESCRIPTION OF SECURITIES
Common Stock
Our authorized capital stock consists of 100,000,000 shares of common stock, par value $0.00001 per share. The holders of our common stock:
¬ | have equal ratable rights to dividends from funds legally available if and when declared by our board of directors; |
¬ | are entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of our affairs; |
¬ | do not have preemptive, subscription or conversion rights and there are no redemption or sinking fund provisions or rights; and |
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¬ | are entitled to one non-cumulative vote per share on all matters on which stockholders may vote. |
All shares of common stock now outstanding are fully paid for and non-assessable and all shares of common stock that are the subject of this offering, when issued, will be fully paid for and non-assessable. We refer you to our Articles of Incorporation, Bylaws and the applicable statutes of the State of Nevada for a more complete description of the rights and liabilities of holders of our securities.
Non-cumulative voting
Holders of shares of our common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in that event, the holders of the remaining shares will not be able to elect any of our directors. After this offering is completed, assuming the sale of all of the shares of common stock, present stockholders will own approximately 58.14% of our outstanding shares.
Cash dividends
As of the date of this prospectus, we have not paid any cash dividends to stockholders. The declaration of any future cash dividend will be at the discretion of our board of directors and will depend upon our earnings, if any, our capital requirements and financial position, our general economic conditions, and other pertinent conditions. It is our present intention not to pay any cash dividends in the foreseeable future, but rather to reinvest earnings, if any, in our business operations.
Preferred Stock
We are authorized to issue 100,000,000 shares of preferred stock with a par value of $0.00001 per share. The terms of the preferred shares are at the discretion of the board of directors. Currently no preferred shares are issued and outstanding.
Anti-takeover provisions
There are no Nevada anti-takeover provisions that may have the affect of delaying or preventing a change in control.
Reports
After we complete this offering, we will not be required to furnish you with an annual report. Further, we will not voluntarily send you an annual report. We will be required to file reports with the SEC under section 15(d) of the Securities Act. The reports will be filed electronically. The reports we will be required to file are Forms 10-K, 10-Q, and 8-K. You may read copies of any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that will contain copies of the reports we file electronically. The address for the Internet site is www.sec.gov.
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Stock transfer agent
Our stock transfer agent for our securities will be Empire Stock Transfer, Inc., 7251 West Lake Mead Boulevard, Las Vegas, Nevada 89128 . Its telephone number is (702) 562-4037.
CERTAIN TRANSACTIONS
On February 28, 2007, we issued a total of 5,000,000 shares of restricted common stock to Patricia Traczykowski, one of our officers and directors in consideration of $5,000.
Further, Ms. Traczykowski has advanced funds to us for some of our incorporation needs. As of December 31, 2007, Ms.Traczykowski advanced us $22,810. There is no due date for the repayment of the funds advanced by Ms. Traczykowski. Ms.Traczykowski will be repaid from revenues or operations if and when we generate revenues to pay the obligation. There is no assurance that we will ever generate revenues from our operations. The obligation to Ms.Traczykowski does not bear interest. There is no written agreement evidencing the advancement of funds by Ms.Traczykowski or the repayment of the funds to Ms. Traczykowski. The entire transaction was oral.
LITIGATION
We are not a party to any pending litigation and none is contemplated or threatened.
EXPERTS
Our financial statements for the period from inception to December 31, 2007, included in this prospectus have been audited by Malone & Bailey, P.C., Independent Registered Public Accounting Firm, 2925 Briarpark, Suite 930, Houston, Texas 77042, telephone (713) 343-4200, as set forth in its report included in this prospectus. Its report is given upon its authority as experts in accounting and auditing.
LEGAL MATTERS
The Law Office of Conrad C. Lysiak, P.S., 601 West First Avenue, Suite 903, Spokane, Washington 99201, telephone (509) 624-1475 has acted as our legal counsel.
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FINANCIAL STATEMENTS
Our fiscal year end is December 31. We will provide audited financial statements to our stockholders on an annual basis; the statements will be audited by a firm registered with the Public Company Accounting Oversight Board.
