UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month(s) of September, 2000.
BELMONT RESOURCES INC.
(Translation of Registrant's Name Into English)
SEC File Number: 000-29616
#1180 - 666 Burrard Street, Vancouver, B.C. Canada V6C 2X8
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
---- ----
(Indicate by check mark whether the registrant by furnishing 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.)
Yes X No
--- ---
[If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-686.
Exhibits
Exhibit 1 - Quarterly Report Form 61 and Unaudited Financial Statements for the
six-month period ended July 31/00
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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.
Belmont Resources Inc.
(Registrant)
Date October 18, 2000
By /s/ GARY MUSIL
(Signature)
Gary Musil, Secretary/Director
Quarterly Report FORM 61
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ISSUER DETAILS
For Quarter Ended: July 31, 2000
Date of Report: September 25, 2000
Name of Issuer: BELMONT RESOURCES INC.
Issuers Address: #1180 - 666 Burrard Street
Vancouver, B.C. V6C 2X8
Issuer Fax Number: 604-683-1350
Issuer Phone Number: 604-683-6648
Contact Person: Gary Musil
Contact Position: Secretary/Director
Contact Telephone Number: 604-684-6648
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CERTIFICATE
The One/Two schedules required to complete this Quarterly Report are attached
and the disclosure contained therein has been approved by the Board of
Directors. A copy of this Quarterly Report will be provided to any shareholder
who requests it.
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Directors Name: Gary Musil Date Signed: September 28, 2000
Directors Name: Kenneth B. Liebscher Date Signed: September 28, 2000
BELMONT RESOURCES INC.
CONSOLIDATED FINANCIAL STATEMENTS
FOR
SIX MONTHS ENDED
JULY 31, 2000
(JULY 31, 1999)
UNAUDITED
Prepared by Management
SCHEDULE A - Exhibit 1
BELMONT RESOURCES INC.
CONSOLIDATED BALANCE SHEET
AS AT JULY 31, 2000
ASSETS
2000 1999
---- ----
CURRENT
Cash $ 99,991 $ 13,679
Term deposit - 76,326
Marketable securities 915,104 3,437,100
Accounts receivable 7,716 17,597
Refundable deposit 100,000 -
Prepaid expenses 249,813 5,809
----------- -----------
1,372,624 3,550,511
MARKETABLE SECURITIES - 2,291,400
ADVANCES - 55,000
DEFERRED ACQUISITION COSTS 16,040 -
RESOURCE INTERESTS 2,887,783 5,460,749
CAPITAL ASSETS 6,322 222,382
----------- -----------
$ 4,282,769 $ 11,580,042
=========== ===========
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 23,725 $ 56,240
Future income taxes - 568,603
----------- -----------
23,725 624,843
DUE TO SHAREHOLDERS - 220
NON-CONTROLLING INTEREST - 8,673
FUTURE INCOME TAXES - 539,837
SHAREHOLDERS' EQUITY
SHARE CAPITAL 13,890,065 13,605,665
DEFICIT (9,631,021) (3,199,196)
----------- -----------
4,259,044 10,406,469
----------- -----------
$ 4,282,769 $ 11,580,042
=========== ===========
Approved on behalf of the Board
/s/ KENNETH B. LIEBSCHER
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/s/ GARY MUSIL
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UNAUDITED
Prepared by Management
SCHEDULE A - Exhibit 2
BELMONT RESOURCES INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
FOR THE SIX MONTHS ENDED JULY 31, 2000
2000 1999
---- ----
INTEREST INCOME $ (10,455) $ (417)
EXPENSES
Amortization 668 -
Audit and accounting 4,000 3,594
Consulting 2,500 2,500
Foreign exchange loss 6,404 -
Interest and bank charges 600 204
Legal 7,020 2,503
Management fees 27,000 27,000
Office and sundry 17,418 5,703
Property investigation 4,573 -
Regulatory and filing fees 7,070 2,873
Rent 11,969 9,000
Travel, promotion and shareholder info 23,554 17,236
