Attached files
file | filename |
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EX-32.1 - BLACK HAWK EXPLORATION | ex32-1.htm |
EX-31.1 - BLACK HAWK EXPLORATION | ex31-1.htm |
EX-31.2 - BLACK HAWK EXPLORATION | ex31-2.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q/A
[X]
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the
quarterly period ended May 31, 2009____________
[ ]
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the
transition period from _________
to __________
Commission
file number 000-130048
Black
Hawk Exploration Inc.
|
|||
(Exact
name of small business issuer as specified in its
charter)
|
Nevada
|
27-0670160
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||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
1174 Manito NW, PO Box 363, Fox Island, WA
98333
|
(Address
of principal executive offices)
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(253) 973-7135
|
(Issuer's
telephone number)
|
N/A
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Check
whether the issuer: (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes [X] No [
]
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated
filer “ (Do not check if a smaller reporting
company)
|
Smaller
reporting company X
|
APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS
DURING THE PRECEDING FIVE YEARS
Check
whether the registrant filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
under a plan confirmed by a court. Yes [
] No [ ]
APPLICABLE
ONLY TO CORPORATE ISSUERS
State the
number of shares outstanding of each of the issuer's classes of common equity,
as of the latest practicable date:
58,301,428
common shares issued and outstanding as at April 14, 2009
Transitional
Small Business Disclosure Format (Check one):
Yes [
] No [X]
Check
whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). . Yes [ X ] No [
]
Item
1. Financial Statements
Our
financial statements are stated in United States Dollars (US$) and are prepared
in accordance with United States Generally Accepted Accounting
Principles.
F-1
BLACK
HAWK EXPLORATION INC.
(An
Exploration Stage Company)
BALANCE
SHEETS
May
31,
|
August
31,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
|
$ | 17,823 | $ | 26,393 | ||||
Total
current assets
|
17,823 | 26,393 | ||||||
Prepaid
expenses
|
5,000 | 5,000 | ||||||
Total
assets
|
$ | 22,823 | $ | 31,393 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
liabilities
|
||||||||
Accounts payable
|
$ | 12,094 | $ | 4,314 | ||||
Total
current liabilities
|
12,094 | 4,314 | ||||||
Total
liabilities
|
12,094 | 4,314 | ||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Common
stock, $.001 par value, 300,000,000 shares authorized,
|
||||||||
58,301,428
shares issued and outstanding as of May 31, 2009 and August 31,
2008
|
58,301 | 58,301 | ||||||
Additional
paid-in capital
|
597,999 | 597,999 | ||||||
Deficit
accumulated during the exploration stage
|
(645,571 | ) | (629,221 | ) | ||||
Total
Stockholders' Equity
|
10,729 | 27,079 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 22,823 | $ | 31,393 |
The
accompanying notes are an integral part of these financial
statements
F-2
(An
Exploration Stage Company)
STATEMENTS
OF OPERATIONS
Nine
and Three Months Ended May 31, 2009 and 2008
and
Period from April 14, 2005 (Inception) through May 31, 2009
(Unaudited)
Nine
Months Ended
|
Three Months Ended |
Inception through
|
||||||||||||||||||
May
31, 2009
|
May
31, 2008
|
May
31, 2009
|
May
31, 2008
|
May
31, 2009
|
||||||||||||||||
Cost
and expenses:
|
||||||||||||||||||||
General
and administrative
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$ | 16,350 | $ | 47,324 | $ | 2,500 | $ | 5,002 | $ | 121,009 | ||||||||||
Impairment
of mineral
property
costs
|
- | - | - | - | 524,562 | |||||||||||||||
Loss
from operations
|
(16,350 | ) | (47,324 | ) | (2,500 | ) | (5,002 | ) | (645,571 | ) | ||||||||||
Net
loss
|
$ | (16,350 | ) | $ | (47,324 | ) | $ | (2,500 | ) | $ | (5,002 | ) | $ | (645,571 | ) | |||||
Net
loss per share:
|
||||||||||||||||||||
Basic
and diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||
Weighted
