Cheni Resources: First quarter results.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--May 16, 1997-- CHENI RES.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). CHB.) CHENI RESOURCES INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . ("the Company") reports that operations for the first quarter resulted in a net loss of $165,000 (1996 - $103,000), or $0.01 per share (1996 - $0.00 per share). Included in the loss is a charge of $52,000 (1996 - Nil) for Cheni's equity share of Cambridge Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. Minerals Ltd.'s first quarter operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. . The Company is in a strong financial position at the end of the quarter with working capital of $3.8 million, including cash (and equivalents) of $3.3 million. A significant portion of this balance arose in January January: see month. from the completion of a private placement of 2.9 million common shares for cash proceeds of $2.5 million to Mine Or S.A., an affiliated company, under the terms of the Subscription Agreement. In March, Mine Or advised the Company that it had transferred all of its shareholding interest in Cheni, being 9,423,334 common shares (58.8 percent), to a LaSource S.A.S., a private French mining company owned as to 52 percent by Normandy Normandy (nôr`məndē), Fr. Normandie (nôrmäNdē`), region and former province, NW France, bordering on the English Channel. Mining of Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and 48 percent by BRGM BRGM Bureau de Recherches Géologiques et Minières (France) of France. Included in the shareholding interest transferred to LaSource was Mine Or's option to acquire 1,500,000 common shares of the Company at various prices to April 29, 1999. LaSource did not exercise its option prior to April 29, 1997, and accordingly the exercise price of the option thereafter became $0.74 per share until April 29, 1998. During the quarter, Cambridge Minerals Ltd., 40 percent owned by Cheni, announced that it had renegotiated the terms of its agreement with Arauco Arauco may refer to:
n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. data base which reportedly has information on 170 mineral occurrences/prospects located in Chile and other Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. countries. Meota Resources Corp. announced in early May that it had completed the acquisition of interests in producing Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. oil and gas properties for a net acquisition cost of $5.1 million. Cheni currently owns 2.4 million (29 percent) of Meota's Class A common shares but has granted an option to a private B.C. company to acquire 1.4 million of the shares at a price of $1.25 per share. The option expires June June: see month. 30, 1997. The Company continued to review property submissions during the quarter. Most recently Cheni has reviewed prospects located in central Canada Central Canada (sometimes the Central provinces) is a region comprised of Canada's two largest and most populous provinces: Ontario and Quebec. Central Canada, with the four Atlantic provinces, form Eastern Canada. and the south-western United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . -0-
CHENI RESOURCES INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
(prepared without audit)
March 31,
1997 1996
ASSETS
Current assets $3,946 $1,601
Note receivable - 750
Investments 838 325
Other assets 298 295
_______ _______
$5,082 $2,971
_______ _______
_______ _______
LIABILITIES
Current liabilities $134 $938
Long-term debt - 75
Provision for minesite reclamation 150 500
_______ _______
284 1,513
_______ _______
SHAREHOLDERS' EQUITY
Share capital 6,511 5,902
Contributed surplus 2,765 -
Deficit (4,478) (4,444)
_______ _______
4,798 1,458
_______ _______
$5,082 $2,971
_______ _______
_______ _______
CHENI RESOURCES INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share amounts)
(prepared without audit)
Three Months Ended
March 31,
1997 1996
Revenue
Interest and other income $39 $49
Gain on sale of assets 1 35
_______ _______
40 84
Costs and expenses
Minesite operations 8 49
Exploration 1 6
Share of investee's loss 52 -
General and administration 144 131
Interest expense - 1
_______ _______
205 187
Net Loss $(165) $(103)
_______ _______
Loss per Share $(0.01) $0.00
_______ _______
_______ _______
CHENI RESOURCES INC.
CONSOLIDATED STATEMENT OF
CHANGES IN FINANCIAL POSITION
(in thousands)
(prepared without audit)
Three Months Ended
March 31,
1997 1996
Cash provided by (used in) operating activities
Net loss $(165) $(104)
Item not affecting cash
Share of investee's equity loss 52 -
_______ _______
(113) (104)
Increase in operating working capital 297 256
_______ _______
184 152
_______ _______
Cash provided by (used in) financial activities
Issue of share capital 2,462 10
Long-term debt - (285)
Payment from note receivable - 250
_______ _______
2,462 (25)
_______ _______
Increase in cash 2,646 127
Cash - beginning of period 612 1,275
_______ _______
Cash and short-term investments
- end of period $3,258 $1,402
_______ _______
_______ _______
The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. has neither been approved, nor disapproved, the information contained in this press release. CONTACT: Cheni Resources Inc. Robert G. McMorran, C.A., 604/688-2321 604/684-0642 (FAX) 1-888-303-3232 (Toll Free) |
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