Audited financial statements for the periods ended December 31, 2007 and unaudited financial statements for the period ending March 31, 2008 follow:
INDEX | |
FINANCIAL STATEMENTS (Unaudited) | |
Unaudited Consolidated Balance Sheets | F-1 |
Unaudited Consolidated Statements of Operations | F-2 |
Unaudited Consolidated Statements of Cash Flows | F-3 |
Notes to Unaudited Consolidated Financial Statements | F-4 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | F-7 |
FINANCIAL STATEMENTS (Audited) | |
Balance Sheets | F-8 |
Statements of Operations | F-9 |
Statements of Cash Flows | F-10 |
Statement of Stockholders’ Deficiency | F-11 |
Notes to Financial Statements | F-12 |
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Aventerra Explorations Inc. | ||||
(An Exploration Stage Company) | ||||
Consolidated Balance Sheets | ||||
(unaudited) | ||||
March 31, | December 31, | |||
2008 | 2007 | |||
$ | $ | |||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | 22,671 | 30,841 | ||
Prepaid expenses | 1,650 | 426 | ||
Total Assets | 24,321 | 31,267 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Current Liabilities | ||||
Accounts payable | 2,127 | – | ||
Accrued liabilities | 1,534 | – | ||
Due to related party | 22,810 | 22,810 | ||
Total Liabilities | 26,471 | 22,810 | ||
Commitments and Contingencies | ||||
Stockholders’ Equity (Deficit) | ||||
Preferred Stock, 100,000,000 shares authorized, $0.00001 par value, | ||||
No shares issued and outstanding | – | – | ||
Common Stock, 100,000,000 shares authorized, $0.00001 par value, | ||||
8,600,000 shares issued and outstanding | 86 | 86 | ||
Additional Paid-in Capital | 40,914 | 40,914 | ||
Donated Capital | 6,500 | 5,000 | ||
Deficit Accumulated During the Exploration Stage | (49,650) | (37,543) | ||
Total Stockholders’ Equity (Deficit) | (2,150) | 8,457 | ||
Total Liabilities and Stockholders’ Equity (Deficit) | 24,321 | 31,267 |
(The accompanying notes are an integral part of these financial statements)
F-1
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Aventerra Explorations Inc. | ||||||
(An Exploration Stage Company) | ||||||
Consolidated Statements of Operations | ||||||
(unaudited) | ||||||
February 27, 2007 | February 27, 2007 | |||||
Three Months Ended | (Date of Inception) | (Date of Inception) | ||||
March 31, | To March 31, | To March 31, | ||||
2008 | 2007 | 2008 | ||||
Revenue | $ | – | $ | – | $ | – |
Expenses | ||||||
General and administrative | 3,573 | 0 | 10,526 | |||
Mineral property costs | – | – | 15,500 | |||
Professional fees | 8,534 | 500 | 23,624 | |||
Total Expenses | 12,107 | 500 | 49,650 | |||
Net Loss | $ | (12,107) | $ | (500) | $ | (49,650) |
Net Loss Per Share – Basic and Diluted | $ | – | $ | – | $ | (.01) |
Weighted Average Shares Outstanding | 8,600,000 | 5,000,000 | 8,600,000 |
(The accompanying notes are an integral part of these financial statements)
F-2
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Aventerra Explorations Inc. | |||||||
(An Exploration Stage Company) | |||||||
Consolidated Statements of Cash Flows | |||||||
(unaudited) | |||||||
February 27, 2007 | February 27, 2007 | ||||||
Three Months Ended | (Date of Inception) | (Date of Inception) | |||||
March 31, | To March 31, | To March 31, | |||||
2008 | 2007 | 2008 | |||||
$ | $ | $ | |||||
Operating Activities | |||||||
Net loss for the period | (12,107) | (500) | (49,650) | ||||
Adjustment to reconcile net loss to cash | |||||||
used in operating activities: | |||||||
Donated services and expenses | 1,500 | 500 | 6,500 | ||||
Changes in operating assets and | |||||||
liabilities: | |||||||
Prepaid expenses | (1,224) | – | (1,650) | ||||
Accounts payable | 2,127 | – | 2,127 | ||||
Accrued liabilities | 1,534 | – | 1,534 | ||||
Net Cash Used in Operating Activities | (8,170) | – | (41,139) | ||||
Financing Activities | |||||||
Issuance of common stock | – | – | 41,000 | ||||
Due to related | – | – | 22,810 | ||||
Net Cash Provided by Financing | – | – | 63,810 | ||||
Increase (Decrease) In Cash | (8,170) | – | 22,671 | ||||
Cash – Beginning of Period | 30,841 | – | – | ||||
Cash – End of Period | 22,671 | – | 22,671 | ||||
Supplemental Disclosures | |||||||
Interest paid | – | – | – | ||||
Income taxes paid | – | – | – |
(The accompanying notes are an integral part of these financial statements)
F-3
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2008
(unaudited)
1. | Nature of Operations and Continuance of Business |
Aventerra Explorations Inc. (the “Company”) was incorporated in the State of Nevada on February 27, 2007 and is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (“SFAS”) No.7 “Accounting and Reporting by Development Stage Enterprises”. The Company’s principal business is the acquisition and exploration of mineral resources and has acquired a mineral property located in Nevada USA. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable. | |
