Lexam Explorations Inc.: 2005 Third Quarter Results.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Lexam Lexam Explorations is a North America oil and gas exploration Company. The Company's most significant property is the Baca project located in a frontier basin in southern Colorado. Explorations Inc. (NEX NEX abbr. Navy exchange BOARD:LEX.H) - (All amounts in this news release are expressed in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents .) MANAGEMENT'S DISCUSSION AND ANALYSIS Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial Financial Results Lexam reported income of $134 during the three months ended September September: see month. 30, 2005, compared to a loss of $13,404 during the corresponding period in 2004. During the nine months ended September 30, 2005, Lexam recorded a loss of $64,179 compared to a loss of $84,997 during the same period, 2004. The gain during the third quarter and loss during the first nine months of 2005 can be attributed to adjustments and expenditures relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. of $3,701 and $67,065 for those periods, respectively, reduced from $13,526 and $85,505 during the same periods in 2004.
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
----- ---------- ---------- ----------
Income (Loss) $ 134 $ (13,404) $ (64,179) $ (84,997)
Income (Loss) per share nil nil nil nil
Oil & Gas Property Status In 2004, Lexam entered into a joint venture partnership with Petro-Hunt L.L.C. of Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. ("Petro-Hunt") to explore Lexam's 100,000+ acre oil and gas property located in south central Colorado Central Colorado is a region of the U.S. state of Colorado. It can be roughly defined by Jackson County in the northwest, Weld County in the northeast, Pueblo County in the southeast, and Chaffee County in the southwest. . Lexam was later informed by Petro-Hunt that they decided against further exploration and development of the Baca Project. However, significant effort was expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. by Petro-Hunt on 2-D seismic data acquisition, processing and modelling during the property evaluation phase. Lexam has requested and received from Petro-Hunt the raw data on the property that was produced during 2004. Lexam has initiated a study to evaluate and process this data. During the third quarter Lexam engaged the services of Watts Watts, residential section of south central Los Angeles. Named after C. H. Watts, a Pasadena realtor, the section became part of Los Angeles in 1926. Artist Simon Rodia's celebrated Watts Towers are there. , Griffis and McOuat Limited ("WGM WGM Whispering Gallery Mode (microresonators) WGM Women's Grandmaster WGM Work Group Manager WGM World Gone Mad (Austin, Texas drum and bugle corps) WGm West Germanic (linguistics) ") a geological ge·ol·o·gy 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. and engineering firm to complete a technical study of the Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. project. This study was recently initiated to provide an independent evaluation and recommendations for Lexam to potentially advance the project. Financial Condition Lexam is currently not able to discharge its liabilities in the normal course of business, and may not be able to ultimately realize the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its assets, subject to, among other things, being able to raise sufficient additional financing to fund its exploration programs. The Company is pursing several alternatives to address these issues, including joint venturing certain properties, seeking additional sources of debt or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . Corporate Developments On September 1, 2005, it was announced that Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. R. McEwen McEwen may refer to:
Financial Information and Notice to Reader Attached are the Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge of Lexam Explorations Inc. for the three and nine months ended September 30, 2005. These interim financial statements have not been subject to auditor auditor n. an accountant who conducts an audit to verify the accuracy of the financial records and accounting practices of a business or government. A proper audit will point out deficiencies in accounting and other financial operations. review.
Corporate Office: Transfer Agent and Registrar:
99 George St. Computershare Trust Company of
Canada
3rd Floor 100 University Avenue, 9th Floor
Toronto, Ontario Toronto, Ontario
Canada M5A 2N4 Canada M5J 2Y1
Telephone: (647) 258-0395 Telephone: (800) 564-6253
Facsimile: (647) 258-0408 Facsimile: (416) 981-9800
General enquires: (866) 441-0690 Shareholder enquires:
(800) 564-6253
(Canada and United States) Email:
caregistryinfo@computershare.com
Stock Symbol: TSX Venture Exchange NEX Board ("LEX.H")
LEXAM EXPLORATIONS INC.
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets
(in Canadian dollars)
As at As
September 30, December 31,
2005 2004
------------- -------------
(unaudited)
Assets
Current assets
Cash $ 5,807 $ 11,932
Accounts receivable - 1,198
Prepaid expenses - 2,554
------------- -------------
$ 5,807 $ 15,684
------------- -------------
------------- -------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued
liabilities $ 110,868 $ 459,286
Due to related party (note 2) 402,720 -
------------- -------------
513,588 459,286
Shareholders' equity
Capital stock (note 3) 16,402,075 16,402,075
Deficit (16,909,856) (16,845,677)
------------- -------------
(507,781) (443,602)
------------- -------------
$ 5,807 $ 15,684
------------- -------------
------------- -------------
Contingencies (note 1)
The accompanying notes are an integral part of these consolidated
financial statements.
