EXHIBIT 99.4
Banro Corporation
Interim Consolidated Financial Statements
September 30, 2004
(Expressed in U.S. dollars)
NOTICE TO READER
These interim consolidated financial statements of Banro Corporation as at
and for the three and nine month periods ended September 30, 2004 have been
prepared by management of Banro Corporation. The auditors of Banro
Corporation have not audited or reviewed these interim consolidated
financial statements.
Banro Corporation
Interim Consolidated Financial Statements
September 30, 2004
(Expressed in U.S. dollars)
Contents
================================================================================
Consolidated Financial Statements
Balance Sheets 2
Statements of Operations and Deficit 3
Statements of Cash Flows 4
Summary of Significant Accounting Policies 5-6
Notes to Financial Statements 7-14
================================================================================
Banro Corporation
Consolidated Balance Sheets
(Expressed in U.S. dollars)
As at: September 30, December
2004 2003
(unaudited)
- --------------------------------------------------------------------------------
Assets
Current
Cash $ 10,216,302 $ 938,930
Accounts receivable and prepaid expenses 318,575 12,495
Amounts due from related parties 28,148 50,596
-----------------------------
10,563,025 1,002,021
Note receivable (Note 2) 216,320 216,320
Investments (Note 3) 958,917 1,014,939
Property, plant and equipment (Note 4) 142,456 447,511
Deferred exploration expenditures (Note 5) 322,690 1,494,956
-----------------------------
$ 13,680,729 $ 2,698,426
================================================================================
Liabilities and Shareholders' Equity
Current
Accounts payable $ 8,776 $ 40,953
-----------------------------
8,776 40,953
-----------------------------
Shareholders' equity
Share capital (Note 6) 51,344,037 39,469,888
Contributed surplus (Note 6) 502,014 1,960,254
Deficit (39,632,338) (37,314,429)
-----------------------------
13,671,953 2,657,473
-----------------------------
$ 13,680,729 $ 2,698,426
================================================================================
2
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Banro Corporation
Consolidated Statements of Operations and Deficit
(Expressed in U.S. dollars)
(Unaudited)
- --------------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2004 2003 2004 2003
- -------------------------------------------------------------------------------------------------------------
Expenses
Professional fees $ 20,185 $ 67,099 $ 142,120 $ 135,355
Consulting fees 26,219 19,281 34,338 196,942
Office and sundry 149,932 27,157 316,582 92,418
Salary 165,689 67,838 344,441 195,852
Stock option compensation expense 501,498 - 1,298,371 -
Travel and promotion 54,983 73,679 332,259 153,157
Shareholder relations 19,875 20,549 45,632 34,903
Management fees - 3,050 - 30,716
Interest and bank charges 1,628 741 4,106 2,684
Amortization 13,755 11,122 36,501 32,926
Foreign exchange loss (422,761) 3,081 (177,475) (271,762)
------------------------------------------------------------
(531,003) (293,597) (2,376,875) (603,191)
Interest income 38,402 4,658 97,953 17,585
------------------------------------------------------------
Loss from operations (492,601) (288,939) (2,278,922) (585,606)
Equity share of loss of BRC Diamond Corp (28,398) (17,182) (62,804) (87,105)
Miscellaneous income earned 23,816 62,401 23,816 361,457
------------------------------------------------------------
Net earnings (loss) for the period (497,183) (243,720) (2,317,910) (311,254)
Deficit, beginning of the period (39,135,155) (36,520,981) (37,314,428) (36,453,447)
------------------------------------------------------------
Deficit, end of the period $ (39,632,338) $(36,764,701) $(39,632,338) $(36,764,701)
=============================================================================================================
Earnings (loss) per share $ (0.04) $ (0.02) $ (0.19) $ (0.03)
=============================================================================================================
3
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Banro Corporation
Consolidated Statements of Cash Flows
(Expressed in U.S. dollars)
(Unaudited)
- --------------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2004 2003 2004 2003
- ------------------------------------------------------------------------------------------------------------
Cash provided by (used in)
Operating activities
Net earnings (loss) for the period $(497,183) $(243,720) $ (2,317,910) $(311,254)
Adjustments to reconcile loss to net cash
Provided by operating activities
Equity loss 28,398 17,182 62,804 87,105
Value of options issued 501,498 (3,038) 1,298,371 15,539
