Varca Ventures, Inc. - FORM 8-K - EX-99.3 - PRO FORMA FINANCIAL STATEMENTS - November 2, 2011

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8-K - FORM 8-K - Varca Ventures, Inc.vrcv_8k.htm
EX-2.1 - SHARE EXCHANGE AGREEMENT, BY AND BETWEEN VARCA VENTURES, INC., WILDCAT MINING CORPORATION AND THE STOCKHOLDERS OF WILDCAT MINING CORPORATION, DATED OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex2-1.htm
EX-3.3 - ARTICLES OF EXCHANGE, FILED WITH THE SECRETARY OF STATE OF THE STATE OF NEVADA ON OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex3-3.htm
EX-2.2 - PLAN OF SHARE EXCHANGE BY AND AMONG VARCA VENTURES, INC. AND WILDCAT MINING CORPORATION, DATED OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex2-2.htm
EX-10.4 - CONSULTING SERVICES AGREEMENT BY AND BETWEEN WILDCAT MINING CORPORATION, GREENBERG TRAURIG, LLP AND CLC ASSOCIATED, INC., DATED APRIL 14, 2011 - Varca Ventures, Inc.vrcv_ex10-4.htm
EX-10.2 - EMPLOYMENT AGREEMENT WITH RANDALL OSER, DATED OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex10-2.htm
EX-10.3 - EMPLOYMENT AGREEMENT WITH PAUL SERLUCO, DATED OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex10-3.htm
EX-10.1 - EMPLOYMENT AGREEMENT WITH ROGER TICHENOR, DATED OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex10-1.htm
EX-99.1 - CONSOLIDATED FINANCIAL STATEMENTS OF WILDCAT MINING CORPORATION FOR THE FISCAL YEAR ENDED FEBRUARY 28, 2011 AND 2010 - Varca Ventures, Inc.vrcv_ex99-1.htm
EX-10.6 - CONSULTING SERVICES AGREEMENT BETWEEN WILDCAT MINING CORPORATION AND EIS SOLUTIONS, INC., DATED NOVEMBER 10, 2010 - Varca Ventures, Inc.vrcv_ex10-6.htm
EX-17.1 - RESIGNATION LETTER FROM NADEEM LILA, DATED OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex17-1.htm
EX-21.1 - SUBSIDIARIES OF REGISTRANT - Varca Ventures, Inc.vrcv_ex21-1.htm
EX-16.1 - LETTER DATED OCTOBER 31, 2011 FROM LBB & ASSOCIATES LTD., LLP TO THE SEC - Varca Ventures, Inc.vrcv_ex16-1.htm
EX-10.8 - INDEPENDENT CONTRACTOR SERVICES AGREEMENT BETWEEN WILDCAT MINING CORPORATION AND GEORGE ROBINSON, DATED NOVEMBER 24, 2010 - Varca Ventures, Inc.vrcv_ex10-8.htm
EX-99.2 - CONSOLIDATED FINANCIAL STATEMENTS OF WILDCAT MINING CORPORATION FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2011 AND 2010 - Varca Ventures, Inc.vrcv_ex99-2.htm
EX-10.5 - CONSULTING SERVICES AGREEMENT BY AND BETWEEN WILDCAT MINING CORPORATION, GREENBERG TRAURIG, LLP AND ENVIROGROUP LIMITED, DATED AUGUST 2, 2011 - Varca Ventures, Inc.vrcv_ex10-5.htm
EX-10.7 - CONSULTING SERVICES AGREEMENT BY AND BETWEEN WILDCAT MINING CORPORATION, GREENBERG TRAURIG, LLP AND GEOSYNTEC CONSULTANTS, INC., DATED MARCH 23, 2011 - Varca Ventures, Inc.vrcv_ex10-7.htm