average shares outstanding:
|
||||||||||||||||||||
Basic
and diluted
|
58,301,428 | 58,287,742 | 58,301,428 | 58,301,428 |
The
accompanying notes are an integral part of these financial
statements
F-3
(An
Exploration Stage Company)
STATEMENTS
OF CASH FLOWS
Nine
Months Ended May 31, 2009 and 2008
and
Period from April 14, 2005 (Inception) through May 31, 2009
(Unaudited)
Nine
Months Ended
|
Inception
through
|
|||||||||||
May
31, 2009
|
May
31, 2008
|
May
31, 2009
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
loss
|
$ | (16,350 | ) | $ | (47,324 | ) | $ | (645,571 | ) | |||
Adjustments
to reconcile net loss to cash used by operating
activities:
|
||||||||||||
Impairment
of mineral property costs
|
- | - | 524,562 | |||||||||
Net
change in:
|
||||||||||||
Prepaid
expenses
|
- | (5,000 | ) | (5,000 | ) | |||||||
Accounts
payable
|
7,780 | (336 | ) | 12,094 | ||||||||
Due
to related party
|
- | (5,087 | ) | - | ||||||||
CASH
FLOWS USED IN OPERATING ACTIVITIES
|
(8,570 | ) | (57,747 | ) | (113,915 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Mineral
property expenditures
|
- | (2,665 | ) | (342,562 | ) | |||||||
CASH
FLOWS USED IN INVESTING ACTIVITIES
|
- | (2,665 | ) | (342,562 | ) | |||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Cash
received from common stock issuance
|
- | - | 474,300 | |||||||||
CASH
FLOWS PROVIDED BY FINANCING ACTIVITIES
|
- | - | 474,300 | |||||||||
NET
INCREASE (DECREASE) IN CASH
|
(8,570 | ) | (60,412 | ) | 17,823 | |||||||
Cash,
beginning of period
|
26,393 | 89,305 | - | |||||||||
Cash,
end of period
|
$ | 17,823 | $ | 28,893 | $ | 17,823 | ||||||
SUPPLEMENTAL
CASH FLOW INFORMATION:
|
||||||||||||
Cash
paid for interest
|
$ | - | $ | - | $ | - | ||||||
Cash
paid for income taxes
|
$ | - | $ | - | $ | - | ||||||
SUPPLEMENTAL
DISCLOSURE OF NON CASH TRANSACTION:
|
||||||||||||
Stock
issued for mineral property
Reclassifications
of deposit to mineral
property
|
$
$
|
-
-
|
$
$
|
$35,000
80,062
|
$
$
|
$182,000
-
|
The accompanying notes are an
integral part of these financial statements
F-4
BLACK
HAWK EXPLORATION INC.
(An
Exploration Stage Company)
NOTES
TO THE FINANCIAL STATEMENTS
MAY
31, 2009
NOTE 1 - BASIS OF
PRESENTATION
The
accompanying unaudited interim financial statements of Black Hawk Exploration
Inc. (the "Company") have been prepared in accordance with accounting principles
generally accepted in the United States of America and the rules of the
Securities and Exchange Commission ("SEC"), and should be read in conjunction
with the audited financial statements and notes thereto contained in the
Company's registration statement filed with the SEC on Form 10-K. In the opinion
of management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of financial position and the results of
operations for the interim periods presented have been reflected herein. The
results of operations for interim periods are not necessarily indicative of the
results to be expected for the full year. Notes to the financial statements
which would substantially duplicate the disclosures contained in the audited
financial statements for the most recent fiscal year August 31, 2008 as reported
in Form 10-K, have been omitted.
NOTE
2-RECLASSIFICATION
Certain
2008 amounts have been reclassified to conform to 2009 presentation. These
reclassifications had no effect on the Company's reported net loss.
F-5
Item 2.
Management's Discussion and Analysis and Plan of Operation.
FORWARD-LOOKING
STATEMENTS
This
quarterly report contains forward-looking statements as that term is defined in
the Private Securities Litigation Reform Act of 1995. These statements relate to
future events or our future financial performance. In some cases, you can
identify forward-looking statements by terminology such as "may", "should",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential" or "continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors, including the risks in the section
entitled "Risk Factors", that may cause our or our industry's actual results,
levels of activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements.