Amortization 13,755 11,122 36,501 32,926
Changes in non-cash working capital
Accounts receivable and prepaid exp. (5,905) (152,699) (306,080) (152,128)
Accounts payable (13,815) (1,432) (32,177) (66,183)
---------------------------------------------------------
26,748 (372,585) (1,258,491) (393,995)
---------------------------------------------------------
Investing activities
Capital Assets (336,788) (2,023) (357,727) (5,885)
Deferred exploration expenditures (424,405) - (996,225) -
Advances to BRC/NBI 2,683 (152,290) (6,782) 255,005
---------------------------------------------------------
(758,510) (154,313) (1,360,734) 219,118
---------------------------------------------------------
Financing activities
Due to/from related parties (28,148) 156,017 22,448 (206,952)
Common shares and warrants issued 23,494 - 11,874,149 -
---------------------------------------------------------
(4,654) 156,017 11,896,597 (206,952)
---------------------------------------------------------
Net increase (decrease) in cash during the
period (736,416) (370,881) 9,277,372 (381,829)
Cash, beginning of the period 10,952,718 1,217,057 938,930 1,228,005
---------------------------------------------------------
Cash, end of the period $10,216,302 $ 846,176 $10,216,302 $ 846,176
============================================================================================================
4
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Banro Corporation
Summary of Significant Accounting Policies
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
Nature of Business Banro Corporation's (the "Company") business focus is the
exploration of mineral properties in the Democratic Republic
of the Congo (the "Congo"). The Company was continued under
the Canada Business Corporations Act on April 2, 2004. The
Company was previously governed by the Ontario Business
Corporations Act.
Principles of These consolidated financial statements include the accounts
Consolidation of the Company, its wholly-owned subsidiary in the United
States, Banro American Resources Inc., and its wholly-owned
subsidiaries in the Congo, Banro Congo Mining SARL, Kamituga
Mining SARL, Lugushwa Mining SARL, Namoya Mining SARL and
Twangiza Mining SARL.
Up to September 30, 2003, the consolidated financial
statements also included the accounts of the Company's 93%
owned subsidiary in the Congo, Societe Aurifere du Kivu et
du Maniema S.A.R.L. ("Sakima"). The Congolese government
held the remaining 7% ownership interest of Sakima (Note 1).
Investments Investments in companies subject to significant influence
are accounted for using the equity method. Other long-term
investments are accounted for using the cost method.
Property, Plant Property, plant and equipment is recorded at cost.
and Equipment Amortization is recorded as follows:
Office furniture and fixtures - 20% declining balance basis
Office equipment - Straight line over four years
Vehicles - Straight line over four years
Leasehold improvements - Straight line over five years
Foreign Currency These consolidated financial statements are expressed in the
Translation functional currency of the Company, United States dollars.
For integrated operations, monetary assets and liabilities
are translated at the spot rates of exchange in effect at
the end of the period; non-monetary items are translated at
historical exchange rates in effect on the dates of the
transactions. Revenues and expense items, except
amortization, are translated at average rates of exchange in
effect during the period. Realized exchange gains and losses
and currency translation adjustments are included in the
consolidated statements of operations and deficit.
5
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Banro Corporation
Summary of Significant Accounting Policies
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
Deferred Exploration costs relating to mineral properties and rights
Exploration are deferred and carried as an asset until the results of
Expenditures the projects are known. As the Company currently has no
operational income, any incidental revenues earned in
connection with these properties or related exploration
activities are applied as a reduction to capitalized
exploration costs. If a property is determined to be
non-commercial, non-productive or its value is impaired,
those costs in excess of estimated recoveries are charged to
operations.
Stock Options The Company has a stock option plan, which is described in
Note 6(d). During 2003 the Company adopted, on a prospective
basis, the fair value method of accounting for stock options
granted to directors, officers and employees whereby the
weighted average fair value of options granted is recorded
as a compensation expense in the financial statements.