Basis of Presentation | |
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company’s audited 2007 annual financial statements and notes thereto. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of financial position and the results of operations for the interim periods presented, have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure required in the Company’s annual statements have been omitted. | |
Use of Estimates | |
The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to donated expenses, and deferred income tax valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may diffe r materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | |
Going Concern | |
These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, |
F-4
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2008
(unaudited)
discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of the Company’s interests in the underlying properties, and the attainment of profitable operations. As at March 31, 2008, the Company has working deficit of $2,150 and an accumulated deficit of $49,650. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. | |
2. | Recently Issued Accounting Pronouncements |
In March 2008, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities – an amendment to FASB Statement No. 133”. SFAS No. 161 is intended to improve financial standards for derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position, financial performance, and cash flows. Entities are required to provide enhanced disclosures about: (a) how and why an entity uses derivative instruments; (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations; and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. It is effective for financial statements issued for fiscal ye ars beginning after November 15, 2008, with early adoption encouraged. The Company is currently evaluating the impact of SFAS No. 161 on its financial statements, and the adoption of this statement is not expected to have a material effect on the Company’s financial statements. | |
In December 2007, the FASB issued SFAS No. 141R, “Business Combinations”. This statement replaces SFAS 141 and defines the acquirer in a business combination as the entity that obtains control of one or more businesses in a business combination and establishes the acquisition date as the date that the acquirer achieves control. SFAS 141R requires an acquirer to recognize the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. SFAS 141R also requires the acquirer to recognize contingent consideration at the acquisition date, measured at its fair value at that date. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. The adoption of this statement is not expected to have a material effect on th e Company's financial statements. | |
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements Liabilities –an Amendment of ARB No. 51”. This statement amends ARB 51 to establish accounting and reporting standards for the Noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. The adoption of this statement is not expected to have a material effect on the Company's financial statements. | |
F-5
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2008
(unaudited)
3. | Related Party Transactions | |
¬ | During the three months ended March 31, 2008 the Company recognized donated capital totalling $1,500 (2007 - $500) for management services at $500 per month provided by the President of the Company. | |
¬ | At March 31, 2008, the Company is indebted to the president of the Company for $22,810, representing expenditures paid on behalf of the Company. This amount is unsecured, non-interest bearing, due on demand and has no specific terms of repayment. | |
F-6
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board Directors
Aventerra Explorations Inc.
(an exploration stage company)
Las Vegas, Nevada
We have audited the accompanying consolidated balance sheet of Aventerra Explorations Inc. as of December 31, 2007 and the related consolidated statements of operations, stockholders’ equity, and cash flows for the period from February 27, 2007 (inception) to December 31, 2007. These consolidated financial statements are the responsibility of Aventerra's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. Aventerra is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Aventerra’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and sig nificant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Aventerra as of December 31, 2007 and the consolidated results of their operations and their cash flows for the period from February 27, 2007 (inception) to December 31, 2007, in conformity with accounting principles generally accepted in the United States of America.