EX-10.17 - AMENDMENT AND RATIFICATION OF MINING LEASE BETWEEN WILDCAT MINING CORPORATION AND FAIRVIEW LAND CORP., DATED JUNE 1, 2006 - Varca Ventures, Inc.vrcv_ex10-17.htm
EX-10.13 - PROMISSORY NOTE ASSUMED BY WILDCAT MINING CORPORATION AND PAYABLE TO OLD IDAHO PROPERTIES, LLC, DATED NOVEMBER 27, 2006 - Varca Ventures, Inc.vrcv_ex10-13.htm
EX-10.12 - PERPETUAL NON-PARTICIPATING PRODUCTION ROYALTY DEED GRANTED BY WILDCAT MINING CORPORATION TO AARON & SHARON TAYLOR, DATED FEBRUARY 21, 2011 - Varca Ventures, Inc.vrcv_ex10-12.htm
EX-10.19 - FIRST AMENDMENT TO LOAN AGREEMENT FOR SUBORDINATED SECURED PROMISSORY NOTES OF WILDCAT MINING CORPORATION, DATED MAY 24, 2011 - Varca Ventures, Inc.vrcv_ex10-19.htm
EX-10.23 - STOCKPILE ROYALTY AGREEMENT BY AND AMONG WILDCAT MINING CORPORATION AND THE INVESTORS PARTY THERETO, DATED OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex10-23.htm
EX-10.10 - MINING DEED GRANTED BY JAMES M. CLEMENTS TO WILDCAT MINING CORPORATION, DATED FEBRUARY 8, 2011 - Varca Ventures, Inc.vrcv_ex10-10.htm
EX-10.11 - RECREATION EASEMENT GRANTED BY WILDCAT MINING CORPORATION TO AARON & SHARON TAYLOR, DATED FEBRUARY 21, 2011 - Varca Ventures, Inc.vrcv_ex10-11.htm
EX-10.16 - MINING LEASE BETWEEN WILDCAT MINING CORPORATION AND FAIRVIEW LAND CORP., DATED JUNE 1, 2006 - Varca Ventures, Inc.vrcv_ex10-16.htm
EX-10.14 - DEED OF TRUST ASSUMED BY WILDCAT MINING CORPORATION FOR THE BENEFIT OF OLD IDAHO PROPERTIES, LLC, DATED NOVEMBER 27, 2006 - Varca Ventures, Inc.vrcv_ex10-14.htm
EX-10.22 - OFFICE LEASE AGREEMENT WITH JJR RINGLING ENTERPRISES, LLC, DATED OCTOBER 7, 2011 - Varca Ventures, Inc.vrcv_ex10-22.htm
EX-10.15 - MODIFICATION OF PROMISSORY NOTE AND DEED OF TRUST EXECUTED BY WILDCAT MINING CORPORATION AND OLD IDAHO PROPERTIES, LLC, EFFECTIVE AS OF FEBRUARY 24, 2010 - Varca Ventures, Inc.vrcv_ex10-15.htm
EX-10.18 - LOAN AGREEMENT FOR SUBORDINATED SECURED PROMISSORY NOTES OF WILDCAT MINING CORPORATION, DATED MARCH 21, 2011 - Varca Ventures, Inc.vrcv_ex10-18.htm
EX-10.20 - FORM OF SUBORDINATED SECURED PROMISSORY NOTE OF WILDCAT MINING CORPORATION - Varca Ventures, Inc.vrcv_ex10-20.htm
EX-10.9 - SALE AND PURCHASE AGREEMENT BETWEEN WILDCAT MINING CORPORATION AND JAMES M. CLEMENTS DATED, FEBRUARY 8, 2011 - Varca Ventures, Inc.vrcv_ex10-9.htm
EX-10.21 - DEED OF TRUST EXECUTED BY WILDCAT MINING CORPORATION FOR THE BENEFIT OF THE HOLDERS OF WILDCAT MINING CORPORATION'S SUBORDINATED SECURED PROMISSORY NOTES, DATED MARCH 21, 2011 - Varca Ventures, Inc.vrcv_ex10-21.htm
Exhibit 99.3

