UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[xx] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2001
Commission file Number: 333-61442
CASCADIA CAPITAL CORPORATION
(Exact name of small business issuer as specified in its charter)
Nevada
(State or other jurisdiction of incorporation or organization)
98-0222922
(I.R.S. Employer Identification Number)
Suite 2901
1201 Marinaside Crescent
Vancouver, British Columbia
V6Z 2V2
(Address of principal executive offices)
(604)681-9588
(Issuer's telephone number)
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 4,840,000 common shares
as at April 30, 2001
Transitional Small Business Disclosure Format (check one): Yes [ ] No [ X ]
CASCADIA CAPITAL CORPORATION
INDEX
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheet as of October 31, 2000 and April 30, 2001
Statement of Operations for the periods ended
April 30, 2000 and April 30, 2001
Consolidated Statements of Cash Flows for the periods ended
April 30, 2000 and April 30, 2001
Consolidated Statements of Changes in Stockholders' Equity
Notes to Consolidated Financial Statements
Item 2 Plan of Operation
PART II. OTHER INFORMATION
Item 1 Legal Proceedings
Item 2 Changes in Securities
Item 3 Defaults Upon Senior Securities
Item 4 Submission of Matters to a Vote of Security Holders
Item 5 Other Information
Item 6 Exhibits and Reports on Form 8K
SIGNATURES
2
CASCADIA CAPITAL CORPORATION
(AN EXPLORATION STAGE COMPANY)
FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
APRIL 30, 2001
F-1
CASCADIA CAPITAL CORPORATION
(An Exploration Stage Company)
BALANCE SHEET
(Expressed in United States Dollars)
(Unaudited)
================================================================================
April 30, October 31,
2001 2000
- --------------------------------------------------------------------------------
ASSETS
CURRENT
Cash and cash equivalents $10,870 $22,398
================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT
Accounts payable and accrued liabilities $ 1,100 $ 2,500
------- -------
STOCKHOLDERS' EQUITY
Capital stock (Note 4)
Authorized
100,000,000 common shares with a par value of $0.0001
Issued and outstanding
October 31, 2000 - 4,740,000 common shares
April 30, 2001 - 4,840,000 common shares 484 474
Additional paid-in capital 74,216 24,226
Deficit accumulated during the exploration stage (64,930) (4,802)
------- -------
9,770 19,898
------- -------
$10,870 $22,398
================================================================================
HISTORY AND ORGANIZATION OF THE COMPANY (Note 1)
GOING CONCERN (Note 2)
On behalf of the Board of Directors:
/s/ Keith A. Ebert
- ------------------
Keith A. Ebert, Director
The accompanying notes are an integral part of these financial statements
F-2
CASCADIA CAPITAL CORPORATION
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
(Expressed in United States Dollars)
(Unaudited)
=======================================================================================================================
Cumulative
Amounts
From
Incorporation
on
October 29, Three Month Three Month Six Month Six Month
1999 to Period Ended Period Ended Period Ended Period Ended
April 30, April 30, April 30, April 30, April 30,
2001 2001 2000 2001 2000
- -----------------------------------------------------------------------------------------------------------------------
EXPENSES
Consulting fees $ 4,780 $ 4,780 $ -- $ 4,780 $ --
Filing and transfer agent fees 2,869 1,927 -- 2,869 --
Mineral property acquisition costs 50,000 -- -- 50,000 --
Office and miscellaneous 2,581 166 26 279 2,232
Professional fees 4,700 2,200 1,500 2,200 1,500
--------- -------- ------- -------- -------
LOSS FOR THE PERIOD $ (64,930) $ (9,073) $(1,526) $(60,128) $(3,732)
======================================================================================================================
BASIC AND DILUTED LOSS PER SHARE $ (0.01) $ (0.01) $ (0.01) $ (0.01)
======================================================================================================================
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,840,000 4,700,000 4,832,221 4,700,000
======================================================================================================================
The accompanying notes are an integral part of these financial statements
F-3
CASCADIA CAPITAL CORPORATION
(An Exploration Stage Company)
STATEMENT OF STOCKHOLDERS' EQUITY
(Expressed in United States Dollars)
(Unaudited)
==============================================================================================================================
Common Stock
