As filed with the Securities and Exchange Commission on April 26, 2010
Registration No. 333-165302
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1/A
Amendment #1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
CINDISUE MINING CORP.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1000
(Primary Standard Industrial Classification Code Number)
27-1662466
(IRS Employer Identification No.)
11255 Tierrasanta Blvd., Unit 78
San Diego, CA 92124
Telephone (858)278-1166 Facsimile (904)369-5658
(Address and telephone number of registrant's principal executive offices)
Robert C. Weaver, Jr., Esq.
Attorney at Law
721 Devon Court
San Diego, CA 92109
Telephone (858)488-4433 Facsimile (509)267-8258
(Name, address and telephone number of agent for service)
Approximate date of commencement of proposed sale to the public: As soon as
practicable after this Registration Statement is declared effective.
If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box. [X]
If this Form is filed to register additional securities for an offering pursuant
to Rule 462(b) under the Securities Act, check the following box and list the
Securities Act Registration Statement number of the earlier effective
Registration Statement for the same offering. [ ]
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under
the Securities Act, check the following box and list the Securities Act
Registration Statement number of the earlier effective Registration Statement
for the same offering. [ ]
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under
the Securities Act, check the following box and list the Securities Act
Registration Statement number of the earlier effective Registration Statement
for the same offering. [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company.
Large accelerated filer [ ] Accelerated Filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
(Do not check if a Smaller reporting company)
CALCULATION OF REGISTRATION FEE
============================================================================================================
Title of Each Class Proposed Maximum Proposed Maximum
of Securities Amount to Be Offering Price Aggregate Amount of
to be Registered Registered per Share (1) Offering Price Registration Fee (2)
- ------------------------------------------------------------------------------------------------------------
Common Stock, Shares 2,500,000 $0.01 $25,000 $1.78
============================================================================================================
(1) This is an initial offering and no current trading market exists for our
common stock. The offering price was arbitrarily determined by Cindisue
Mining Corp.
(2) Estimated solely for purposes of calculating the registration fee pursuant
to Rule 457 under the Securities Act of 1933, as amended (the "Securities
Act").
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES
AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE
A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT
SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE
SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING
PURSUANT TO SUCH SECTION 8(A), MAY DETERMINE.
================================================================================
CINDISUE MINING CORP.
PROSPECTUS
2,500,000 SHARES OF COMMON STOCK AT $0.01 PER SHARE
This is the initial offering of common stock of Cindisue Mining Corp. and no
public market currently exists for the securities being offered. We are offering
for sale a total of 2,500,000 shares of common stock at a price of $0.01 per
share. The offering is being conducted on a self-underwritten, best effort,
all-or-none basis, which means Donovan L. Cooper, our officer and director, will
attempt to sell the shares. This Prospectus will permit Donovan L. Cooper, our
officer and director, to sell the shares directly to the public with no
commission or other remuneration payable to him for any shares he may sell. Mr.
Cooper will sell the shares and intends to offer them to friends, relatives,
acquaintances and business associates. In offering the securities on our behalf,
he will rely on the safe harbor from broker-dealer registration set out in Rule
3a4-1 under the Securities and Exchange Act of 1934. We intend to open a
standard, non-interest bearing, bank checking account to be used only for the
deposit of funds received from the sale of the shares in this offering. If all
the shares are not sold and the total offering amount is not deposited by the
expiration date of the offering, the funds will be promptly returned to the
investors, without interest or deduction. However, there is no assurance we will
be able to do so since the funds will not be placed into an escrow, trust or
other similar account, there can be no guarantee that any third party creditor
who may obtain a judgment or lien against us would not satisfy the judgment or
lien by executing on the bank account where the offering proceeds are being
held, resulting in a loss of any investment you make in our securities. The
shares will be offered at a price of $0.01 per share for a period of one hundred
and eighty (180) days from the effective date of this prospectus, unless
extended by our board of directors for an additional 90 days. If the board of
directors votes to extend the offering for the additional 90 days, a
post-effective amendment to the registration statement will be filed prior to
the expiration date of the original offering to notify subscribers and potential
subscribers of the extended offering period. Anyone who has subscribed to the
offering prior to the extension will be notified by the company that their money
will be promptly refunded prior to the expiration of the original offering
unless they provide an affirmative statement that they wish to subscribe to the
extended offer. The offering will end on _______________, 2010.
Offering Price Proceeds to Company
Per Share Commissions Before Expenses
--------- ----------- ---------------
Common Stock $0.01 Not Applicable $25,000
Total $0.01 Not Applicable $25,000
Cindisue Mining Corp. is an exploration stage company and currently has no
operations. There is a high degree of risk involved with any investment in the
shares offered herein. You should only purchase shares if you can afford a loss
of your entire investment. Our independent auditor has issued an audit opinion
for Cindisue Mining Corp. which includes a statement expressing substantial
doubt as to our ability to continue as a going concern. As of the date of this
prospectus, our stock is presently not traded on any market or securities
exchange. Further, there is no assurance that a trading market for our
securities will ever develop.
THE PURCHASE OF THE SECURITIES BEING OFFERED THROUGH THIS PROSPECTUS INVOLVES A
HIGH DEGREE OF RISK. YOU SHOULD CAREFULLY READ AND CONSIDER THE SECTION OF THIS
PROSPECTUS ENTITLED "RISK FACTORS" ON PAGES 4 THROUGH 9 BEFORE BUYING ANY SHARES
OF CINDISUE MINING CORP.'S COMMON STOCK.
NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE
ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE WILL
NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION HAS BEEN CLEARED OF COMMENTS AND IS DECLARED
EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS
NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OF
SALE IS NOT PERMITTED.
DATED ______________, 2010
TABLE OF CONTENTS
Page No.
--------
SUMMARY OF PROSPECTUS 3
General Information 3
The Offering 3
RISK FACTORS 4
Risks Associated with our Company 4
Risks Associated with this Offering 8
USE OF PROCEEDS 10
DETERMINATION OF OFFERING PRICE 10
DILUTION 10
PLAN OF DISTRIBUTION 11
Offering will be Sold by Our Officer and Director 11
Terms of the Offering 12
Procedures and Requirements for Subscribing 12
Deposit of Offering Proceeds 12
DESCRIPTION OF SECURITIES 12
INTEREST OF NAMED EXPERTS AND COUNSEL 13
DESCRIPTION OF OUR BUSINESS 13
General Information 13
Competition 20
Bankruptcy or Similar Proceedings 20
Reorganization, Purchase or Sale of Assets 20
Compliance with Government Regulation 20
Patents, Trademarks, Franchises, Concessions, Royalty
Agreements or Labor Contracts 21
Need for Government Approval for Its Products or Services 21
Research and Development Costs during the Last Two Years 21
Employees and Employment Agreements 21
DESCRIPTION OF PROPERTY 21
LEGAL PROCEEDINGS 21
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS 21
REPORT TO SECURITY HOLDERS 22
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION 23
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS 26
EXECUTIVE COMPENSATION 27
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT 28
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 29
DISCLOSURE OF COMMISSION POSITION OF INDEMNIFICATION FOR
SECURITIES ACT LIABILITIES 29
AVAILABLE INFORMATION 29
FINANCIAL STATEMENTS 30
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE 30
2
CINDISUE MINING CORP.
11255 TIERRASANTA BLVD., UNIT 78
SAN DIEGO, CA 92124
PROSPECTUS SUMMARY
AS USED IN THIS PROSPECTUS, UNLESS THE CONTEXT OTHERWISE REQUIRES, "WE," "US,"
"OUR," "THE COMPANY," "CINDISUE," AND "CINDISUE MINING" REFER TO CINDISUE MINING
CORP. THE FOLLOWING SUMMARY IS NOT COMPLETE AND DOES NOT CONTAIN ALL OF THE
INFORMATION THAT MAY BE IMPORTANT TO YOU. YOU SHOULD READ THE ENTIRE PROSPECTUS
BEFORE MAKING AN INVESTMENT DECISION TO PURCHASE OUR COMMON STOCK.
GENERAL INFORMATION ABOUT OUR COMPANY
Cindisue Mining Corp. was incorporated in the State of Delaware on January 8,
2010 to engage in the acquisition, exploration and development of natural
resource properties. We intend to use the net proceeds from this offering to
complete the exploration program as described in the Plan of Operation section
of this prospectus. (See "Business of the Company" and "Use of Proceeds".) We
are an exploration stage company with no revenues or operating history. The
principal executive offices are located at 11255 Tierrasanta Blvd., Unit 78, San
Diego, CA. The telephone number is (858)278-1166.
We currently own a 100% undivided interest in a mineral property, the Ford 1-4
Mineral Claims (known as the "Ford Property"). The Ford Property consists of an
area of 82.64 acres located in the Montezuma Peak Area, Esmeralda County,
Nevada. Title to the Ford Property is held by Cindisue Mining Corp. Our plan of
operation is to conduct mineral exploration activities on the property in order
to assess whether it contains mineral deposits capable of commercial extraction.
We received our initial funding of $15,000 through the sale of common stock to
Donovan L. Cooper, our officer and director, who purchased 3,000,000 shares of
our common stock at $0.005 per share on January 22, 2010. Our financial
statements from inception (January 8, 2010) through the period ended January 31,
2010 report a net loss of $7,599 and no revenues. Our independent auditor has
issued an audit opinion for Cindisue Mining Corp. which includes a statement
expressing substantial doubt as to our ability to continue as a going concern.
We have not earned any revenues to date and we do not anticipate earning
revenues until such time as we enter into commercial production of our mineral
property. We are presently in the exploration stage of our business and we can
provide no assurance that we will discover commercially exploitable levels of
mineral resources on our property. Moreover, if such deposits are discovered,
there is no guarantee that we will enter into further substantial exploration
programs. There is no current public market for our securities. As our stock is
not publicly traded, investors should be aware they probably will be unable to
sell their shares and their investment in our securities is not liquid.
THE OFFERING
The Issuer: Cindisue Mining Corp.
Securities Being Offered: 2,500,000 shares of common stock.
Price per Share: $0.01
Offering Period: The shares are offered for a period not to exceed
180 days, unless extended by our board of directors
for an additional 90 days. If the board of directors
votes to extend the offering for the additional 90
days, a post-effective amendment to the registration
statement will be filed to notify subscribers and
potential subscribers of the extended offering
period. Anyone who has subscribed to the offering
prior to the extension will be notified by the
company that their money will be promptly refunded
prior to the expiration of the original offering
unless they provide an affirmative statement that
they wish to subscribe to the extended offer.
3
Net Proceeds: $25,000
Securities Issued
and Outstanding: 3,000,000 shares of common stock were issued and
outstanding as of the date of this prospectus.
Registration Costs: We estimate our total offering registration costs to
be $6,500.
Risk Factors: See "Risk Factors" and the other information in this
prospectus for a discussion of the factors you
should consider before deciding to invest in shares
of our common stock.
RISK FACTORS
An investment in our common stock involves a high degree of risk. You should
carefully consider the risks described below and the other information in this
entire prospectus before investing in our common stock. If any of the following
risks occur, our business, operating results and financial condition could be
seriously harmed. The trading price of our common stock, when and if we trade at
a later date, could decline due to any of these risks. This could result in you
losing all or part of your investment.
RISKS ASSOCIATED WITH OUR COMPANY
WE ARE AN EXPLORATION STAGE COMPANY, BUT HAVE NOT YET COMMENCED EXPLORATION
ACTIVITIES ON OUR CLAIMS. WE EXPECT TO INCUR OPERATING LOSSES FOR THE
FORESEEABLE FUTURE.
