DELAWARE
|
13-3180530
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer x
|
Smaller
reporting company o
|
Outstanding at June 1, 2008
|
||||
Common
Stock, par value $.0001 per share
|
176,214,898
|
(Unaudited)
|
|||||||
April 30,
2008
|
July 31,
2007
|
||||||
ASSETS
|
|||||||
Current
Assets:
|
|||||||
Cash
and Cash Equivalents
|
$
|
4,936
|
$
|
2,225
|
|||
Accounts
Receivable
|
1,143
|
-
|
|||||
Stockpiles
and Ore on Leach Pads (Note 4)
|
9,371
|
2,997
|
|||||
Material
and Supply Inventories
|
818
|
174
|
|||||
Deposits
(Note 5)
|
46
|
879
|
|||||
Marketable
Securities (Note 3)
|
50
|
90
|
|||||
Prepaid
Expenses (Note 18)
|
1,009
|
72
|
|||||
Loans
Receivable – Affiliate (Note 10 and 13)
|
40
|
47
|
|||||
Other
Current Assets (Note 6)
|
1,242
|
1,675
|
|||||
Total
Current Assets
|
18,655
|
8,159
|
|||||
Mining
Concessions (Note 9)
|
61
|
68
|
|||||
Property
& Equipment – net (Note 7)
|
20,619
|
18,000
|
|||||
Intangible
Assets – net (Note 8)
|
193
|
577
|
|||||
Other
Assets:
|
|||||||
Other
Investments
|
28
|
28
|
|||||
Deferred
Financing Costs
|
463
|
581
|
|||||
Mining
Reclamation Bonds
|
82
|
36
|
|||||
Other
|
-
|
42
|
|||||
Security
Deposits
|
61
|
60
|
|||||
Total
Other Assets
|
634
|
747
|
|||||
Total
Assets
|
$
|
40,162
|
$
|
27,551
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Current
Liabilities:
|
|||||||
Accounts
Payable
|
$
|
609
|
$
|
617
|
|||
Accrued
Expenses
|
1,713
|
603
|
|||||
Derivative
Contracts (Note 16)
|
976
|
596
|
|||||
Income
Taxes Payable (Note 18)
|
834
|
-
|
|||||
Current
Portion of Long-term Debt (Note 15)
|
4,125
|
-
|
|||||
Total
Current Liabilities
|
8,257
|
1,816
|
|||||
Reclamation
and Remediation Liabilities (Note 11)
|
1,370
|
1,249
|
|||||
Long-term
Debt (Note 15)
|
8,375
|
12,500
|
|||||
Total
Long-term Liabilities
|
9,745
|
13,749
|
|||||
Commitments
and Contingencies
|
-
|
-
|
|||||
Stockholders’
Equity:
|
|||||||
Common
Stock, Par Value $.0001 Per Share;
|
|||||||
Authorized
300,000,000 shares; Issued and
|
|||||||
Outstanding
175,914,898 and 168,173,148 shares, respectively
|
18
|
17
|
|||||
Additional
Paid-In Capital
|
57,348
|
54,016
|
|||||
Accumulated
Deficit
|
(32,248
|
)
|
(38,861
|
)
|
|||
Deferred
Financing Costs (Note 15)
|
(2,740
|
)
|
(3,438
|
)
|
|||
Deferred
Compensation
|
(573
|
)
|
(52
|
)
|
|||
Accumulated
Other Comprehensive Income (Note 12)
|
355
|
304
|
|||||
Total
Stockholders’ Equity
|
22,160
|
11,986
|
|||||
Total
Liabilities and Stockholders’ Equity
|
$
|
40,162
|
$
|
27,551
|
|||
The
accompanying notes are an integral part of the financial
statements.