VARCA VENTURES, INC.
AND
WILDCAT MINING CORPORATION
(EXPLORATION STAGE COMPANIES)

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
 
On October 7, 2011, Varca Ventures, Inc. ("Varca"), completed a share exchange transaction (the "Share Exchange") with Wildcat Mining Corporation, a privately held company incorporated in the State of Nevada ("Wildcat") pursuant to a Share Exchange Agreement, dated as of October 7, 2011, by and among Varca, Wildcat and the stockholders of Wildcat (the "Share Exchange Agreement").

Under the terms of the Share Exchange Agreement, Varca acquired all of the issued and outstanding stock of Wildcat in exchange for 63,215,114 shares of common stock of Varca, and Wildcat became a wholly-owned subsidiary of Varca. At the closing of the Share Exchange, each issued and outstanding share of common stock of Wildcat, par value $0.001 per share, was converted into and exchanged for the right to receive one share of common stock of Varca, par value $0.0001 per share. There were no shares of preferred stock or stock options issued and outstanding by Wildcat as of the closing of the Share Exchange. Immediately prior to the Share Exchange, Varca had 13,600,000 shares of common stock issued and outstanding. Simultaneously with the closing of the Share Exchange, Varca's sole officer and director surrendered 8,000,000 shares of Varca's common stock to Varca for cancellation. After giving effect to the Share Exchange, there are 68,815,114 issued and outstanding shares of Varca's common stock, of which the former stockholders of Wildcat own approximately 92%.  Each holder of a share of common stock of Varca is entitled to one vote per share.

Based upon the fact that, after the Share Exchange: (1) the former shareholders of Wildcat control Varca; (2) the officers of Wildcat have become the officers of Varca; and (3) Wildcat appointed all the Varca Directors, for accounting purposes, the Share Exchange has been accounted as a reverse acquisition and recapitalization with Wildcat as the accounting acquirer. Consequently, the historical financial statements of Wildcat are now the historical financial statements of Varca.

Immediately prior to or commensurate with the Share Exchange:

 
1.
Wildcat, on October 5, 2011, converted 17 notes totaling $1,116,690 (together with accrued interest) into 626,919 shares of Series A Preferred stock which were immediately converted into 22,374,951 shares of Wildcat’s common stock.
 
2.
3.
Wildcat, on October 5, 2011, converted 40,000 shares of Series A Preferred stock into 1,427,620 shares of Wildcat’s common stock.
Wildcat, on October 6, 2011, effected a 1 for 2 reverse split of its common and preferred stock, with a corresponding reduction in its authorized capital stock.
 
4.
Wildcat offered in a Private Placement Memorandum in October 2011, a maximum of 4,000,000 shares of common stock for sale to accredited investors (the “Shares”) at an offering price of $0.30 per share (the “Offering”). On October 7, 2011, the Company’s Board of Director’s closed the offering with total subscriptions of $750,000 and issued 2,500,002 Shares to the Offering’s subscribers.
 
5.
Simultaneous with the closing of the Share Exchange, Varca's sole officer and director surrendered 8,000,000 shares of Varca's common stock to Varca for cancellation.

The following unaudited pro forma condensed combined balance sheet as of August 31, 2011 combines the unaudited condensed balance sheet of Varca as of September 30, 2011 with the unaudited condensed balance sheet of Wildcat as of August 31, 2011, giving effect to the transactions described in the Share Exchange Agreement as if they had occurred on August 31, 2011.

The following unaudited pro forma condensed combined statement of operations for the six months ended August 31, 2011 combines the unaudited condensed statement of operations of Varca for the six months ended September 30, 2011 with the unaudited condensed results of operations of Wildcat for the six months ended August 31, 2011, giving effect to the transactions described in the Share Exchange Agreement as if they had occurred on March 1, 2011.

The following unaudited pro forma condensed combined statement of operations for the year ended February 28, 2011 combines the condensed statement of operations of Varca for the year ended March 31, 2011 with the condensed statement of operations of Wildcat for the year ended February 28, 2011, giving effect to the transactions described in the Share Exchange Agreement as if they had occurred on March 1, 2010.

The pro forma adjustments give effect to events that are directly attributable to the transactions discussed above, that have a continuing impact on the operations of Varca, and are based on available data and certain assumptions that management believes are factually supportable.