We were incorporated on January 8, 2010 and to date have been involved primarily
in organizational activities and the acquisition of the mineral claim. We have
not yet commenced exploration on the Ford Property. Accordingly, we have no way
to evaluate the likelihood that our business will be successful. We have not
earned any revenues as of the date of this prospectus. Potential investors
should be aware of the difficulties normally encountered by new mineral
exploration companies and the high rate of failure of such enterprises. The
likelihood of success must be considered in light of the problems, expenses,
difficulties, complications and delays encountered in connection with the
exploration of the mineral properties that we plan to undertake. Prior to
completion of our exploration stage, we anticipate that we will incur increased
operating expenses without realizing any revenues. We expect to incur
significant losses into the foreseeable future. We recognize that if mineral
production is not forthcoming from the claims, we will not be able to continue
business operations. There is no history upon which to base any assumption as to
the likelihood that we will prove successful, and it is doubtful that we will
generate any operating revenues or ever achieve profitable operations. If we are
unsuccessful in addressing these risks, our business will most likely fail.
WITHOUT THE FUNDING FROM THIS OFFERING WE WILL BE UNABLE TO IMPLEMENT OUR
BUSINESS PLAN.
We are an exploration stage company with no revenues or operating activities.
Our current operating funds are less than necessary to complete the intended
exploration program on our mineral claims; as of January 31, 2010, we had cash
in the amount of $8,000. We will need the funds from this offering to complete
our business plan; without them our business will likely fail. Mr. Cooper, our
officer and director, has verbally agreed to loan the company funds to allow us
to pay for professional fees, including fees payable in connection with the
filing of this registration statement, offering costs, operation expenses and
reclamation costs in the event we experience a shortage of funds during
exploration and abandon the claims, however, he has no formal commitment,
arrangement or legal obligation to advance or loan funds to the company.
4
WE HAVE YET TO EARN REVENUE AND OUR ABILITY TO SUSTAIN OUR OPERATIONS IS
DEPENDENT ON OUR ABILITY TO RAISE FINANCING. AS A RESULT, OUR ACCOUNTANT
BELIEVES THERE IS SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING
CONCERN.
We have accrued net losses of $7,599 for the period from our inception to
January 31, 2010, and have no revenues to date. Our future is dependent upon our
ability to obtain financing and upon future profitable operations from the
development of our mineral claims. These factors raise substantial doubt that we
will be able to continue as a going concern. Chang G. Park, CPA, our independent
auditor, has expressed substantial doubt about our ability to continue as a
going concern. This opinion could materially limit our ability to raise
additional funds by issuing new debt or equity securities or otherwise. If we
fail to raise sufficient capital when needed, we will not be able to complete
our business plan. As a result we may have to liquidate our business and you may
lose your investment. You should consider our auditor's comments when
determining if an investment in Cindisue Mining Corp. is appropriate.
BECAUSE DONOVAN L. COOPER, OUR SOLE OFFICER AND DIRECTOR, DOES NOT HAVE ANY
FORMAL TRAINING SPECIFIC TO THE TECHNICALITIES OF MINERAL EXPLORATION, THERE IS
A HIGHER RISK OUR BUSINESS WILL FAIL.
Donovan L. Cooper, our sole officer and director, has no formal training as a
geologist or in the technical aspects of management of a mineral exploration
company. His prior business experiences have primarily been in management and
flexible benefit plans. With no direct training or experience in these areas,
our management may not be fully aware of the specific requirements related to
working within this industry. Our management's decisions and choices may not
take into account standard engineering or managerial approaches mineral
exploration companies commonly use. Consequently, our operations, earnings, and
ultimate financial success could suffer irreparable harm due to management's
lack of experience in this industry.
BECAUSE DONOVAN L. COOPER, OUR OFFICER AND DIRECTOR HAS OTHER BUSINESS
INTERESTS, HE MAY NOT BE ABLE OR WILLING TO DEVOTE A SUFFICIENT AMOUNT OF TIME
TO OUR BUSINESS OPERATIONS, CAUSING OUR BUSINESS TO FAIL.
Mr. Cooper currently devotes approximately 4-5 hours per week providing
management services to us. While he currently possesses adequate time to attend
to our interest, it is possible that the demands on him from other obligations
could increase, with the result that he would no longer be able to devote
sufficient time to the management of our business. This could negatively impact
our business development.
DONOVAN L. COOPER, OUR OFFICER AND DIRECTOR, WILL CONTINUE TO EXERCISE
SIGNIFICANT CONTROL OVER OUR OPERATIONS, WHICH MEANS AS A MINORITY SHAREHOLDER,
YOU WOULD HAVE NO CONTROL OVER CERTAIN MATTERS REQUIRING STOCKHOLDER APPROVAL
THAT COULD AFFECT YOUR ABILITY TO EVER RESELL ANY SHARES YOU PURCHASE IN THIS
OFFERING.
After the completion of this offering, Donovan L. Cooper, our executive officer
and director, will own 54.5% of our common stock. He will have a significant
influence in determining the outcome of all corporate transactions, including
the election of directors, approval of significant corporate transactions,
changes in control of the company or other matters that could affect your
ability to ever resell your shares. His interests may differ from the interests
of the other stockholders and thus result in corporate decisions that are
disadvantageous to other shareholders.
WE HAVE NO KNOWN MINERAL RESERVES AND IF WE CANNOT FIND ANY, WE MAY HAVE TO
CEASE OPERATIONS.
We have no mineral reserves. If we do not find any commercially exploitable
mineral reserves or if we cannot complete the exploration of any mineral
reserves, either because we do not have the money to do so or because it is not
economically feasible to do so, we may have to cease operations and you may lose
your investment. Mineral exploration is highly speculative. It involves many
risks and is often non-productive. Even if we are able to find mineral reserves
on our property our production capability will be subject to further risks
including:
5
- The costs of bringing the property into production including
exploration work, preparation of production feasibility studies, and
construction of production facilities, all of which we have not
budgeted for;
- The availability and costs of financing;
- The ongoing costs of production; and
- Risks related to environmental compliance regulations and restraints.
The marketability of any minerals acquired or discovered may be affected by
numerous factors which are beyond our control and which cannot be accurately
predicted, such as market fluctuations, the lack of milling facilities and
processing equipment near the Ford Property, and other factors such as
government regulations, including regulations relating to allowable production,
the importing and exporting of minerals, and environmental protection.
Given the above noted risks, the chances of our finding and commercially
exploiting reserves on our mineral properties are remote and funds expended on
exploration will likely be lost.
BECAUSE OF THE UNIQUE DIFFICULTIES AND UNCERTAINTIES INHERENT IN MINERAL
EXPLORATION VENTURES, WE FACE A HIGH RISK OF BUSINESS FAILURE.
You should be aware of the difficulties normally encountered by new mineral
exploration companies and the high rate of failure of such enterprises. The
likelihood of success must be considered in light of the problems, expenses,
difficulties, complications and delays encountered in connection with the
exploration of the mineral properties that we plan to undertake. These potential
problems include, but are not limited to, unanticipated problems relating to
exploration, and additional costs and expenses that may exceed current
estimates. The Ford Property does not contain a known body of any commercial
minerals and, therefore, any program conducted on the Ford Property would be an
exploratory search of any minerals. There is no certainty that any expenditures
made in the exploration of the Ford Property will result in discoveries of any
commercial quantities of minerals. Most exploration projects do not result in
the discovery of commercially mineable mineral deposits. Problems such as
unusual or unexpected formations and other conditions are common to mineral
exploration activities and often result in unsuccessful exploration efforts. If
the results of our exploration program do not reveal viable commercial
mineralization, we may decide to abandon our claim and acquire new claims for
new exploration. Our ability to acquire additional claims will be dependent upon
our possessing adequate capital resources when needed. If no funding is
available, we may be forced to abandon our operations.
BECAUSE OF THE INHERENT DANGERS INVOLVED IN MINERAL EXPLORATION, THERE IS A RISK
THAT WE MAY INCUR LIABILITY OR DAMAGES AS WE CONDUCT OUR BUSINESS.
The search for valuable minerals involves numerous hazards. As a result, we may
become subject to liability for such hazards, including pollution, cave-ins and
other hazards against which we cannot insure or against which we may elect not
to insure. At the present time we have no insurance to cover against these
hazards. The payment of such liabilities may result in our inability to complete
our planned exploration program and/or obtain additional financing to fund our
exploration program.
AS WE UNDERTAKE EXPLORATION OF OUR MINERAL CLAIMS, WE WILL BE SUBJECT TO
COMPLIANCE WITH GOVERNMENT REGULATION THAT MAY INCREASE THE ANTICIPATED COST OF
OUR EXPLORATION PROGRAM.
There are several governmental regulations that materially restrict mineral
exploration. We will be subject to the laws of the State of Nevada as we carry
out our exploration program. We may be required to obtain work permits, post
bonds and perform remediation work for any physical disturbance to the land in
order to comply with these laws. If we enter the production phase, the cost of
complying with permit and regulatory environment laws will be greater because
the impact on the project area is greater. Permits and regulations will control
all aspects of the production program if the project continues to that stage.
Examples of regulatory requirements include:
(a) Water discharge will have to meet drinking water standards;
(b) Dust generation will have to be minimal or otherwise re-mediated;
(c) Dumping of material on the surface will have to be re-contoured and
re-vegetated with natural vegetation;
6
(d) An assessment of all material to be left on the surface will need to
be environmentally benign;
(e) Ground water will have to be monitored for any potential contaminants;
and
(f) There will have to be an impact report of the work on the local fauna
and flora including a study of potentially endangered species.
There is a risk that new regulations could increase our costs of doing business
and prevent us from carrying out our exploration program. We will also have to
sustain the cost of reclamation and environmental remediation for all
exploration work undertaken. Both reclamation and environmental remediation
refer to putting disturbed ground back as close to its original state as
possible. Other potential pollution or damage must be cleaned-up and renewed
along standard guidelines outlined in the usual permits. Reclamation is the
process of bringing the land back to its natural state after completion of
exploration activities. Environmental remediation refers to the physical
activity of taking steps to remediate, or remedy, any environmental damage
caused. The amount of these costs is not known at this time as we do not know
the extent of the exploration program that will be undertaken beyond completion
of the recommended work program. If remediation costs exceed our cash reserves
we may be unable to complete our exploration program and have to abandon our
operations.
THERE IS A RISK THAT OUR PROPERTY DOES NOT CONTAIN ANY KNOWN BODIES OF ORE
RESULTING IN ANY FUNDS SPENT ON EXPLORATION BEING LOST.
There is the likelihood of our mineral claim containing little or no economic
mineralization or reserves. There is the possibility that our claim does not
contain any reserves, resulting in any funds spent on exploration being lost.
BECAUSE WE HAVE NOT YET SURVEYED THE FORD PROPERTY, WE MAY DISCOVER
MINERALIZATION ON THE CLAIMS THAT IS NOT WITHIN OUR CLAIM BOUNDARIES.
While we have conducted a mineral claim title search, this should not be
construed as a guarantee of claim boundaries. Until the claim is surveyed, the
precise location of the boundaries of the claim may be in doubt. If we discover
mineralization that is close to the claim boundaries, it is possible that some
or all of the mineralization may occur outside the boundaries. In such a case we
would not have the right to extract those minerals.
WE CAN PROVIDE NO ASSURANCE THAT WE WILL BE ABLE TO SUCCESSFULLY ADVANCE THE
MINERAL CLAIMS INTO COMMERCIAL PRODUCTION, IF WE DISCOVER COMMERCIAL RESERVES OF
PRECIOUS METALS ON OUR MINERAL PROPERTY.
If our exploration program is successful in establishing ore of commercial
tonnage and grade, we will require additional funds in order to advance the
claim into commercial production. Obtaining additional financing would be
subject to a number of factors, including the market price for the minerals,
investor acceptance of our claims and general market conditions. These factors
may make the timing, amount, terms or conditions of additional financing
unavailable to us. We may be unable to obtain any such funds, or to obtain such
funds on terms that we consider economically feasible and you may lose any
investment you make in this offering.
WE WILL REQUIRE ADDITIONAL FUNDS IN ORDER TO ADVANCE THE CLAIM INTO COMMERCIAL
PRODUCTION.
If our exploration program is successful in establishing ore of commercial
tonnage and grade we will require additional funds to proceed. The most likely
source of future funds is through the sale of equity capital. Any sale of share
capital to raise operating funds will result in dilution to existing
shareholders.
