Summary and Analysis of Key Points

Overview

• The company was incorporated in 2010 and its principal business is the acquisition and exploration of mineral resources.
• The company has not generated any revenue to date and relies on the sale of securities and borrowings to fund its operations.
• In 2023, the company acquired several mineral properties from Gold Express Mines, Inc. for $1 million in common stock.
• In 2023, the company entered an earn-in agreement with Gold Express Mines for the Kris Project, but failed to make required payments.
• In 2024, the company acquired three additional mineral projects from Gold Express Mines for $422,565 in common stock.
• In 2025, the company terminated the Kris Project earn-in and entered a new earn-in agreement for the Cable Mine Project.

Financial Performance

• For the three months ended March 31, 2025, the company reported a net loss of $184,140, compared to a net loss of $130,265 in the same period in 2024.
• The decrease in operating expenses was mainly due to a reduction in stock-based compensation.
• The increase in other expenses was primarily due to changes in derivative liability and losses on debt conversion.

Liquidity and Capital Resources

• The company has accumulated losses of $21,947,728 and has a working capital deficit of $1,966,821, raising substantial doubt about its ability to continue as a going concern.
• The company anticipates funding future operations through additional loans, equity financing, or other sources, but cannot assure that such financing will be available.
• Cash used in operating activities was $21,708 in Q1 2025 and $73,917 in Q1 2024, with the decrease mainly due to changes in operating assets and liabilities.
• Cash provided by financing activities was $26,610 in Q1 2025 and $75,000 in Q1 2024, consisting of proceeds from stock sales and repayment of notes and advances.

Strengths and Weaknesses Strengths:

• Acquisition of several promising mineral properties, providing a diversified asset base.
• Earn-in agreements with Gold Express Mines allow the company to potentially earn interests in projects without significant upfront costs.

Weaknesses:

• Lack of revenue generation and consistent profitability, leading to ongoing reliance on external financing.
• Failure to make required payments under the Kris Project earn-in agreement, potentially damaging relationships with partners.
• Significant accumulated losses and working capital deficits, raising substantial doubt about the company’s ability to continue as a going concern.

Outlook

• The company’s current focus is to advance the Cable Project earn-in and the Copper Butte Project, but its ability to do so is subject to the availability of capital on reasonable terms.
• The company may also seek to acquire additional mineral projects that could provide earlier revenue, but this is also dependent on access to capital.
• Prospective investors should be aware that there is no assurance that the company will be able to obtain the necessary funding to carry out its stated work plans.