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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
COMMISSION FILE NUMBER 000-49664
OBAN MINING INC.
(Exact name of registrant as specified in its charter)
NEVADA 88-0467848
(State of other jurisdiction of (IRS Employer Identification
incorporation or organization) Number)
OBAN MINING INC.
11960 HAMMERSMITH WAY, SUITE 155
RICHMOND, BRITISH COLUMBIA
CANADA V7A 5C9
(Address of principal executive offices)
(604) 275-8994
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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.
Yes [x] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of MARCH 31, 2003: 7,000,000.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
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OBAN MINING INC.
(AN EXPLORATION STAGE COMPANY)
BALANCE SHEETS
(UNAUDITED)
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MARCH 31, DECEMBER 31,
2003 2002
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$ $
ASSETS
CURRENT
Cash 66,524 70,810
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TOTAL ASSETS 66,524 70,810
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LIABILITIES
CURRENT
Accounts payable and accrued liabilities 1,100 2,550
Advances from a related party 15,927 15,927
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TOTAL LIABILITIES 17,027 18,477
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STOCKHOLDERS' EQUITY
COMMON STOCK
Authorized: 100,000,000 shares, $0.00001 par value
Issued and outstanding: 7,000,000 shares
(December 31, 2002: 7,000,000 shares) 70 70
ADDITIONAL PAID-IN CAPITAL 99,980 99,980
DEFICIT ACCUMULATED DURING THE
EXPLORATION STAGE (50,553) (47,717)
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49,497 52,333
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 66,524 70,810
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See Accompanying Notes to the Financial Statements
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OBAN MINING INC.
(AN EXPLORATION STAGE COMPANY)
STATEMENTS OF OPERATIONS
(UNAUDITED)
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CUMULATIVE
FROM
SEPTEMBER 20,
FOR THE 2000
THREE MONTHS (INCEPTION) TO
ENDED MARCH 31, MARCH 31,
2003 2002 2003
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$ $ $
REVENUE - - -
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MINERAL PROPERTY COSTS - - 4,092
GENERAL AND ADMINISTRATIVE
EXPENSES
Accounting and administration 450 1,500 5,050
Audit fees 505 512 6,897
Bank charges - 67 181
Filing fees - - 1,050
Legal fees 1,682 3,350 31,178
Office and sundry 24 278 786
Transfer agent fees 175 680 1,319
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2,836 6,387 50,553
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NET LOSS (2,836) (6,387) (50,553)
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BASIC AND DILUTED LOSS PER SHARE (0.00) (0.01)
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WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 7,000,000 6,209,167
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See Accompanying Notes to the Financial Statements
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OBAN MINING INC.
(AN EXPLORATION STAGE COMPANY)
STATEMENT OF STOCKHOLDERS' EQUITY
(UNAUDITED)
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FROM INCEPTION (SEPTEMBER 20, 2000) TO MARCH 31, 2003
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DEFICIT
ACCUMULATED
COMMON STOCK ADDITIONAL DURING THE TOTAL
------------------ PAID-IN EXPLORATION STOCKHOLDERS'
SHARES AMOUNT CAPITAL STAGE EQUITY
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$ $ $ $
BALANCE, SEPTEMBER 20, 2000 - - - - -
Common stock issued for cash
at $0.00001 per share 5,000,000 50 - - 50
Net loss for the period - - (19,334) (19,334)
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BALANCE, DECEMBER 31, 2000 5,000,000 50 - (19,334) (19,284)
Net loss for the year - - - (12,777) (12,777)
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BALANCE, DECEMBER 31, 2001 5,000,000 50 - (32,111) (32,061)
Common stock issued for cash
at $0.05 per share 2,000,000 20 99,980 - 100,000
Net loss for the year - - - (15,606) (15,606)
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BALANCE, DECEMBER 31, 2002 7,000,000 70 99,980 (47,717) 52,333
Net loss for the period - - - (2,836) (2,836)
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BALANCE, MARCH 31, 2003 7,000,000 70 99,980 (50,553) 49,497
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See Accompanying Notes to the Financial Statements
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OBAN MINING INC.
(AN EXPLORATION STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
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CUMULATIVE
FROM
SEPTEMBER 20,
2000
FOR THE (INCEPTION)
THREE MONTHS TO
ENDED MARCH 31, MARCH 31,
2003 2002 2003
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$ $ $
CASH FLOWS FROM OPERATING ACTIVITIES
Loss from operations (2,836) (6,387) (50,553)
Cash provided by changes in operating assets and
Liabilities
Increase (decrease) in accounts payable (1,450) 1,808 1,100
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Net cash used in operating activities (4,286) (4,579) (49,453)
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CASH FLOWS FROM FINANCING ACTIVITIES
Advances from a related party - - 15,927
Issuance of common stock for cash - 100,000 100,050
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Net cash provided by financing activities - 100,000 115,977
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Decrease (increase) in cash (4,286) 95,421 66,524
Cash at beginning of period 70,810 337 -
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CASH AT END OF PERIOD 66,524 95,758 66,524
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See Accompanying Notes to the Financial Statements
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OBAN MINING INC.