IF ACCESS TO OUR MINERAL CLAIMS IS RESTRICTED BY INCLEMENT WEATHER, WE MAY BE
DELAYED IN OUR EXPLORATION AND ANY FUTURE MINING EFFORTS.
It is possible that snow or rain could cause the mining roads providing access
to our claims to become impassable. If the roads are impassable we would be
delayed in our exploration timetable.
7
BASED ON CONSUMER DEMAND, THE GROWTH AND DEMAND FOR ANY ORE WE MAY RECOVER FROM
OUR CLAIMS MAY BE SLOWED, RESULTING IN REDUCED REVENUES TO THE COMPANY.
Our success will be dependent on the growth of demand for ores. If consumer
demand slows our revenues may be significantly affected. This could limit our
ability to generate revenues and our financial condition and operating results
may be harmed.
MR. JAMES MCLEOD, OUR CONSULTING GEOLOGIST, HAS WORKED WITH A NUMBER OF
EXPLORATION STAGE COMPANIES WHICH HAVE NOT MOVED FORWARD WITH, OR HAVE
COMPLETELY ABANDONED, THEIR EXPLORATION ACTIVITIES.
Since 1999, Mr. McLeod has been an officer, director, or geologist for over
twenty companies, most of which have not moved forward with exploration
activities, and at least five of which have changed businesses and completely
abandoned exploration activities. If we do not move forward with our exploration
activities or our exploration activities do not have favorable results our
business could fail.
RISKS ASSOCIATED WITH THIS OFFERING
WE ARE SELLING THIS OFFERING WITHOUT AN UNDERWRITER AND MAY BE UNABLE TO SELL
ANY SHARES.
This offering is self-underwritten, that is, we are not going to engage the
services of an underwriter to sell the shares; we intend to sell our shares
through our officer/director, who will receive no commissions. Donovan L.
Cooper, our officer and director, will offer the shares to friends, relatives,
acquaintances and business associates. However, there is no guarantee that he
will be able to sell any of the shares. Unless he is successful in selling all
of the shares and we receive the proceeds from this offering, we may have to
seek alternative financing to implement our business plan.
DUE TO THE LACK OF A TRADING MARKET FOR OUR SECURITIES, YOU MAY HAVE DIFFICULTY
SELLING ANY SHARES YOU PURCHASE IN THIS OFFERING.
We are not registered on any public stock exchange. There is presently no demand
for our common stock and no public market exists for the shares being offered in
this prospectus. We plan to contact a market maker immediately following the
completion of the offering and apply to have the shares quoted on the
Over-The-Counter Electronic Bulletin Board (OTCBB). The OTCBB is a regulated
quotation service that displays real-time quotes, last sale prices and volume
information in over-the-counter (OTC) securities. The OTCBB is not an issuer
listing service, market or exchange. Although the OTCBB does not have any
listing requirements per se, to be eligible for quotation on the OTCBB, issuers
must remain current in their filing with the SEC or applicable regulatory
authority. Market makers are not permitted to begin quotation of a security
whose issuer does not meet the filing requirement. Securities already quoted on
the OTCBB that become delinquent in their required filings will be removed
following a 30 to 60 day grace period if they do not make their required filing
during that time. We cannot guarantee that our application will be accepted or
approved and our stock listed and quoted for sale. As of the date of this
filing, there have been no discussions or understandings between Cindisue Mining
Corp. and anyone acting on our behalf, with any market maker regarding
participation in a future trading market for our securities. If no market is
ever developed for our common stock, it will be difficult for you to sell any
shares you purchase in this offering. In such a case, you may find that you are
unable to achieve any benefit from your investment or liquidate your shares
without considerable delay, if at all. In addition, if we fail to have our
common stock quoted on a public trading market, your common stock will not have
a quantifiable value and it may be difficult, if not impossible, to ever resell
your shares, resulting in an inability to realize any value from your
investment.
WE WILL INCUR ONGOING COSTS AND EXPENSES FOR U.S. SECURITIES AND EXCHANGE
COMMISSION REPORTING AND COMPLIANCE. WITHOUT REVENUE WE MAY NOT BE ABLE TO
REMAIN IN COMPLIANCE, MAKING IT DIFFICULT FOR INVESTORS TO SELL THEIR SHARES, IF
AT ALL.
8
Our business plan allows for the payment of the estimated $6,500 cost of this
registration statement to be paid from existing cash on hand. If necessary, Mr.
Cooper, our officer and director, has verbally agreed to loan the company funds
to complete the registration process. We plan to contact a market maker
immediately following the close of the offering and apply to have the shares
quoted on the OTC Electronic Bulletin Board. To be eligible for quotation,
issuers must remain current in their filings with the U.S. Securities and
Exchange Commission. In order for us to remain in compliance we will require
future revenues to cover the cost of these filings, which could comprise a
substantial portion of our available cash resources. If we are unable to
generate sufficient revenues to remain in compliance it may be difficult for you
to resell any shares you may purchase, if at all.
THE TRADING IN OUR SHARES WILL BE REGULATED BY THE SECURITIES AND EXCHANGE
COMMISSION RULE 15G-9 WHICH ESTABLISHED THE DEFINITION OF A "PENNY STOCK."
The shares being offered are defined as a penny stock under the Securities and
Exchange Act of 1934, and rules of the Commission. The Exchange Act and such
penny stock rules generally impose additional sales practice and disclosure
requirements on broker-dealers who sell our securities to persons other than
certain accredited investors who are, generally, institutions with assets in
excess of $4,000,000 or individuals with net worth in excess of $1,000,000 or
annual income exceeding $200,000 ($300,000 jointly with spouse), or in
transactions not recommended by the broker-dealer. For transactions covered by
the penny stock rules, a broker dealer must make certain mandated disclosures in
penny stock transactions, including the actual sale or purchase price and actual
bid and offer quotations, the compensation to be received by the broker-dealer
and certain associated persons, and deliver certain disclosures required by the
Commission. Consequently, the penny stock rules may make it difficult for you to
resell any shares you may purchase, if at all.
MR. COOPER, THE OFFICER AND DIRECTOR OF THE COMPANY, BENEFICIALLY OWNS 100% OF
THE OUTSTANDING SHARES OF OUR COMMON STOCK. AFTER THE COMPLETION OF THIS
OFFERING, HE WILL OWN 54.5% OF THE OUTSTANDING SHARES. IF HE CHOOSES TO SELL HIS
SHARES IN THE FUTURE, IT MIGHT HAVE AN ADVERSE EFFECT ON THE PRICE OF OUR STOCK.
Due to the amount of Mr. Cooper's share ownership in our company, if he chooses
to sell his shares in the public market, the market price of our stock could
decrease and all shareholders suffer a dilution of the value of their stock.
UPON PURCHASING SHARES IN OUR COMPANY, YOU WILL INCUR IMMEDIATE AND SUBSTANTIAL
DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES.
Our existing stockholder acquired his shares at a cost of $.005 per share, a
cost per share substantially less than that which you will pay for the shares
you purchase in this offering. Upon completion of this offering the net tangible
book value of the shares held by our existing stockholder (3,000,000 shares)
will be increased by $0.003 per share without any additional investment on his
part. The purchasers of shares in this offering will incur immediate dilution (a
reduction in the net tangible book value per share from the offering price of
$0.01 per share to $0.006 per share). As a result, after completion of the
offering, the net tangible book value of the shares held by purchasers in this
offering would be $0.006 per share, reflecting an immediate dilution of $0.004
per share.
WE WILL BE HOLDING ALL THE PROCEEDS FROM THE OFFERING IN A STANDARD BANK
CHECKING ACCOUNT UNTIL ALL SHARES ARE SOLD. BECAUSE THE SHARES ARE NOT HELD IN
AN ESCROW OR TRUST ACCOUNT, THERE IS A RISK YOUR MONEY WILL NOT BE RETURNED IF
ALL THE SHARES ARE NOT SOLD.
All funds received from the sale of shares in this offering will be deposited
into a standard bank checking account until all shares are sold and the offering
is closed, at which time, the proceeds will be transferred to our business
operating account. In the event all shares are not sold we have committed to
promptly return all funds to the original purchasers. However since the funds
will not be placed into an escrow, trust or other similar account, there can be
no guarantee that any third party creditor who may obtain a judgment or lien
against us would not satisfy the judgment or lien by executing on the bank
account where the offering proceeds are being held, resulting in a loss of any
investment you make in our securities.
9
USE OF PROCEEDS
Assuming sale of all of the shares offered herein, of which there is no
assurance, the net proceeds from this offering will be $25,000. The proceeds are
expected to be disbursed, in the priority set forth below, during the first
twelve (12) months after the successful completion of the offering:
Planned Expenditures Over
Category The Next 12 Months
-------- ------------------
Phase 1 Exploration Program $ 8,000
Phase 2 Exploration Program $10,000
Legal & Accounting $ 7,000
TOTAL PROCEEDS TO COMPANY $25,000
We will establish a separate bank account and all proceeds will be deposited
into that account until the total amount of the offering is received and all
shares are sold, at which time the funds will be released to us for use in our
operations. In the event we do not sell all of the shares before the expiration
date of the offering, all funds will be returned promptly to the subscribers,
without interest or deduction. If necessary, Mr. Cooper, our officer and
director, has verbally agreed to loan the company funds to allow us to pay for
professional fees, including fees payable in connection with the filing of this
registration statement, offering costs, operation expenses and reclamation costs
in the event we experience a shortage of funds during exploration and abandon
the claims, however, he has no formal commitment, arrangement or legal
obligation to advance or loan funds to the company. We will require the funding
from this offering to implement our exploration program.
DETERMINATION OF OFFERING PRICE
The offering price of the shares has been determined arbitrarily by us. The
price does not bear any relationship to our assets, book value, earnings, or
other established criteria for valuing a privately-held company. In determining
the number of shares to be offered and the offering price, we took into
consideration our cash on hand and the amount of money we would need to
implement our business plans. Accordingly, the offering price should not be
considered an indication of the actual value of the securities.
DILUTION
Dilution represents the difference between the offering price and the net
tangible book value per share immediately after completion of this offering. Net
tangible book value is the amount that results from subtracting total
liabilities and intangible assets from total assets. Dilution arises mainly as a
result of our arbitrary determination of the offering price of the shares being
offered. Dilution of the value of the shares you purchase is also a result of
the lower book value of the shares held by our existing shareholders.
As of January 31, 2010, the net tangible book value of our shares was $7,401 or
$0.002 per share, based upon 3,000,000 shares outstanding.
Upon completion of this offering, but without taking into account any change in
the net tangible book value after completion of this offering, other than that
resulting from the sale of the shares and receipt of the total proceeds of
$25,000, the net tangible book value of the 5,500,000 shares to be outstanding
will be $32,401 or approximately $.006 per share. Accordingly, the net tangible
book value of the shares held by our existing stockholder, Donovan L. Cooper,
(3,000,000 shares) will be increased by $0.004 per share without any additional
investment on his part. The purchasers of shares in this offering will incur
immediate dilution (a reduction in the net tangible book value per share from
the offering price of $.01 per share) of $0.004 per share. As a result, after
10
completion of the offering, the net tangible book value of the shares held by
purchasers in this offering would be $.006 per share. After completion of the
offering, the existing shareholder will own 54.5% of the total number of shares
then outstanding, for which he will have made an investment of $15,000.00 or
$.005 per share. Upon completion of the offering, the purchasers of these shares
offered hereby will own 45.5% of the total number of shares then outstanding,
for which they will have made a cash investment of $25,000.00, or $0.01 per
share.