Compensation expense on stock options granted to
non-employees is recorded as an expense in the period the
options are vested using the fair value method. Any
consideration paid by directors, officers, employees and
consultants on exercise of stock options or purchases of
shares is credited to share capital.
Financial Unless otherwise noted, it is management's opinion that the
Instruments Company is not exposed to significant interest, currency or
credit risks arising from its financial instruments. The
fair values of its financial instruments approximate their
carrying values, unless otherwise noted.
Income Taxes The asset and liability method is used to determine income
taxes. Pursuant to this method, future tax assets and
liabilities are recognized for future tax consequences
attributable to differences between financial statement
carrying values and tax bases of assets and liabilities.
Future tax assets and liabilities are measured using enacted
tax rates expected to be recovered or settled. The effect on
future tax assets and liabilities of a change in tax rate is
recognized in income in the period that includes the
enactment date. Net future income tax losses are offset by
valuation allowances to the extent that they are not more
likely not to be realized.
Use of Estimates These consolidated financial statements have been prepared
in accordance with Canadian generally accepted accounting
principles which require management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and
liabilities at the date of the consolidated financial
statements and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ
from those estimates.
6
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Banro Corporation
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
1. Interest in Congolese Subsidiaries
- -- ----------------------------------
On July 31, 1998, the Company discovered that the government of the Congo,
without prior warning or consultation, had issued Presidential decrees
purporting to, among other things, (a) dissolve Sakima and (b) terminate
the Company's mining convention relating to the Company's mineral
properties. The Company disputed the validity of the Congolese government
actions and vigorously pursued resolution of the disputes through legal
procedures.
On April 18, 2002, the government of the Congo formally signed a settlement
agreement with the Company. The agreement calls for, among other things,
the Company to hold 100% interests in the Twangiza, Kamituga, Lugushwa and
Namoya gold deposits under a revived 30-year mining convention. The
government of the Congo will retain 100% of the tin assets. Subsequent to
the signing of the settlement agreement the Company filed with the Federal
Court in Washington, DC, a notice of dismissal with respect to its legal
action against the Congolese government.
On May 30, 2003, the government of the Congo issued Presidential decrees to
rescind the July 31, 1998 decrees and to amend the Company's mining
convention in accordance with the settlement agreement signed on April 18,
2002.
On September 30, 2003, the Company wound up the operations of Sakima and
will transfer all its shares in Sakima to the government of Congo in
accordance with the April 18, 2002 settlement agreement after Sakima's
title in the gold deposits is transferred to the Company's new wholly-owned
Congolese subsidiaries.
The Company operates primarily in one operating segment and its assets
located in the Congo, including its interests in gold and other mining
properties, may be subject to sovereign risks, including political and
economic instability, government regulations relating to mining, military
repression, civil disorder, currency fluctuations and inflation, all or any
of which may impede the Company's activities in this country or may result
in the impairment or loss of part or all of the Company's interest in the
properties.
- --------------------------------------------------------------------------------
2. Note Receivable
- -- ---------------
The note, receivable from a shareholder of the Company, is secured by a
pledge of marketable securities with a market value at September 30, 2004
of $67,433 and bears interest at 4% per annum. The principal and interest
accrued thereon is due on November 30, 2004.
7
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Banro Corporation
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
3. Investments
- -- -----------
(a) Investment in Nevada Bob's International Inc.
Effective December 31, 2003, the Company entered into an agreement
with Nevada Bob's International Inc. (NBI), a franchisor of golf
equipment and apparel, in order to purchase 941,255 common shares of
NBI at a price of $0.40 per share, or $376,502 in the aggregate, in
order to settle an outstanding debt of NBI to the Company of the
equivalent amount. The transaction closed in February 2004. The quoted
market value of the shares on September 30, 2004 was $0.30 per share
or $282,377 in aggregate.
The investment represents 6.05% of outstanding common shares of NBI
and is accounted for under the cost method, as management does not
have the ability to exercise significant influence over NBI. This
investment will continue to be carried at cost and will be written
down only when there has been a loss in value which is other than
temporary.