Although
we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.
Our
financial statements are stated in United States Dollars ($, or US$) and are
prepared in accordance with United States Generally Accepted Accounting
Principles. In this quarterly report, unless otherwise specified, all dollar
amounts are expressed in United States dollars. All references to "CDN$" refer
to Canadian dollars and all references to "common shares" refer to the common
shares in our capital stock.
As used
in this quarterly report, the terms "we", "us", "our", and "Black Hawk" mean
Black Hawk Exploration Inc., unless otherwise indicated.
Corporate
History
We were
incorporated in the State of Nevada on April 14, 2005. Our administrative office
is located at # 305-8391 Beverly Blvd., Los Angeles, California 90048 and our
registered statutory office is located at Suite 300 - 7251 West Lake Mead Blvd,
Las Vegas, Nevada 89128. Our telephone number is (323) 275-8475. Our fiscal year
end is August 31st. On March 15, 2007, we approved a ten (10) for one (1)
forward stock split of our authorized, issued and outstanding shares of common
stock. We amended our Articles of Incorporation by the filing of a Certificate
of Change with the Nevada Secretary of State wherein it stated that we would
issue ten shares for every one share of common stock issued and outstanding
immediately prior to the effective date of the forward stock split. The change
in the Articles of Incorporation was effected with the Nevada Secretary of State
on April 6, 2007. As a result, the authorized capital increased from 30,000,000
to 300,000,000 shares of common stock with a par value of $0.001.
Other
than as set out herein, we have not been involved in any bankruptcy,
receivership or similar proceedings, nor have we been a party to any material
reclassification, merger, consolidation or purchase or sale of a significant
amount of assets not in the ordinary course of our business.
-2-
Our
Current Business
We are an
exploration stage resource company, and are primarily engaged in the exploration
for and development in the properties in which we have acquired
interests. We do not currently have any properties. We are
actively pursuing an acquisition of a resource property. We will be engaged in
the acquisition, and exploration of mineral properties with a view to exploiting
any mineral deposits we discover that demonstrate economic
feasibility.
Product
Research and Development
Our
business plan is focused on the long-term exploration and development of our
mineral properties.
We do not
anticipate that we will expend any significant funds on research and development
over the next twelve months ending May 31, 2010.
Employees
Currently
there are no full time or part-time employees of our company (other than our
directors and officer who, at present, have not signed employment or consulting
agreements with us). We do not expect any material changes in the number of
employees over the next 12 month period (although we may enter into employment
or consulting agreements with our officer or directors). We do and will continue
to outsource contract employment as needed. However, if we are successful in our
initial and any subsequent drilling programs we may retain additional
employees.
Purchase
or Sale of Equipment
We do not
intend to purchase any significant equipment over the next twelve months ending
May 31, 2010.
Competition
The
mining industry is fragmented. We compete with other exploration companies
looking for uranium and gold. We are one of the smallest exploration companies
in existence. We are an infinitely small participant in the gold mining market.
While we compete with other exploration companies, there is no competition for
the exploration or removal of minerals from our property.
We may
not have access to all of the supplies and materials we need to begin
exploration that could cause us to delay or suspend operations. Competition and
unforeseen limited sources of supplies in the industry could result in
occasional spot shortages of supplies, such as explosives, and certain equipment
such as bulldozers and excavators that we might need to conduct exploration. We
have not attempted to locate or negotiate with any suppliers of products,
equipment or materials. We will attempt to locate products, equipment and
materials after this offering is complete. If we cannot find the products and
equipment we need, we will have to suspend our exploration plans until we do
find the products and equipment we need.