The accompanying consolidated financial statements have been prepared assuming that Aventerra will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, Aventerra has not generated revenues since inception and has accumulated losses since inception, which raises substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters also are described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
MALONE & BAILEY, P.C.
www.malone-bailey.com
Houston, TX
April 29, 2008
F-7
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Aventerra Explorations Inc. | ||
(An Exploration Stage Company) | ||
Consolidated Balance Sheet | ||
December 31, | ||
2007 | ||
$ | ||
ASSETS | ||
Current Assets | ||
Cash and cash equivalents | 30,841 | |
Prepaid expenses | 426 | |
Total Assets | 31,267 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Due to related party (Note 4) | 22,810 | |
Total Liabilities | 22,810 | |
Commitments and Contingencies (Notes 1 and 3) | ||
Stockholders’ Equity | ||
Preferred Stock, 100,000,000 shares authorized, $0.00001 par value, | ||
No shares issued and outstanding | – | |
Common Stock, 100,000,000 shares authorized, $0.00001 par value, 8,600,000 shares issued | ||
and outstanding | 86 | |
Additional Paid-in Capital | 40,914 | |
Donated Capital (Note 4) | 5,000 | |
Deficit Accumulated During the Exploration Stage | (37,543) | |
Total Stockholders’ Equity | 8,457 | |
Total Liabilities and Stockholders’ Equity | 31,267 |
(The accompanying notes are an integral part of these financial statements.)
F-8
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Aventerra Explorations Inc. | ||
(An Exploration Stage Company) | ||
Consolidated Statement of Operations | ||
February 27, 2007 | ||
(Inception) | ||
To December 31, | ||
2007 | ||
$ | ||
Revenue | – | |
Expenses | ||
General and administrative (Note 4) | 6,953 | |
Mineral property costs (Note 3) | 15,500 | |
Professional fees | 15,090 | |
Total Expenses | 37,543 | |
Net Loss | (37,543) | |
Net Loss Per Share – Basic and Diluted | (0.01) | |
Weighted Average Shares Outstanding | 5,035,000 |
(The accompanying notes are an integral part of these financial statements.)
F-9
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Consolidated Statement of Cash Flows
February 27, 2007 | |||
(Inception) | |||
To December 31, | |||
2007 | |||
$ | |||
Operating Activities | |||
Net loss for the period | (37,543) | ||
Adjustment to reconcile net loss to cash used in operating activities: | |||
Donated services and expenses | 5,000 | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses | (426) | ||
Net Cash Used in Operating Activities | (32,969) | ||
Financing Activities | |||
Issuance of common stock | 41,000 | ||
Due to related party | 22,810 | ||
Net Cash Provided by Financing Activities | 63,810 | ||
Increase In Cash | 30,841 | ||
Cash – Beginning of Period | – | ||
Cash – End of Period | 30,841 | ||
Supplemental Disclosures | |||
Interest paid | – | ||
Income taxes paid | – |
(The accompanying notes are an integral part of these financial statements.)
F-10
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Aventerra Explorations Inc. | |||||||||
(An Exploration Stage Company) | |||||||||
Consolidated Statement of Stockholders’ Equity | |||||||||
Deficit | |||||||||
Accumulated | |||||||||
Common Stock | Additional | During | |||||||
Par | Paid-in | Donated | Exploration | ||||||
Shares | Value | Capital | Capital | Stage | Total | ||||
# | $ | $ | $ | $ | $ | ||||
Balance – February 27, 2007 (Inception) | – | - | – | – | – | – | |||
Issuance of common stock for cash at | |||||||||
$0.001 per share | 5,000,000 | 50 | 4,950 | – | – | 5,000 | |||
Issuance of common stock for cash at | |||||||||
$0.01 per share | 3,600,000 | 36 | 35,964 | – | – | 36,000�� | |||
Donated services | – | - | – | 5,000 | – | 5,000 | |||
Net loss for the period | – | - | – | – | (37,543) | (37,543) | |||
Balance – December 31, 2007 | 8,600,000 | 86 | 40,914 | 5,000 | (37,543) | 8,457 |
(The accompanying notes are an integral part of these financial statements.)