|
For The Three Months Ended
|
|||||||
April 30,
|
|||||||
2008
|
2007
|
||||||
Revenues
|
|||||||
Sales
– Gold, net
|
$
|
8,730
|
$
|
-
|
|||
Costs
and Expenses:
|
|||||||
Costs
Applicable to Sales
|
2,717
|
-
|
|||||
Depreciation
and Amortization
|
800
|
286
|
|||||
General
and Administrative
|
1,072
|
970
|
|||||
Exploration
|
19
|
811
|
|||||
Equity
Based Compensation
|
14
|
52
|
|||||
Total
Costs and Expenses
|
4,622
|
2,119
|
|||||
Income
(Loss) from Operations
|
4,108
|
(2,119
|
)
|
||||
Other
Income (Expense):
|
|||||||
Interest
Income
|
12
|
64
|
|||||
Interest
Expense
|
(377
|
)
|
(275
|
)
|
|||
Other
Income (Expense)
|
(25
|
)
|
-
|
||||
Loss
on change in fair value of derivative
|
(337
|
)
|
(319
|
)
|
|||
Total
Other Income (Expense)
|
(727
|
)
|
(530
|
)
|
|||
Income
(Loss) before Income Taxes
|
3,381
|
(2,649
|
)
|
||||
Income
Tax Expense
|
(641
|
)
|
-
|
||||
Net
Income (Loss)
|
$
|
2,740
|
$
|
(2,649
|
)
|
||
Income
(Loss) Per Common Share
|
|||||||
Basic
|
$
|
0.02
|
$
|
(0.02
|
)
|
||
Diluted
|
$
|
0.01
|
$
|
-
|
|||
Basic
Weighted Average Common Shares Outstanding
|
175,645,465
|
164,581,950
|
|||||
Diluted
Weighted Average Common Shares Outstanding
|
197,238,688
|
-
|
For
The Nine Months Ended
|
|||||||
April
30,
|
|||||||
2008
|
2007
|
||||||
Revenues
|
|||||||
Sales
– Gold, net
|
$
|
23,299
|
$
|
-
|
|||
Costs
and Expenses:
|
|||||||
Costs
Applicable to Sales
|
7,343
|
-
|
|||||
Depreciation
and Amortization
|
2,630
|
632
|
|||||
General
and Administrative
|
3,186
|
2,151
|
|||||
Exploration
|
650
|
1,325
|
|||||
Equity
Based Compensation
|
122
|
153
|
|||||
Total
Costs and Expenses
|
13,931
|
4,261
|
|||||
Income
(Loss) from Operations
|
9,368
|
(4,261
|
)
|
||||
Other
Income (Expense):
|
|||||||
Interest
Income
|
63
|
98
|
|||||
Interest
Expense
|
(945
|
)
|
(474
|
)
|
|||
Other
Income (Expense)
|
(30
|
)
|
-
|
||||
Loss
on change in fair value of derivative
|
(1,037
|
)
|
(847
|
)
|
|||
Total
Other Income (Expense)
|
(1,949
|
)
|
(1,223
|
)
|
|||
Income
(Loss) before Income Taxes
|
7,419
|
(5,484
|
)
|
||||
Income
Tax Expense
|
(806
|
)
|
-
|
||||
Net
Income (Loss)
|
$
|
6,613
|
$
|
(5,484
|
)
|
||
Income
(Loss) Per Common Share
|
|||||||
Basic
|
$
|
0.04
|
$
|
(0.04
|
)
|
||
Diluted
|
$
|
0.03
|
$
|
-
|
|||
Basic
Weighted Average Common Shares Outstanding
|
173,722,564
|
143,842,574
|
|||||
Diluted
Weighted Average Common Shares Outstanding
|
194,869,746
|
-
|
Accumulated
|
|||||||||||||||||||||||||
Additional
|
Other
|
Deferred
|
Total
|
||||||||||||||||||||||
Common
Stock
|
paid-in-
|
Accumulated |
Comprehensive
|
Financing
|
Deferred
|
Stockholders’
|
|||||||||||||||||||
Shares
|
Amount
|
capital
|
Deficit
|
Income/(Loss)
|
Costs
|
Compensation
|
Equity
|
||||||||||||||||||
Balance
at July 31, 2007
|
168,173,148
|
$
|
17
|
$
|
54,016
|
$
|
(38,861
|
)
|
$
|
304
|
$
|
(3,438
|
)
|