The following table illustrates the per share dilution to the new investors:
Public Offering Price Per Share $.01
Net Tangible Book Value Prior to this Offering $(.002)
Net Tangible Book Value After Offering $.006
Immediate Dilution per Share to New Investors $.004
The following table summarizes the number and percentages of shares purchased,
the amount and percentage of consideration paid, and the average price per share
paid by our existing stockholder and by new investors in this offering:
Price Per Total Number of Percent of Consideration
Share Shares Held Ownership Paid
----- ----------- --------- ----
Existing Shareholder $.005 3,000,000 54.5 $15,000
Investors in this
Offering $.01 2,500,000 45.5 $25,000
PLAN OF DISTRIBUTION
OFFERING WILL BE SOLD BY OUR OFFICER AND/OR DIRECTOR
This is a self-underwritten offering. This prospectus permits our officer and/or
director to sell the shares directly to the public, with no commission or other
remuneration payable to him for any shares he may sell. There are no plans or
arrangement to enter into any contracts or agreements to sell the shares with a
broker or dealer. Our officer/director, Mr. Donovan L. Cooper, our officer and
director, will sell the shares and intends to offer them to friends, relatives,
acquaintances and business associates. In offering the securities on our behalf,
he will rely on the safe harbor from broker dealer registration set out in Rule
3a4-1 under the Securities Exchange Act of 1934.
Mr. Cooper, our officer and director will not register as a broker-dealer
pursuant to Section 15 of the Securities Exchange Act of 1934, in reliance upon
Rule 3a4-1, which sets forth those conditions under which a person associated
with an Issuer may participate in the offering of the Issuer's securities and
not be deemed to be a broker-dealer.
a. Our officer/director is not subject to a statutory disqualification,
as that term is defined in Section 3(a)(39) of the Act, at the time of
his participation; and,
b. Our officer/director will not be compensated in connection with his
participation by the payment of commissions or other remuneration
based either directly or indirectly on transaction in securities; and
c. Our officer/director is not, nor will he be at the time of his
participation in the offering, an associated person of a
broker-dealer; and
d. Our officer/director meets the conditions of paragraph (a)(4)(ii) of
Rule 3a4-1 of the Exchange Act, in that he (A) primarily performs or
is intended primarily to perform at the end of the offering,
substantial duties for or on behalf of our company, other than in
connection with transactions in securities; and (B) is not a broker or
dealer, or been an associated person of a broker or dealer, within the
preceding twelve months; and (C) has not participated in selling and
offering securities for any Issuer more than once every twelve months
other than in reliance on Paragraphs (a)(4)(i) or (a) (4)(iii).
11
Mr. Cooper, our officer and director, control person and affiliates of the same
will not purchase any shares in this offering.
TERMS OF THE OFFERING
The shares will be sold at the fixed price of $0.01 per share until the
completion of this offering. There is no minimum amount of subscription required
per investor, and subscriptions, once received, are irrevocable.
This offering will commence on the effective date of the registration statement,
of which this prospectus is a part, and will continue for a period of 180 days
(the "Expiration Date"), unless extended by our Board of Directors for an
additional 90 days. If the board of directors votes to extend the offering for
the additional 90 days, a post-effective amendment to the registration statement
will be filed to notify subscribers and potential subscribers of the extended
offering period. Anyone who has subscribed to the offering prior to the
extension will be notified by the company that their money will be promptly
refunded prior to the expiration of the original offering unless they provide an
affirmative statement that they wish to subscribe to the extended offer.
PROCEDURES AND REQUIREMENTS FOR SUBSCRIPTION
If you decide to subscribe to any shares in this offering, you will be required
to execute a Subscription Agreement and tender it, together with a check or bank
money order made payable to Cindisue Mining Corp. Subscriptions, once received
by the company, are irrevocable.
DEPOSIT OF OFFERING PROCEEDS
This is an "all or none" offering and, as such, we will not be able to spend any
of the proceeds unless all the shares are sold and all proceeds are received. We
intend to hold all funds collected from subscriptions in a separate bank account
until the total amount of $25,000 has been received. At that time, the funds
will be transferred to our business account for use in implementation of our
business plan. In the event the offering is not sold out prior to the Expiration
Date, all money will be promptly returned to the investors, without interest or
deduction. We determined the use of the standard bank account was the most
efficient use of our current limited funds. Please see the "Risk Factors"
section to read the related risk to you as a purchaser of any shares.
DESCRIPTION OF SECURITIES
GENERAL
Our authorized capital stock consists of 100,000,000 shares of common stock,
with a par value of $0.0001 per share. As of January 31, 2010, there were
3,000,000 shares of our common stock of our common stock issued and outstanding,
held by one (1) stockholder of record.
COMMON STOCK
The following is a summary of the material rights and restrictions associated
with our common stock.
The holders of our common stock currently have (i) equal ratable rights to
dividends from funds legally available therefore, when, as and if declared by
the Board of Directors of the Company; (ii) are entitled to share ratably in all
of the assets of the Company available for distribution to holders of common
stock upon liquidation, dissolution or winding up of the affairs of the Company
(iii) do not have preemptive, subscription or conversion rights and there are no
redemption or sinking fund provisions or rights applicable thereto; and (iv) are
entitled to one non-cumulative vote per share on all matters on which stock
holders may vote. All shares of common stock now outstanding are fully paid for
and non-assessable and all shares of common stock which are the subject of this
offering, when issued, will be fully paid for and non-assessable. Please refer
to the Company's Articles of Incorporation, By-Laws and the applicable statutes
of the State of Delaware for a more complete description of the rights and
liabilities of holders of the Company's securities.
12
NON-CUMULATIVE VOTING
The holders of shares of common stock of the Company do not have cumulative
voting rights, which means that the holder of more than 50% of such outstanding
shares, voting for the election of director, can elect all of the directors to
be elected, if he so chooses, and, in such event, the holders of the remaining
shares will not be able to elect any of the Company's directors. After this
Offering is completed, the present stockholder will own 54.5 % of the
outstanding shares.
DIVIDEND POLICY
We have never declared or paid any cash dividends on our common stock. We
currently intend to retain future earnings, if any, to finance the expansion of
our business. As a result, we do not anticipate paying any cash dividends in the
foreseeable future.
INTEREST OF NAMED EXPERTS AND COUNSEL
None of the below described experts or counsel have been hired on a contingent
basis and none of them will receive a direct or indirect interest in the
Company.
Robert C, Weaver Jr., Esq., Attorney at Law has passed upon the validity of the
shares being offered and certain other legal matters.
Chang G. Park, CPA, our independent certified public accountant, has audited our
financial statements, for the year ended January 31, 2010, included in this
prospectus and registration statement to the extent and for the periods set
forth in their audit report. Chang G. Park, CPA, has presented its report with
respect to our audited financial statements. The report of Chang G. Park, CPA,
is included in reliance upon their authority as experts in accounting and
auditing.
DESCRIPTION OF OUR BUSINESS
GENERAL INFORMATION
Cindisue Mining Corp. was incorporated in Delaware on January 8, 2010 to engage
in the business of acquisition, exploration and development of natural resource
properties. Donovan L. Cooper was appointed sole officer and director of the
company and the Board voted to seek capital and begin development of our
business plan. We received our initial funding of $15,000 through the sale of
common stock to Mr. Cooper who purchased 3,000,000 shares of our Common Stock at
$0.005 per share on January 22, 2010.
We are an exploration stage company with no revenues or operating history. We
currently own a 100% undivided interest in the Ford 1-4 Mineral Claims located
in Esmeralda County, Nevada that we call the "Ford Property." We intend to
conduct mineral exploration activities on the Ford Property in order to assess
whether it contains any commercially exploitable mineral reserves. Currently
there are no known mineral reserves on the property. We have not earned any
revenues to date, and our independent auditor has issued an audit opinion which
includes a statement expressing substantial doubt as to our ability to continue
as a going concern. The source of information contained in this discussion is
our geology report prepared by James W. McLeod, P. Geo. dated January 30, 2010.
There is the likelihood of our mineral claims containing little or no economic
mineralization or reserves of gold, silver and other minerals. The Ford Property
consists of four contiguous, located, lode mineral claims, comprising a total of
82.64 acres and lies in the west central part of Nevada in the Montezuma Peak
Area, Esmeralda County, Nevada. The region is known for its historic production
of lode gold and silver. If our claims do not contain any reserves, all funds
that we spend on exploration will be lost. Even if we complete our current
exploration program and are successful in identifying a mineral deposit we will
be required to expend substantial funds on further drilling and engineering
studies before we will know if we have a commercially viable mineral deposit or
reserve.
13
We are presently in the exploration stage of our business and we can provide no
assurance that any commercially viable mineral deposit exist on our mineral
claims, that we will discover commercially exploitable levels of mineral
resources on our property, or, if such deposits are discovered, that we will
enter into further substantial exploration programs. Further exploration is
required before a final determination can be made as to whether our mineral
claims possess commercially exploitable mineral deposits. If our claims do not
contain any reserves, all funds that we spend on exploration will be lost.
ACQUISITION OF THE FORD 1-4 MINERAL CLAIMS
In January, 2010, we purchased a 100% undivided interest in the Ford 1-4 Mineral
Claims for a price of $3,500 from Western Minerals, Inc. The claims are staked
and recorded in the name of Cindisue Mining Corp. and are in good standing until
September 1, 2010. The company is required each year to apply to the Bureau of
Land Management to extend the claims for an additional year.
We engaged James W. McLeod, P. Geo. of Western Minerals, Inc., to prepare a
geological evaluation report on the Ford Property and paid him $3,500 for the
report. Mr. McLeod is a consulting professional engineer in the Geological
Section of the Association of Professional Engineers and Geoscientists of
British Columbia and a Fellow of the Geological Association of Canada. Mr.
McLeod attended the University of British Columbia and holds a Bachelor of
Science degree in geology.
The work completed by Mr. McLeod in preparing the geological report consisted of
a review of geological data from previous exploration within the region. The
acquisition of this data involved the research and investigation of historical
files to locate and retrieve data information acquired by previous exploration
companies in the area of the mineral claims.
We received the geological evaluation report on the Ford Property entitled
"Review and Recommendations, Ford 1-4 Mineral Claims, Montezuma Peak Area,
Esmeralda County, Nevada, USA" prepared by Mr. McLeod on January 30, 2010. The
geological report summarizes the results of the history of the exploration of
the mineral claims, the regional and local geology of the mineral claims and the
mineralization and the geological formations identified as a result of the prior
exploration. The geological report also gives conclusions regarding potential
mineralization of the mineral claims and recommends a further geological
exploration program on the mineral claims. The description of the Ford Property
provided below is based on Mr. McLeod's report.
14
[MAP SHOWING THE PROPERTY LOCATION]
15
REQUIREMENTS OR CONDITIONS FOR RETENTION OF TITLE
In addition to the state regulations, federal regulations require a yearly
maintenance fee to keep the claims in good standing. In accordance with Federal
regulations, the Ford Property is in good standing to September 1, 2010. A
yearly maintenance fee of $125 is required to be paid to the Bureau of Land
Management prior to the expiry date to keep the claims in good standing for an
additional year.
DESCRIPTION OF PROPERTY
The property owned by Cindisue Mining Corp., on which the net proceeds of the
offering will be spent, is the Ford 1-4 Mineral Claims which is comprised of
four contiguous claims totaling 82.64 acres, located in the Montezuma Peak Area,
Esmeralda County, Nevada, USA.
The Ford property lies in the west-central part of the State of Nevada
approximately 7 air miles southwest of the Town of Goldfield and is accessible
by traveling south of the town for 3 miles on Highway 95 to the Montezuma Peak
cut-off. The cutoff is then taken to the southwest for 6 miles on the gravel
road to the property.
The claims were recorded with the County and the Bureau of Land Management. We
have made a filing that discloses our intent to do field work and record it as
assessment work with the Bureau of Land Management, Reno, Nevada.
16
[MAP SHOWING THE AEROMAGNETIC PROPERTIES]
17
INFRASTRUCTURE
The Town of Tonopah lies 26 miles to the north of Goldfield, NV and offers much
of the necessary infrastructure required to base and carry-out an exploration
program (accommodations, communications, equipment and supplies). Larger or
specialized equipment can be acquired in the City of Las Vegas lying 209 miles
by paved road (Highway 95) to the south.
Infrastructure such as highways and secondary roads, communications,
accommodations and supplies that are essential to carrying-out an exploration
and development program are at hand, between Tonopah, Goldfield and Las Vegas,
Nevada.