F-11
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
1. | Exploration Stage Company | |
Aventerra Explorations Inc. (the “Company”) was incorporated in the State of Nevada on February 27, 2007 and is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (“SFAS”) No.7 “Accounting and Reporting by Development Stage Enterprises”. The Company’s principal business is the acquisition and exploration of mineral resources and has acquired a mineral property located in Nevada USA. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable. | ||
These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of the Company’s interests in the underlying properties, and the attainment of profitable operations. As at December 31, 2007, the Company has working capital of $8,457 and an accum ulated deficit of $37,543. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. | ||
2. | Summary of Significant Accounting Policies | |
a) | Basis of Presentation | |
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Aventerra Explorations Ltd, a company incorporated in England. All inter-company accounts and transactions have been eliminated. The Company’s fiscal year-end is December 31. | ||
b) | Use of Estimates | |
The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to donated expenses, and deferred income tax valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the | ||
F-12
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
2. | Summary of Significant Accounting Policies (continued) | |
b) | Use of Estimates | |
circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | ||
c) | Basic and Diluted Net Income (Loss) Per Share | |
The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. At Dec ember 31, 2007, there were no dilutive potential common shares. | ||
d) | Cash and Cash Equivalents | |
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. | ||
e) | Comprehensive Loss | |
SFAS No. 130, “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at December 31, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements. | ||
f) | Mineral Property Costs | |
The Company is primarily engaged in the acquisition, exploration and development of mineral properties. | ||
Mineral property acquisition costs are capitalized in accordance with EITF 04-2 “Whether Mineral Rights Are Tangible or Intangible Assets” when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of |
F-13
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
2. | Summary of Significant Accounting Policies (continued) | |
f) | Mineral Property Costs (continued) | |
property acquisition and budgeted exploration and development expenditures. Mineral property acquisition costs are expensed as incurred if the criteria for capitalization are not met. In the event that a mineral property is acquired through the issuance of the Company’s shares, the mineral property will be recorded at the fair value of the respective property or the fair value of common shares, whichever is more readily determinable. | ||
Mineral property exploration costs are expensed as incurred. | ||
When mineral properties are acquired under option agreements with future acquisition payments to be made at the sole discretion of the Company, those future payments, whether in cash or shares, are recorded only when the Company has made or is obliged to make the payment or issue the shares. Because option payments do not meet the definition of tangible property under EITF 04-2, all option payments are expensed as incurred. | ||
When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves and pre feasibility, the costs incurred to develop such property are capitalized. | ||
As of the date of these financial statements, the Company has incurred only acquisition and exploration costs which have been expensed. | ||
To date the Company has not established any proven or probable reserves on its mineral properties. | ||
g) | Long-Lived Assets | |
In accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before th e end of its estimated useful life. | ||
Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. |
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
2. | Summary of Significant Accounting Policies (continued) | |
h) | Financial Instruments | |
The fair-value of financial instruments, which include cash and amounts due to a related party, were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. Foreign currency transactions are primarily undertaken in Great Britain Pounds. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. | ||
i) | Income Taxes | |
Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 “Accounting for Income Taxes” as of its inception. Pursuant to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. | ||
j) | Foreign Currency Translation | |
The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with SFAS No. 52 “Foreign Currency Translation”, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Great Britain Pounds. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. | ||
k) | Stock-based Compensation | |
The Company records stock-based compensation in accordance with SFAS No. 123R “Share Based Payments”, using the fair value method. The Company has not issued any stock options since its inception. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued. | ||
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
2. | Summary of Significant Accounting Policies (continued) | |
l) | Recently Issued Accounting Pronouncements | |
In December 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 141R,“Business Combinations”.This statement replaces SFAS 141 and defines the acquirer in a business combination as the entity that obtains control of one or more businesses in a business combination and establishes the acquisition date as the date that the acquirer achieves control. SFAS 141R requires an acquirer to recognize the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. SFAS 141R also requires the acquirer to recognize contingent consideration at the acquisition date, measured at its fair value at that date. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. The adoption of this statement is not expected to have a material effect on the Company's financial statements. | ||
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements Liabilities –an Amendment of ARB No. 51”. This statement amends ARB 51 to establish accounting and reporting standards for the Noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. The adoption of this statement is not expected to have a material effect on the Company's Company's financial statements. | ||