The Company is providing this information to aid you in your analysis of the financial aspects of the acquisition. The unaudited pro forma condensed combined financial statements described above should be read in conjunction with Varca’s historical financial statements and those of Wildcat and the related notes thereto contained elsewhere in this Current Report on Form 8-K.

The pro forma adjustments and the unaudited pro forma information are not necessarily indicative of the financial position or results of operations that may have actually occurred had the merger taken place on the dates noted, or of Varca’s future financial position or operating results.
 

 
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Wildcat Mining Corporation
  
(An Exploration Stage Company)
  
Pro Forma Combined Balance Sheet
  
(Unaudited)
  
                             
   
Wildcat Mining
                        
   
Corporation
    
Varca
                  
   
August 31,
    
September 30,
    
Pro Forma
        
Pro Forma
  
   
2011
    
2011
    
Adjustments
        
Combined
  
ASSETS
                            
Current assets:
                            
    Cash and cash equivalents
   $ 68,336     $ 7,277     $ 750,000   (1 )   $ 825,613  
    Prepaid expenses
     -       2,000                   2,000  
Total current assets
     68,336       9,277       750,000           827,613  
                                     
Mining properties and rights
     788,130       -       -           788,130  
Property and equipment, net of accumulated depreciation
                                    
   of $ 123,084 and $114,500,  respectively
     53,601       -       -           53,601  
Reclamation bonds
     204,562       -       -           204,562  
                                     
Total assets
   $ 1,114,629     $ 9,277     $ 750,000         $ 1,873,906  
                                     
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
                                    
Current liabilities:
                                    
   Accounts payable
   $ 766,986     $ 3,915     $ -         $ 770,901  
   Accounts payable, related party
     90,000       6,000                   96,000  
   Accrued liabilites and royalties payable
     173,712       -       -           173,712  
   Convertible notes
     510,000       -       (510,000 ) (3 )     -  
   Convertible notes, related party
     606,690       -       (606,690 ) (3 )     -  
   Notes payable
     160,000       -       -           160,000  
Total current liabilities
     2,307,388       9,915       (1,116,690 )         1,200,613  
                                     
Long term liabilities:
                                    
   Notes payable, long term
     425,000       -       -           425,000  
   Asset retirement obligation
     204,562       -       -           204,562  
Total long term liabilities
     629,562       -       -           629,562  
                                     
Total liabilities
   $ 2,936,950     $ 9,915     $ (1,116,690 )       $ 1,830,175  
                                     
Redeemable convertible preferred stock; 700,000 Series A shares
                                    
designated, stated and liquidation value of $2.00 per share, 40,000
                                    
shares issued and outstanding
   $ 80,000     $ -     $ (80,000 ) (2 )   $ -  
                                     
Stockholders’ deficit:
                                    
Preferred stock, $0.0001 par value; 25,000,000 shares authorized, no shares issued and outstanding
     -       -                   -  
                                     
Common stock, $0.0001 par value; 100,000,000 shares authorized, 68,815,114 shares issued and outstanding
     36,912       1,360       2,500   (1 )     6,882  
                      1,428   (2 )        
                      22,375   (3 )        
                      (63,215 ) (4 )        
                      6,322   (5 )        
                      (800 ) (6 )        
                                     
Additional paid-in capital
     2,449,786       48,640       747,500   (1 )     4,476,506  
                      78,572   (2 )        
                      1,094,315   (3 )        
                      63,215   (4 )        
                      (6,322 ) (5 )        
                      800   (6 )        
                                     
Deficit accumulated during the development stage
     (4,389,019 )     (50,638 )     -           (4,439,657 )
Total stockholders’ equity (deficit)
     (1,902,321 )     (638 )     1,946,690           43,731  
                                     
Total liabilities and stockholders’ deficit
   $ 1,114,629     $ 9,277     $ 750,000         $ 1,873,906  