------------------------------- Deficit
Number Accumulated Total
of Shares Additional During the Stock-
Issued and Paid-in Exploration holders'
Outstanding Amount Capital Stage Equity
- ------------------------------------------------------------------------------------------------------------------------------
INCEPTION, OCTOBER 29, 1999 -- $ -- $ -- $ -- $ --
Common shares issued for
services 2,250,000 225 2,025 -- 2,250
Common shares issued for cash 2,450,000 245 2,205 -- 2,450
Common shares issued for cash 40,000 4 19,996 -- 20,000
Net loss for the period -- -- -- (4,802) (4,802)
----------- ------- --------- --------- ----------
BALANCE, OCTOBER 31, 2000 4,740,000 $ 474 $ 24,226 $ (4,802) $ 19,898
Common shares issued for
mineral claims option 100,000 10 49,990 -- 50,000
Net loss for the period -- -- -- (60,128) (60,128)
----------- ------- --------- --------- ----------
BALANCE, APRIL 30, 2001 4,840,000 $ 484 $ 74,216 $ (64,930) $ 9,770
==============================================================================================================================
The accompanying notes are an integral part of these financial statements
F-4
CASCADIA CAPITAL CORPORATION
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
(Expressed in United States Dollars)
(Unaudited)
=========================================================================================================================
Cumulative
Amounts
From
Incorporation
on
October 29, Six Month Six Month
1999 to Period Ended Period Ended
April 30, April 30, April 30,
2001 2001 2000
- -------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period $ (64,930) $ (60,128) $ (3,732)
Item not affecting cash:
Common shares allotted for services 2,250 -- 2,250
Changes in non-cash working capital items:
Increase (decrease) in accounts payable and accrued liabilities 1,100 (1,400) 1,500
---------- ---------- ---------
Net cash provided by (used in) operating activities (61,580) (61,528) 18
---------- ---------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of shares 70,000 50,000 --
Share subscriptions received in advance 2,450 -- 2,450
---------- ---------- ---------
Net cash provided by financing activities 72,450 50,000 2,450
---------- ---------- ---------
CHANGE IN CASH POSITION DURING THE PERIOD 10,870 (11,528) 2,468
CASH POSITION, BEGINNING OF THE PERIOD -- 22,398 --
---------- ---------- ---------
CASH POSITION, END OF THE PERIOD $ 10,870 $ 10,870 $ 2,468
=========================================================================================================================
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS:
Cash paid for income taxes $ -- $ --
Cash paid for interest -- --
=========================================================================================================================
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Common shares allotted for services $ 2,250 $ -- $ 2,250
Common shares allotted for mineral claims option 50,000 50,000 --
=========================================================================================================================
The accompanying notes are an integral part of these financial statements
F-5
CASCADIA CAPITAL CORPORATION
(An Exploration Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
(Unaudited)
APRIL 30, 2001
================================================================================
1. HISTORY AND ORGANIZATION OF THE COMPANY
The Company was incorporated on October 29, 1999 under the laws of the
State of Nevada to engage in any lawful business or activity for which
corporations may be organized under the laws of the State of Nevada and
effectively started its operations on November 1, 1999. The Company is
in the business of exploration and development of mineral properties
and has not yet determined whether its properties contain mineral
resources that may be economically recoverable. The Company therefore
has not reached the development stage and is considered to be an
exploration stage company.
The accompanying financial statements have been prepared by the Company
without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly
the financial position, results of operations, changes in stockholders'
equity and cash flows at April 30, 2001 and for the periods then ended
have been made. These financial statements should be read in
conjunction with the audited financial statements of the Company for
the year ended October 31, 2000. The results of operations for the
period ended April 30, 2001 are not necessarily indicative of the
results to be expected for the year ending October 31, 2001.
