Consolidated Abaddon Resources Inc. has released its BC Form 51-901F Third Quarter Report containing financial statements in Canadian funds, prepared without audit, for the quarter ended June 30, 2003 (the "Quarterly Report"). Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the Quarterly Report. Concurrently with this news release the Company has filed the Quarterly Report with the regulatory authorities through SEDAR (www.sedar.com).
General
The Company is primarily a junior exploration company with no revenues from mineral producing operations. Activities include the process of exploring its mineral properties, reviewing and subsequently acquiring potential new mineral properties and conducting exploration programs to determine whether these properties contain ore reserves that are economically recoverable. The recoverability of amounts shown for the mineral properties and related deferred exploration costs is dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the exploration of the property, and upon future profitable production.
Results of Operations
The Company has not had any sources of revenue to date and has financed its activities substantially through equity financing. The Company has incurred net losses in each year since inception and, as of June 30, 2003 has an accumulated deficit of $8,102,275.
For the nine months ended June 30, 2003 the Company incurred a net loss of $248,748 compared to a net loss of $74,331 in the same period of the previous year. The Company had a $66,371 gain on the sale of mineral properties in the prior year which decreased the loss during that period by this amount.
General and administrative expenses were $250,059 for the nine months ended June 30, 2003 as compared to $142,617 for the same period in the previous year. The Company also became more active in the current period and consequently office and administration, accounting and rent increased quite significantly. $13,619, which related to stock options granted during the period, was included in office and administration expense.
The Company incurred $24,904 in deferred exploration expenditures during the current period and applied $5,300 received for the granting of an option against these incurred expenditures.
Liquidity and Capital Resources
As at June 30, 2003, the Company had a Shareholders' Equity of $85,539 and a working capital of $24,435 compared to a Shareholders' Equity of $65,443 and a working capital deficiency of $9,378 at year-end September 30, 2002.
The Company's cash position at the year ended September 30, 2002 was $8,641. As a result of proceeds received from private placements and the exercise of warrants; expenditures incurred during the current period for general business, mineral properties, deferred exploration expenditures and accounts payable and accrued liabilities; the Company's cash position at June 30, 2003 was $4,705.
The Company's capital needs have been financed by equity subscriptions (June 30, 2003 - $239,500) (June 30, 2002 - $Nil) and the exercise of warrants (June 30, 2003 - $10,500) (June 30, 2002 - $Nil).
The Company has historically met all cash requirements for operations by equity financing. Future funding needs of the Company are dependent upon the Company's continued ability to obtain equity and/or debt financing to meet its financial obligations and to pursue further exploration on its properties.
Significant Events
Gander River Property
The Company announced that it intends to drop its property interest in the Botwood Basin area of Newfoundland. The Company's intention is to concentrate its efforts on the Sidace Lake Property in Red Lake, Ontario.
Sidace Lake Property
On May 1, 2003, the Company and Skyharbour Resources Ltd. ("Skyharbour") (the "Joint Venture") entered into an agreement pursuant to their joint venture agreement dated February 4, 2003.
Skyharbour, on behalf of the Joint Venture, staked two additional claims which are adjoining to, and now form part of, the Joint Venture's Sidace Lake property. The two additional claims are subject to a 2% net smelter return royalty in favour of Perry English. The Joint Venture also wishes to undertake an exploration program on the Sidace Lake Property in the amount of $40,000. Pursuant to the terms of the agreement, the Company and Skyharbour have agreed that the Company's share of the exploration expenditures ($20,000) and staking costs ($775) shall be satisfied by the Company issuing to Skyharbour a total of 200,000 common shares at a deemed price of $0.12 per share and that upon such share issuance, the Company shall maintain an undivided 50% interest in the Joint Venture.
A mineral exploration program has commenced on the Sidace Lake Property consisting of a detailed till sampling program which is to be followed by a geochemical and geophysical program, with Skyharbour being the operator.
Subsequent Events
The Company issued 200,000 common shares at a deemed price of $0.12 per share, pursuant to an amending agreement dated May 1, 2003 between the Company and Skyharbour Resources Ltd. The shares were issued in connection with its jointly held Sidace Lake and Black Bear II properties located in the Red Lake Mining Division, Ontario. The shares are subject to a hold period until the expiry of December 20, 2003.
In late August 2003, Skyharbour Resources Ltd, (the operator) reported that it had completed a major till sampling program on the Sidace Lake property. The joint venture's land position consists of approximately 9,000 acres and immediately adjoins the Planet / Goldcorp Sidace Lake new gold discovery on both the North East and South West projected strike extensions of the geological formations.
The till sampling program is the beginning of the phase 1 work program initiated by the Skyharbour / Abaddon joint venture for the summer of 2003. Several hundred till samples have been submitted for analysis with Overburden Management. The Company is pleased to report that several "gold in till anomalies" are now evident from the analysis received to date. The Company is still awaiting on additional till analysis, which is now being processed by the lab.
Data compilation and geological mapping continues on the Sidace Lake property at this time. The Sidace Lake property is believed to be underlain by similar structures and lithologies associated to those hosting the new gold discovery on the Planet / Goldcorp ground.
The Sidace Lake area is considered to be the northern extension of the prolific Red Lake Greenstone belt. All Sidace Lake results have been prepared under the guidance of consultant geologist Mr. David Busch, P.Geo, who is designated as a qualified person with the ability to verify the authenticity and validity of this data.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
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