Wescan Goldfields Inc. Announces First Quarter Results
May 30, 2005
Wescan Goldfields Inc. (“Wescan”) reports the unaudited results of Wescan’s operations for the quarter ended March 31, 2005 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the quarter follows:
Highlights
- Successful completion of a private placement for gross proceeds of $877,500 on February 23, 2005
- Acquisition of a 50% working interest in several uranium properties was announced March 2, 2005
- Working capital of $2.8 million at March 31, 2005
- Issued and outstanding shares of 34,324,493 at March 31, 2005
Property Acquisitions
On March 2, 2005, Wescan acquired a 50% working interest in 7 prospecting permits in northern Saskatchewan. These properties total 139,000 hectares and are situated in and around the Athabasca Basin and cover a range of geologic settings normally prospective for uranium mineralization.
Financing
During the quarter ended March 31, 2005, the Company completed a private placement of 3,250,000 million units at $0.27 per unit for gross proceeds of $877,500. Each unit consisted of one common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share in the capital of Company for a period of 12 months from closing at a price of $0.32 per share.
Quarter End Results
As at March 31, 2005, Wescan’s cash balance, which included cash and short-term investments, totaled $2.9 million. Wescan recorded net income of $249,754 ($0.01 per share), which compares with a net loss of $43,281 ($432.81 per share) for the quarter ended March 31, 2004. Operating expenses increased to $92,801 compared to $43,281 for the quarters ended March 31, 2005 and 2004, respectively. The large fluctuation in earnings is the result of income tax recovery due to the Company having unrecorded loss carryforwards and tax pools in excess of the future income tax liabilities created upon the renunciation of flow-through expenditures to investors during the quarter.
Selected financial highlights include:
| Balance Sheets |
March 31, 2005 |
December 31, 2004 |
| Current assets |
$ 2,896,332 |
$ 2,157,888 |
| Capital and other assets |
368,908 |
287,745 |
| Current liabilities |
88,086 |
37,497 |
| Share capital |
3,204,663 |
2,685,399 |
| Contributed surplus |
59,290 |
59,290 |
| Deficit |
86,799 |
336,553 |
| |
|
|
| Statement of Income (Loss) |
March 31, 2005 |
March 31, 2004 |
| Interest Income |
$ 12,867 |
$ - |
| Operating Expenses |
92,801 |
43,281 |
| Loss for the period before income taxes |
79,934 |
43,281 |
| Net loss for the period |
249,754 |
(43,281) |
| Loss per share |
0.01 |
(432.81) |
| |
|
|
| Statement of Cash Flows |
March 31, 2005 |
March 31, 2004 |
| Cash flows from operating activities |
$ (120,489) |
$ - |
| Cash flows from investing activities |
(18,237) |
- |
| Cash flows from financing activities |
848,952 |
- |
| Net increase in cash |
710,226 |
- |
| Cash – beginning of period |
2,146,121 |
- |
| Cash – end of period |
2,856,347 |
- |
| |
|
|
Outlook
The primary focus during the remaining portion of 2005 will be to commence specific exploration programs on the Company’s existing gold property portfolio as well as to perform a complete review and compilation of data on its newly acquired uranium interests. The Company anticipates that a number of the uranium properties will be surveyed with state-of-the-art electromagnetic equipment. In addition, the Company plans to carry out due diligence on other potential property positions as opportunities arise.
Caution Regarding Forward-looking Information
Some of the statements contained in this report are forward-looking statements, such as estimates that describe the Company’s future plans, objectives or goals. This includes words to the effect that the Company or ma nagement expects a stated condition or result to occur. Since forward-looking statements address future events or conditions, by their very nature they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
For further information please contact:
|
Mr. George Sanders
President
300 – 224 4th Avenue South
Saskatoon, SK S7K 5M5
PH: (306) 664-2422
FAX: (306) 664-7181 |
OR |
Mr. Harvey Bay
Interim Chief Financial Officer
300 – 224 4th Avenue South
Saskatoon, SK S7K 5M5
PH: (306) 664-2422
FAX: (306) 664-7181 |