2. GOING CONCERN
These financial statements have been prepared in accordance with
generally accepted accounting principles applicable to a going concern
which contemplates the realization of assets and the satisfaction of
liabilities and commitments in the normal course of business. The
general business strategy of the Company is to acquire mineral
properties either directly or through the acquisition of operating
entities. The continued operations of the Company and the
recoverability of mineral property costs is dependent upon the
existence of economically recoverable reserves, confirmation of the
Company's interest in the underlying mineral claims, the ability of the
Company to obtain necessary financing to complete the development and
upon future profitable production. The Company has incurred operating
losses and requires additional funds to meet its obligations and
maintain its operations. Management's plan in this regard is to raise
equity financing as required. These conditions raise substantial doubt
about the Company's ability to continue as a going concern. These
financial statements do not include any adjustments that might result
from this uncertainty.
=======================================================================
April 30, October 31,
2001 2000
-----------------------------------------------------------------------
Deficit accumulated during the exploration stage $(64,930) $(4,802)
Working capital 9,770 19,898
=======================================================================
F-6
CASCADIA CAPITAL CORPORATION
(An Exploration Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
(Unaudited)
APRIL 30, 2001
================================================================================
3. SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amount of revenues
and expenses during the period. Actual results could differ from these
estimates.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include highly liquid investments with
original maturities of three months or less.
RESOURCE PROPERTIES
Costs of acquisition, exploration, carrying, and retaining unproven
properties are expensed as incurred. Costs incurred in proving and
developing a property ready for production are capitalized and
amortized over the life of the mineral deposit or over a shorter period
if the property is shown to have an impairment in value.
ENVIRONMENTAL REQUIREMENTS
At the report date, environmental requirements related to mineral
claims acquired (Note 5) are unknown and therefore an estimate of any
future cost cannot be made.
INCOME TAXES
Income taxes are provided in accordance with Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes". A deferred
tax asset or liability is recorded for all temporary differences
between financial and tax reporting and net operating loss
carryforwards. Deferred tax expenses (benefit) result from the net
change during the year of deferred tax assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the
opinion of management, it is more likely than not that some portion or
all of the deferred tax assets will not be realized. Deferred tax
assets and liabilities are adjusted for the effects of changes in tax
laws and rates on the date of enactment.
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
In June 1998, the FASB issued SFAS No. 133 "Accounting for Derivative
Instruments and Hedging Activities" which establishes accounting and
reporting standards for derivative instruments and for hedging
activities. SFAS 133 is effective for all fiscal quarters of fiscal
years beginning after June 15, 1999. In June 1999, the FASB issued SFAS
137 to defer the effective date of SFAS 133 to fiscal quarters of
fiscal years beginning after June 15, 1999. In June 2000, the FASB
issued SFAS No. 138, which is a significant amendment to SFAS 133. The
Company does not anticipate that the adoption of these statements will
have a significant impact on its financial statements.
F-7
CASCADIA CAPITAL CORPORATION
(An Exploration Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
(Unaudited)
APRIL 30, 2001
================================================================================
3. SIGNIFICANT ACCOUNTING POLICIES (cont'd.....)
COMPREHENSIVE INCOME
The Company has adopted Statement of Financial Accounting Standards No.
130 ("SFAS 130"), "Reporting Comprehensive Income". This statement
establishes rules for the reporting of comprehensive income and its
components. The adoption of SFAS 130 had no impact on total
stockholders' equity as of April 30, 2001.
STOCK-BASED COMPENSATION
Statement of Financial Accounting Standards No. 123, "Accounting for
Stock-Based Compensation," encourages, but does not require, companies
to record compensation cost for stock-based employee compensation plans
at fair value. The Company has chosen to account for stock-based
compensation using Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees." Accordingly compensation
cost for stock options is measured as the excess, if any, of the quoted
market price of the Company's stock at the date of the grant over the
amount an employee is required to pay for the stock.
LOSS PER SHARE
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" ("SFAS 128"). Under SFAS 128, basic and diluted earnings per
share are to be presented. Basic earnings per share is computed by
dividing income available to common shareholders by the weighted
average number of common shares outstanding during the year. Diluted
earnings per share takes into consideration common shares outstanding
(computed under basic earnings per share) and potentially dilutive
common shares.
4. CAPITAL STOCK
During the period, the Company issued 100,000 common shares under
Regulation S of the Securities Act of 1933 at a deemed price of $0.50
per share to the optionor of the mineral claims (Note 5b(i)).