(b) Investment in BRC Diamond Corporation
On March 10, 2004, the Company completed a debt settlement transaction
with BRC Diamond Corporation (formerly BRC Development Corporation)
(BRC). Pursuant to this transaction, the Company purchased 244,032
common shares of BRC at a price of Cdn. $1.35 per share, or Cdn.
$329,443 in aggregate, in order to settle an outstanding debt of BRC
to the Company of the equivalent amount. The Company owns 3,744,032
common shares, representing a 40.09% (Dec. 31, 2003 - 40.30%) equity
interest, in BRC with a quoted market value of approximately
$5,935,040 at September 30, 2004 (Dec. 31, 2003 - $3,509,448).
On August 11, 2004 BRC, whose principal business is the acquisition
and exploration of mineral properties, was continued under the Canada
Business Corporations Act and changed its name from BRC Development
Corporation to BRC Diamond Corporation.
The Company's investment in BRC is summarized as follows:
As at and for the As at
nine month period and for the
ended Sept. 30, year ended
2004 Dec. 31, 2003
Equity investment, beginning of year $ 383,338 $ 502,968
Acquisitions 254,099 -
------------------------------------------
637,437 502,968
Share of equity loss (62,804) (116,731)
Loss on dilution of interest - (2,899)
------------------------------------------
Equity investment, end of period 574,633 383,338
Amount due from BRC 7,782 255,099
------------------------------------------
$ 582,415 $ 638,437
==========================================
The amount due from BRC is unsecured, non-interest bearing and is due
on demand.
8
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Banro Corporation
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
3. Investments (continued)
- -- -----------------------
(b) Investment in BRC Diamond Corporation (continued)
BRC's summarized consolidated balance sheets and income statements as
at and for the nine month period ended September 30, 2004 (unaudited)
and as at and for the year ended December 31, 2003 (audited),
converted to US $ at the period end rate of exchange, is as follows:
2004 2003
--------------------------------
Assets
Current assets $ 22,796 $ 59,689
Investment 1,044,614 1,016,542
Mineral properties 375,702 358,309
Deferred pre-operating costs 18,048 17,340
Property, plant and equipment 32,713 57,879
--------------------------------
1,493,873 1,509,759
---------------------------------
Liabilities 82,113 378,921
---------------------------------
Net Equity $ 1,411,760 $ 1,130,838
=================================
Income Statement
Revenue $ - $ 2
Expenses (158,334) (340,649)
Write-off of mineral claims - (3,169)
---------------------------------
Net Loss $ (158,334) $ (343,816)
================================
- --------------------------------------------------------------------------------
4. Property, Plant and Equipment
- -- -----------------------------
Accumulated Net Book
As at September 30, 2004 Cost Amortization Value
Office furniture and fixtures $ 18,254 $ 13,031 $ 5,223
Office equipment 240,592 83,962 156,630
Vehicle 191,343 14,161 177,182
Communication equipment 27,731 - 27,731
Field camps 35,584 - 35,584
Surveying 24,012 - 24,012
Leasehold improvement 105,746 84,597 21,149
------------------------------------------
$ 643,262 $ 195,751 $ 447,511
==========================================
9
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Banro Corporation
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
4. Property, Plant and Equipment (continued)
- -- -----------------------------------------
Accumulated Net Book
As at December 31, 2003 Cost Amortization Value
Office furniture and fixtures $ 18,254 $ 12,162 $ 6,092
Office equipment 114,390 59,235 55,155
Vehicle 47,145 2,947 44,198
Leasehold improvement 105,746 68,735 37,011
----------------------------------------
$ 285,535 $ 143,079 $ 142,456
========================================
- --------------------------------------------------------------------------------
5. Deferred Exploration Expenditures
- -- ---------------------------------
Deferred Exploration
Cumulative
Nine month from inception
period ended in April 1994 to
September 30, September 30,
2004 2004
-------------------------------------------
Exploration cost $ 996,225 $ 17,472,396
Stock option compensation expense 159,869 159,869
Amortization 16,172 51,622
-------------------------------------------
Net expenditure 1,172,266 17,683,887
Effect of exchange rate change - 2,511
-------------------------------------------
1,172,266 17,686,398
Write-off - (16,191,442)
-------------------------------------------
Balance, end of period $ 1,172,266 $ 1,494,956
===========================================
Mineral rights
Cumulative
from inception
2004 in April 1994
Mineral rights $ - $ 9,681,194
Write-off - (9,681,194)
-------------------------------------------
Balance, end of period $ - $ -
===========================================
10