Government
Regulations and Supervision
Our
mineral exploration program will be subject to the laws of the jurisdiction in
which we operate. We are currently sourcing projects in the North
West Territories and other Canadian jurisdictions such as Ontario. We
anticipate that the jurisdiction in which we operate in the future will have
regulations similar to the Mineral Tenure Act (British
Columbia) and Regulation. This act sets forth rules for
·
|
Locating
claims
|
·
|
Posting
claims
|
·
|
Working
claims
|
·
|
Reporting
work performed
|
-3-
The Mineral Tenure Act (British
Columbia) and Regulation also governs the work requirements for a claim
including the minimum annual work requirements necessary to maintain a claim.
The holder of a mineral claim must perform exploration and development work on
the claim of $100 in each of the first three years and $200 in the eighth and
subsequent years.
We will
also subject to regulations similar to the British Columbia Mineral
Exploration Code (the
"Code") that tells us how and where we can explore for minerals. We must
comply with these laws to operate our business. The purpose of the Code is to assist persons
who wish to explore for minerals in British Columbia to understand the process
whereby exploration activities are permitted and regulated. The Code establishes province
wide standards for mineral exploration and development activities. The Code also manages and
administers exploration and development activities to ensure maximum extraction
with a minimum of environmental disturbance. The Code does not apply to
certain exploration work we will be conducting. Specifically, work that does not
involve mechanical disturbance of the surface including:
·
|
Prospecting
using hand-held tools
|
·
|
Geological
and geochemical surveying
|
·
|
Airborne
geophysical surveying
|
·
|
Hand-trenching
without the use of explosives
|
·
|
The
establishment of gridlines that do not require the felling of
trees
|
Exploration
activities that we intend on carrying out which are subject to the provisions of
the Code are as
follows:
·
|
Drilling,
trenching and excavating using
machinery
|
·
|
Disturbance
of the ground by mechanical means
|
Compliance
with these rules and regulations will require us to meet the minimum annual work
requirements. Also, prior to proceeding with any exploration work subject to
the Code we must apply
for a notice of work permit. In this notice we will be required to set out the
location, nature, extent and duration of the proposed exploration activities.
The notice is submitted to the regional office of the Mines Branch, Energy
Division.
We
currently do not have any pending applications for government approval of our
exploration program. We only require one permit for exploration and we have not
yet applied for it since it is not required until later stages of exploration
(i.e. drilling). We estimate that this exploration permit can be obtained within
2 weeks.
-4-
Environmental
Law
The Code
deals with environmental matters relating to the exploration and development of
mining properties. The goal of this Act is to protect the environment through a
series of regulations affecting:
1. Health
and Safety
2.
Archaeological Sites
3.
Exploration Access
We are
responsible to provide a safe working environment, to not disrupt archaeological
sites, and to conduct our activities to prevent unnecessary damage to the
property.
We
anticipate no discharge of water into active stream, creek, river, lake or any
other body of water regulated by environmental law or regulation. No endangered
species will be disturbed. Restoration of the disturbed land will be completed
according to law. All holes, pits and shafts will be sealed upon abandonment of
the property. It is difficult to estimate the cost of compliance with the
environmental law since the full nature and extent of our proposed activities
cannot be determined until we start our operations and we know what that will
involve from an environmental standpoint.
We are in
compliance with the Mineral
Tenure Act (British Columbia) and the Code will continue to comply
with these regulations in the future. We believe that compliance with these
regulations will not adversely affect our business operations in the
future.
There is
no requirement to reclaim the mineral claims after we have completed our
exploration program. However, a claim must be maintained by performing an annual
work requirement or by payment of cash in lieu of work. The minimum amount of
exploration and development work on the claim must be $100 per claim in each of
the first three years and $200 in the eighth and subsequent years. Provided we
meet the minimum annual work requirements or pay cash in lieu of work we will
maintain the claims in good standing.
Three
Months Ended May 31, 2009
During
the three months ended May 31, 2009, operating expenses totaled $2,500, and we
experienced a net loss of $2,500 against no revenues. During the three months
ended May 31, 2008, operating expenses totaled $5,002, and we experienced a net
loss of $5,002 against no revenues.
