Java Gold Corporation Third Quarter Report; All Figures in United States Dollars.TORONTO--(BUSINESS WIRE)--Nov. 27, 1997--Java Gold Corporation (CANADIAN DEALING NETWORK Canadian Dealing Network (CDN) The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. :JVAG.) Java Gold Corporation (the "Company" or "Java") reported results for its nine month period ended September 30, 1997. The Company's net loss was $974,890 or $0.05 per share for the nine month period ended September 30, 1997, versus $1,464 or $0.00 per share for the 229 day period ended September 30, 1996. In June 1997, the Company commenced placer gold mining operations on its 100 percent owned Gazar ga·zar n. A loosely woven silk with a crisp finish. [Probably ultimately from Arabic qazz, raw silk; see gauze.] license in the Zaamar Valley in northern Mongolia. As at September 30, 1997, the Company had produced about 371 ounces of gold resulting in net gold production revenues of $89,031. The company incurred direct operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $298,881 and charged depreciation expenses of $75,469 in the course of this gold production, resulting in a gold production 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. of $285,319. This disappointing result was mainly due to various unforeseen start-up Start-up The earliest stage of a new business venture. difficulties which the Company expects to rectify rec·ti·fy v. 1. To set right; correct. 2. To refine or purify, especially by distillation. before the start of next year's production in the spring of 1998. In addition, the Company also incurred significant capital expenditures on its placer operation, of which a $100,000 write-down has been provided in respect of certain placer production assets that management has determined to be unsuitable for the conditions in the Zaamar valley. General and administrative expenses for the nine month period ended September 30, 1997 for the Company were $738,641 versus $191,363 for the 229 day period ended September 30, 1996. The increase resulted from overhead costs overhead costs see fixed costs. associated with the expansion of the Company's professional management team and asset base. The Company also charged administrative depreciation expenses of $6,347 during the nine month period ended September 30, 1997, versus nil for the 229 day period ended September 30, 1996. Interest revenue for the nine month period ended September 30, 1997 for Java was $155,417 versus $189,899 for the 229 day period ended September 30, 1996. As at September 30, 1997, the Company's cash position was $497,100. The Company anticipates that future expenditures will be covered by its cash on hand, joint venture agreements (in discussion) and the sale of some of its non core assets. As at the date of this report, the Company had 24,540,911 shares outstanding on an undiluted basis. Java Gold Corporation is a Canadian company listed on the Canadian Dealing Network (Symbol "JVAG"). ON BEHALF OF THE BOARD Armand Beaudoin Co-Chairman and Chief Executive Officer CONTACT: Java Gold Corporation Investor Relations Investor relations The process by which the corporation communicates with its investors. , 800/396-5188 |
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