CLIMATE AND GENERAL PHYSIOGRAPHY
The area experiences about 4" - 8" of precipitation annually of which about 20%
may occur as a snow equivalent this amount of precipitation suggests a climatic
classification of arid to semi-arid. The summers can experience hot weather,
middle 60's to 70's F(degree) average with high spells of 100+F(degree) while
the winters are generally more severe than the dry belt to the west and can last
from December through February. Temperatures experienced during mid-winter
average, for the month of January, from the high 20's to the low 40's F(degree)
with low spells down to -20 F(degree).
The physiography of the Ford property is a low, gently southerly sloping
alluvial valley to the south of the Montezuma Range. The valley follows the
southwest trend of the Range. The claim area ranges in elevation from 5,690' -
5,710' mean sea level. The physiography of the property can be described as open
southeast sloping desert in an interior plateau setting. The area has been
surficially effected by colluvial, alluvial and wind erosion and the
depositional (drift cover) effects of in-filling. Thickness of drift cover in
the valleys may vary considerably. Surface water occurrences are rare, springs
are sparse and subsurface aquifers are accessed by drilling wells where allowed.
REGIONAL GEOLOGY
The regional geology of Nevada is underlain by all types of rock units. These
appear to range from oldest to youngest in an east to west direction,
respectively. The oldest units are found to occur in the southeast corner of the
State along the Colorado River. The bedrock units exhibit a north-south fabric
of alternating east-west ranges and valleys. This feature may suggest E-W
compression that may have expression as low angle thrust faults on the west and
east walls of some mineralized areas. Faulting plays a large part in many areas
of Nevada and an even larger part in the emplacement of mineral occurrences and
ore bodies.
LOCAL GEOLOGY
The local geology about the Ford 1-4 mineral claim which is situated
approximately 7 air miles southwest of Goldfield, NV reveals a colluvium covered
area on a gentle southeasterly sloping apron of overburden material.
PROPERTY GEOLOGY
The geology of the Ford property area may be described as being covered by
Quaternary age desert wash, colluvium, alluvium and playa deposits. This young
covered mineral claim area can be seen to lie within a larger somewhat
surrounding area of rock exposure that historically is known to host many
mineral occurrences and prospects. Areas exhibiting a good geological setting
can be excellent target areas in which to conduct mineral exploration. Faulting
is observed in the general area structurally prepared bedrock could be sought
after in those areas.
18
[MAP SHOWING THE REGIONAL GEOLOGY]
19
SAMPLE METHOD AND APPROACH
Standard sampling methods are utilized, for example a rock sample would be
acquired from the rock exposure with a hammer. The sample will be roughly
2"x2"x2" of freshly broken material. The samples grid location correlated with
global positioning system (GPS) location will be marked in the logbook after a
sample number has been assigned. The sample number would be impressed on an
aluminum tag and on a flagging that will be affixed at the sample site for
future location.
RESULTS
As exploration work could be conducted and assessed, a decision would be made as
to its importance and priority. The next phase of work will be determined by the
results from the preceding one. The geologist suggested a two phase exploration
approach.
GEOLOGIST'S RECOMMENDATIONS
The geologist believes that the known mineralization encountered to date in
neighboring areas is possibly indicative of a larger mineralized system in the
general area. The drift covered parts of this property offer good exploration
areas because of the possibility of mineralization, good geological setting and
generally a lack of exploration testing. Also, remote sensing such as magnetic
surveys may indicate possible exploration areas of interest within the Ford 1-4
mineral claims.
Detailed prospecting, mapping and reconnaissance geochemical surveys of the
claim area should be undertaken if and when the Company is in a position to do
so. A two phase exploration program estimated to cost $18,000 is offered with
the understanding that consecutive phases are contingent upon positive and
encouraging results being obtained from each preceding phase.
COMPETITION
We do not compete directly with anyone for the exploration or removal of
minerals from our property as we hold all interest and rights to the claims.
Readily available commodities markets exist in the U.S. and around the world for
the sale of gold, silver and other minerals. Therefore, we will likely be able
to sell any gold, silver or other minerals that we are able to recover.
We will be subject to competition and unforeseen limited sources of supplies in
the industry in the event spot shortages arise for supplies such as dynamite,
and certain equipment such as bulldozers and excavators that we will need to
conduct exploration. We have not yet attempted to locate or negotiate with any
suppliers of products, equipment or services and will not do so until funds are
received from this offering. If we are unsuccessful in securing the products,
equipment and services we need we may have to suspend our exploration plans
until we are able to do so.
BANKRUPTCY OR SIMILAR PROCEEDINGS
There has been no bankruptcy, receivership or similar proceeding.
REORGANIZATIONS, PURCHASE OR SALE OF ASSETS
There have been no material reclassifications, mergers, consolidations, or
purchase or sale of a significant amount of assets not in the ordinary course of
business.
COMPLIANCE WITH GOVERNMENT REGULATION
We will be required to comply with all regulations, rules and directives of
governmental authorities and agencies applicable to the exploration of minerals
in the United States generally, and in Nevada specifically. We will also be
subject to the regulations of the Bureau of Land Management.
20
PATENTS, TRADEMARKS, FRANCHISES, CONCESSIONS, ROYALTY AGREEMENTS, OR LABOR
CONTRACTS
We have no current plans for any registrations such as patents, trademarks,
copyrights, franchises, concessions, royalty agreements or labor contracts. We
will assess the need for any copyright, trademark or patent applications on an
ongoing basis.
NEED FOR GOVERNMENT APPROVAL FOR ITS PRODUCTS OR SERVICES
We are not required to apply for or have any government approval for our
products or services.
RESEARCH AND DEVELOPMENT COSTS DURING THE LAST TWO YEARS
We have not expended funds for research and development costs since inception.
EMPLOYEES AND EMPLOYMENT AGREEMENTS
Our only employee is our sole officer, Donovan L. Cooper, who currently devotes
4-5 hours per week to company matters and after receiving funding he plans to
devote as much time as the board of directors determines is necessary to manage
the affairs of the company. There are no formal employment agreements between
the company and our current employee.
DESCRIPTION OF PROPERTY
We do not currently own any property. We are currently operating out of the
premises of our President, Donovan L. Cooper, on a rent free basis during our
exploration stage. The office is at 11255 Tierrasanta Blvd., Unit 78, San Diego,
CA 92124. We consider our current principal office space arrangement adequate
and will reassess our needs based upon the future growth of the company.
LEGAL PROCEEDINGS
We are not involved in any pending legal proceeding nor are we aware of any
pending or threatened litigation against us.
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
No public market currently exists for shares of our common stock. Following
completion of this offering, we intend to apply to have our common stock listed
for quotation on the Over-the-Counter Bulletin Board.
PENNY STOCK RULES
The Securities and Exchange Commission has also adopted rules that regulate
broker-dealer practices in connection with transactions in penny stocks. Penny
stocks are generally equity securities with a price of less than $5.00 (other
than securities registered on certain national securities exchanges or quoted on
the FINRA system, provided that current price and volume information with
respect to transactions in such securities is provided by the exchange or
system).
A purchaser is purchasing penny stock which limits the ability to sell the
stock. The shares offered by this prospectus constitute penny stock under the
Securities and Exchange Act. The shares will remain penny stocks for the
foreseeable future. The classification of penny stock makes it more difficult
for a broker-dealer to sell the stock into a secondary market, which makes it
more difficult for a purchaser to liquidate his/her investment. Any
broker-dealer engaged by the purchaser for the purpose of selling his or her
shares in us will be subject to Rules 15g-1 through 15g-10 of the Securities and
Exchange Act. Rather than creating a need to comply with those rules, some
broker-dealers will refuse to attempt to sell penny stock.
21
The penny stock rules require a broker-dealer, prior to a transaction in a penny
stock not otherwise exempt from those rules, to deliver a standardized risk
disclosure document, which:
- contains a description of the nature and level of risk in the market
for penny stock in both public offerings and secondary trading;
- contains a description of the broker's or dealer's duties to the
customer and of the rights and remedies available to the customer with
respect to a violation of such duties or other requirements of the
Securities Act of 1934, as amended;
- contains a brief, clear, narrative description of a dealer market,
including "bid" and "ask" price for the penny stock and the
significance of the spread between the bid and ask price;
- contains a toll-free telephone number for inquiries on disciplinary
actions;
- defines significant terms in the disclosure document or in the conduct
of trading penny stocks; and
- contains such other information and is in such form (including
language, type, size and format) as the Securities and Exchange
Commission shall require by rule or regulation.
The broker-dealer also must provide, prior to effecting any transaction in a
penny stock, to the customer:
- the bid and offer quotations for the penny stock;
- the compensation of the broker-dealer and its salesperson in the
transaction;
- the number of shares to which such bid and ask prices apply, or other
comparable information relating to the depth and liquidity of the
market for such stock; and
- monthly account statements showing the market value of each penny
stock held in the customer's account.
In addition, the penny stock rules require that prior to a transaction in a
penny stock not otherwise exempt from those rules; the broker-dealer must make a
special written determination that the penny stock is a suitable investment for
the purchaser and receive the purchaser's written acknowledgment of the receipt
of a risk disclosure statement, a written agreement to transactions involving
penny stocks, and a signed and dated copy of a written suitability statement.
These disclosure requirements will have the effect of reducing the trading
activity in the secondary market for our stock because it will be subject to
these penny stock rules. Therefore, stockholders may have difficulty selling
their securities.
REGULATION M
Our officer and director, who will offer and sell the Shares, is aware that he
is required to comply with the provisions of Regulation M promulgated under the
Securities Exchange Act of 1934, as amended. With certain exceptions, Regulation
M precludes the officers and directors, sales agents, any broker-dealer or other
person who participate in the distribution of shares in this offering from
bidding for or purchasing, or attempting to induce any person to bid for or
purchase any security which is the subject of the distribution until the entire
distribution is complete.
REPORTS TO SECURITY HOLDERS
We are subject to certain reporting requirements and will furnish annual
financial reports to our stockholders, certified by our independent accountants,
and will furnish un-audited quarterly financial reports in our quarterly reports
filed electronically with the SEC. All reports and information filed by us can
be found at the SEC website, www.sec.gov.
STOCK TRANSFER AGENT
The company's stock transfer agent is Signature Stock Transfer.
22
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
We have generated no revenue since inception and have incurred $7,599 in
expenses through January 31, 2010.
The following table provides selected financial data about our company for the
period from the date of incorporation through January 31, 2010. For detailed
financial information, see the financial statements included in this prospectus.
Balance Sheet Data: 01/31/2010
------------------- ----------
Cash $8,000
Total assets $8,000
Total liabilities $ 599
Shareholders' equity $7,401
Other than the shares offered by this prospectus, no other source of capital has
been identified or sought. If we experience a shortfall in operating capital
prior to funding from the proceeds of this offering, our director has verbally
agreed to advance the company funds for minimal operating costs, completion of
the registration process, offering costs and reclamation of the property if
necessary.
PLAN OF OPERATION
Our exploration target is to find exploitable minerals on our property. Our
success depends on achieving that target. There is the likelihood of our mineral
claims containing little or no economic mineralization or reserves of gold,
silver and other minerals. There is the possibility that our claims do not
contain any reserves and funds that we spend on exploration will be lost. Even
if we complete our current exploration program and are successful in identifying
a mineral deposit, we will be required to expend substantial funds to bring our
claims to production. We are unable to assure you we will be able to raise the
additional funds necessary to implement any future exploration or extraction
program even if mineralization is found.
Our current cash balance is $8,000. We believe our cash balance is sufficient to
fund our limited levels of operations until we receive funding. If necessary,
Mr. Cooper, our officer and director, has verbally agreed to loan the company
funds to allow us to pay for professional fees, including fees payable in
connection with the filing of this registration statement, offering costs,
operation expenses and reclamation costs in the event we experience a shortage
of funds during exploration and abandon the claims, however, he has no formal
commitment, arrangement or legal obligation to advance or loan funds to the
company. In order to achieve our business plan goals, we will need the funding
from this offering. We are an exploration stage company and have generated no
revenue to date. We have sold $15,000 in equity securities to pay for our
minimum level of operations.