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Banro Corporation
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
6. Share Capital
- -- -------------
(a) Authorized Share Capital
Unlimited number of common shares
Unlimited number of preference shares, issuable in series
(b) Issued Share Capital - Common Shares
As at September 30, 2004 As at December 31, 2003
----------------------------------- ----------------------------------
Number of Amount Number of Amount
Shares Shares
Balance -
Beginning of period 10,427,844 $ 39,469,888 9,886,594 $ 39,173,793
Exercise of stock options 485,000 273,192 41,250 23,017
Exercise of warrants 350,000 286,048 500,000 273,078
Issued during the period 2,000,000 11,314,909 - -
----------------------------------- ----------------------------------
Balance - End of period 13,262,844 $ 51,344,037 10,427,844 $ 39,469,888
=================================== ==================================
On March 30, 2004, the Company completed a private placement (the
"Offering") of 2,000,000 common shares at Cdn. $8.00 per share for
gross proceeds of Cdn. $16,000,000 (US$ 11,979,203). The net proceeds
of the financing will be used to advance the Company's projects in the
Congo located within the Twangiza - Namoya gold belt and for general
corporate purposes.
Kingsdale Capital Markets Inc. and Kingsdale Capital Partners Inc.
(collectively, the "Agent") acted as the Company's agent in connection
with the Offering. In consideration for its services, the Company paid
to the Agent a cash fee equal to 6% of the gross proceeds of the
Offering and issued to the Agent 120,000 broker warrants (the "Broker
Warrants"). Each Broker Warrant entitles the holder thereof to
purchase one common share of the Company at a price of $8.00 per share
for a period of one year.
(c) Warrants
The following table summarizes information about warrants outstanding
and exercisable at September 30, 2004:
Exercise
Number price
Date of Grant Outstanding Cdn $ Expiry Date
03/30/04 120,000 8.00 3/29/05
--------------------------
120,000
==========================
11
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Banro Corporation
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
6. Share Capital (Continued)
- -- -------------------------
(d) Stock Options
The Company has an incentive Stock Option Plan under which
non-transferable options to purchase common shares of the Company may
be granted to directors, officers, employees or service providers of
the Company to a maximum of 3,100,000 common shares. As at September
30, 2004, the number of stock options still available to be granted
under this Stock Option Plan was 678,500.
Under this Stock Option Plan, options vest 25% immediately at grant
date and 25% on each of the three consecutive six-month periods
subsequent to the issuance. As at September 30, 2004, the Company had
1,856,500 stock options outstanding to acquire common shares at a
weighted-average price of Cdn. $5.89 per share, expiring at various
dates between October 2004 and August 2009.
The following table summarizes information about stock options
outstanding and exercisable at September 30, 2004:
Options outstanding and exercisable
-----------------------------------------------------------------------------
Options
Options Exercised,
Number granted Expired Number Options Exercise
Date outstanding during the or outstanding Exercisable price Expiry
of grant at 12/31/03 period Forfeited at 09/30/04 at 09/30/04 Cdn $ date
01/31/01 375,000 - 375,000 - - 0.60 01/31/04
01/31/01 20,000 - 20,000 - - 1.00 01/31/04
10/12/01 40,000 - 40,000 - - 0.60 10/12/04
01/08/02 183,000 - 15,000 168,000 168,000 0.80 01/08/07
04/03/02 25,000 - 25,000 - - 1.70 04/03/04
04/26/02 10,000 - 10,000 - - 3.30 04/26/04
10/16/03 168,500 - - 168,500 84,250 4.00 10/16/08
10/16/03 60,000 - - 60,000 30,000 4.00 10/16/06
10/29/03 100,000 - - 100,000 50,000 4.11 10/29/08
10/29/03 100,000 - - 100,000 50,000 4.11 10/29/06
01/21/04 - 400,000 - 400,000 200,000 6.00 01/21/09
02/03/04 - 50,000 - 50,000 25,000 6.00 02/03/09
02/17/04 - 150,000 - 150,000 75,000 7.00 02/17/09
03/16/04 - 200,000 - 200,000 100,000 8.20 03/16/09
06/24/04 - 420,000 - 420,000 105,000 8.00 06/22/09
08/31/04 40,000 - 40,000 10,000 8.00 08/31/09
--------------------------------------------------------------
1,081,500 1,260,000 485,000 1,856,500 897,250
==============================================================
12
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Banro Corporation
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
6. Share Capital (Continued)
- -- -------------------------
(d) Stock Options (continued)
2003
As at December 31, 2003, the weighted average grant-date fair value of
158,625 vested stock options granted to employees, directors and
officers was $378,724. This amount was recognized in the income
statement as an expense and was credited accordingly to contributed
surplus in the balance sheet.