Nine
Months Ended May 31, 2009
During
the nine months ended May 31, 2009, operating expenses totaled $16,350, and we
experienced a net loss of $16,350 against no revenues. During the nine months
ended May 31, 2008, operating expenses totaled $47,324, and we experienced a net
loss of $47,324 against no revenues. From inception to May 31, 2009, our
operating expenses total $645,571 and we experienced a net loss of $645,571
against no revenues.
Financial
Condition, Liquidity and Capital Resources
At May
31, 2009, there was a working capital of $5,729.
At May
31, 2009, our total assets were $22,823, which consisted of cash of $17,823 and
prepaid expense of $5,000.
At May
31, 2009, our total current liabilities were $12,094.
-5-
At May
31, 2009, we had cash on hand of $17,823.
Historically,
we have financed our cash flow and operations from the sale of stock and
advances from shareholders. Our total cash and cash equivalent position as at
May 31, 2009 was $17,823
Net cash
provided by financing activities was $474,300 from inception to May 31,
2009.
We have
no external sources of liquidity in the form of credit lines from banks. Based
on the plan of operation described below, management believes that our available
cash will be sufficient to fund our immediate working capital
requirements.
Plan
of Operation
Cash
Requirements
Over the
twelve months ending May 31, 2010 we plan to expend a total of approximately
$150,000 in respect of future mineral property acquisitions.
Based on
our current plan of operations, we require immediate funds to commence our
exploration operations. We currently have cash on hand of $17,823. We anticipate
that we will have to raise additional cash of approximately $130,000 to allow us
to complete our proposed exploration program. We will likely require additional
financing before we generate any significant revenues. We intend to raise the
capital required to meet any additional needs through sales of our securities in
secondary offerings or private placements. We have no agreements in place to do
this at this time. If we fail to raise sufficient funds, we may modify our
operations plan accordingly. Even if we do raise funds for operations, there is
no assurance that we will be able to maintain operations at a level sufficient
for an investor to obtain a return on his investment in our common stock.
Further, we may continue to be unprofitable.
We do not
have enough funds to commence and complete our proposed exploration
program.
There are
no assurances that we will be able to obtain additional funds required for our
continued operations. In such event that we do not raise sufficient additional
funds by secondary offering or private placement, we will consider alternative
financing options, if any, or be forced to scale down or perhaps even cease our
operations.
Over the
twelve months ending May 31, 2010 we intend to use all available funds to
commence exploration of our mineral properties, as follows:
Estimated Funding Required
During the Next Twelve Months
General
and Administrative
|
$ | 10,000 | ||
Operations:
future property acquisitions
|
$ | 130,000 | ||
Working
Capital
|
||||
$ | 10,000 | |||
Total
|
$ | 150,000 |
-6-
Going
Concern
The
continuation of our business is dependent upon us raising additional financial
support. The issuance of additional equity securities by us could result in a
significant dilution in the equity interests of our current stockholders.
Obtaining commercial loans, assuming those loans would be available, will
increase our liabilities and future cash commitments.
We have
historically incurred losses, and through May 31, 2009 have incurred losses of
$645,571 from our inception.
However,
there are no assurances that we will be able to either (1) ever achieve a level
of revenues adequate to generate sufficient cash flow from operations; or (2)
obtain additional financing through future private placements, public offerings
and/or bank financing necessary to support our working capital requirements. To
the extent that funds generated from our recently completed offering, operations
and any future private placements, public offerings and/or bank financing are
insufficient, we will have to raise additional working capital. No assurance can
be given that additional financing will be available, or if available, will be
on terms acceptable to us. If adequate working capital is not available we may
not increase our operations.
These
conditions raise substantial doubt about our ability to continue as a going
concern. The financial statements do not include any adjustments relating to the
recoverability and classification of asset carrying amounts or the amount and
classification of liabilities that might be necessary should we be unable to
continue as a going concern.
Our
independent auditor's report on our audited financial statements, in our Form
10-K annual report filed December 15, 2008 for the fiscal year ended August 31,
2008, expressed substantial doubt concerning the Company’s ability to continue
as a going concern. The qualifying explanatory paragraph contained in their
audit report should be read in connection with our management's discussion of
our financial condition, liquidity and capital resources.