$
|
(52
|
)
|
$
|
11,986
|
|||||||
Amortization
of deferred finance costs
|
-
|
-
|
-
|
-
|
-
|
698
|
-
|
698
|
|||||||||||||||||
Equity
based compensation
|
-
|
-
|
366
|
-
|
-
|
-
|
169
|
535
|
|||||||||||||||||
Common
stock issued upon the exercising of options and warrants
|
6,646,750
|
1
|
2,276
|
2,277
|
|||||||||||||||||||||
Issuance
of restricted common stock
|
1,095,000
|
-
|
690
|
(690
|
)
|
-
|
|||||||||||||||||||
Change
in fair value on interest rate swaps
|
-
|
-
|
-
|
-
|
(209
|
)
|
-
|
-
|
(209
|
)
|
|||||||||||||||
Unrealized
loss on marketable securities
|
-
|
-
|
-
|
-
|
(40
|
)
|
-
|
-
|
(40
|
)
|
|||||||||||||||
Equity
adjustment from foreign currency translation
|
-
|
-
|
-
|
-
|
300
|
-
|
-
|
300
|
|||||||||||||||||
Net
income for the nine months ended April 30, 2008
|
-
|
-
|
-
|
6,613
|
-
|
|
-
|
6,613
|
|||||||||||||||||
Balance
at April 30, 2008
|
175,914,898
|
$
|
18
|
$
|
57,348
|
$
|
(32,248
|
)
|
$
|
355
|
$
|
(2,740
|
)
|
$
|
(573
|
)
|
$
|
22,160
|
For
The
|
|||||||
Nine
Months Ended
|
|||||||
April
30,
|
|||||||
2008
|
2007
|
||||||
Cash
Flow From Operating Activities:
|
|||||||
Net
Income (Loss)
|
$
|
6,613
|
$
|
(5,484
|
)
|
||
Adjustments
to Reconcile Net Loss to
|
|||||||
Net
Cash Provided by (Used in) Operating Activities:
|
|||||||
Depreciation
and Amortization
|
2,611
|
632
|
|||||
Accretion
of Reclamation and Remediation
|
121
|
-
|
|||||
Loss
on change in fair value of derivative, net
|
1,040
|
662
|
|||||
Equity
Based Compensation
|
535
|
472
|
|||||
Changes
in Operating Assets and Liabilities:
|
|||||||
Increase
in Accounts Receivable
|
(1,143
|
)
|
-
|
||||
Increase
in Prepaid Expenses
|
(937
|
)
|
(289
|
)
|
|||
Increase
in Inventory
|
(6,309
|
)
|
(446
|
)
|
|||
Decrease
in Other Current Assets
|
433
|
3,366
|
|||||
Decrease
(Increase) in Other Deposits
|
832
|
(610
|
)
|
||||
Decrease
in Other Assets
|
1
|
1
|
|||||
Increase
in Mining Reclamation Bond
|
(46
|
)
|
-
|
||||
Decrease
in Accounts Payable
|
(8
|
)
|
(20
|
)
|
|||
Decrease
in Derivative Liability
|
(869
|
)
|
-
|
||||
Increase
in Reclamation and Remediation
|
-
|
1,228
|
|||||
Increase
in Accrued Expenses
|
1,944
|
244
|
|||||
Net
Cash Provided By (Used in) Operating Activities
|
4,818
|
(244
|
)
|
||||
Cash
Flow From Investing Activities:
|
|||||||
(Increase)
in Other Investments
|
-
|
(6
|
)
|
||||
Purchase
of Mining, Milling and Other Property and
|
|||||||
Equipment
|
(4,601
|
)
|
(15,032
|
)
|
|||
Purchase
of Intangibles
|
(90
|
)
|
(570
|
)
|
|||
Net
Cash Used in Investing Activities
|
(4,691
|
)
|
(15,608
|
)
|
For
The
|
|||||||
Nine
Months Ended
|
|||||||
April
30,
|
|||||||
2008
|
2007
|
||||||
Cash
Flow From Financing Activities:
|
|||||||
Advances
to Affiliate
|
7
|
(4
|
)
|
||||
Proceeds
from Borrowing on Credit Facility
|
-
|
12,000
|
|||||
Proceeds
From Issuance of Common Stock
|
2,277
|
