UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of NOVEMBER, 2004.
Commission File Number: 0-30464
IMA EXPLORATION INC.
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(Translation of registrant's name into English)
#709 - 837 West Hastings Street, Vancouver, British Columbia, V6C 3N6, Canada
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F: FORM 20-F [X] FORM 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): _______
Indicate by check mark whether the registrant by furnishing the information
contained in this Form, is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
YES [ ] NO [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3- 2(b): 82-_____________
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned, thereunto duly authorized.
IMA EXPLORATION INC.
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Date: NOVEMBER 30, 2004 /s/ Joseph Grosso
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Joseph Grosso,
President & CEO
IMA EXPLORATION INC.
Suite 709 - 837 West Hastings Street,
Terminal City Club Tower,
Vancouver, B.C. V6C 3N6
Tel: 604-687-1828 Fax: 604-687-1858 Toll Free: 800-901-0058
Internet: www.imaexploration.com E-mail: info@imaexploration.com
TSX Venture Exchange: IMR OTC Bulletin Board: IMXPF
Frankfurt & Berlin Exchanges: IMT (WKN 884971)
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NEWS RELEASE November 30, 2004
3RD QUARTER RESULTS
IMA EXPLORATION INC. (IMR:TSX-V) is pleased to provide the interim financial
results of the Company for the quarter ended September 30, 2004:
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------- -----------------------------
2004 2003 2004 2003
$ $ $ $
EXPENSES
Administrative and management services 91,855 31,666 184,113 89,357
Bank charges and interest 2,741 1,731 10,201 7,700
Corporate development and investor relations 42,683 48,491 180,539 132,537
Depreciation 4,536 2,732 10,284 8,194
General exploration 70,817 30,376 185,853 151,969
Office and sundry 21,503 8,569 49,246 21,389
Printing 1,159 14,444 21,532 21,674
Professional fees 84,713 58,870 392,171 82,639
Rent, parking and storage 29,533 6,676 64,086 20,025
Salaries and employee benefits 84,664 24,623 221,818 72,851
Stock based compensation - 346,080 1,871,360 346,080
Telephone and utilities 7,635 4,451 21,704 14,205
Transfer agent and regulatory fees 16,412 29,875 56,068 65,220
Travel and accommodation 63,700 8,124 139,469 24,262
Cost recoveries (58,525) - (91,746) -
------------ ------------ ------------ ------------
463,426 616,707 3,316,698 1,058,102
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LOSS BEFORE OTHER ITEMS (463,426) (616,707) (3,316,698) (1,058,102)
------------ ------------ ------------ ------------
OTHER ITEMS
Provision on marketable securities - - (132,000) -
Foreign exchange (61,665) 2,760 41,039 437
Gain on disposition of mineral property
and deferred costs - - 313,801 -
Interest and other income 24,543 27,790 76,134 44,501
Reorganization costs 7,986 - (341,603) -
Income (loss) allocated to spin-off assets - 22,655 (131,231) (266,756)
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(29,136) 53,205 (173,860) (221,818)
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LOSS FOR THE PERIOD (492,562) (563,502) (3,490,558) (1,279,920)
DEFICIT - BEGINNING OF PERIOD (20,575,359) (14,875,363) (17,577,363) (14,158,945)
------------ ------------ ------------ ------------
DEFICIT - END OF PERIOD (21,067,921) (15,438,865) (21,067,921) (15,438,865)
============ ============ ============ ============
BASIC AND DILUTED LOSS PER COMMON SHARE $(0.01) $(0.02) $(0.08) $(0.04)
============ ============ ============ ============
NOVEMBER 30, 2004
IMA EXPLORATION INC. PAGE 2
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RESULTS OF OPERATIONS
CORPORATE COSTS AND OTHER INCOME
GENERAL AND ADMINISTRATIVE EXPENSES
The Company's operating expenses for the nine months ended September 30, 2004
were $3,316,698 (excluding $339,516 of operating expenses to June 30, 2004 which
have been reclassified as Loss Allocated to Spin-Off Assets). This is an
increase of $2,210,638 from the comparable 2003 period. A significant portion of
the increase for 2004 is attributed to the Company's application of the fair
value method of accounting for stock options granted to its employees and
directors. In the nine months ended September 30, 2004 the Company recorded a
non-cash expense of $1,871,360. During 2003 the Company a non-cash expense of
$346,080 and disclosed a pro-forma charge for stock options granted to its
employees and directors of $910,578. Had the Company applied retroactive
treatment it would have recorded this amount as an expense in the 2003 period.