Application
of Critical Accounting Estimates
The
preparation of our company's financial statements requires management to make
estimates and assumptions regarding future events. These estimates and
assumptions affect the reported amounts of certain assets and liabilities, and
disclosure of contingent liabilities.
RISK
FACTORS
Much of
the information included in this quarterly report includes or is based upon
estimates, projections or other "forward-looking statements". Such
forward-looking statements include any projections or estimates made by us and
our management in connection with our business operations. While these
forward-looking statements, and any assumptions upon which they are based, are
made in good faith and reflect our current judgment regarding the direction of
our business, actual results will almost always vary, sometimes materially, from
any estimates, predictions, projections, assumptions, or other future
performance suggested herein. We undertake no obligation to update
forward-looking statements to reflect events or circumstances occurring after
the date of such statements.
Such
estimates, projections or other "forward-looking statements" involve various
risks and uncertainties as outlined below. We caution readers of this quarterly
report that important factors in some cases have affected and, in the future,
could materially affect actual results and cause actual results to differ
materially from the results expressed in any such estimates, projections or
other "forward-looking statements". In evaluating us, our business and any
investment in our business, readers should carefully consider the following
factors.
We
need to continue as a going concern if our business is to succeed, if we do not
we will go out of business.
Our
independent accountant's report to our audited financial statements for the year
ended August 31, 2008, indicates that there are a number of factors that raise
substantial doubt about our ability to continue as a going concern. Such
factors identified in the report are our accumulated deficit since inception,
our failure to attain profitable operations and our dependence upon obtaining
adequate financing to pay our liabilities. If we are not able to continue
as a going concern, it is likely investors will lose their
investments.
-7-
If
we do not obtain additional financing, our business will fail.
Our
current operating funds are less than necessary to complete all intended
exploration our properties, and therefore we will need to obtain additional
financing in order to complete our business plan. As of May 31, 2009, we
had cash in the amount of $17,823. We currently do not have any operations
and we have no income.
Our
business plan calls for significant expenses in connection with the exploration
of the property. We do not currently have sufficient funds to conduct
initial exploration on the property and require additional financing in order to
determine whether the property contains economic mineralization. We will
also require additional financing if the costs of the exploration of the
property are greater than anticipated.
We will
require additional financing to sustain our business operations if we are not
successful in earning revenues once exploration is complete. We do not
currently have any arrangements for financing and we can provide no assurance to
investors that we will be able to find such financing if required. Obtaining
additional financing would be subject to a number of factors, including the
market prices for resources, investor acceptance of our property and general
market conditions. These factors may make the timing, amount, terms or
conditions of additional financing unavailable to us.
The most
likely source of future funds presently available to us is through the sale of
equity capital. Any sale of share capital will result in dilution to existing
shareholders. The only other anticipated alternative for the financing of
further exploration would be our sale of a partial interest in the property to a
third party in exchange for cash or exploration expenditures, which is not
presently contemplated.
Because
we have not commenced business operations, we face a high risk of business
failure.
Although
we have recently commenced operations and are preparing to commence exploration,
we have commenced limited exploration on the property. Accordingly, we
have no way to evaluate the likelihood that our business will be successful.
We were incorporated on April 14, 2005 and have been involved primarily in
organizational activities and the acquisition of our mineral property. We
have not earned any revenues as of the date of this prospectus. Potential
investors should be aware of the difficulties normally encountered by new
mineral exploration companies and the high rate of failure of such enterprises.
The likelihood of success must be considered in light of the problems, expenses,
difficulties, complications and delays encountered in connection with the
exploration of the mineral properties that we plan to undertake. These potential
problems include, but are not limited to, unanticipated problems relating to
exploration, and additional costs and expenses that may exceed current
estimates.
Prior to
completion of our exploration stage, we anticipate that we will incur increased
operating expenses without realizing any revenues. We therefore expect to
incur significant losses into the foreseeable future. We recognize that if
we are unable to generate significant revenues from development of the mineral
claims and the production of minerals from the claims, we will not be able to
earn profits or continue operations.