8,655
|
|||||
Deferred
Finance Costs
|
-
|
(257
|
)
|
||||
Net
Cash Provided By Financing Activities
|
2,284
|
20,394
|
|||||
Effect
of Exchange Rate Changes
|
300
|
262
|
|||||
Increase
(Decrease) In Cash and Cash Equivalents
|
2,711
|
4,804
|
|||||
Cash
and Cash Equivalents - Beginning
|
2,225
|
2,741
|
|||||
Cash
and Cash Equivalents – Ending
|
$
|
4,936
|
$
|
7,545
|
|||
Supplemental
Cash Flow Information:
|
|||||||
Cash
Paid For Interest
|
$
|
973
|
$
|
686
|
|||
Cash
Paid For Income Taxes
|
$
|
806
|
$
|
21
|
|||
Non-Cash
Financing Activities:
|
|||||||
Issuance
of common stock and warrants as payment of financing costs
|
$
|
-
|
$
|
3,665
|
|||
Change
in Fair Value of Derivative Instrument
|
$
|
209
|
$
|
76
|
Nine months ended April 30,
|
|||||||
2008
|
2007
|
||||||
Expected volatility
|
47.60 – 58.69%
|
|
82%
|
|
|||
Risk-free
interest rate
|
3.74%
|
|
6.24%
|
|
|||
Expected
dividend yield
|
-
|
-
|
|||||
Expected
life
|
6.3
years
|
4.2
years
|
|
Number
of
Options
|
Weighted
Average
exercise
price
|
Weighted
average
remaining
contracted
term
(years)
|
Aggregate
intrinsic
value
|
|||||||||
Outstanding
at July 31, 2006
|
5,570,454
|
$
|
.16
|
1.17
|
$
|
702,250
|
|||||||
Options
granted
|
1,050,000
|
.36
|
|||||||||||
Options
exercised
|
(3,570,909
|
)
|
.08
|
-
|
-
|
||||||||
Options
expired
|
(549,545
|
)
|
.22
|
-
|
-
|
||||||||
Warrants
and options outstanding at July 31, 2007
|
2,500,000
|
$
|
.34
|
1.20
|
$
|
255,000
|
|||||||
Options
granted*
|
2,500,000
|
.63
|
-
|
-
|
|||||||||
Options
exercised
|
(250,000
|
)
|
.32
|
-
|
-
|
||||||||
Options
expired
|
-
|
-
|
-
|
-
|
|||||||||
Warrants
and options outstanding at April 30, 2008
|
4,750,000
|
$
|
.49
|
2.90
|
$
|
748,000
|
|||||||
Warrants
and options exercisable at April 30, 2008
|
2,916,750
|
$
|
.41
|
2.90
|
$
|
711,000
|
Unvested
stock option and warrant balances for employees at April 30, 2008
are as
follows:
|
|
Number of
Options
|
Weighted
Average
Exercise
price
|
Weighted
average
remaining
contracted
term (years)
|
Aggregate
Intrinsic
value
|
|||||||||
Outstanding at August 1, 2007
|
150,000
|
$
|
.32
|
0.67
|
$
|
18,000
|
|||||||
Options
granted
|
2,500,000
|
$
|
.63
|
-
|
-
|
||||||||
Options
vested
|
(816,750
|
)
|
$
|
.57
|
-
|
-
|
|||||||
Unvested
Options outstanding at April 30, 2008
|
1,833,250
|
$
|
.63
|
5.89
|
$
|
86,000
|
Stock
option and warrant activity for non-employees during the nine months
ended
April 30, 2008 is as follows:
|
|
Number
of
Options
|
Weighted
Average
Exercise
price
|
Weighted
average
remaining
contracted
term
(years)
|
Aggregate
Intrinsic
value
|
|||||||||
Warrants
and options outstanding at July 31, 2006
|
25,561,000
|
$
|
.29
|
1.33
|
$
|
1,939,530
|
|||||||
Options
granted
|
16,982,542
|
.33
|
|||||||||||
Options
exercised
|
(18,633,000
|
)
|
.29
|
-
|
-
|
||||||||
Options
expired
|
(1,375,000
|
)
|
.31