Our plan of operation for the twelve months following the date of this
prospectus is to complete the first two phases of the exploration program on our
claims consisting of geological mapping, soil sampling and rock sampling. In
addition to the $18,000 we anticipate spending for Phases 1 and 2, as outlined
below, we anticipate spending an additional $9,000 on professional fees,
including fees payable in connection with the filing of this registration
statement and complying with reporting obligations, and $ 2,500 in general
administrative costs. Total expenditures over the next 12 months are therefore
expected to be approximately $29,500. If we experience a shortage of funds prior
to funding during the next 12 months, Mr. Cooper, our officer and director, has
verbally agreed to loan the company funds to allow us to pay for professional
fees, including fees payable in connection with the filing of this registration
statement, offering costs, operation expenses and reclamation costs in the event
we experience a shortage of funds during exploration and abandon the claims,
however, he has no formal commitment, arrangement or legal obligation to advance
or loan funds to the company. We will require the funds from this offering to
proceed.
23
We engaged Mr. James W. McLeod, P. Geo., to prepare a geological evaluation
report on the Ford Property. Mr. McLeod's report summarizes the results of the
history of the exploration of the mineral claims, the regional and local geology
of the mineral claims and the mineralization and the geological formations
identified as a result of the prior exploration in the claim areas. The
geological report also gives conclusions regarding potential mineralization of
the mineral claims and recommends a further geological exploration program on
the mineral claims. The exploration program recommended by Mr. McLeod is as
follows:
PHASE 1
Prospecting and MMI soil geochemistry. The estimated
cost for this program is all inclusive $ 8,000
PHASE 2
Magnetometer and VLF electromagnetic, grid controlled
surveys over the areas of interest determined by the Phase 1
survey. Included in this estimated cost is transportation,
accommodation, board, grid installation, the two
geophysical surveys, maps and report 10,000
-------
Total $18,000
=======
The above program costs are management's estimates based upon the
recommendations of the professional consulting geologist's report and the actual
project costs may exceed our estimates. To date, we have not commenced
exploration.
If we are successful in raising the funds from this offering we plan to commence
Phase 1 of the exploration program on the claims in the fall of 2010. We have a
verbal agreement with James McLeod, the consulting geologist, who prepared the
geology report on our claims, to retain his services for our planned exploration
program. We expect this phase to take two weeks to complete and an additional
three months for the consulting geologist to receive the results from the assay
lab and prepare his report. If Phase 1 of the exploration program is successful,
we anticipate commencing Phase 2 in spring 2011. We expect this phase to take
three weeks to complete and an additional three months for the consulting
geologist to receive the results from the assay lab and prepare his report.
We will require additional funding to proceed with any subsequent work on the
claims, we have no current plans on how to raise the additional funding. We
cannot provide investors with any assurance that we will be able to raise
sufficient funds to proceed with any work after the first phase of the
exploration program.
LIQUIDITY AND CAPITAL RESOURCES
To meet our need for cash we are attempting to raise money from this offering.
We cannot guarantee that we will be able to sell all the shares required. If we
are successful any money raised will be applied to the items set forth in the
Use of Proceeds section of this prospectus.
Mr. Cooper, our officer and director, has verbally agreed to loan the company
funds to allow us to pay for professional fees, including fees payable in
connection with the filing of this registration statement, offering costs,
operation expenses and reclamation costs in the event we experience a shortage
of funds during exploration and abandon the claims, however, he has no formal
commitment, arrangement or legal obligation to advance or loan funds to the
company.
The property in the Company's portfolio, on which the net proceeds of the
offering will be spent, is the Ford 1-4 Mineral Claims. We have not carried out
any exploration work on the claims and have incurred no exploration costs.
24
We received our initial funding of $15,000 through the sale of common stock to
Donovan L. Cooper, our officer and director, who purchased 3,000,000 shares of
our common stock at $0.005 per share on January 22, 2010. From inception until
the date of this filing we have had no operating activities. Our financial
statements from inception through the year ended January 31, 2010 report no
revenues and a net loss of $7,599.
LIMITED OPERATING HISTORY; NEED FOR ADDITIONAL CAPITAL
There is no historical financial information about us on which to base an
evaluation of our performance. We are an exploration stage company and have not
generated 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 property, and possible cost overruns
due to increases in the cost of services.
To become profitable and competitive, we must conduct the exploration of our
properties before we start into production of any minerals we may find. We are
seeking funding from this offering to provide the capital required for the two
phases of our exploration program. We believe that the funds from this offering
will allow us to operate for one year.
We have no assurance that future financing will materialize. If that financing
is not available to us for the second phase of our exploration program we may be
unable to continue.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.
SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Company reports revenue and expenses using the accrual method of accounting
for financial and tax reporting purposes.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS
The Company is an exploration stage mining company and has not yet realized any
revenue from its operations. Mineral property acquisition costs are initially
capitalized in accordance with ASC 805-20-55-37, previously references as the
FASB Emerging Issues Task Force ("EITF") Issue 04-2. The Company assesses the
carrying costs for impairment under ASC 930 at each fiscal quarter end. When it
has been determined that a mineral property can be economically developed as a
result of establishing proven and probably reserves, the costs incurred to
develop such property will be capitalized. The Company has determined that all
property payments are impaired and written off the acquisition costs to project
expenses. Once capitalized, such costs will be amortized using the units-of
production method over the estimated life of the probably reserve.
To date, mineral property exploration costs have been expenses as incurred. To
date the Company has not established any proven or probable reserves on its
mineral properties.
NET LOSS PER SHARE
Basic loss per share includes no dilution and is computed by dividing loss
available to common stockholders by the weighted average number of common shares
outstanding for the period. Dilutive loss per share reflects the potential
25
dilution of securities that could share in the losses of the Company. Because
the Company does not have any potentially dilutive securities, the accompanying
presentation is only of basic loss per share.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
The name, age and title of our executive officer/director is as follows:
Name and Address of Executive
Officer and/or Director Age Position
----------------------- --- --------
Donovan L. Cooper 64 President, Secretary, Treasurer
11255 Tierrasanta Blvd. Unit 78 and Director
San Diego, CA 92124
Donovan L. Cooper, our officer and director, is also the promoter of Cindisue
Mining Corp., as that term is defined in the rules and regulations promulgated
under the Securities and Exchange Act of 1933.
Mr. Cooper has no formal training as a geologist or in the technical or
managerial aspects of management of a mineral exploration company. His prior
business experiences have primarily been in management and flexible benefit
plans and not in the mineral exploration industry. Accordingly, we will have to
rely on the technical services of others to advise us on the managerial aspects
specifically associated with a mineral exploration company. We do not have any
employees who have professional training or experience in the mining industry.
We rely on independent geological consultants to make recommendations to us on
work programs on our property, to hire appropriately skilled persons on a
contract basis to complete work programs and to supervise, review, and report on
such programs to us.
TERM OF OFFICE
Directors are appointed to hold office until the next annual meeting of our
stockholders or until a successor is elected and qualified, or until they resign
or are removed in accordance with the provisions of the Delaware Revised
Statutes. Officers are appointed by our Board of Directors and hold office until
removed by the Board. The Board of Directors has no nominating, auditing or
compensation committees.
SIGNIFICANT EMPLOYEES
We have no significant employees other than our officer and director, Mr.
Donovan L. Cooper. Mr. Cooper currently devotes approximately 4-5 hours per week
to company matters. After receiving funding per our business plan Mr. Cooper
intends to devote as much time as the Board of Directors deem necessary to
manage the affairs of the company.
Mr. Cooper has not been the subject of any order, judgment, or decree of any
court of competent jurisdiction, or any regulatory agency permanently or
temporarily enjoining, barring, suspending or otherwise limited him from acting
as an investment advisor, underwriter, broker or dealer in the securities
industry, or as an affiliated person, director or employee of an investment
company, bank, savings and loan association, or insurance company or from
engaging in or continuing any conduct or practice in connection with any such
activity or in connection with the purchase or sale of any securities.
Mr. Cooper has not been convicted in any criminal proceeding (excluding traffic
violations) nor is he subject of any currently pending criminal proceeding.
We conduct our business through agreements with consultants and arms-length
third parties. Currently, we have no formal consulting agreements in place. We
have a verbal arrangement with the consulting geologist currently conducting the
26
exploratory work on the Ford Property. We pay the consulting geologist the usual
and customary rates received by geologists performing similar consulting
services.
RESUME
Mr. Donovan L. Cooper has been the sole Director of Cindisue Mining Corp. from
inception (January 8, 2010). He was elected President, Treasurer and Secretary
on January 12, 2010. For the last five years Mr. Cooper has been president of
TriFlex Corporation in San Diego, CA. TriFlex Corporation is a consulting
company for assessment, design, enrollment and administration of Section 125 and
other flexible benefit plans. Mr. Cooper holds a Bachelor's Degree in Biology
from the University of Oregon and a Master's Degree in International Management
from the Thunderbird Graduate School of Global Management in Glendale, AZ.
EXECUTIVE COMPENSATION
MANAGEMENT COMPENSATION
Currently, Donovan L. Cooper, our officer and director, receives no compensation
for his services during the exploration stage of our business operations. He is
reimbursed for any out-of-pocket expenses that he incurs on our behalf. In the
future, we may approve payment of salaries for officers and directors, but
currently no such plans have been approved. We do not have any employment
agreements in place with our sole officer and director. We also do not currently
have any benefits, such as health or life insurance, available to our employees.
SUMMARY COMPENSATION TABLE
Change in
Pension
Value and
Non-Equity Nonqualified
Incentive Deferred All
Name and Plan Compen- Other
Principal Stock Option Compen- sation Compen-
Position Year Salary Bonus Awards Awards sation Earnings sation Totals
- ------------ ---- ------ ----- ------ ------ ------ -------- ------ ------
Donovan L. 2010 0 0 0 0 0 0 0 0
Cooper,
President,
CEO, CFO
and Director
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END
Option Awards Stock Awards
---------------------------------------------------------------- --------------------------------------------
Equity
Incentive
Equity Plan
Incentive Awards:
Plan Market or
Awards: Payout
Equity Number of Value of
Incentive Number Unearned Unearned
Plan Awards; of Market Shares, Shares,
Number of Number of Number of Shares Value of Units or Units or
Securities Securities Securities or Units Shares or Other Other
Underlying Underlying Underlying of Stock Units of Rights Rights
Unexercised Unexercised Unexercised Option Option That Stock That That That
Options (#) Options (#) Unearned Exercise Expiration Have Not Have Not Have Not Have Not
Name Exercisable Unexercisable Options (#) Price Date Vested(#) Vested Vested Vested
- ---- ----------- ------------- ----------- ----- ---- --------- ------ ------ ------
Donovan L. 0 0 0 0 0 0 0 0 0
Cooper
27
DIRECTOR COMPENSATION
Change in
Pension
Value and
Fees Non-Equity Nonqualified
Earned Incentive Deferred
Paid in Stock Option Plan Compensation All Other
Name Cash Awards Awards Compensation Earnings Compensation Total
---- ---- ------ ------ ------------ -------- ------------ -----
Donovan L. Cooper 0 0 0 0 0 0 0
There are no current employment agreements between the company and Mr. Donovan
L. Cooper, our sole officer. Mr. Cooper currently devotes approximately 4-5
hours per week to manage the affairs of the company.
On January 22, 2010, a total of 3,000,000 shares of common stock were issued to
Donovan L. Cooper in exchange for cash in the amount of $15,000 or $0.005 per
share. The terms of this stock issuance was as fair to the company, in the
opinion of the board of director, as if it could have been made with an
unaffiliated third party.
There are no annuity, pension or retirement benefits proposed to be paid to the
officer or director or employees in the event of retirement at normal retirement
date pursuant to any presently existing plan provided or contributed to by the
company or any of its subsidiaries, if any.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information concerning the number of
shares of our common stock owned beneficially as of the date of this report by:
(i) each person (including any group) known to us to own more than five percent
(5%) of any class of our voting securities, (ii) our director, and or (iii) our
officer. Unless otherwise indicated, the stockholder listed possesses sole
voting and investment power with respect to the shares shown.