(AN EXPLORATION STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
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MARCH 31, 2003
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NOTE 1 - BASIS OF PRESENTATION
These unaudited financial statements have been prepared in accordance with the
instructions to SEC Form 10-QSB. Accordingly, certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such instructions. These unaudited financial statements should be
read in conjunction with the audited financial statements and notes thereto as
at December 31, 2002.
In the opinion of the Company's management, all adjustments considered necessary
for a fair presentation of these unaudited financial statements have been
included and all such adjustments are of a normal recurring nature. Operating
results for the three-month period ended March 31, 2003 are not necessarily
indicative of the results that can be expected for the year ended December 31,
2003.
NOTE 2 - GOING CONCERN
The Company was incorporated in the State of Nevada on September 20, 2000.
Since inception, the Company has acquired 2 mineral claims in the Slocan Mining
Division, Province of British Columbia, Canada. To date, the Company has not
conducted any exploration on the claims. Management has raised funds for a
preliminary exploration program to assess the mineral potential of the claims,
and to finance the cost of general and administrative expenses, and projected
further losses from operations in the exploratory stage.
The ability of the Company to maintain its existence and further exploration of
its mineral claims is dependent upon its raising sufficient new equity
financing. The commencement of principal operations is dependent upon the
discovery of economically recoverable ore reserves, confirmation of the
Company's interest in the mineral claims, the ability of the Company to obtain
necessary financing to complete development, and future profitable production or
proceeds from the sale of all or an interest in the mineral claims. The likely
outcome of these future events is indeterminable. The financial statements do
not include any adjustments to reflect the possible future effect on the
recoverability and classification of assets or the amounts and classification of
liabilities that may result from the outcome of this uncertainty.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.
This section of this report 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 our report. These forward-looking states are
subject to certain risks and uncertainties that could cause actual results to
differ materially from historical results or our predictions.
Our company is engaged in exploration of our property. Our company's
principal resources have been acquired through issuance of common stock and from
shareholder loans.
We are a start-up, exploration stage corporation and have not yet generated
or realized any revenues from our business operations.
In our audited financial statements ended December 31, 2002, our auditors
issued a going concern opinion. This means that our auditors believe there is
doubt that we can continue as an on-going business unless we obtain additional
capital to maintain our existence and to commence exploration of our mineral
claims.
As at March 31, 2003, the Company had cash resources of $66,524. We do not
know how long the money will last, however, we do believe it will last twelve
months. It depends upon the amount of exploration we conduct and the cost
thereof.
PLAN OF OPERATION
Our success depends upon finding mineralized material. Mineralized
material is a mineralized body that has been delineated by appropriate spaced
drilling or underground sampling to support sufficient tonnage and average grade
of metals to justify removal.
During the year ended December 31, 2002, we began Phase 1 of our research
and exploration program. We began the research of available geologic literature.
We hired Locke Goldsmith to initiate an orientation program consisting of
geological mapping and collection of soil samples for geochemical analysis on
the Alta claims. The program commenced in early November 2002.
The orientation geochemical survey was initiated on one line along part of
the southern sector of Alta 2 claim. Seventeen samples were collected from
approximately 30 cm below the humus layer corresponding approximately to the "C"
horizon. Transported valley fill consisting of large boulders at several sites
forced the collection of samples from shallower horizons. Samples were placed in
wet strength paper envelopes and taken to ALS Chemex labs of North Vancouver,
British Columbia, Canada, where they were dried, screen to -180 um and the fine
fraction analyzed for silver, lead and zinc. The statistical data as summarized
in Mr. Goldsmith's report to us dated December 7, 2002 indicated four samples
contained anomalous silver and lead values, and one sample contained an
anomalous zinc value. Field notes taken at the time of sample collection
described the nature of the rock fragments as rounded, indicating that the rock
and sole had been moved along distances by stream transport and not derived from
bedrock sources nearby.
Prospecting throughout the eastern section of the property also did not
locate mineralization. The report concluded that the transported components and
nature of soils in the southern part of the Alta claims were not suitable for
development of geochemical patterns that could lead to concealed mineralization
in bedrock. Prospecting did not discover any potential sites for additional
exploration.
It was recommended that no further work be planned for the property. The
company is still evaluating the recommendations of the report and will be
engaging in further discussions with Locke Goldsmith on what options are
available to us regarding these claims and other mining prospects. We will not
proceed with further work on Phase 1 and will not commence Phase 2 until we have
had the opportunity to thoroughly evaluate our options. Should the company
decide to conduct further sampling, it will have to wait until after the ground
has thawed sufficiently to conduct further exploration work.
LIMITED OPERATING HISTORY; NEED FOR ADDITIONAL CAPITAL
There is no historical financial information about Oban Mining upon which
to base an evaluation of our performance. We are an exploration stage
corporation and have not generated any revenues from operations. We cannot
guarantee we will be successful in our business operations. 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 will have to conduct research and
exploration of our properties before we start production of any minerals we may
find. We have raised $100,000 by way of an equity financing from our public
offering 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
operations.