|
-
|
-
|
||||||||
Warrants
and options outstanding at July 31, 2007
|
22,535,542
|
$
|
.33
|
1.48
|
$
|
2,577,734
|
|||||||
Options
granted*
|
1,115,000
|
$
|
.55
|
-
|
-
|
||||||||
Options
exercised
|
(6,396,750
|
)
|
.34
|
-
|
-
|
||||||||
Options
expired
|
(680,000
|
)
|
.30
|
-
|
-
|
||||||||
Warrants
and options outstanding at April 30, 2008
|
16,573,792
|
$
|
.34
|
2.40
|
$
|
5,218,000
|
|||||||
Warrants
and options exercisable at April 30, 2008
|
16,380,042
|
$
|
.33
|
2.40
|
$
|
5,209,000
|
Unvested
stock option and warrant balances for non-employees at April 30,
2008 are
as follows:
|
|
Number of
Options
|
Weighted
Average
Exercise
price
|
Weighted
average
remaining
contracted
term (years)
|
Aggregate
Intrinsic
value
|
|||||||||
Outstanding at
August 1, 2007
|
-
|
-
|
-
|
-
|
|||||||||
Options
granted
|
650,000
|
$
|
.63
|
-
|
-
|
||||||||
Options
vested
|
(173,355
|
)
|
$
|
.63
|
-
|
-
|
|||||||
Unvested
Options outstanding at April 30, 2008
|
476,645
|
$
|
.63
|
6.74
|
$
|
10,000
|
(in
thousands)
|
|||||||
April 30,
2008
|
July 31,
2007
|
||||||
Marketable
equity securities, at cost
|
$
|
50
|
$
|
50
|
|||
Marketable
equity securities, at fair value (See Notes 10 & 13)
|
$
|
50
|
$
|
90
|
(in thousands)
|
|||||||
April 30,
2008
|
July 31,
2007
|
||||||
Current:
|
|||||||
Stockpiles
& Ore on leach pads
|
$
|
9,371
|
$
|
2,997
|
|||
Total
|
$
|
9,371
|
$
|
2,997
|
(in thousands)
|
|||||||
April 30,
2008
|
July 31,
2007
|
||||||
Advance
payments on mining contract
|
$
|
-
|
$
|
684
|
|||
Equipment
deposits
|
46
|
193
|
|||||
Other
|
-
|
2
|
|||||
Total
Deposits
|
$
|
46
|
$
|
879
|
(in thousands)
|
|||||||
April 30,
2008
|
July 31,
2007
|
||||||
Value added
tax to be refunded
|
$
|
1,072
|
$
|
1,475
|
|||
Asset
held for resale
|
-
|
166
|
|||||
Other
|
170
|
34
|
|||||
Total
Other Current Assets
|
$
|
1,242
|
$
|
1,675
|
(in thousands)
|
|||||||
April 30,
2008
|
July 31,
2007
|
||||||
Process
equipment and facilities
|
$
|
17,682
|
$
|
16,285
|
|||
Asset
retirement obligation
|
1,218
|
1,218
|
|||||
Mining
equipment
|
973
|
863
|
|||||
Mineral properties
|
141
|
141
|
|||||
Construction
in progress
|
2,986
|
-
|
|||||
Computer
and office equipment
|
307
|
212
|
|||||
Improvements
|
16
|
16
|
|||||
Furniture
|
36
|
23
|
|||||
Total
|
23,
359
|
18,758
|
|||||
Less:
accumulated depreciation
|
(2,740
|
)
|
(758
|
)
|
|||
Property
and equipment, net
|
$
|
20,619
|
$
|
18,000
|
(in thousands)
|
|||||||
April 30,
2008
|
July31,
2007
|
||||||
Repurchase of
Net Profits Interest
|
$
|
500
|
$
|
500
|
|||
Water
Rights
|
134
|
-
|
|||||
Mobilization
Payment to Mineral Contractor
|
70
|
70
|
|||||
Investment
in Right of Way
|
18
|
18
|
|||||
Total
|
722
|
588
|
|||||
Accumulated
Amortization
|
(529
|
)
|
(11
|
)
|
|||
Intangible
assets, net
|
$
|
193
|
$
|
577
|
(in thousands)
|
|||||||
April 30,
2008
|
July 31,