5. MINERAL CLAIMS
On October 21, 2000, the Company entered into an option agreement to
acquire a 100% undivided interest in certain mining claims known as the
Thibert Creek Mining properties located in the Liard Mining Division of
British Columbia. As the claims do not contain any known reserves, the
acquisition costs will be expensed as incurred. To exercise its option,
the Company must:
a) Pay the optionor the sum of $50,000 as follows:
i) $25,000 on or before December 31, 2001; and
ii) an additional $25,000 on or before December 21, 2002.
F-8
CASCADIA CAPITAL CORPORATION
(An Exploration Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
(Unaudited)
APRIL 30, 2001
================================================================================
5. MINERAL PROPERTY (cont'd...)
b) Issue to the optionor a total of 1,000,000 common shares of the
Company as follows:
i) 100,000 shares at a deemed price of $0.50 (Note 4);
ii) 200,000 shares upon the completion of a first phase of a work
program on the property;
iii) 200,000 shares upon the completion of a second phase of a work
program on the property; and
iv) 500,000 shares upon the completion of a third phase of a work
program on the property.
c) Incur exploration expenditures of $100,000 on the property as
follows:
i) $10,000 on or before September 1, 2001;
ii) a further $40,000 on or before June 1, 2002; and
iii) a further $50,000 on or before December 31, 2002.
Upon commencement of production, the Company is subject to a 3% net
smelter returns royalty.
6. INCOME TAXES
For income tax purposes, the Company has a net operating loss
carryforward ("NOL") at April 30, 2001 of approximately $64,930
expiring in 2014 if not offset against future federal taxable income.
There may be certain limitations as to the future annual use of the
NOLs due to certain changes in the Company's ownership.
The Company has deferred tax assets of approximately $21,643 at April
30, 2001, resulting primarily from net operating loss carryforwards.
The deferred tax assets have been fully offset by a valuation allowance
resulting from the uncertainty surrounding their future realization.
Computed "expected" tax benefit $ 21,643
Decrease in tax benefit resulting from net operating loss
for which no benefit is currently available (21,643)
--------
$ --
========
7. FINANCIAL INSTRUMENTS
The Company's financial instruments consist of cash and cash
equivalents, accounts payable and accrued liabilities. Unless otherwise
noted, it is management's opinion that the Company is not exposed to
significant interest, currency or credit risks arising from these
financial instruments. The fair value of these financial instruments
approximate their carrying values, unless otherwise noted.
F-9
PLAN OF OPERATIONS
The following discussion of the plan of operations of the Company should be read
in conjunction with the financial statements and the related notes thereto
included elsewhere in this quarterly report for the six months ended April 30,
2001. This quarterly report contains certain forward-looking statements and the
Company's future operation results could differ materially from those discussed
herein.
In October, 2000, we issued 40,000 shares at $0.50 per share under Regulation S
to raise proceeds of $20,000. This small financing is sufficient to satisfy our
cash requirements for the next 12 months assuming that our activities are
limited to phase one and phase two exploration programs on our Thibert Creek
Properties. Management of the Company will continue to actively seek new
investors to increase our cash reserves which will permit management to seek
additional mineral exploration properties.
We do not expect any significant changes in the number of our employees.
Presently, we are fortunate to have the services of an experienced
vice-president of exploration given our limited financial resources. Our current
management team will satisfy our requirements for the foreseeable future.
We expect to acquire as many mineral exploration prospects as possible over the
next 12 months given our limited financial resources. Where possible, we will
issue common shares in payment of new mineral properties or options to acquire
mineral properties to preserve our cash reserves.
Milestones for Exploration of the Thibert Creek Properties
- ----------------------------------------------------------
The Thibert Creek Properties are comprised of the PT claim block, the Vowel
claim block and the Birch placer claim.
The first phase of exploration work on the PT claims is scheduled to commence
July 1, 2001. The work will involve surveying a grid that covers the claim area
with lines 1,000 metres long. A total of 11,000 metres of grid will be laid out
with lines spaced 200 metres apart. At 25 metre intervals along each grid line
magnetometer readings will be taken. Each of these sites or stations will then
be marked with a flag and a soil sample taken. This will be followed up with a
very low frequency electro-magnetic survey with readings taken at each station.
