ACCESSION NUMBER:
CONFORMED SUBMISSION TYPE: 6-K
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 19990430
FILED AS OF DATE:
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: BELMONT RESOURCES INC.
CENTRAL INDEX KEY:
STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING (1000)
FISCAL YEAR END: 0131
FILING VALUES:
FORM TYPE: 6-K
SEC ACT:
SEC FILE NUMBER:
FILM NUMBER:
BUSINESS ADDRESS:
STREET 1: #1180 - 666 Burrard Street
CITY: Vancouver
STATE: BC, Canada
ZIP: V6C 2X8
FORM 6-K, BELMONT RESOURCES INC.
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 quarter ended April 30, 1999.
BELMONT RESOURCES INC.
(Translation of Registrant's Name Into English)
SEC File Number: 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.
BELMONT RESOURCES INC.
Three Months Ended April 30, 1999
Index
Page No.
PART I Financial Information
Item 1 Financial Statements
Consolidated Balance Sheets April 30, 1999 and January 31, 1999
Statement of Operations and Deficit for three months ended April 30,
1999 and April 30, 1998
Cash Flow for the three months ended April 30, 1999 and April 30,
1998
PART II Supplementary Information for the Quarter ended April 30, 1999
Item 1 Deferred Exploration & Development Costs
Item 2 a) Securities Issued During the Quarter ended April 30, 1999
b) Summary of Options Granted During the Quarter ended April 30, 1999
Item 3 a) Authorized and Issued Share Capital as at April 30, 1999
b) Summary of Options, Warrants and Convertible Securities Outstanding
as at April 30, 1999
c) Shares in Escrow or Subject to Pooling as at April 30, 1999
d) List of Director as at April 30, 1999
PART III Management Discussion for the Quarter ended April 30, 1999 and up
to the date of this Report
Item 1 Nature of Business
Item 2 Use of Proceeds
Item 3 Related Party Transactions
Item 4 Investor Relations Activities
Item 5 Significant Events & Transactions
a) Acquisitions & Dispositions
b) Material Expenditures
c) News Releases & Material Change Reports
d) Breaches of Corporate, Securities or other laws, or of an Issuer's
Listing Agreement with the Vancouver Stock Exchange
e) Regulatory Approval
f) Working Capital
g) General
BELMONT RESOURCES INC.
- ----------------------
FINANCIAL INFORMATION
Attached are the Consolidated Financial Statements of Belmont Resources Inc. for
the three months ended April 30, 1999.
For further information, please contact:
Gary Musil
Secretary/Director
(604) 683-6648
email: gmusil@direct.ca
website: www.belmont-resources.com
Stock Symbols:
VSE ("BEO")
OTC B-B ("BEOVF")
- - ------------------------------------------------------------------
BELMONT RESOURCES INC.
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(IN CANADIAN DOLLARS)
As at As at
April 30, January 31,
1999 1999
--------- ----------
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and short-term investments $ 145,802 $ 229,809
Accounts receivable 17,987 17,436
Marketable securities 3,437,100 3,437,100
Deferred income taxes 0 0
Prepaid expenses 3,378 3,486
---------- ----------
3,604,267 3,687,831
INVESTMENTS IN SECURITIES 2,291,400 2,291,400
RESOURCE PROPERTIES 5,433,249 5,339,126
ADVANCES 55,000 55,000
CAPITAL ASSETS 222,382 222,382
---------- ----------
$11,606,298 $11,595,739
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 48,144 $45,744
Future income taxes 568,603 568,603
---------- ----------
616,747 614,347
---------- ----------
DUE TO SHAREHOLDERS 220 220
---------- ----------
NON-CONTROLLING INTEREST 8,673 8,673
---------- ----------
FUTURE INCOME TAXES 539,837 539,837
---------- ----------
SHAREHOLDERS' EQUITY
Share Capital 13,578,165 13,520,425
Deficit (3,137,343) (3,087,763)
---------- ----------
10,440,822 10,432,662
---------- ----------
$11,606,298 $11,595,739
---------- ----------
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN CANADIAN DOLLARS)
Three months ended
April 30
1999 1998
----------- ----------
Expenses
Operating 0 0
Corporate administration 49,997 62,708
---------- ----------
49,997 62,708
---------- ----------
Earnings (loss) from operations (49,997) (62,708)
---------- ----------
Other income (expense)
Interest and other income 417 4,834
Loss on marketable securities 0 0
Provision for decline in value
of marketable securities 0 0
---------- ----------
417 4,834
---------- ----------
Earnings (loss) before taxes (49,580) (57,874)
---------- ----------
Earnings (loss) for the period (49,580) (57,874)
---------- ----------
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN CANADIAN DOLLARS)
Three months ended
April 30
1999 1998
----------- ----------
Cash provided by (used in)
Operating activities
Earnings (loss) for the period $ (49,580) $ (57,874)
Items not affecting cash
Depreciation and depletion 0 0
Loss on marketable securities,
net of tax provision 0 0
Provision for decline in value
of marketable securities 0 0
Deferred taxes 0 0
Other 0 0
Change in non-cash operating
working capital
Accounts receivable (552) (1,030)
Prepaid expenses 108 5,962
Accounts payable 2,400 19,889
----------- ----------
Net cash provided by (used in) operating activities (47,624) (33,053)
Investing activities
Mining property expenditures (94,123) ( 4,961)
Oil and gas project expenditures 0 (64,175)
----------- ----------
Net cash used in investing activities (94,123) (69,136)
----------- ----------
Financing activities
Issue of capital stock, net 57,740 0
----------- ----------
Net cash provided by financing activities 57,740 0
----------- ----------
Increase (decrease) in cash and
short-term investments (84,007) (102,189)
Cash and short-term investments
at beginning of period 229,809 637,523
----------- -----------
Cash and short-term investments
at end of period $ 145,802 $ 535,334
----------- -----------
PART II SUPPLEMENTARY INFORMATION FOR THE QUARTER ENDED APRIL 30, 1999
Item 1
DEFERRED EXPLORATION & DEVELOPMENT COSTS AND TRANSACTIONS DURING THE QUARTER
ENDED APRIL 30, 1999 AND CURRENT FISCAL YEAR-TO-DATE:
Deferred exploration & development - Costs are related to work on the Pezinok
gold/antimony mineral property, and the Lac Rocher nickel/cobalt property.