2007
|
||||||
El
Chanate
|
$
|
45
|
$
|
45
|
|||
El
Charro
|
25
|
25
|
|||||
Total
|
70
|
70
|
|||||
Less:
accumulated amortization
|
(9
|
)
|
(3
|
)
|
|||
Total
|
$
|
61
|
$
|
67
|
(in thousands)
|
||||
Balance
at July 31, 2007
|
$
|
1,249
|
||
Additions,
changes in estimates and other
|
-
|
|||
Liabilities
settled
|
-
|
|||
Accretion
expense
|
121
|
|||
Balance
at April 30, 2008
|
$
|
1,370
|
(in thousands)
|
||||
Balance
at July 31, 2007
|
$
|
304
|
||
Equity
Adjustments from Foreign Currency Translation
|
300
|
|||
Change
in fair value of derivative instrument
|
(209
|
)
|
||
Unrealized
Gains (loss) on Marketable Securities
|
(40
|
)
|
||
Balance
at April 30, 2008
|
$
|
355
|
|
(in thousands)
|
||||||
April 30,
2008
|
July 31,
2007
|
||||||
Total
long-term debt
|
$
|
12,500
|
$
|
12,500
|
|||
Less
current portion
|
4,125
|
-
|
|||||
Long-term
debt
|
$
|
8,375
|
$
|
12,500
|
(in thousands)
|
||||
Balance as
of July 31, 2007
|
$
|
548
|
||
Loss
on change in fair value of derivative
|
1,040
|
|||
Net
cash settlements
|
(886
|
)
|
||
Balance
as of April 30, 2008
|
$
|
702
|
(in thousands)
|
||||
Balance as
of July 31, 2007
|
$
|
48
|
||
Change
in fair value of swap agreement
|
209
|
|||
Interest
expense (income)
|
28
|
|||
Net
cash settlements
|
(11
|
)
|
||
Balance
as of April 30, 2008
|
$
|
274
|
Metric
|
U.S.
|
||||
Materials
Reserves
Proven
Probable
Total
Reserves
Waste
Total
Contained Gold
Production
Ore
Crushed**
Operating
Days/Year
Gold
Plant Average Recovery
Average
Annual Production**
Total
Gold Produced
|
26.7
Million Tonnes @ 0.68 g/t*
12.8
Million Tonnes
@
0.61
g/t*
39.5
Million Tonnes @ 0.66 g/t*
24.1
Million Tonnes
63.6
Million Tonnes
25.89
Million grams
2.6
Million Tonnes /Year
7,500 Mt/d 365
Days per year
66.8
%
1.35
Million grams
17.29
Million grams
|
29.4
Million Tons @ 0.0198 opt*
14.1
Million Tons
@
0.0179
opt*
43.5
Million Tons @ 0.0192 opt*
26.6
Million Tons
70.1
Million tons
832,280
Oz
2.87
Million Tons/Year
8,267 t/d 365
Days per year
66.8
%
43,414
Oz
555,960
Oz
|
For
the three
|
For
the three
|
For
the Nine
|
For
the Nine
|
||||||||||
Months
ended
|
Months
ended
|
Months
ended
|
Months
ended
|
||||||||||
April
30,
2008
|
April
30,
2007
|
April
30,
2008
|
April
30,
2007
|
||||||||||
Revenues
|
8,730
|
-
|
23,299
|
-
|
|||||||||
Net
Income (loss)
|
2,740
|
(2,649
|
)
|
6,613
|
(5,484
|
)
|
|||||||
Basic
net income (loss) per
share
|
0.02
|
(0.02
|
)
|
0.04
|
(0.04
|
)
|
|||||||
Diluted
net income (loss) per
share
|
0.01
|
-
|
0.03
|
-
|
Ounces Remaining
|
Amount
|
||||||
2008
|
8,428
|
$
|
295,000
|
||||
2009
|
33,638
|
$
|
1,177,000
|
||||
2010
|
33,176
|
$
|
1,161,000
|
||||
8,230
|
$
|
288,000
|
|||||
Total
|
83,472
|
$
|
2,921,000
|
·
|
the
level of interest rates,
|
·
|
the
rate of inflation,
|
·
|
central
bank sales,
|
·
|
world
supply of gold and
|
·
|
stability
of exchange rates.
