UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 40-F
[ ]
REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
or
[X]
ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007
Commission File Number 001-31893
AURIZON MINES LTD.
(Exact Name of the Registrant as Specified in its Charter)
Not applicable | British Columbia, Canada | Not Applicable |
(Translation of Registrant’s name into English (if applicable)) | (Province of other jurisdiction of incorporation or organization) | (I.R.S. employer Identification Number (if applicable)) |
1040
(Primary Standard Industrial Classification Code Number (if applicable))
Suite 3120, Park Place, 666 Burrard Street,
Vancouver, British Columbia V6C 2X8
Telephone: (604) 687-6600
(Address of Principal Executive Offices)
CT Corporation System
111 Eighth Avenue, 13th Floor
New York, New York 10011
Telephone: (212) 590-9331
Name, address (including zip code) and telephone number
(including area code) of agent for service in the United States
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Name of Each
Title of Each Class
Exchange on Which Registered
Common Stock
American Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act:
NONE
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
NONE
For annual reports, indicate by check mark the information filed with this Form:
[ X ] Annual information form
[ X ] Audited annual financial statements
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
As at December 31, 2007,146,730,948Common Shares without par value were issued and outstanding.
Indicate by check mark whether the Registrant by filing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 (the “Exchange Act”). If “Yes” is marked, indicate the filing number assigned to the Registrant in connection with such Rule.
[ ] Yes:
[ X ] No
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
[ X ]Yes
[ ] No
DISCLOSURE CONTROLS AND PROCEDURES
Aurizon Mines Ltd. (the “Company”) has carried out an evaluation, under the supervision of the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures pursuant to Rule 13a-15b of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2007, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management is responsible for establishing and maintaining adequate internal control over financial reporting. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management has used the criteria established in “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to evaluate the effectiveness of the Company’s internal control over financial reporting. Based on this assessment, management has concluded that as at December 31, 2007, the Company’s internal control over financial reporting was effective.
The effectiveness of the Company’s internal controls over financial reporting as at December 31, 2007 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.
INTERNAL CONTROL OVER FINANCIAL REPORTING
The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company, as such term is defined in Exchange Act Rules 13a-15(f).
The Company’s internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that the Company’s receipts and expenditures are being made only in accordance with authorizations of its management and directors; and (3) provide reasonable assurance regarding prevention or
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timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
Under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting, as of December 31, 2007, based on the framework set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its evaluation under this framework, management concluded that, as of December 31, 2007, the Company’s internal control over financial reporting was effective.
The Attestation Report of PricewaterhouseCoopers LLP on management’s assessment of internal control over financial reporting is included in Exhibit 2 hereto and is incorporated by reference herein.
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING
During the period covered by this Annual Report on Form 40-F, an evaluation conducted pursuant to Rule 13a–15(d) under the Exchange Act identified no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
The Company’s management, including the Chief Executive Officer and Chief Financial Officer, does not expect that its disclosure controls and procedures or internal controls and procedures will prevent all error and all fraud. A control system can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The desi gn of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
CODE OF ETHICS
The Company has adopted a Code of Ethics for Financial Reporting Officers that applies to the Company’s principal executive officer, principal financial officer, principal accounting officer and any other person performing similar functions. The Company has also adopted a Code of Business Ethics that applies to all directors, officers and employees of the Company. Both the Company’s Code of Ethics for Financial Reporting Officers and its Code of Business Ethics are available on its website, www.aurizon.com.
The Company’s Board of Directors has a separately-designated standing Audit Committee for the purpose of overseeing the accounting and financial reporting processes of the Company and audits of the Company’s annual financial statements. The following individuals comprised the entire membership of the Company’s Audit Committee, which has been established in accordance with Section 3(a)(58)(A) of the Exchange Act:
Richard Faucher
Brian S. Moorhouse
Robert Normand
AUDIT COMMITTEE FINANCIAL EXPERT
The Company’s Board of Directors has determined that it has at least one audit committee financial expert (as such term is defined in the rules and regulations of the Securities and Exchange Commission) serving on its
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Audit Committee. Robert Normand has been determined to be such audit committee financial expert and is independent (as such term is defined by the corporate governance standards of the American Stock Exchange applicable to the Company).