This phase of the exploration work will generate three maps: [i] a magnetometer
survey map; [ii] a VLF-EM survey map; and [iii] a geochemistry map.
Interpretation of the survey results may identify one or more anomalous zones.
The table below itemizes the cost for phase one in Canadian dollars.
- --------------------------------------------------------------------------------------------------
ITEM COST PER DAY NUMBER TOTAL COST
OF DAYS
- --------------------------------------------------------------------------------------------------
Wages for a four man crew $800.00 4 $3,200.00
Room and board for crew $300.00 4 $1,200.00
Vehicle and fuel $125.00 4 $500.00
440 soil samples/$12.00 per $5,280.00
Report writing and interpretation $1,500.00
$11,680.00
- --------------------------------------------------------------------------------------------------
Phase one exploration work on the Vowel claims is scheduled to commence in the
second half of July, 2001 following phase one exploration work on the PT claim
block. The cost of phase one exploration
3
work on the Vowel claim block will be minimized as crew and equipment will
already be near this site. A grid survey will be completed over the claim area.
A total of 8,000 meters of grid will be laid out with lines spaced 200 meters
apart. Magnetometer readings will be taken and site soil samples will be
collected. This work will be followed up with a very low frequency
electromagnetic survey with readings taken at the soil sample sites. This
exploration work will generate a magnetometer survey map, a VLF-EM survey map
and a geochemistry map. The table below itemizes the cost for phase one work on
the Vowel claim block in Canadian dollars.
- --------------------------------------------------------------------------------------------------
ITEM COST PER DAY NUMBER TOTAL COST
OF DAYS
- --------------------------------------------------------------------------------------------------
Wages for a four man crew $800.00 3 $2,400.00
Room and board for crew $300.00 3 $900.00
Vehicle and fuel $75.00 3 $225.00
300 soil samples/$12.00 per $3,600.00
Report writing and interpretation $1,500.00
$8,625.00
- --------------------------------------------------------------------------------------------------
All phase one and phase two work on the PT and Vowel claims will be paid for
with cash on hand.
Phase two exploration on the PT and Vowel claims will cost approximately one
half as much as phase one work and involves examination and delineation of phase
one results. If anomalous zones are identified in phase one work on the PT or
Vowel claims, they will be thoroughly examined by a team of two prospectors and
rock samples will be collected for assay. These zones will be hand-trenched with
a view to locating and mapping rocks responsible for the anomalies. If trenching
succeeds in locating mineralization, a diamond drilling program would be
scheduled.
Trenching on the PT claims will follow the plotting of the geochemical soil
sampling results. The soil sample results plotted on the grid and located in the
field will indicate the anomalous areas on the grid. The prospector's will
return to these anomalous areas and map the outcropping rock, prospect and hand
trench these areas and sample and assay any mineralization found. This
exploration work would be undertaken approximately 3 weeks after the soil
samples from phase one work on the PT claims are submitted for assay. The PT
soil samples should be collected and sent to assay by mid July, 2001. Results
should be available by early August, 2001. Accordingly, prospecting, mapping and
trenching on the PT claims could be started by mid August, 2001.
The geophysical surveys, magnetometer and VLF-EM results should be plotted and
interpreted by early September, 2001. These results along with trenching work
should indicate the best targets for diamond drilling. Depending on the success
of initial exploration work and our ability to secure additional financing, a
drilling program could begin as early as mid October, 2001 on the PT claims.
The Vowel claims are at a higher elevation than the PT claims and for this
reason phase one exploration work will start later in the season, likely after
completion of phase one exploration work on the PT claims. The results from
geochemical soil sampling, geophysical magnetometer work and VLF-EM survey would
be plotted and interpreted by mid September, 2001. Prospecting, mapping,
trenching and sampling would start on the Vowel claim in late September, 2001.
Diamond drilling on the Vowel claim could start in late October, 2001 if
trenching and geophysical surveys succeed in locating diamond drill targets and
if financing for phase three work is secured.