|
·
|
labor
disputes,
|
·
|
invalidity
of governmental orders,
|
·
|
uncertain
or unpredictable political, legal and economic
environments,
|
·
|
war
and civil disturbances,
|
·
|
changes
in laws or policies,
|
·
|
taxation,
|
·
|
delays
in obtaining or the inability to obtain necessary governmental
permits,
|
·
|
governmental
seizure of land or mining claims,
|
·
|
limitations
on ownership,
|
·
|
limitations
on the repatriation of earnings,
|
·
|
increased
financial costs,
|
·
|
import
and export regulations, including restrictions on the export of gold,
and
|
·
|
foreign
exchange controls.
|
·
|
ownership
of assets,
|
·
|
land
tenure,
|
·
|
mining
policies,
|
·
|
monetary
policies,
|
·
|
taxation,
|
·
|
rates
of exchange,
|
·
|
environmental
regulations,
|
·
|
labor
relations,
|
·
|
repatriation
of income and/or
|
·
|
return
of capital.
|
·
|
stricter
standards and enforcement,
|
·
|
increased
fines and penalties for non-compliance,
|
·
|
more
stringent environmental assessments of proposed projects and
|
·
|
a
heightened degree of responsibility for companies and their officers,
directors and employees.
|
·
|
environmental
hazards,
|
·
|
industrial
accidents,
|
·
|
metallurgical
and other processing,
|
·
|
acts
of God, and/or
|
·
|
mechanical
equipment and facility performance problems.
|
·
|
damage
to, or destruction of, mineral properties or production facilities,
|
·
|
personal
injury or death,
|
·
|
environmental
damage,
|
·
|
delays
in mining,
|
·
|
monetary
losses and /or
|
·
|
possible
legal liability.
|
·
|
the
location of economic ore bodies,
|
·
|
development
of appropriate metallurgical processes,
|
·
|
receipt
of necessary governmental approvals and
|
·
|
construction
of mining and processing facilities at any site chosen for mining.
|
·
|
the
price of gold,
|
·
|
the
particular attributes of the deposit, such as its
|
o
|
size,
|
o
|
grade
and
|
o
|
proximity
to infrastructure,
|
·
|
financing
costs,
|
·
|
taxation,
|
·
|
royalties,
|
·
|
land
tenure,
|
·
|
land
use,
|
·
|
water
use,
|
·
|
power
use,
|
·
|
importing
and exporting gold and
|
·
|
environmental
protection.
|
31.1
|
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Executive Officer.
|
31.2
|
Certification
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Financial Officer.
|
32.1
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Executive Officer.
|
32.2
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 from the
Company's Chief Financial Officer.
|
CAPITAL
GOLD CORPORATION
|
||
Registrant
|
||
By:
|
/s/
Gifford A. Dieterle
|
|
Gifford
A. Dieterle
|
||
President/Treasurer
|
||
Date:
June 11, 2008
|