Item 2
a) SECURITIES ISSUED DURING THE QUARTER ENDED APRIL 30, 1999:
No. of
Date of Type of Shares Price Total Type of
Issue Security Type of Issue Issued Share Proceeds Consideration
- -------- -------- ------------- ------- ----- -------- -------------
March 18 Common Property 50,000 $0.50 $25,000 Assets
Acquisition
March 18 Common Finder's Fee 5,000 $0.50 $2,500 Services
April 20 Common Exercise 54,000 $0.56 $30,240 Cash
of Options
b) SUMMARY OF OPTIONS GRANTED DURING THE QUARTER ENDED APRIL 30, 1999:
Date Granted No. of Shares Director or Employee Exercise Price Expiry Date
- ------------ ------------- -------------------- -------------- -----------
NIL
Item 3
a) AUTHORIZED AND ISSUED SHARE CAPITAL AS AT APRIL 30, 1999:
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
19,709,012.
b) SUMMARY OF OPTIONS, WARRANTS AND CONVERTIBLE SECURITIES OUTSTANDING AS AT
APRIL 30, 1999:
Security Number Exercise Price Expiry Date
- -------- -------- -------------- -----------------
Options 5,000 $0.56 August 6, 1999
Options 889,000 $0.56 February 24, 2000
c) SHARES IN ESCROW OR SUBJECT TO POOLING AS AT APRIL 30, 1999:
Common shares in escrow - NIL
d) LIST OF DIRECTORS AS AT APRIL 30, 1999:
Vojtech Agyagos President/Director
Gary Musil Secretary/Director
Kenneth B. Liebscher Director
Peter P.H. John Director
Nicolo Bellanca Director
Peter E. Serck Director
PART III MANAGEMENT DISCUSSION FOR THE QUARTER ENDED APRIL 30, 1999
AND UP TO THE DATE OF THIS REPORT
Management's Discussion and Analysis of
Financial Condition and Results of Operations
For the three months ended April 30, 1999
(Unaudited)
The following discussion and analysis should be read in conjunction with the
consolidated financial statements and notes thereto included in this report and
in the Registration Statement Form 20 F/R filed by the Company with the
Securities and Exchange Commission.
All statements, other than statements of historical fact, included herein,
including without limitation, statements regarding potential mineralization and
reserves, exploration results and future plans and objectives of Belmont
Resources Inc.,are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate,and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual
results to differ materially from Belmont expectations are disclosed under the
heading "Risk Factors" and elsewhere in Belmont documents filed from time to
time with the Vancouver Stock Exchange, The United States Securities and
Exchange Commission and other regulatory authorities.
Item 1 - 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
Quebecwhere a recent nickle/cobalt discovery was announced.
Item 2 - Use of Proceeds:
During the quarter the Company received $30,240 through the exercise of
incentive stock options.
Item 3 - Related Party Transactions:
During the quarter the following transactions took place with related parties:
(i) Management fees totalling $13,500 were accrued/paid to an
officer/director.
(ii) The Company incurred $13,200 in office administrative services with a
company controlled by a director.
(iii) Office rent totalling $4,500 was paid to a company managed by a
director.
Item 4 - Investor Relations Activities:
There were no new investor relations 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
relations arrangements or contracts were entered into during the quarter.
Item 5 - Significant Events & Transactions:
(a) Acquisitions & Dispositions:
See section (c) following - January 20, March 8, March 16 and May 13, 1999
news releases.