Amount and Nature Percentage of
of Beneficial Common
Title of Class Name and Address of Beneficial Owner Ownership Stock(1)
- -------------- ------------------------------------ --------- --------
Common Stock Donovan L. Cooper, Director 3,000,000 100%
11255 Tierrasanta Blvd., Unit 78 Direct
San Diego, CA 92124
Common Stock Officer and/or director as a Group 3,000,000 100%
HOLDERS OF MORE THAN 5% OF OUR COMMON STOCK
- ----------
(1) A beneficial owner of a security includes any person who, directly or
indirectly, through any contract, arrangement, understanding, relationship,
or otherwise has or shares: (i) voting power, which includes the power to
vote, or to direct the voting of shares; and (ii) investment power, which
includes the power to dispose or direct the disposition of shares. Certain
shares may be deemed to be beneficially owned by more than one person (if,
for example, persons share the power to vote or the power to dispose of the
shares). In addition, shares are deemed to be beneficially owned by a
person if the person has the right to acquire the shares (for example, upon
exercise of an option) within 60 days of the date as of which the
information is provided. In computing the percentage ownership of any
person, the amount of shares outstanding is deemed to include the amount of
shares beneficially owned by such person (and only such person) by reason
of these acquisition rights. As a result, the percentage of outstanding
shares of any person as shown in this table does not necessarily reflect
the person's actual ownership or voting power with respect to the number of
shares of common stock actually outstanding on January 31, 2010. As of
January 31, 2010, there were 3,000,000 shares of our common stock issued
and outstanding.
28
FUTURE SALES BY EXISTING STOCKHOLDERS
A total of 3,000,000 shares have been issued to the existing stockholder, all of
which are held by our sole officer/director and are restricted securities, as
that term is defined in Rule 144 of the Rules and Regulations of the SEC
promulgated under the Act. Under Rule 144, such shares can be publicly sold,
subject to volume restrictions and certain restrictions on the manner of sale,
commencing six months after their acquisition, unless the registrant has been
subject to the reporting requirements of Section 13 or 15(d) of the Exhange Act
for a period of at least 90 days immediately before the sale. Any sale of shares
held by the existing stockholder (after applicable restrictions expire) and/or
the sale of shares purchased in this offering (which would be immediately
resalable after the offering), may have a depressive effect on the price of our
common stock in any market that may develop, of which there can be no assurance.
Our principal shareholder does not have any current plans to sell his shares
after this offering is complete.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Donovan L. Cooper is our sole officer and director. We are currently operating
out of the premises of Mr. Cooper on a rent-free basis for administrative
purposes. There is no written agreement or other material terms or arrangements
relating to said arrangement.
On January 22, 2010, the Company issued a total of 3,000,000 shares of common
stock to Donovan L. Cooper for cash at $0.005 per share for a total of $15,000.
We do not currently have any conflicts of interest by or among our current
officer, director, key employee or advisors. We have not yet formulated a policy
for handling conflicts of interest; however, we intend to do so upon completion
of this offering and, in any event, prior to hiring any additional employees.
DISCLOSURE OF COMMISSION POSITION OF INDEMNIFICATION
FOR SECURITIES ACT LIABILITIES
Insofar as indemnification for liabilities arising under the Securities Act of
1933 (the "Act") may be permitted to directors, officers and controlling persons
of the smaller reporting company pursuant to the By-Laws of the company, or
otherwise, we have been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act, and is, therefore unenforceable.
In the event that a claim for indemnification against such liabilities (other
than the payment of expenses incurred or paid by a director, officer or
controlling person in the successful defense of any action, suit or proceeding)
is asserted by such director, officer, or other control person in connection
with the securities being registered, we will, unless in the opinion of our
legal counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification by
it, is against public policy as expressed in the Securities Act and will be
governed by the final adjudication of such issue.
AVAILABLE INFORMATION
We have filed a registration statement on Form S-1, of which this prospectus is
a part, with the U.S. Securities and Exchange Commission. Upon completion of the
registration, we will be subject to the informational requirements of the
Exchange Act and, in accordance therewith, will file all requisite reports, such
as Forms 10-K, 10-Q and 8-K and other information with the Commission. Such
reports, this registration statement and other information, may be inspected and
copied at the public reference facilities maintained by the Commission at 100 F
Street NE, Washington, D.C. 20549. Copies of all materials may be obtained from
the Public Reference Section of the Commission's Washington, D.C. office at
29
prescribed rates. You may obtain information regarding the operation of the
Public Reference Room by calling the SEC at 1-800-SEC-0330. The Commission also
maintains a Web site that contains reports, information statements and other
information regarding registrants that file electronically with the Commission
at http://www.sec.gov.
FINANCIAL STATEMENTS
The financial statements of Cindisue Mining Corp. for the year ended January 31,
2010 and related notes, included in this prospectus have been audited by Chang
G. Park, CPA, and have been so included in reliance upon the opinion of such
accountants given upon their authority as an expert in auditing and accounting.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE
We have had no changes in or disagreements with our accountants.
30
Chang G. Park, CPA, Ph. D.
* 2667 CAMINO DEL RIO SOUTH PLAZA B * SAN DIEGO * CALIFORNIA 92108-3707 *
* TELEPHONE (858)722-5953 * FAX (858) 761-0341 * FAX (858) 433-2979
* E-MAIL changgpark@gmail.com *
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\
To the Board of Directors and Stockholders
Cindisue Mining Corp.
We have audited the accompanying balance sheet of Cindisue Mining Corp. (A
Development Stage "Company") as of January 31, 2010 and the related statements
of operations, changes in shareholders' equity and cash flows for the period
from January 8, 2010 (inception) to January 31, 2010. These financial statements
are the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Cindisue Mining Corp. as of
January 31, 2010, and the result of its operations and its cash flows for the
period from January 8, 2010 (inception) to January 31, 2010 in conformity with
U.S. generally accepted accounting principles.
The financial statements have been prepared assuming that the Company will
continue as a going concern. As discussed in Note 6 to the financial statements,
the Company's losses from operations raise substantial doubt about its ability
to continue as a going concern. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
/s/Chang Park
- ------------------------------
CHANG G. PARK, CPA
February 4, 2010
San Diego, CA. 92108
Member of the California Society of Certified Public Accountants
Registered with the Public Company Accounting Oversight Board
F-1
Cindisue Mining Corp.
(An Exploration Stage Company)
Balance Sheet
- --------------------------------------------------------------------------------
As of
January 31,
2010
--------
ASSETS
CURRENT ASSETS
Cash $ 8,000
--------
TOTAL CURRENT ASSETS 8,000
OTHER ASSETS --
--------
TOTAL OTHER ASSETS --
--------
TOTAL ASSETS $ 8,000
========
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 300
Advances from Officers 299
--------
TOTAL CURRENT LIABILITIES 599
TOTAL LIABILITIES 599
STOCKHOLDERS' EQUITY
Common stock, $0.0001 par value, 100,000,000 shares
authorized; 3,000,000 shares issued and outstanding
as of January 31, 2010 300
Additional paid-in capital 14,700
Deficit accumulated during exploration stage (7,599)
--------
TOTAL STOCKHOLDERS' EQUITY 7,401
--------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 8,000
========
See Notes to Financial Statements
F-2
Cindisue Mining Corp.
(An Exploration Stage Company)
Statement of Operations
- --------------------------------------------------------------------------------
January 8, 2010
(inception)
through
January 31,
2010
----------
REVENUES
Revenues $ --
----------
TOTAL REVENUES --
GENERAL & Administrative Expenses
Administrative Expenses 599
Exploration costs 7,000
----------
TOTAL GENERAL & ADMINISTRATIVE EXPENSES 7,599
----------
LOSS FROM OPERATION (7,599)
----------
OTHER INCOME (EXPENSE) --
----------
NET INCOME (LOSS) $ (7,599)
==========
BASIC EARNINGS PER SHARE $ (0.00)
==========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 3,000,000
==========
See Notes to Financial Statements
F-3
Cindisue Mining Corp.
(An Exploration Stage Company)
Statement of changes in Shareholders' Equity
- --------------------------------------------------------------------------------
Deficit
Common Stock Additional During
------------------- Paid-in Development
Shares Amount Capital Stage Total
------ ------ ------- ----- -----
Balance, January 8, 2010 (Inception) -- $ -- $ -- $ -- $ --
Commn stock issued, January 22, 2010
at $.005 per share 3,000,000 300 14,700 -- 15,000
Loss for the period beginning January 8, 2010
(inception) to January 31, 2010 (7,599) (7,599)
---------- ------ -------- -------- --------
BALANCE, JANUARY 31, 2010 3,000,000 $ 300 $ 14,700 $ (7,599) $ 7,401
========== ====== ======== ======== ========
See Notes to Financial Statements
F-4
Cindisue Mining Corp.
(An Exploration Stage Company)
Statement of Cash Flows
- --------------------------------------------------------------------------------
January 8, 2010
(inception)
through
January 31,
2010
--------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (7,599)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Changes in operating assets and liabilities:
Increase (Decrease) in Accounts payable and accrued liabilities 300
Increase (Decrease) in Advance from Officers 299
--------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (7,000)
CASH FLOWS FROM INVESTING ACTIVITIES
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES --
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock 300
Additional paid-in capital 14,700
--------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 15,000
--------
NET INCREASE (DECREASE) IN CASH 8,000
CASH AT BEGINNING OF PERIOD --
--------
CASH AT END OF PERIOD $ 8,000
========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during year for:
Interest $ --
========
Income Taxes $ --
========
See Notes to Financial Statements
F-5
Cindisue Mining Corp.
(An Exploration Stage Company)
Notes to Financial Statements
January 31, 2010
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NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Cindisue Mining Corp. (the "Company") was incorporated on January 8, 2010 under
the laws of the State of Delaware. The Company's activities to date have been
limited to organization and capital. The Company has been in the exploration
stage since its formation and has not yet realized any revenues from its planned
operations.
The Company is primarily engaged in the acquisition and exploration of mining
properties. The Company has acquired Ford 1-4 mineral claims in Esmeralda
County, NV for exploration and has formulated a business plan to investigate the
possibilities of a viable mineral deposit.
The Company has evaluated subsequent events through February 4, 2010, the date
which the financial statements were available to be issued. The Company has
determined that there were no such events that warrant disclosure or recognition
in the financial statements.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Company reports revenue and expenses using the accrual method of accounting
for financial and tax reporting purposes.
USE OF ESTIMATES
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities, and the reported revenues
and expenses.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS
The Company is an exploration stage mining company and has not yet realized any
revenue from its operations. Mineral property acquisition costs are initially
capitalized in accordance with ASC 805-20-55-37, previously referenced as the
FASB Emerging Issues Task Force ("EITF") Issue 04-2. The Company assesses the
carrying costs for impairment under ASC 930 at each fiscal quarter end. When it
has been determined that a mineral property can be economically developed as a
result of establishing proven and probable reserves, the costs incurred to
develop such property will be capitalized. The Company has determined that all
property payments are impaired and written off the acquisition costs to project
expenses. Once capitalized, such costs will be amortized using the units of
production method over the estimated life of the probable reserve.
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Cindisue Mining Corp.
(An Exploration Stage Company)
Notes to Financial Statements
January 31, 2010
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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
To date, mineral property exploration costs have been expensed as incurred. To
date the Company has not established any proven or probable reserves on its
mineral properties.
DEPRECIATION, AMORTIZATION AND CAPITALIZATION
The Company records depreciation and amortization, when appropriate, using both
straight-line and declining balance methods over the estimated useful life of
the assets (five to seven years). Expenditures for maintenance and repairs are
charged to expense as incurred. Additions, major renewals and replacements that
increase the property's useful life are capitalized. Property sold or retired,
together with the related accumulated
Depreciation is removed from the appropriate accounts and the resultant gain or
loss is included in net income.
INCOME TAXES
The Company accounts for its income taxes in accordance with FASB Accounting
Standards Codification ("ASC") No.740, "Income Taxes". Under this method,
deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
balances. Deferred tax assets and liabilities are measured using enacted or
substantially enacted tax rates expected to apply to the taxable income in the
years in which those differences are expected to be recovered or settled.
