Cheni Resources Inc. - 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)--April 30, 1996-- 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. . (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : CHB TSE: CHB) CHENI RESOURCES INC. ("the Company") reports that operations for the first quarter resulted in a net loss of $104,000 as compared to a net loss of $294,000, for the same period in 1995. Revenues from interest and other income, and from a gain on sale of assets were $84,000 during the period as compared to nil in 1995. Operating costs operating costs npl → gastos mpl operacionales and expenses were comparable to 1995 except that interest expense has decreased significantly because the Company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. is nominal as compared to 1995. At March 31, 1996 the Company had working capital of $686,000 and long-term debt of $98,000. During the second quarter the Company expects to issue up to 2 million shares to Mine Or S.A., an affiliated company, at a share price of not less than $0.71 per share under the terms of a subscription agreement. Certain of the proceeds of this private placement will be used to retire approximately $606,000 of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. to the BRGM BRGM Bureau de Recherches Géologiques et Minières (France) Group, which prior to the corporate restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). was a principal shareholder group of Cheni. The residual proceeds will be used for general corporate purposes. As announced on April 23rd the Company has completed a corporate restructuring that, among other things, reduced the number of its issued and outstanding shares from 22.8 million to 12.1 million shares, and cancelled 11,145,000 common share purchase options previously outstanding. In addition, the Company has increased its investment in Meota Resources Corp., a public company listed on the Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). , by 1 million shares to 2 million shares, or from 12 percent to 24 percent of Meota's issued and outstanding Class A shares. Cheni has the option to acquire an additional 584,968 Class A shares of Meota from Mine Or S.A. for $0.271 per share until December December: see month. 31, 1996; and Mine Or S.A. has the right to require Cheni to exercise that option. As a result of the restructuring, Mine Or S.A. and its affiliates (the "LaSource Group") own 46 percent of Cheni and the general public's interest has increased from 20 percent to 46 percent. In addition, the LaSource Group has been granted options to acquire 1,500,000 shares of the Company at a price of $0.493 per share in the first year; $0.740 per share in the second year; and $0.986 per share in the third year, expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. thereafter. In March the Company entered an agreement with Energex Energex is an Australian energy distribution corporation owned by the Queensland Government and based in Brisbane and founded in 1922. Prior to the deregulation of the national energy market, the company was known as the South East Queensland Electricity Board (SEQEB), whose sole Minerals Ltd., a private B.C. company, whereby Energex has the right to earn a 50 percent interest in Cheni's 100 percent owned Al claims located in the Toodoggone area of B.C. Energex may earn its interest by making payments to the Company of $50,000 and 100,000 shares over three years, and incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. property expenditures of $500,000 during the same time. On April 26th the board of directors approved an agreement whereby Energex may earn 50 percent of Cheni's interest in its remaining Toodoggone area properties, including the Lawyers property, by making payments over three years of $50,000 and 135,000 shares, and incurring property expenditures of $500,000 during the same time. The Company also advises that Messrs. Colin Col´in n. 1. (Zool.) The American quail or bobwhite. The name is also applied to other related species. See Bobwhite. Officer and Ed Lemieux Le·mieux , Mario Born 1965. Canadian hockey player. A center for the Pittsburgh Penguins (1984-1997), he led his team to two consecutive Stanley Cup championships and was the National Hockey League's leading scorer four times. will not be standing for re-election re-election n → reelección f re-election n → réélection f re-election n → Wiederwahl f to the board of directors at the annual general meeting of shareholders on June 26, 1996. The Company wishes to thank both of these individuals for their dedicated support and tireless efforts these past years. In their stead stead n. 1. The place, position, or function properly or customarily occupied by another. 2. Advantage; service; purpose: "His personal relationship with the electorate stands in good stead" , Messrs. Greg Martyr martyr Person who voluntarily suffers death rather than deny his or her religion. Readiness for martyrdom was a collective ideal in ancient Judaism, notably in the era of the Maccabees, and its importance has continued into modern times. and Norman Hardie have agreed to stand for election to the board. Mr. Martyr is Manager of Corporate Development for the LaSource Group. Mr. Hardie most recently was a senior officer of Inmet Mining The 'Inmet Mining Corporation is a Canadian mining corporation that currently holds an 18% stake in Ok Tedi Mining Limited. Corporation and is now president of Banff Resources Inc. -0- CONSOLIDATED BALANCE SHEET (in thousands) (prepared without audit)
March 31
1996 1995
ASSETS Current Assets $ 1,601 $ 983 Note receivable 750 750 Investments 325 392 Property, plant and equipment - 3,772 Other assets 295 298
$ 2,971 $ 6,195
LIABILITIES Accounts payable and accrued liabilities $ 332 $ 2036 Due to BRGM Group 606 - Current liabilities 938 2036 Long term debt 75 4,358 Provision for minesite reclamation 500 500
1,513 6,894
SHAREHOLDERS' EQUITY
Share capital 5,902 3,669
Deficit (4,444) (4,368)
1,458 (699)
$ 2,971 $ 6,195
Note: For accounting purposes, if the restructuring agreement transaction described in the accompanying report had been included in the Company's accounts for the three month period ended March 31, 1996, share capital would have decreased by $2,765,000 to $3,137,000 and contributed surplus would have been created in the amount of $2,765,000. Further, cash would have decreased by $434,000 while investments would have increased by an equivalent amount. CONSOLIDATED STATEMENT OF OPERATIONS (in thousands except per share amounts) (prepared without audit)
Three Months Ended
March 31
1996 1995
REVENUE Interest and other income $ 49 $ - Gain on sale of assets 35 -
84 -
COSTS AND EXPENSES Minesite operations 49 46 Exploration 6 24 General and administrative 131 139 Interest expense 1 85
187 294
Net Loss $ (103) $ (294) Loss Per Share $ 0.00 $(0.02) CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION (in thousands) (prepared without audit)
Three Months Ended
March 31
1996 1995
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Net Loss $ (104) $ (294) Increase in operating working capital 256 58
152 (236)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
Issue of share capital 10 2,169 Disposal of fixed assets - 94 Long-term debt (285) (1,790) Payment from note receivable 250 -
(25) 473
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES Investments - (75) Other Assets - -
- (75)
Increase in cash 127 162 Cash-beginning of period 1,275 289 Cash-end of period $ 1,402 $ 451 CONTACT: Cheni Resources Inc. R.G. McMorran, C.A., 604/688-2321 or 604/684-0642 (Fax) |
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