During the year ended December 31, 2003, a total of 72,500 stock
options previously issued to consultants and other service providers
vested. The weighted average grant-date fair value of these vested
stock options was $93,474. This amount was recognized in the income
statement as an expense and was credited accordingly to options in the
balance sheet. During 2003 a total of 50,000 options previously
granted to consultants were cancelled. Accordingly an amount of
$16,986 relating to these options was transferred to contributed
surplus.
2004
During the nine month period ended September 30, 2004, the Company
recognized in the income statement as an expense $1,298,371
representing the weighted average grant-date fair value of stock
options granted to employees, directors and officers under the
Company's stock option plan. In addition, an amount of $159,869
related to stock options issued to employees of the Company's
subsidiaries in the Congo was capitalized as deferred exploration
expenditures. These amounts were credited accordingly to contributed
surplus in the balance sheet.
The Black-Scholes option-pricing model was used to estimate values of
all stock options granted during the year based on the following
weighted average information:
(i) risk-free interest rate: 2.48% (2003 - 2.54%)
(ii) expected volatility: 96.48% (2003 - 118%)
(iii) expected life: 5 years (2003 - 3.74 years)
(iv) expected dividends: $Nil (2003 - $Nil)
(e) Earnings (Loss) per Share
Earnings (loss) per share was calculated on the basis of the weighted
average number of common shares outstanding for the nine month period
ended September 30, 2004, amounting to 12,456,786 (September 30, 2003
- 9,886,594) common shares.
Fully diluted earnings (loss) per share have not been presented since
the exercise of the options and warrants would be anti-dilutive.
13
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Banro Corporation
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
(Unaudited)
September 30, 2004
- --------------------------------------------------------------------------------
(f) Contributed Surplus
As at
September As at Dec. 31,
30, 2004 2003
-------------------------------------
Stock option compensation $ 1,960,254 $ 502,014
=====================================
7. Related Party Transactions
- -- --------------------------
Management fees of $Nil (September 30, 2003 - $30,716) were paid to
directors of the Company during the nine month period ended September 30,
2004.
During the quarter ended September 30, 2004, an amount of $28,148 was due
from a corporation wholly-owned by a director of the Company relating to
common general expenses.
Legal fees of $212,377 (September 30, 2003 - $29,535) were paid during the
nine month period ended September 30, 2004 to a law firm of which two
partners are also directors of the Company.
These transactions are in the normal course of operations and are measured
at the exchange value.
- --------------------------------------------------------------------------------
8. Segmented Reporting
- -- -------------------
The Company has one operating segment: the acquisition, exploration and
development of precious metal projects located principally in the Congo.
Geographic segmentation of capital assets and deferred exploration costs is
as follows:
As at As at
September 30, December 31,
2004 2003
-------------------------------
Congo - deferred exploration costs $ 1,494,956 $ 322,690
Congo - capital assets 366,360 68,983
Canada - capital assets 81,151 73,473
-------------------------------
$ 1,942,467 $ 465,146
===============================
- --------------------------------------------------------------------------------
9. Comparative figures
- -- -------------------
Certain of the prior period's amounts have been reclassified to conform to
the current period's presentation.
14