4
The table below itemizes the cost of trenching and mapping the anomalous zones
on each of the PT and Vowel claim blocks in Canadian dollars.
- --------------------------------------------------------------------------------------------------
ITEM COST PER DAY NUMBER TOTAL COST
OF DAYS
- --------------------------------------------------------------------------------------------------
Wages for two prospectors $500.00 5 $2,500.00
Room and board $150.00 5 $750.00
Vehicle and fuel $125.00 5 $625.00
25 assays/$20 per $500.00
$4,375.00
- --------------------------------------------------------------------------------------------------
If assay results from mineralization are encouraging, a diamond drilling program
would be conducted to delineate the size and shape of the mineralized zones.
Assaying the drill core will establish the grade and value of mineralization.
Depending on our success in earlier exploration work, a drilling program could
begin in early winter of 2001. Weather conditions and the availability of
financing will dictate whether this potential program is deferred until the
spring of 2002. A program consisting of five 500-foot holes would be adequate
for this phase. A benchmark for this type of target would be 10% combined Pb-Zn
per ton and $50.00 per ton in Au and Ag values. Drilling costs would total
approximately $62,500.00, $25.00/foot x 2 500 feet; drill core assays $2,000.00,
$20.00/assay x 100 assays. The cost of employing a geologist to oversee drilling
operations and log core is $7,000.00. All amounts are in Canadian dollars.
This phase three methodology would be employed on the Vowel and PT claims.
However, work on the Vowel claims could be accelerated if trenches excavated in
1980 could be located. A drill program could also be fast-tracked on the Vowel
claims if the trench samples taken during previous exploration could be
repeated.
We have cash on hand to finance phase one and phase two exploration on the Vowel
and PT Claims. We would be required to raise additional funds in the amount of
approximately US$90,000 to fund a phase three diamond drilling program on both
the PT and Vowel claim blocks. Financing for phase 3 would be sought from
management's mining industry contacts including high net worth individuals and
potentially other junior mining companies.
We will not generate revenues from operations unless we are successful in
discovering mineralization which is capable of sustaining commercial production.
Our option on the Thibert Creek Properties also entitles us to do work on the
Birch placer claim which is located at the confluence of Vowel and Thibert
Creeks between the Vowel and PT claims. Our current cash position will not
permit us to conduct exploration work on the Birch placer claim in 2001. We will
carry out the minimum work requirement of $500 to keep the claim in good
standing. When we have raised additional financing to proceed with exploration
on the Birch placer claim, we will proceed with the following exploration
program.
Testing the Birch claim will commence using a tracked excavator with a toothed 1
1/2-cubic-yard bucket. This work will be contracted out. A contractor from the
nearby community of Telegraph Creek will perform the work in return for a
percentage of the placer gold recovered from the workings. This kind of
arrangement is common in northern British Columbia where contractors are
employed to work ground whose title is controlled by another party. Prior the
contractor's arrival in the area two or three additional placer claims will be
staked in our name, guaranteeing that, in the event initial testing is
successful,
5
ground adjacent the Birch claim can be secured for future exploitation. Our
proposed contractor is familiar with the area, having worked ground 3 miles
north of the Birch claim in 1999 prior to relocating his operation to Telegraph
Creek.
Excavated material will be passed through a pilot washing plant and the residual
fraction weighed and tested for gold content. The black sand from this fraction
will be concentrated and samples from the concentrate assayed.
"CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Except for historical matters,
the matters discussed in this Form 10-QSB are forward-looking statements based
on current expectations and involve risks and uncertainties. Forward-looking
statements include, but are not limited to, statements under the following
heading: "Plan of Operations" the timing and expected profitable results of
sales and the need for no additional financing.
PART II
OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None
Item 2 CHANGES IN SECURITIES AND USE OF PROCEEDS
None
Item 3 DEFAULTS UPON SENIOR SECURITIES
None
Item 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
Item 5 OTHER INFORMATION
None
Item 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
6
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
CASCADIA CAPITAL CORPORATION
Dated: June 11, 2001 Per: /s/ Keith A. Ebert
--------------------------------------------
Keith A. Ebert, President and Director
7