Transfer agent fees 7,990 7,742
Telephone 1,572 2,360
Secretarial and administrative services 35,054 31,135
----------- -----------
Total administrative costs 157,392 111,850
NET LOSS FOR THE PERIOD $ 146,937 $ 111,433
=========== ===========
Deficit, beginning of period $ (9,484,084) $ (3,087,763)
----------- -----------
Deficit, end of period $ (9,631,021) $ (3,199,196)
=========== ===========
UNAUDITED
Prepared by Management
SCHEDULE A - Exhibit 3
BELMONT RESOURCES INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JULY 31, 2000
2000 1999
---- ----
OPERATING ACTIVITIES
Net loss for the period $ (146,937) $ (111,433)
Add non cash items:
Amortization 668 -
Loss on marketable securities 1,185,045 -
----------- -----------
1,038,776 (111,433)
Net changes in other non-cash working capital items
Accounts receivable 3,550 (161)
Prepaid expenses (243,684) (2,323)
Accounts payable (5,046) 10,496
----------- -----------
793,596 (103,421)
----------- -----------
INVESTING ACTIVITIES
Mineral property expenditures (2,253,626) (121,623)
Acquisition of capital assets (1,540) -
----------- -----------
(2,255,166) (121,623)
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FINANCING ACTIVITIES
Issuance of share capital 284,480 85,240
Due to shareholders - -
----------- -----------
284,480 85,240
INCREASE (DECREASE) IN CASH (1,177,090) (139,804)
CASH, beginning of period 1,277,081 229,809
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CASH, end of period $ 99,991 $ 90,005
=========== ===========
Cash is represented by
Cash 99,991 13,679
Term deposit - 76,326
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99,991 90,005
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UNAUDITED
Prepared by Management
SCHEDULE A - Exhibit 4
BELMONT RESOURCES INC.
INTERIM CONSOLIDATED SCHEDULES OF RESOURCE INTERESTS
FOR THE SIX MONTHS ENDED JULY 31, 2000
2000 1999
---- ----
$ $
PEZINOK II
Acquisition costs 500,000 4,918,817
Exploration costs
Balance, beginning of year - 420,309
Consulting - 1,500
Travel and accommodation - 1,234
----------- -----------
- 423,043
500,000 5,341,860
Capital assets - 118,880
----------- -----------
500,000 5,460,749
----------- -----------
LAC ROCHER
Acquisition costs 78,000 -
Exploration costs
Balance, beginning of year 1,157 -
----------- -----------
79,157 -
----------- -----------
UNGAVA
Acquisition costs 57,500 -
----------- -----------
ROZMIN
Acquisition costs 2,165,028 -
Exploration costs
Consulting 14,632 -
Reports and maps 776 -
Travel and accommodation 28,190 -
----------- -----------
2,208,626 -
----------- -----------
MASEVA
Acquisition costs - -
Exploration costs
License fee 42,500 -
----------- -----------
42,500 -
BALANCE - END OF PERIOD $ 2,887,783 $ 5,460,749
=========== ===========
UNAUDITED
Prepared by Management
BELMONT RESOURCES INC.
(the "Company")
SCHEDULE B:
SUPPLEMENTARY INFORMATION
1) DEFERRED EXPLORATION & DEVELOPMENT COSTS AND RELATED PARTY TRANSACTIONS
DURING THE SECOND QUARTER ENDED JULY 31, 2000 AND CURRENT FISCAL YEAR-TO-
DATE:
Deferred exploration & development - See Schedule A - Exhibit 4
----------------------------------
Related Party Transactions
--------------------------
During the quarter (year to date) transactions took place with related
parties as follows:
(i) Management fees totalling $13,500 ($27,000) were accrued/paid to an
officer/director.
(ii) The Company incurred $10,500 ($21,000) in office administrative
services with an officer/director.
(iii) Office rent totalling $3,000 ($5,000) was paid to a company managed by
a director. Effective July 1, 2000 the Company assumed the lease on
the office until December 31, 2000 and is currently reviewing other
office space.
