BVI Company Financial News

Gold Mining Company Limited, a company incorporated in 2010 under the law of the British Virgin Islands and focused on making strategic investments primarily in gold and gold-related entities, announced its financial results for the half year period ending 30 June 2010. According to the results reported, the BVI company raised £845,000 following a private placement of 38,077,201 new Ordinary Shares.

As at 30 June 2010, by the end of the reported period, total assets of the recently formed BVI company were £ 753,538. Company’s total equity was £742,086, trade and other payables were £11,452. In the period from 10 February to 30 June 2010 company’s net cash generated from financing activities was £769,508. The company also reported net increase in cash and cash equivalents of £743,168.

On 26 May 2010, the BVI company issued 18,538,600 warrants to investors upon share subscription on the basis of one warrant for every two shares subscribed to.

Gold Mining Company Ltd. announced its achievements in the reported period, among them – company’s listing on Plus in June 2010, signing Heads of Terms Agreement to acquire the entire issued share capital of Kibe Investments No2 Limited. The primary asset of the company is the Rotguelden gold project in Austria, consisting of 15 underground mines including the previously operating  gold/copper/silver Rotguelden mine.

BVI company’s Chairman stated that, under the terms of the Agreement, the consideration for the acquisition is expected to be approximately £14 million, and will be satisfied by a cash payment of £850,000 to the vendors and the allotment of 400,000,000 Ordinary Shares of 0.5 pence each in the company. Additionally, Gold Mining Company Ltd. will provide Kibe with an unsecured term loan facility of up to €125,000. Being concluded, this deal will be classified as a Reverse takeover.

BVI-registered mineral exploration company Talon Metals Corp. reported financial results for the second quarter of 2010. For the three month period ended June 30, 2010, the BVI company reported net loss of US5,079,819, or US$0.08 per share (basic or diluted) – compared to net loss of $668,968 or $0.03 per share (basic or diluted), reported  in the second quarter of 2009, and net loss of $89,264 or $0.01 per share (basic and diluted), for the first six months of 2009.
Capitalized exploration of Talon Metals for the three and six month periods ended June 30, 2010, amounted to US$697,833 and US$999,734, respectively. This compares to US$507,579 and US$632,404 for the three and six month periods of last year. The amounts reported in the second quarter of 2010 related mainly to work on the Sergipe Potash Project and smaller projects of the company, and on the São Jorge Gold Project.

Subsequent to the end of the second quarter, Talon Metals Corporation concluded an agreement with a private company Lago Dourado Minerals Ltd regarding the Juruena Gold Project in Brazil. Under the terms of this agreement, the BVI company sold 100% of its indirect interest in Juruena to Lago, for a consideration including cash payment of approximately US$1 million. The payment, which was received by the company in July 2010, increased Talon’s treasury to approximately US$4 million.