In February 2007, the FASB issued SFAS No. 159,“The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115”.This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115“Accounting for Certain Investments in Debt and Equity Securities”applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157,“Fair Value Measurements”.The adoption of this statement is not expected to have a material effect on the Company's financial statements. | ||
3. | Mineral Property | |
On February 27, 2007, the Company entered into an agreement to acquire a 100% interest in the Jam 1-4 claims on Esmeralda County, Nevada, USA, in consideration for $15,500. The cost of the mineral property was expensed as the criteria for capitalization was not met. | ||
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
4. | Related Party Transactions | |
a) | During the period ended December 31, 2007, the Company recognized a total of $5,000 for management services at $500 per month provided by the President of the Company. | |
b) | At December 31, 2007, the Company is indebted to the president of the Company for $22,810, representing expenditures paid on behalf of the Company. This amount is unsecured, non-interest bearing, due on demand and has no specific terms of repayment. | |
5. | Common Stock | |
a) | On February 28, 2007, the Company issued 5,000,000 shares of common stock at $0.001 per share to the President of the Company for cash proceeds of $5,000. | |
b) | On December 28, 2007, the Company issued 3,600,000 shares of common stock at $0.01 per share for cash proceeds of $36,000. | |
6. | Income Taxes | |
The Company accounts for income taxes under SFAS No. 109, "Accounting for Income Taxes." Deferred income tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Income tax expense differs from the amount that would result from applying the U.S federal and state income tax rates to earnings before income taxes. The Company has a net operating loss carryforward of approximately $31,000 available to offset taxable income in future years which expires in fiscal 2027. Pursuant to SFAS 109, the potential benefit of the net operating loss carryforward has not been recognized in the financial statements since the Company cannot be assured that it is more likely than not that such benefit will be utilized in future years. | ||
The Company is subject to United States federal and state income taxes at an approximate rate of 35%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:
December 31, | ||||
2007 | ||||
$ | ||||
Income tax recovery at statutory rate | 13,140 | |||
Permanent differences | (1,750) | |||
Temporary differences | (580) | |||
Valuation allowance change | (10,810) | |||
Provision for income taxes | – |
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Aventerra Explorations Inc.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2007
6. Income Taxes (continued)
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred income taxes arise from temporary differences in the recognition of income and expenses for financial reporting and tax purposes. The significant components of deferred income tax assets and liabilities at December 31, 2007 are as follows:
December 31, | ||
2007 | ||
$ | ||
Deferred income tax assets: | ||
Net operating loss carryforward | 10,810 | |
Valuation allowance | (10,810) | |
Net deferred income tax asset | – |
The Company has recognized a valuation allowance for the deferred income tax asset since the Company cannot be assured that it is more likely than not that such benefit will be utilized in future years. The valuation allowance is reviewed annually. When circumstances change and which cause a change in management's judgment about the realizability of deferred income tax assets, the Simpact of the change on the valuation allowance is generally reflected in current income.
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Until _______________________, 2008, ninety (90) days after the date of this prospectus, all dealers effecting transactions in our registered securities, whether or not participating in this distribution, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
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PART II. INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The estimated expenses of the offering (assuming all shares are sold), all of which are to be paid by the registrant, are as follows:
SEC Registration Fee | $ | 1.73 | |
Printing Expenses | 200.00 | ||
Accounting Fees and Expenses | 4,098.27 | ||
Legal Fees and Expenses | 25000.00 | ||
Blue Sky Fees/Expenses | 500.00 | ||
Transfer Agent Fees | 200.00 | ||
TOTAL | $ | 30,000.00 |
ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The only statute, charter provision, bylaw, contract, or other arrangement under which any controlling person, director or officer of the Registrant is insured or indemnified in any manner against any liability which he may incur in his capacity as such, is as follows:
1. | Article 3 of the Articles of Incorporation of the company, filed as Exhibit 3.1 to the Registration Statement. |
2. | Article X of the Bylaws of the company, filed as Exhibit 3.2 to the Registration Statement. |
3. | Nevada Revised Statutes, Chapter 78. |
The general effect of the foregoing is to indemnify a control person, officer or director from liability, thereby making the company responsible for any expenses or damages incurred by such control person, officer or director in any action brought against them based on their conduct in such capacity, provided they did not engage in fraud or criminal activity.
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ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES.
Since inception, the Registrant has sold the following securities that were not registered under the Securities Act of 1933, as follows:
a) | On February 28, 2007, we issued 5,000,000 shares of common stock to Patricia Traczykowski, one of our officers and directors in consideration of $0.001 per share or a total of $5,000. We issued the foregoing restricted shares of common stock pursuant to the exemption from registration contained in Regulation S of the Securities Act of 1933. The transaction took place outside the United States of America and Ms.Traczykowski is a non-US person. |
b) | On December 28, 2007, we issued 3,600,000 shares of common stock to 40 individuals in consideration of $0.01 per share or a total of $36,000. The 3,600,000 shares so issued are being registered in this offering. The foregoing 3,600,000 shares of common stock were issued as restricted securities pursuant to Reg. S of the Securities Act of 1933 in that all of the sales took place outside the United States of America with non-US persons. |
ITEM 16.