Consolidated Statements of Operations and Deficit (unaudited)
(in Canadian dollars)
Three Nine
months ended months ended
September 30, September 30,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenues
Interest and
other income $ (31) $ 122 $ 29 $ 1,089
Expenses
Administrative 3,701 13,526 67,065 85,505
Exploration (3,866) - (2,857) 581
------------ ------------ ------------ ------------
(165) 13,526 64,208 86,086
------------ ------------ ------------ ------------
Income (loss) for
the period 134 (13,404) (64,179) (84,997)
------------ ------------ ------------ ------------
Deficit at
beginning of
period (16,909,990) (14,298,937) (16,845,677) (14,227,344)
------------ ------------ ------------ ------------
Deficit at end
of period (16,909,856) (14,312,341) (16,909,856) (14,312,341)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Income (Loss)
per share
(basic and
diluted) $ - $ - $ - $ -
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Weighted average
number of
shares
outstanding
(000's) 38,107 38,107 38,107 38,107
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
The accompanying notes are an integral part of these consolidated
financial statements.
Consolidated Statements of Cash Flows (unaudited)
(in Canadian dollars)
Three Nine
months ended months ended
September 30, September 30,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Cash provided by
(used in)
Operating activities
Income (Loss) for
the period $ 134 $ (13,404) $ (64,179) $ (84,997)
Items not affecting
cash
Change in non-cash
operating
working capital (1,293) (2,572) 58,054 (5,784)
------------ ------------ ------------ ------------
(1,159) (15,976) (6,125) (90,781)
------------ ------------ ------------ ------------
Decrease in cash (1,159) (15,976) (6,125) (90,781)
Cash at beginning of
period 6,966 49,255 11,932 124,060
------------ ------------ ------------ ------------
Cash at end of
period $ 5,807 $ 33,279 $ 5,807 $ 33,279
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
The accompanying notes are an integral part of these consolidated
financial statements.
Lexam Explorations Inc. Notes to Consolidated Financial Statements (unaudited) 1. Basis of Presentation and Going Concern The consolidated financial statements are prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with 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. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and on the assumption that Lexam Explorations Inc. (the "Company" or "Lexam") will be able to realize the carrying value of its assets and discharge its liabilities in the normal course of business. The accompanying unaudited consolidated financial statements should be read in conjunction with the notes to the Company's audited consolidated financial statements for the year ended December 31, 2004. These interim financial statements have not been subject to auditor review. These unaudited interim consolidated financial statements reflect all normal and recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. adjustments, which are, in the opinion of management, necessary for a fair presentation of the respective interim periods presented. The Company has a significant working capital deficiency and is not currently able to continue its exploration programs and discharge its liabilities in the normal course of business, and may not be able to ultimately realize the carrying value of its assets, subject to, among other things, being able to raise sufficient additional financing to fund its exploration programs. There can be no assurance that the Company will be able to raise sufficient additional financing to continue its exploration programs. The Company is evaluating alternatives to address these issues, including joint venturing certain properties and seeking additional sources of debt or equity financing. The financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis was not appropriate for these financial statements, adjustments may be necessary to the carrying value of assets such as accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. , the accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. balance, and the reported expenses. 2. Due to Shareholder These loans are non-interest bearing, with no fixed terms of repayment. 3. Capital Stock At September 30, 2005, the Company had 38,107,436 common shares outstanding. A total of 39,757,436 shares would have been outstanding had all options been exercised. 4. Related Party Transactions On September 1, 2005, it was announced that Robert R. McEwen, the Chairman and CEO of the Company had purchased Goldcorp's 49.8% interest (18,990,641 shares) in Lexam through a company wholly-owned by Mr. McEwen, for an aggregate total consideration of $400,000. Mr. McEwen now holds an aggregate of 19,101,752 common shares of Lexam, which represents a 50.1% interest in Lexam, on an undiluted basis. As part of the sale, Lexam's debt owed to Goldcorp of $402,720 was also transferred to Mr. McEwen as part of the purchase agreement. The transaction was completed on September 1, 2005. LEXAM EXPLORATIONS INC. (NEX BOARD:LEX.H) |
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