The Securities and Exchange Commission has indicated that the designation of Robert Normand as an audit committee financial expert does not make him an “expert” for any purpose, impose on him any duties, obligations or liability that are greater than the duties, obligations or liability imposed on him as a member of the Audit Committee and the Board of Directors in the absence of such designation or identification, or affect the duties, obligations or liability of any other member of the Audit Committee or Board of Directors.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
The following table sets forth the Company’s fees paid to PricewaterhouseCoopers LLP (“PWC”), Chartered Accountants, of Vancouver, British Columbia, its independent auditors for the two years ended December 31, 2007 and 2006 for professional services, based on fees billed during the calendar year in each category:
| Fiscal Year Ended | ||
| Dec. 31, 2007 |
| Dec. 31, 2006 |
Audit Fees |
|
|
|
Consolidated financial statements | 262,950 |
| 97,750 |
Quarterly reviews | 5,300 |
| 3,600 |
|
|
|
|
Total audit fees: | 268,250 |
| 101,350 |
|
|
|
|
Tax Fees(1) | 12,600 |
| 22,943 |
|
|
|
|
Audit-Related Fees |
|
|
|
Consulting | 1,500 |
| - |
|
|
|
|
Total audit-related fees: | 1,500 |
| - |
|
|
|
|
All Other Fees(2) | - |
| 10,120 |
|
|
|
|
Total fees | 282,350 |
| 134,413 |
Note:
(1)
The Company uses PWC for tax compliance, advice, and return preparation. The Company chooses to use PWC for these services due to their extensive knowledge of the Company’s activities and familiarity of its business and the associated cost savings resulting from that knowledge base.
(2)
Other Fees are related to consultation with respect to Sarbanes Oxley.
AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES
The Company’s Audit Committee has adopted a pre-approval policy with respect to audit services, audit-related services and permitted non-audit services. Pursuant to the Audit Committee Charter, the Audit Committee shall review and pre-approve all audit and audit-related services. In addition, the Audit Committee shall review and pre-approve all permitted non-audit services provided by the Company’s auditors. Prior to the granting of any pre-approval, the Audit Committee must be satisfied that the performance of the services in question will not compromise the independence of the auditors.
During the years ended December 31, 2007 and 2006, none of the services described above under Principal Accountant Fees and Services” under the captions “Audit-Related Fees”, “Tax Fees”, and “All Other Fees” were approved after the fact by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
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OFF-BALANCE SHEET ARRANGEMENTS
The Company does not have any off-balance sheet arrangements.
TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
The following table lists as of December 31, 2007 information with respect to the Company’s known contractual obligations.
|
|
|
|
|
|
|
|
|
| More than 5 years |
|
| $ |
| $ |
| $ |
| $ |
| $ |
Long-term debt |
| 69,053,081 |
| 39,910,846 |
| 29,142,235 |
| - |
| - |
Environmental and reclamation |
| 3,690,663 |
| 157,883 |
| 505,227 |
| - |
| 3,027,553 |
Mineral Properties – Option payments and work commitments |
| 799,900 |
| 249,900 |
| 550,000 |
| - |
| - |
Hydro Quebec |
| 304,239 |
| 69,125 |
| 151,826 |
| 83,288 |
| - |
Government assistance |
| 1,973,161 |
| - |
| 1,200,000 |
| 773,161 |
| - |
|
|
|
|
|
|
|
|
|
|
|
Total: |
| $75,821,044 |
| $40,387,753 |
| $31,549,289 |
| $856,449 |
| $3,027,553 |
For additional information related to the Company’s obligations and commitments see note 9 in the Company’s audited consolidated financial statements (Exhibit 2).
UNDERTAKING AND CONSENT TO SERVICE OF PROCESS
Undertaking
The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Securities and Exchange Commission (“SEC”) staff, and to furnish promptly, when requested to do so by the SEC staff, information relating to: the securities registered pursuant to Form 40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.
Consent to Service of Process
The Company filed an Appointment of Agent for Service of Process and Undertaking on Form F-X signed by the Company and its agent for service of process on March 29, 2006 with respect to the class of securities in relation to which the obligation to file this annual report arises.
Pursuant to the requirements of the Exchange Act, the registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.
AURIZON MINES LTD.
By:
Date: March 31, 2008
/s/ Ian S. Walton
Ian S. Walton,
Executive Vice President and
Chief Financial Officer
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1.
Annual Information Form dated March 31, 2008.
2.
Audited Annual Financial Statements for the Company’s Fiscal Year Ended December 31, 2007.
3.
4.
5.
6.
7.
8.
Consent of PricewaterhouseCoopers LLP.
9.
Consents of Scott Wilson RPA Inc.
10.
Consents of Geostat Systems International Inc.
11.
Consent of Breton Banville and Associates (”BBA”)
12.
Consent of Michel Gilbert, P. Eng., Vice-President, Aurizon Mines Ltd.
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