(b) Material Expenditures:
The major increases were: Wages & Administrative services $18,001 in 1999
($15,883 in 1998). These were mainly due to costs incurred in preparation of the
20-F filing with the U.S. Securities and Exchange Commission (the "SEC") and the
year-end audited financials. Also consulting fees $2,500 in 1999 (nil) in 1998
as a result of finders fee paid for the Lac Rocher property acquisition. Overall
administrative costs decreased 20.3% ($12,711) less than 1998. The Company
incurred $64,175 in costs relating to the acquisition of the Maseva Gas
interest in a 209,950 acre concession area in eastern Slovakia during the first
quarter last year, however nil during 1999 as the interest has since been sold
to EuroGas, Inc.
(c) News Releases & Material Change Reports:
October 6, 1998 - The Company reports that the common shares of Belmont
Resources Inc. have been approved for trading on the NASD OTC Bulletin Board
under the symbol BEOVF.
This listing will assist the Company in the dissemination of news to its
numerous U.S. shareholders. Along with our listing in Moody's Investor
Services, it is the Company's desire to continue to enhance our exposure in the
U.S. and world financial markets.
January 20, 1999 - The Company announced the closing of the sale of its 90%
ownership in
Maseva Gas s.r.o. to EuroGas, Inc. (OTC-EUGS). Belmont has received 2.5 million
shares of
EuroGas, Inc. along with a 2-year warrant to purchase a further 2.5 million
shares of
EuroGas, Inc. at $2.50 USD per share.
Belmont commissioned an evaluation report by Geological Exploration and
Environmental Research Services Ltd. ("GEOMEGA") of Budapest, Hungary
coordinated by Dr. Frerenc Horvath. This report indicated a large potential
reserve south of the Trebisov area where EuroGas has already successfully
drilled and also west of the Ptruksa Field. GEOMEGA recommended that a 3D
seismic survey be completed over 360 Km2 of the concession. This extensive
report has been turned over to EuroGas.
Belmont will retain a 22.5% working interest in the 849.7 Km2 (209,950-acre)
concession area of Eastern Slovakia. In addition, EuroGas will also bear the
costs of drilling the first two new wells on the concession at no cost to
Belmont.
March 8, 1999 - The Company has entered into an option agreement with Mike
Lavoie to acquire a 100% interest in a Lac Rocher area prospect. The agreement
provides for payments of $30,000 and $25,000 and the issuance of 100,000 shares
in two tranches. The prospect property is also subject to a 2% NSR. A finder's
fee in cash and shares is payable.
The prospect property consists of 67 contiguous claims (1072 hectares - 4.14 sq.
miles)bordering a major geological contact of gneissic rocks (south) and the
volcanics (north) of the "Troilus volcano sedimentary belt". Major mining
companies such as Falconbridge Limited and Noranda Inc. have now joined the
staking rush in the area. The Belmont property is located approximately 10 Km NE
of the Nuinsco discovery and is adjacent to claims staked by Falconbridge.
March 16, 1999 - The Company announced that it has entered into an agreement
with MONTORO RESOURCES INC. ("MNQ".V), whereby Montoro has an option to earn a
50 percent interest in all 67 contingous mineral claims (1072 hectares - 4.14
sq. miles) acquired by Belmont in the Lac Rocher area of northwestern Quebec.
In order to earn its interest Montoro must pay $30,000 over two months, the
issuance of 50,000 shares (received) upon regulatory approval and incur a
minimum $35,000 of exploration expenditures by September 30, 1999.
May 13, 1999 - Belmont has issued the second and last tranche of 50,000 shares
as consideration for the 67 contiguous mineral claims located in Lac Rocher,
Quebec. The final finder's fee of 5,000 shares was also issued. This completes
the cash and share consideration for this property acquisition. The shares have
a hold period expiring July 5, 1999.
Belmont has received confirmation from the Quebec Mining Exploration Assistance
Program that their application for financial assistance will be reviewed in May.
A report has been completed on the property, which outlines an exploration
program for these claims in 1999.
(d) Breaches of corporate, securities or other laws, or of an Issuer's
listing agreement with the Vancouver Stock Exchange:
None
(e) Regulatory Approval:
March 12, 1999 - The Company received from the V.S.E. approval for filing an
Option Agreement dated March 5, 1999 between the Company and Mike Lavoie
whereby the Company has acquired a 100% interest in 67 mineral claims located
in Lac Rocher, Quebec.
March 23, 1999 - The Company received from the V.S.E. approval for filing an
Option Agreement Assignment dated March 16, 1999 whereby Montoro has been
granted an option to acquire 50% of Belmont's 100% interest in the Lac Rocher
claims.
(f) Working Capital:
Quarter ending working capital is in excess of $120,000 not including the
Investment is Securities relating to the value of EuroGas securities that will
be available for resale before year-end. The Company is actively pursuing and
negotiating other acquisitions in Eastern Europe.
(g) General:
(i) The Company engaged an U.S. legal firm to assist in preparing its annual
20-F filing with the SEC to maintain its fully reporting company status.
(ii) The Company has completed the transaction with EuroGas, Inc. ("EUGS")
and has received 2,500,000 shares of EUGS.
(iii) On May 26, 1999 the Company filed Notice of its upcoming Annual General
Meeting to be held July 21, 1999 at 10:30 a.m.
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 Oct. 6,1999 By /s/ Gary Musil
--------------------- ------------------------------
Secretary/Director