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. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period that
includes the date of enactment or substantive enactment.
FAIR VALUE OF FINANCIAL INSTRUMENTS
In accordance with the requirements of ASC 825-10-50 and ASC 270-10-50, the
Company has determined the estimated fair value of financial instruments using
available market information and appropriate valuation methodologies. The fair
value of financial instruments classified as current assets or liabilities
approximate their carrying value due to the short-term maturity of the
instruments.
NET LOSS PER SHARE
Basic loss per share includes no dilution and is computed by dividing loss
available to common stockholders by the weighted average number of common shares
outstanding for the period. Dilutive loss per share reflects the potential
dilution of securities that could share in the losses of the Company. Because
the Company does not have any potentially dilutive securities, the accompanying
presentation is only of basic loss per share.
F-7
Cindisue Mining Corp.
(An Exploration Stage Company)
Notes to Financial Statements
January 31, 2010
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NOTE 3 - PROVISION FOR INCOME TAXES
Realization of deferred tax assets is dependent upon sufficient future taxable
income during the period that deductible temporary differences and
carry-forwards are expected to be available to reduce taxable income. As the
achievement of required future taxable income is uncertain, the Company recorded
a valuation allowance.
As of January 31, 2010
----------------------
Deferred tax assets:
Net Operating Loss $ 7,599
Tax Rate 40%
Gross deferred tax assets $ 3,040
Valuation allowance $(3,040)
-------
Net deferred tax assets $ 0
=======
NOTE 4 - COMMITMENTS AND CONTINGENCIES
LITIGATION
The Company is not presently involved in any litigation.
NOTE 5 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Recently issued accounting pronouncements will have no significant impact on the
Company and its reporting methods.
NOTE 6 - GOING CONCERN
Future issuances of the Company's equity or debt securities will be required in
order for the Company to continue to finance its operations and continue as a
going concern. The Company's present revenues are insufficient to meet operating
expenses.
The financial statement of the Company have been prepared assuming that the
Company will continue as a going concern, which contemplates, among other
things, the realization of assets and the satisfaction of liabilities in the
normal course of business. The Company has incurred cumulative net losses of
$7,599 since its inception and requires capital for its contemplated operational
and marketing activities to take place. The Company's ability to raise
additional capital through the future issuances of common stock is unknown. The
obtainment of additional financing, the successful development of the Company's
contemplated plan of operations, and its transition, ultimately, to the
attainment of profitable operations are necessary for the Company to continue
operations. The ability to successfully resolve these factors raise substantial
doubt about the Company's ability to continue as a going concern. The financial
statement of the Company do not include any adjustments that may result from the
outcome of these aforementioned uncertainties.
F-8
Cindisue Mining Corp.
(An Exploration Stage Company)
Notes to Financial Statements
January 31, 2010
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NOTE 7 - RELATED PARTY TRANSACTIONS
Donovan L. Cooper, the sole officer and director of the Company, may in the
future, become involved in other business opportunities as they become
available, thus he may face a conflict in selecting between the Company and his
other business opportunities. The Company has not formulated a policy for the
resolution of such conflicts.
Donovan L. Cooper, the sole officer and director of the Company, will not be
paid for any underwriting services that he performs on behalf of the Company
with respect to the Company's upcoming S-1 offering. He will also not receive
any interest on any funds that he advances to the Company for offering expenses
prior to the offering being closed which will be repaid from the proceeds of the
offering.
NOTE 8 - STOCK TRANSACTIONS
Transactions, other than employees' stock issuance, are in accordance with
paragraph 8 of Statement of Financial Accounting Standards 123. Transactions
with employees' stock issuance are in accordance with paragraphs (16-44) of
Statement of Financial Accounting Standards 123. These issuances shall be
accounted for based on the fair value of the consideration received or the fair
value of the equity instruments issued, or whichever is more readily
determinable.
On January 22, 2010, the Company issued a total of 3,000,000 shares of common
stock to one director for cash in the amount of $0.005 per share for a total of
$15,000
As of January 31, 2010, the Company had 3,000,000 shares of common stock issued
and outstanding.
NOTE 9 - STOCKHOLDERS' EQUITY
The stockholders' equity section of the Company contains the following classes
of capital stock as of January 31, 2010:
Common stock, $ 0.0001 par value: 100,000,000 shares authorized; 3,000,000
shares issued and outstanding.
NOTE 10 - MINERAL CLAIMS
On January 28, 2010, the Company acquired a 100% interest in the Ford 1-4
minerals claims located in Esmeralda County, Nevada.
The claims and related geological report were acquired for $7,000. These costs
have been expensed as exploration costs during the year ended January 31, 2010.
F-9
DEALER PROSPECTUS DELIVERY OBLIGATION
"UNTIL ______________, ALL DEALERS THAT EFFECT TRANSACTIONS IN THESE SECURITIES,
WHETHER OR NOT PARTICIPATING IN THIS OFFERING, MAY BE REQUIRED TO DELIVER A
PROSPECTUS. THIS IS IN ADDITION TO THE DEALERS' OBLIGATION TO DELIVER A
PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH RESPECT TO THEIR UNSOLD
ALLOTMENTS OR SUBSCRIPTIONS."
PART II - INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The estimated costs of this offering are as follows:
Expenses (1) US($)
------------ ---------
SEC Registration Fee $ 1.78
Legal and Professional Fees $1,500.00
Accounting and Auditing $4,500.00
Printing of Prospectus $ 498.22
---------
TOTAL $6,500.00
=========
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(1) All amounts are estimates, other than the SEC's registration fee.
ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The By-Laws of the Corporation allow for the indemnification of the officers and
directors in regard to their carrying out the duties of their offices. The board
of directors will make determination regarding the indemnification of the
director, officer or employee as is proper under the circumstances if he/she has
met the applicable standard of conduct set forth in the Delaware General
Corporation Law.
As to indemnification for liabilities arising under the Securities Act of 1933
for directors, officers or persons controlling Cindisue Mining Corp., we have
been informed that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy and unenforceable.
ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES.
Set forth below is information regarding the issuance and sales of securities
without registration since inception. No such sales involved the use of an
underwriter; no advertising or public solicitation was involved; the securities
bear a restrictive legend; and no commissions were paid in connection with the
sale of any securities.
On January 22, 2010, the Company issued a total of 3,000,000 shares of common
stock to Donovan L. Cooper for cash at $0.005 per share for a total of $15,000.
These securities were issued in reliance upon the exemption contained in Section
4(2) of the Securities Act of 1933. These securities were issued to a promoter
of the company and bear a restrictive legend.
ITEM 16. EXHIBITS.
The following exhibits are included with this registration statement:
Exhibit
Number Description
------ -----------
3.1 Certificate of Incorporation *
3.2 Bylaws *
5.1 Opinion re: Legality and Consent of Counsel *
23.1 Consent of Independent Auditor
23.2 Consent of Consulting Geologist *
99.1 Subscription Agreement *
99.2 Property Maps
- ----------
* Filed previously
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ITEM 17. UNDERTAKINGS.
a. The undersigned registrant hereby undertakes:
1. To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
i. To include any prospectus required by section 10(a)(3) of the
Securities Act of 1933;
ii. To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the
information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume
of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any
deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed
with the Commission pursuant to Rule 424(b) if, in the aggregate,
the changes in volume and price represent no more than 20% change
in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in the effective
registration statement.
iii. To include any material information with respect to the plan of
distribution not previously disclosed in the registration
statement or any material change to such information in the
registration statement;
2. That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be
deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
3. To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the
termination of the offering.
4. That, for the purpose of determining liability under the Securities
Act of 1933 to any purchaser:
i. If the registrant is relying on Rule 430B (230.430B of this
chapter):
A. Each prospectus filed by the registrant pursuant to Rule
424(b)(3)shall be deemed to be part of the registration
statement as of the date the filed prospectus was deemed
part of and included in the registration statement; and
B. Each prospectus required to be filed pursuant to Rule
424(b)(2), (b)(5), or (b)(7) as part of a registration
statement in reliance on Rule 430B relating to an offering
made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the
purpose of providing the information required by section
10(a) of the Securities Act of 1933 shall be deemed to be
part of and included in the registration statement as of the
earlier of the date such form of prospectus is first used
after effectiveness or the date of the first contract of
sale of securities in the offering described in the
prospectus. As provided in Rule 430B, for liability purposes
of the issuer and any person that is at that date an
underwriter, such date shall be deemed to be a new effective
date of the registration statement relating to the
securities in the registration statement to which that
prospectus relates, and the offering of such securities at
that time shall be deemed to be the initial bona fide
offering thereof. Provided, however, that no statement made
in a registration statement or prospectus that is part of
the registration statement or made in a document
incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the
II-2
registration statement will, as to a purchaser with a time
of contract of sale prior to such effective date, supersede
or modify any statement that was made in the registration
statement or prospectus that was part of the registration
statement or made in any such document immediately prior to
such effective date; or
ii. If the registrant is subject to Rule 430C, each prospectus filed
pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements
relying on Rule 430B or other than prospectuses filed in reliance
on Rule 430A, shall be deemed to be part of and included in the
registration statement as of the date it is first used after
effectiveness. Provided, however, that no statement made in a
registration statement or prospectus that is part of the
registration statement or made in a document incorporated or
deemed incorporated by reference into the registration statement
or prospectus that is part of the registration statement will, as
to a purchaser with a time of contract of sale prior to such
first use, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the
registration statement or made in any such document immediately
prior to such date of first use.
5. That, for the purpose of determining liability of the registrant under
the Securities Act of 1933 to any purchaser in the initial
distribution of the securities: The undersigned registrant undertakes
that in a primary offering of securities of the undersigned registrant
pursuant to this registration statement, regardless of the
underwriting method used to sell the securities to the purchaser, if
the securities are offered or sold to such purchaser by means of any
of the following communications, the undersigned registrant will be a
seller to the purchaser and will be considered to offer or sell such
securities to such purchaser:
i. Any preliminary prospectus or prospectus of the undersigned
registrant relating to the offering required to be filed pursuant
to Rule 424;
ii. Any free writing prospectus relating to the offering prepared by
or on behalf of the undersigned registrant or used or referred to
by the undersigned registrant;
iii. The portion of any other free writing prospectus relating to the
offering containing material information about the undersigned
registrant or its securities provided by or on behalf of the
undersigned registrant; and
iv. Any other communication that is an offer in the offering made by
the undersigned registrant to the purchaser.
Insofar as indemnification for liabilities arising under the 1933 Act may be
permitted to our director, officer and controlling persons of the small business
issuer pursuant to the foregoing provisions, or otherwise, the small business
issuer has been advised that in the opinion of the Commission such
indemnification is against public policy as expressed in the 1933 Act, and is,
therefore, unenforceable.
In the event that a claims for indemnification against such liabilities (other
than the payment by the small business issuer of expenses incurred or paid by a
director, officer or controlling person of the small business issuer in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the small business issuer will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the 1933 Act, and will be governed by the
final adjudication of such issue.
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SIGNATURES
In accordance with the requirements of the Securities Act of 1933, the
registrant has duly caused this registration statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of San Diego,
State of California on April 22, 2010.
Cindisue Mining Corp., Registrant
By: /s/ Donovan L. Cooper
----------------------------------------
Donovan L. Cooper, President, Secretary,
Treasurer, Chief Executive Officer,
Chief Financial Officer and
Principal Accounting Officer and
Sole Director
Pursuant to the requirements of the Securities Act of 1933, this registration
statement has been signed by the following persons in the capacities and on the
dates indicated.
/s/ Donovan L. Cooper Chief Executive Officer April 22, 2010
- --------------------------- ---------------------------- --------------
Donovan L. Cooper Title Date
/s/ Donovan L. Cooper Chief Financial Officer April 22, 2010
- --------------------------- ---------------------------- --------------
Donovan L. Cooper Title Date
/s/ Donovan L. Cooper Principal Accounting Officer April 22, 2010
- --------------------------- ---------------------------- --------------
Donovan L. Cooper Title Date
II-4