Other increases in the operating expenses can be attributed to the Company's
increase in staff and activities driven by Navidad. The Company has added staff
and new office space and has incurred additional operating expenses as a result
of this increase in activity. Administrative and management services increased
$94,756, corporate development and investor relations increased $48,002, office
expense increased $27,857. Travel increased $115,207 due to the attendance and
participation in various conferences. The increase in salaries of $148,967
includes a retiring allowance for the Company's former CFO, William Lee, and the
addition of personnel. The increase of $309,532 in professional fees is
primarily due to legal costs incurred in connection with the Aquiline legal
action and substantially increased costs of compliance with reporting
requirements. General exploration increased $33,884 as activities have been
focused on areas around the Navidad property. Cost recoveries from Amera
increased $75,062. Cost recoveries from Golden Arrow, which commenced in July
2004, were $27,500. A portion of the operating expenses for the first six months
of 2004 ($339,516) and the nine months in 2003 ($502,054) have been reclassified
as Loss Allocated to Spin-Off Assets as discussed in Note 2. This has had the
effect of reducing the General and Administrative expenses reported in the
September 30, 2004 consolidated financial statements.
OTHER ITEMS
During 2004 the Company recorded a gain of $313,801 from the farm out of
interests in its mineral properties and a provision for the write down of the
carrying value of marketable securities of $132,000 to reflect a reduction in
the current market value. In 2004 the Company received marketable securities
from Tinka Resources Limited (300,000 shares, deemed value $147,000) and
Consolidated Pacific Bay Minerals Ltd. (900,000 shares, deemed value $180,000)
from sale or farm out of its interests in mineral properties. The amounts
reported in the September 30, 2004 consolidated financial statements represent
farm outs which remained with the Company. In 2003 no gains, losses or
provisions for losses were recorded. Marketable securities are received by the
Company as a result of the joint venturing of certain of its non-core
properties. The Company's intent is to sell these securities to maximize return
to the Company, not to trade its holdings. Interest and other income increased
$31,633 primarily as a result of an increase of funds on deposit. The Company
also recorded an increase in a gain from foreign exchange of $41,039 in this
period. Cost of $341,603 for fees and expenses related to the Reorganization
have been recorded in this period. The Loss Allocated to Spin-Off Assets
represents the allocated expenses of the assets transferred to Golden Arrow as
discussed in Note 2.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash position at September 30, 2004 was $6,718,622, compared to
$4,454,241 at December 31, 2003. The increase in cash is primarily due to the
completion of a financing and exercise of warrants from previous financings. In
February 2004 the Company completed a brokered private placement of 1,500,000
units at $3.10 per unit, for proceeds of $4,238,763 net of costs of $411,237. In
addition, through September 30, 2004, the Company has received $4,466,392 from
the exercise of warrants and stock options. Subsequent to September 30, 2004 the
Company has received a further $257,500 from the exercise of stock options and
warrants.
The Company considers that it has adequate resources to maintain its ongoing
operations but currently does not have sufficient working capital to fund all of
its planned exploration work and property commitments. A Phase III budget for
the Navidad project has been approved in the amount of $2,200,000. The Company
will continue to rely on successfully completing additional equity financing
and/or conducting joint venture arrangements to further exploration on its
properties. There can be no assurance that the Company will be successful in
obtaining the required financing or negotiating joint venture agreements. The
failure to obtain such financing or joint venture agreements could result in the
loss of or substantial dilution of its interest in its properties.
NOVEMBER 30, 2004
IMA EXPLORATION INC. PAGE 3
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The Company's management may elect to acquire new projects, at which time
additional equity financing may be required to fund overhead and maintain its
interests in current projects, or may decide to relinquish certain of its
properties. These decisions will be based on the results of ongoing exploration
programs and the response of equity markets to the projects and business plan.
ON BEHALF OF THE BOARD
/s/ Joseph Grosso
__________________________________
Mr. Joseph Grosso, President & CEO
For further information please contact Joseph Grosso, President & CEO, or Sean
Hurd, Investor Relations Manager, at 1-800-901-0058 or 604-687-1828, or fax
604-687-1858, or by email info@imaexploration.com, or visit the Company's web
site at http://www.imaexploration.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or the accuracy of this release. CAUTIONARY NOTE TO US INVESTORS:
This news release may contain information about adjacent properties on which we
have no right to explore or mine. We advise U.S. investors that the SEC's mining
guidelines strictly prohibit information of this type in documents filed with
the SEC. U.S. investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our properties. This news
release may contain forward-looking statements including but not limited to
comments regarding the timing and content of upcoming work programs, geological
interpretations, receipt of property titles, potential mineral recovery
processes, etc. Forward-looking statements address future events and conditions
and therefore involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such statements.
2004 NUMBER 32