There is
no history upon which to base any assumption as to the likelihood that we will
prove successful, and we can provide investors with no assurance that we will
generate any operating revenues or ever achieve profitable operations. If we are
unsuccessful in addressing these risks, our business will most likely
fail.
We
lack an operating history and we expect to have losses in the
future.
We have
not started our proposed business operations or realized any revenues. We have
no operating history upon which an evaluation of our future success or failure
can be made. Our ability to achieve and maintain profitability and positive cash
flow is dependent upon the following:
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·
|
Our
ability to locate a profitable mineral
property;
|
·
|
Our
ability to generate revenues; and
|
·
|
Our
ability to reduce exploration
costs.
|
Based
upon current plans, we expect to incur operating losses in future periods. This
will happen because there are expenses associated with the research and
exploration of our mineral properties. We cannot guarantee that we will be
successful in generating revenues in the future. Failure to generate revenues
will cause us to go out of business.
We
have no known ore reserves and we cannot guarantee we will find any reserves or
if we find reserves, that production will be profitable. Even if we are
successful in discovering uranium or other mineralized material we May not be
able to realize a profit from its sale. If we cannot make a profit, we may have
to cease operations.
We have
no known ore reserves. We have not identified any resource on the mineral claims
and we cannot guarantee that we will ever find any. The report we reviewed in
selecting the mineral claims for exploration are old and may be out of date.
Even if we find that there is uranium or another resource on our mineral claims,
we cannot guarantee that we will be able to recover the resource.
Because
of the inherent dangers involved in mineral exploration, there is a risk that we
may incur liability or damages as we conduct our business.
The
search for valuable minerals involves numerous hazards. As a result, we
may become subject to liability for such hazards, including pollution, cave-ins
and other hazards against which we cannot insure or against which we May elect
not to insure. The payment of such liabilities may have a material adverse
effect on our financial position.
Because
we are small and do not have much capital, we must limit our exploration and
consequently may not find mineralized material. If we do not find mineralized
material, we will cease operations.
Because
we are small and do not have much capital, we must limit our exploration.
Because we may have to limit our exploration, we may not find mineralized
material, although our mineral claims may contain mineralized material. If we do
not find mineralized material, we will cease operations.
If
we become subject to onerous government regulation or other legal uncertainties,
our business will be negatively affected.
There are
several governmental regulations that materially restrict mineral property
exploration and development. The regulatory regime under which we operate in the
future will likely require work permits, the posting of bonds, and the
performance of remediation work for any physical disturbance to the land. While
these current laws do not affect our current exploration plans, if we proceed to
commence drilling operations on the mineral claims, we will incur modest
regulatory compliance costs.
In
addition, the legal and regulatory environment that pertains to the exploration
of ore is uncertain and may change. Uncertainty and new regulations could
increase our costs of doing business and prevent us from exploring for ore
deposits. The growth of demand for ore may also be significantly slowed. This
could delay growth in potential demand for and limit our ability to generate
revenues. In addition to new laws and regulations being adopted, existing
laws May be applied to mining that have not as yet been applied. These new
laws may increase our cost of doing business with the result that our financial
condition and operating results may be harmed.
Because
we are small and do not have much capital, we must limit our exploration and
consequently may not find mineralized material. If we do not find mineralized
material, we will cease operations.
Because
we are small and do not have much capital, we must limit our exploration.
Because we may have to limit our exploration, we may not find mineralized
material, although our property may contain mineralized material. If we do not
find mineralized material, we will cease operations.
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As
we face intense competition in the mining industry, we will have to compete with
our competitors for financing and for qualified managerial and technical
employees.
The
mining industry is intensely competitive in all of its phases. Competition
includes large established mining companies with substantial capabilities and
with greater financial and technical resources than we have. As a result of this
competition, we may be unable to acquire additional attractive mining claims or
financing on terms we consider acceptable. We also compete with other mining
companies in the recruitment and retention of qualified managerial and technical
employees. If we are unable to successfully compete for financing or for
qualified employees, our exploration and development programs may be slowed down
or suspended.
We do not expect to declare or pay
any dividends.