EXHIBITS.
The following exhibits are filed as part of this registration statement, pursuant to Item 601of Regulation S-K.
Exhibit No. | Document Description |
3.1 | Articles of Incorporation. |
3.2 | Bylaws. |
4.1 | Specimen Stock Certificate. |
5.1 | Opinion of The Law Office of Conrad C. Lysiak, P.S. regarding the legality of the |
Securities being registered. |
21.1 | Subsidiaries of the Registrant |
23.1 | Consent of Malone & Bailey, P.C. |
23.2 | Consent of The Law Office of Conrad C. Lysiak, P.S. |
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ITEM 17.
UNDERTAKINGS.
A. | The undersigned Registrant hereby undertakes: | ||
(1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement to: | ||
(a) | include any prospectus required by Section 10(a)(3) of the Securities Act; | ||
(b) | reflect in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) under the Securities Act if, in the aggregate, the changes in volume and price represent no more than a 20% change in maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and | ||
(c) | include any additional or changed material information with respect to the plan of distribution. | ||
(2) | That, for the purpose of determining any liability under the Securities Act, each such post- effective amendment shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. | ||
(3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. | ||
(4) | To provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser. | ||
(5) | For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of a registration statement in reliance upon Rule 430A and contained in the form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of the registration statement as of the time it was declared effective. | ||
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(6) | For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. | |
(7) | For the purpose of determining liability under the Securities Act to any purchaser: | |
Each prospectus filed pursuant to Rule 424(b) under the Securities Act as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A (§§230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.Provided however,that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was par t of the registration statement or made in any such document immediately prior to such date of first use. | ||
(8) | For the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of securities: | |
The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: | ||
(a) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 of this chapter; | |
(b) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; | |
(c) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and | |
(d) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. | |
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B. | Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, the small business issuer has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the small business issuer of expenses incurred or paid by a director, officer or controlling person of the small business issuer in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the small business issuer will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submi t to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. | |
C. | To provide to the underwriter at the closing specified in the Underwriting Agreement certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser. | |
D. | The undersigned Registrant hereby undertakes that: | |
(1) | For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective. | |
(2) | For the purpose of determining any liability under the Securities Act of 1933, each post- effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initialbona fideoffering thereof. | |
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing of this Form S-1 Registration Statement and has duly caused this Form S-1 Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in London, England, on this 30thof May 2008.
AVENTERRA EXPLORATIONS, INC.
BY: PATRICIA TRACZYKOWSKI
Patricia Traczykowski
President, Chief Executive Officer, Treasurer,
Chief Financial Officer
KNOW ALL MEN BY THESE PRESENT, that each person whose signature appears below constitutes and appoints Patricia Traczykowski, as true and lawful attorney-in-fact and agent, with full power of substitution, for his and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement, and to file the same, therewith, with the Securities and Exchange Commission, and to make any and all state securities law or blue sky filings, granting unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite or necessary to be done in about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying the confirming all that said attorney-in-fact and agent, or any substitute or substitutes, may lawfully do or cause to be done by virt ue hereof.
Pursuant to the requirements of the Securities Act of 1933, this Form S-1 Registration Statement has been signed by the following persons in the capacities and on the dates indicated:
Signature | Title | Date |
PATRICIA TRACZYKOWSKI | President, Chief Executive Officer, Treasurer, | |
Patricia Traczykowski | Chief Financial Officer, and a member of the | May 30, 2008 |
Board of Directors | ||
MATTHEW WORRELL | Secretary and a member of the Board of | May 30, 2007 |
Matthew Worrell | Directors |
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EXHIBIT INDEX
Exhibit No. | Document Description |
3.1 | Articles of Incorporation. |
3.2 | Bylaws. |
4.1 | Specimen Stock Certificate. |
5.1 | Opinion of The Law Office of Conrad C. Lysiak, P.S. regarding the legality of the |
Securities being registered. |
21.1 | Subsidiaries of the Registrant |
23.1 | Consent of Malone & Bailey, P.C. |
23.2 | Consent of The Law Office of Conrad C. Lysiak, P.S. |
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