Notes to Pro Forma Adjustments

(1)       To record the issuance of 2,500,002 shares of the Company's common stock issued in a Private Placement Memorandum offering in October 2011 for $750,000.00
(2)       To record conversion of 40,000 shares of Wildcat Series A preferred stock into 1,427,620 shares of common stock immediately prior to the transaction
(3)       To record conversion of seventeen notes totalling $1,116,690 together with accrued interest, into 1,253,837 shares of Wildcat Series A Preferred Shares and the immediate conversion of those Series A Preferred Shares into 22,374,951 common shares immediately prior to the transaction
(4)       To eliminate par for shares of Wildcat common stock
(5)       To record issuance of 63,215,114 shares of Varca common stock to Wildcat shareholders
(6)       To record the surrender of 8,000,000 shares of Varca's common stock by Varca's sole officer and director upon closing of the transaction
 
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Wildcat Mining Corporation
  
(An Exploration Stage Company)
  
Pro Forma Statements of Operations
  
(Unaudited)
  
                             
                             
   
Wildcat Mining
                        
   
Corporation
    
Varca
                  
   
For the six
    
For the six
                  
   
months ended
    
months ended
    
Pro Forma
        
Pro Forma
  
   
August 31, 2011
    
September 30, 2011
    
Adjustments
        
Combined
  
                             
Revenues
   $ -     $ -     $ -         $ -  
                                     
Operating Expenses:
                                    
  Exploration expenses
     163,675       -       -           163,675  
  Depreciation
     8,322       -       -           8,322  
  General and administrative
     416,439       25,752       -           442,191  
     Total operating expenses
     588,436       25,752       -           614,188  
                                     
Operating loss
     (588,436 )     (25,752 )     -           (614,188 )
                                     
Other Income (Expenses)
                                    
  Interest income
     1,192       -       -           1,192  
  Interest expense
     (86,400 )     -       61,370   (1 )     (25,030 )
     Total other income (expense)
     (85,208 )     -       61,370           (23,838 )
                                     
                                     
Loss from operations
   $ (673,644 )   $ (25,752 )   $ 61,370         $ (638,026 )
                                     
Net loss per common share - basic and diluted
   $ (0.02 )   $ (0.00 )               $ (0.01 )
                                     
Weighted average number of common shares outstanding
                                    
during the period - basic and diluted
     36,344,143       9,066,667                   64,334,856  
 
 

 
Notes to Pro Forma Adjustments

(1)  To eliminate the interest expense associated with seventeen notes totaling $1,116,690 that were converted into shares of Wildcat Series A Preferred Shares and then immediately converted into 22,374,951 common shares of the Company.


 
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Wildcat Mining Corporation
  
(An Exploration Stage Company)
  
Pro Forma Statements of Operations
  
(Unaudited)
  
                             
                             
   
Wildcat Mining
                        
   
Corporation
    
Varca
                  
   
For the twelve
    
For the twelve
                  
   
months ended
    
months ended
    
Pro Forma
        
Pro Forma
  
   
February 28, 2011
    
March 31, 2011
    
Adjustments
        
Combined
  
                             
Revenues
   $ -     $ -     $ -         $ -  
                                     
Operating Expenses:
                                    
  Exploration expenses
     731,104       -       -           731,104  
  Depreciation
     12,311       -       -           12,311  
  General and administrative
     619,671       17,639       -           637,310  
     Total operating expenses
     1,363,086       17,639       -           1,380,725  
                                     
Operating loss
     (1,363,086 )     (17,639 )     -           (1,380,725 )
                                     
Other Income (Expenses)
                                    
  Interest income
     1,760       -       -           1,760  
  Interest expense
     (102,114 )     -       16,188   (1 )     (85,926 )
  Loss on sale of assets
     -       -       -           -  
     Total other income (expense)
     (100,354 )     -       16,188           (84,166 )
                                     
                                     
Loss from operations
   $ (1,463,440 )   $ (17,639 )   $ 16,188         $ (1,464,891 )
                                     
Net loss per common share - basic and diluted
   $ (0.08 )   $ (0.00 )               $ (0.05 )
                                     
Weighted average number of common shares outstanding
                                    
during the period - basic and diluted
     18,093,840       6,800,000                   27,901,579  

Notes to Pro Forma Adjustments

(1)  To eliminate the interest expense associated with seven notes totalling $210,000 that were converted into shares of Wildcat Series A Preferred Shares and then immediately converted into 4,207,739 common shares of the Company.



 
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