We have
not declared or paid any dividends on our common stock since our inception, and
we do not anticipate paying any such dividends for the foreseeable
future.
Anti-Takeover
Provisions
We do not
currently have a shareholder rights plan or any anti-takeover provisions in our
By-laws. Without any anti-takeover provisions, there is no deterrent for a
take-over of our company, which may result in a change in our management and
directors.
Our
By-laws contain provisions indemnifying our officer and directors against all
costs, charges and expenses incurred by them.
Our
By-laws contain provisions with respect to the indemnification of our officer
and directors against all costs, charges and expenses, including an amount paid
to settle an action or satisfy a judgment, actually and reasonably incurred by
him, including an amount paid to settle an action or satisfy a judgment in a
civil, criminal or administrative action or proceeding to which he is made a
party by reason of his being or having been one of our directors or
officer.
Volatility of Stock
Price.
Our
common shares are not currently publicly traded. In the future, the trading
price of our common shares may be subject to wide fluctuations. Trading prices
of the common shares may fluctuate in response to a number of factors, many of
which will be beyond our control. In addition, the stock market in general, and
the market for resource companies in particular, has experienced extreme price
and volume fluctuations that have often been unrelated or disproportionate to
the operating performance of such companies. Market and industry factors may
adversely affect the market price of the common shares, regardless of our
operating performance.
In the
past, following periods of volatility in the market price of a company's
securities, securities class-action litigation has often been instituted. Such
litigation, if instituted, could result in substantial costs and a diversion of
management's attention and resources.
Item
3. Controls and Procedures
As
required by Rule 13a-15 under the Exchange Act, as of the end of the period
covered by this quarterly report, being April 30, 2005, we have carried out an
evaluation of the effectiveness of the design and operation of our company's
disclosure controls and procedures. This evaluation was carried out under the
supervision and with the participation of our company's management, including
our company's President along with our company's Secretary. Based upon that
evaluation, our company's President along with our company's Secretary concluded
that our company's disclosure controls and procedures are effective as at the
end of the period covered by this report.
-10-
Disclosure
controls and procedures and other procedures that are designed to ensure that
information required to be disclosed in our reports filed or submitted under the
Exchange Act is recorded, processed, summarized and reported, within the time
period specified in the Securities and Exchange Commission's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in our
reports filed under the Exchange Act is accumulated and communicated to
management, including our President and Secretary as appropriate, to allow
timely decisions regarding required disclosure.
There
have been no significant changes in our company's internal controls over
financial reporting that occurred during our most recent fiscal quarter that
have materially affected, or are reasonably likely to materially affect our
internal controls over financial reporting.
Item
1. Legal Proceedings.
We know
of no material, active or pending legal proceedings against our company, nor are
we involved as a plaintiff in any material proceeding or pending litigation.
There are no proceedings in which any of our directors, officers or affiliates,
or any registered or beneficial shareholder, is an adverse party or has a
material interest adverse to our interest.
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item
3. Defaults Upon Senior Securities.
Item
4. Submission of Matters to a Vote of Security Holders.
Item
5. Other Information.
None.
Item
6. Exhibits.
Exhibits
Required by Item 601 of Regulation S-B.
Exhibit
Number/Description
(3)
Charter and By-laws
3.1
Articles of Incorporation (incorporated by reference to the Company's SB-2
Registration Statement filed January 17, 2006).
3.2
Bylaws (incorporated by reference to the Company's SB-2 Registration Statement
filed January 17, 2006).
(14)
Code of Ethics
14.1 Code
of Business Conduct and Ethics
(30)
Section 302 Certification
31.1
Certification of Kevin M. Murphy
31.2
Certification of Howard Bouch
(32)
Section 906 Certification
32.1
Certification of Kevin M. Murphy & Howard Bouch
-11-
SIGNATURES
Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
BLACK
HAWK EXPLORATION INC.
By :
/s/ Kevin M. Murphy
Kevin
M. Murphy, President, CEO
(Principal
Executive Officer),
By: Howard
Bouch
Howard
Bouch, CFO
Date:
November 3, 2009
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