(iv) During June, 2000 the Company issued 50,000 shares as per the February
15, 2000 agreement with Montoro Resources Inc. ("Montoro"). Three of
seven directors of the Company are also directors of Montoro.
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2) a) SECURITIES ISSUED DURING THE QUARTER ENDED JULY 31, 2000:
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Date of Type of Type of No. of Price Total Type of
Issue Security Issue Shares Issued Share Proceeds Consideration
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June 16, Common Property 50,000 $0.25 12,500 Property
2000 Payment Interest
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b) SUMMARY OF OPTIONS GRANTED DURING THE QUARTER ENDED JULY 31, 2000:
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Date Granted No. of Shares Director or Employee Exercise Price Expiry Date
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NIL
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SCHEDULE B
(continued)
3) a) AUTHORIZED AND ISSUED SHARE CAPITAL AS AT JULY 31, 2000:
The Company has authorized share capital of 50,000,000 common shares with no
par value.
The Company has issued and allotted shares of its capital stock totalling
20,703,012.
b) SUMMARY OF OPTIONS, WARRANTS AND CONVERTIBLE SECURITIES OUTSTANDING AS AT
JULY 31, 2000:
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Security Number Exercise Price Expiry Date
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Options 850,000 $0.32 September 17, 2001
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Options 230,000 $0.32 January 13, 2002
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Options 75,000 $0.50 February 18, 2002
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c) SHARES IN ESCROW OR SUBJECT TO POOLING AS AT JULY 31, 2000:
- - Common shares in escrow - NIL
d) LIST OF DIRECTORS AS AT JULY 31, 2000:
Vojtech Agyagos President/Director
Gary Musil Secretary/Director
Kenneth B. Liebscher Director
Peter P.H. John Director
Nicolo Bellanca Director
Peter E. Serck Director
Jake Bottay Director
BELMONT RESOURCES INC.
(the "Company")
Form 61 Quarterly Report
SCHEDULE C:
MANAGEMENT DISCUSSION
REVIEW OF OPERATIONS IN THE QUARTER ENDED JULY 31, 2000 AND UP TO
THE DATE OF THIS REPORT:
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Nature of Business:
At the Pezinok II mining concession the Company is inviting joint venture
partners to fund further metallurgical testing work, partners who have financial
resources and expertise, with the Company retaining an interest in the project.
With low gold prices causing major gold mine closures, management felt it wise
to pursue other exploration activity such as oil and gas. In March 1998 the
Company entered into an agreement to acquire the rights to explore for oil and
gas in a 209,950-acre concession area in eastern Slovakia, and subsequently sold
its interest to EuroGas Inc.
In March 1999 the Company acquired a mineral property in the Lac Rocher area of
Quebec and also a 50% interest in an exploration permit in the Ungava region of
Northern Quebec where Falconbridge has been producing nickle since December
1997.
In April 2000 the Company completed the acquisition of 57% of Rozmin s.r.o.
which owns the Gemerska Poloma talc deposit in Eastern Slovak Republic.
In June 2000 the Company completed a Letter of Agreement to reacquire the
interest in Maseva Gas s.r.o. which controls the gas concession in the Slovak
Republic (see July 18 News Release following).
Investor Relations Activities:
There were no new investor relation's activities undertaken by or on behalf of
the Company during the quarter except for the dissemination of press releases to
the media, interested shareholders, investors, and brokers. No investor
relation's arrangements or contracts were entered into during the quarter.
Significant Events & Transactions:
(a) Acquisitions & Dispositions:
See section (c) following - July 18, 2000 news releases.
(b) Material Expenditures:
The major increases were: Office & Administrative services $5,703 in 1999
($17,418 in 2000). These were mainly due to costs incurred in preparation of the
20-F filing with the U.S. Securities and Exchange Commission (the "SEC"), the
consolidated year-end audited financials and increased accounting due to
acquisitions and consolidations. Travel and Public Relations $17,236 in 1999
($23,554 in 2000) because of due diligence on the new acquisition in Slovakia.