RESULTS OF OPERATIONS
FROM INCEPTION ON SEPTEMBER 20, 2000 TO MARCH 31, 2003
From September 20, 2000 to present, we have engaged in no significant
operations other than organizational activities, acquiring and staking our first
property, preparation for registration of our securities, completing our public
offering, and beginning Phase 1 of our exploration plan.
Since inception, we have used our common stock to raise money for the
property acquisition, for corporate expenses and to repay outstanding
indebtedness. Net cash provided by the sale of shares from inception on
September 20, 2000 to March 31, 2003 was $100,050. In addition a related party
advanced a total of $15,927 to us, which must be repaid.
From inception we have spent $4,092 on our property. This includes $826
for the cost of the staking, $760 and $706 for assessment work to maintain the
property in each of 2001 and 2002 respectively, and $1,800 for the orientation
program consisting of geological mapping and collection of soil samples for
geochemical analysis on the Alta claims.
We have spent a total of $31,178 for legal fees of which $25,000 was for
the preparation and filing of the registration statement, $5,432 was for the
preparation and filing of quarterly and annual financial statements and $746 was
for Canadian legal advice and services.
We have spent a total of $6,897 for audit fees of which $3,000 was related
to the filing of the registration statement, $1,000 for the December 31, 2001
financial statements, $2,392 was for the quarterly and annual financial
statements for the 2002 year and $505 for the 2003 year to date.
From inception, $1,050 was spent on filing fees, $1,319 for transfer agent
fees, and $6,017 was spent for office administration and general office costs.
LIQUIDITY AND CAPITAL RESOURCES
As of the date of this report, we have yet to generate any revenues from
our business operations. We issued 5,000,000 shares of common stock through a
Section 4(2) offering in September 2000 to Richard A. Achron, our sole officer
and director. This was accounted for as a cash shares purchase of $50.
A related party advanced the total sum of $15,927. $15,000 was used for
legal fees relating to organizational and start-up costs, $826 was used to pay
Locke Goldsmith for the initial claims and $101 was used for general operating
capital. The loan does not bear interest and have not been paid as of the date
hereof. There are no documents reflecting the loan and they are not due on a
specific date. Mr. Achron will accept repayment from us when money is available.
As of March 31, 2003 we had cash resources of $66,524. We had total
liabilities of $17,027. This was primarily comprised of the $15,927 loan from
Mr. Achron, $350 for legal fees, $400 for audit fees, and $350 for general
office expenses.
ITEM 3. CONTROLS AND PROCEDURES
We maintain disclosure controls and procedures that are designed to ensure
that information required to be disclosed in the Company's Securities Exchange
Act of 1934 reports is recorded, processed, summarized and reported within the
time periods specified in the SEC's rules and forms, and that such information
is accumulated and communicated to the Company's management, including its Chief
Executive and Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure.
Within 90 days prior to the date of this report, the Company's management
carried out an evaluation, under the supervision and with the participation of
the Company's management, including the Company's Chief Executive and Financial
Officer, of the effectiveness of the design and operation of the Company's
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based
upon the foregoing, the Company's Chief Executive and Financial Officer
concluded that the Company's disclosure controls and procedures are effective in
connection with the filing of the Quarterly Report on Form 10-QSB for the
quarter ended March 31, 2003.
There were no significant changes in the Company's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation, including any significant deficiencies or material
weaknesses of internal controls that would require corrective action.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter for which this
report is filed.
(b) Exhibits
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on this 1st day of May 2003.
OBAN MINING INC.
BY: /s/ Richard Achron
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Richard A. Achron,
Principal Executive Officer and
Principal Financial Officer
CERTIFICATION PURSUANT TO
18 U.S.C. 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of OBAN MINING INC. (the "Company") on
Form 10-QSB for the period ended March 31, 2003 as filed with the Securities and
Exchange Commission on the date here of (the "Report"), I, Richard Achron, Chief
Executive Officer and Chief Financial Officer of the Company, certify, pursuant
to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, that:
(1) The Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in this Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.
/s/ Richard Achron
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Richard Achron
Chief Executive Officer
Chief Financial Officer
May 1, 2003
SECTION 302 CERTIFICATION
I, Richard A. Achron, certify that:
1. I have reviewed this quarterly report of Oban Mining, Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rule 13a-14 and 15d-14) for the
registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relation to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which the quarterly report
is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report my conclusions about the
effectiveness of the disclosure controls and procedures based on my
evaluation of the Evaluation Date;
5. I have disclosed, based on my most recent evaluation, to the registrant's
auditors and the audit committee of the registrant's board of directors (or
persons performing the equivalent function);
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weakness in
internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls, and
6. I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of my most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: May 1, 2003 /s/ Richard Achron
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Richard A. Achron
Principal Executive Officer and
Principal Financial Officer