An increase of $4,573 in property investigation costs was as a result of the
Company's review and due diligence of numerous prospects. Overall operating
costs increased 31.8% ($35,500) more than 1999, as a result of the new
acquisition in the first quarter.
SCHEDULE C:
(continued)
(c) News Releases & Material Change Reports:
June 29, 2000 - Gary Musil reports that an onsite visit by Mr. James J.
McDougall, P.Eng of Vancouver, B.C. to the Gemerska Poloma talc deposit in
Slovakia produced the following report:
'The deposit through which a number of large diameter drill holes have been
completed since the early 1990's has been very well documented with
quality engineering and geology. The studies appear to be of very high
quality particularly with respect to both the use of '3D' computerized
geometry and extensive sampling/metallurgical testing of very large core
samples of material (talc, and the bounding magnesite).
The unusually high grade and size of the deposit will allow selective
mining based on current prices of the product. I consider the overall
project a very worthwhile endeavour and Belmont should proceed with
advancing the mine plan as soon as possible to get this property into
production.'
Tender documents are being prepared for the main decline work to the western
part of the orebody. The 4.5 x 4 metre size decline at 12% grade will total
approx. 1400 metres in length and is expected to begin within two months. Other
work to begin immediately will be the portal site clearance and clearing of
underbrush along the existing powerline. The Company is very fortunate to have a
20,000 volt powerline in place right up to the portal site. The powerline was
built by the state mining company who were originally exploring (using electric
drills) the talc deposit in the early 1990's.
Other:
- ------
The Company also announced that they have signed a Letter of Intent with
Gebruder Dorfner GmbH & Co. regarding the future sale and marketing of the talc
industrial mineral. This is a significant step in this very lucrative market.
The Dorfner Group has developed over the past one hundred years. They now
process and market over 240 industrial minerals including talc, kaolin, quartz
and feldspar and other products throughout 38 countries.
A Dorfner subsidiary, Kaolin-und Quartzsand-Werke KG has been actively
providing, processing and marketing talc for the paper, paint and lacquer
industries, and for its use in special applications; hence the company possesses
valuable know-how and international business connections in this field. The
distribution company confers the exclusive distribution rights for the paper -
and rotogravure industry and for the sector paints and lacquers to Gebruder
Dorfner for Germany, Austria, Switzerland and the Benelux Countries.
July 18, 2000 - The Company announced that is has entered into an agreement with
EuroGas, Inc. (OTC-BB-EUGS) to repurchase the 90% interest in Maseva Gas s.r.o.
("Maseva"). Maseva controls the 209,950-acre Kralovsky Chlmec oil and gas
concession area in eastern Slovakia. The concession is adjacent to the Trebisov
area where five commercially viable wells were drilled in 1996/97. Belmont is
now inviting joint venture partners to participate in the
exploration/development of this concession. In exchange for the 90% interest,
Belmont agrees to advance EuroGas' portion of the cost of placing the Gemerska
Poloma talc deposit into production. Belmont owns a 57% interest and EuroGas
controls the balance in the operating company which owns the deposit.
As further consideration EuroGas, Inc. also agrees to re-price and amend the
terms of the warrant granted by EuroGas to Belmont. The 2.5 million warrants
shall be amended such that the warrant shall have an expiry date of June 14,
2002 and the exercise price reduced from $2.50 to $0.82 USD per share.
SCHEDULE C:
(continued)
(d) Breaches of corporate, securities or other laws, or of an Issuer's
listing agreement with the Vancouver Stock Exchange: None
(e) Regulatory Approval: Nil
(f) Working Capital:
Working capital is in excess of $1,348,000
(g) General:
(i) On July 24, 2000 the Company held its Annual General Meeting. All
matters proposed by management were unanimously approved by
shareholders.
(ii) On August 17, 2000 the Company granted incentive stock options as
to 900,000 shares at $0.32 for a period of two years. The Canadian
Venture Exchange ("CDNX") accepted for filing the options on
August 25, 2000. Pursuant to CDNX Policy 4.4 all stock options
shares issued on the exercise of the stock options must be
legended with a four month Exchange hold period from the date
granted.