GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
BALANCE SHEETS
(Stated in U.S. Dollars)
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March 31,
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June 30,
|
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2013
|
|
|
2012
|
|
ASSETS
|
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|
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Current
|
|
|
|
|
|
|
Cash
|
|
$
|
1,208
|
|
|
$
|
1,550
|
|
Prepaid expenses
|
|
|
1,500
|
|
|
|
1,500
|
|
|
|
|
2,708
|
|
|
|
3,050
|
|
|
|
|
|
|
|
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TOTAL ASSETS
|
|
$
|
2,708
|
|
|
$
|
3,050
|
|
|
|
|
|
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|
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
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Current
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|
|
|
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|
|
|
|
Accounts payables and accrued liabilities
|
|
$
|
182,195
|
|
|
$
|
130,500
|
|
Loan payable
|
|
|
140,971
|
|
|
|
111,006
|
|
|
|
|
323,166
|
|
|
|
241,506
|
|
|
|
|
|
|
|
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STOCKHOLDERS' (DEFICIENCY) EQUITY
|
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|
|
|
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Capital stock
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Authorized:
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100,000,000 voting common shares with a par value of $0.00001 per share
|
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100,000,000 preferred shares with a par value of $0.00001 per share; none issued
|
|
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|
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|
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|
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Issued:
|
|
|
|
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|
|
7,070,000 common shares at March 31, 2013 & June 30, 2012
|
|
|
70
|
|
|
|
70
|
|
Additional paid in capital
|
|
|
106,990
|
|
|
|
106,990
|
|
Deficit Accumulated During the Exploration Stage
|
|
|
(427,518
|
)
|
|
|
(345,516
|
)
|
|
|
|
(320,458
|
)
|
|
|
(238,456
|
)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY
|
|
$
|
2,708
|
|
|
$
|
3,050
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Stated in U.S. Dollars)
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CUMULATIVE
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PERIOD FROM
|
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|
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THREE MONTHS ENDED
|
|
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NINE MONTHS ENDED,
|
|
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INCEPTION
|
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MARCH 31,
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|
|
MARCH 31,
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|
|
APRIL 21, 2006 TO
|
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2013
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2012
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|
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2013
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|
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2012
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|
|
MARCH 31, 2013
|
|
|
|
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|
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|
|
|
|
Expenses
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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Professional fees
|
|
$
|
9,502
|
|
|
$
|
1,655
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|
|
$
|
21,464
|
|
|
$
|
10,654
|
|
|
$
|
167,903
|
|
Administration
|
|
|
4,500
|
|
|
|
4,500
|
|
|
|
13,500
|
|
|
|
13,500
|
|
|
|
49,500
|
|
Consulting fees
|
|
|
7,500
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|
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|
8,300
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|
|
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22,500
|
|
|
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24,286
|
|
|
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98,359
|
|
Mineral claim maintenance fees
|
|
|
27
|
|
|
|
-
|
|
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|
3,177
|
|
|
|
-
|
|
|
|
13,177
|
|
Transfer and filing fees
|
|
|
1,005
|
|
|
|
-
|
|
|
|
3,361
|
|
|
|
300
|
|
|
|
13,025
|
|
Office and sundry
|
|
|
1,943
|
|
|
|
4,082
|
|
|
|
5,440
|
|
|
|
7,701
|
|
|
|
38,805
|
|
Interest expenses
|
|
|
3,824
|
|
|
|
2,532
|
|
|
|
10,866
|
|
|
|
7,156
|
|
|
|
26,176
|
|
Rent
|
|
|
-
|
|
|
|
4,500
|
|
|
|
1,500
|
|
|
|
7,500
|
|
|
|
18,500
|
|
Travel
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,893
|
|
|
|
8,325
|
|
Foreign exchange (gain) loss
|
|
|
-
|
|
|
|
204
|
|
|
|
194
|
|
|
|
337
|
|
|
|
(6,252
|
)
|
|
|
|
28,301
|
|
|
|
25,773
|
|
|
|
82,002
|
|
|
|
73,327
|
|
|
|
427,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Basic and fully diluted loss per share
|
|
$
|
0.004
|
|
|
$
|
0.004
|
|
|
$
|
0.012
|
|
|
$
|
0.010
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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Weighted average number of common shares outstanding
|
|
|
7,070,000
|
|
|
|
7,070,000
|
|
|
|
7,070,000
|
|
|
|
7,070,000
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
STATEMENTS OF CASH FLOWS
(Stated in U.S. Dollars)
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CUMULATIVE
|
|
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|
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PERIOD FROM
|
|
|
|
NINE MONTHS ENDED
|
|
|
INCEPTION
|
|
|
|
MARCH 31,
|
|
|
APRIL 21, 2006 TO
|
|
|
|
2013
|
|
|
2012
|
|
|
MARCH 31, 2013
|
|
|
|
|
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|
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|
|
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period
|
|
$
|
(82,002
|
)
|
|
$
|
(73,327
|
)
|
|
$
|
(427,518
|
)
|
|
|
|
|
|
|
|
|
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|
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|
|
Items not affecting cash:
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|
|
|
|
|
|
|
|
|
|
|
Accrued interest expense
|
|
|
-
|
|
|
|
7,156
|
|
|
|
26,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Changes in non-cash working capital:
|
|
|
|
|
|
|
|
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|
|
|
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Prepaid expenses
|
|
|
-
|
|
|
|
(1,500
|
)
|
|
|
(1,500
|
)
|
Accounts payables and accrued liabilities
|
|
|
51,695
|
|
|
|
49,774
|
|
|
|
182,195
|
|
Net Cash Used in Operating Activities
|
|
|
(30,307
|
)
|
|
|
(17,897
|
)
|
|
|
(220,647
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan payable
|
|
|
29,965
|
|
|
|
19,709
|
|
|
|
114,795
|
|
Issue of share capital
|
|
|
-
|
|
|
|
-
|
|
|
|
107,060
|
|
Net Cash Provided by Financing Activities
|
|
|
29,965
|
|
|
|
19,709
|
|
|
|
221,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash increase (decrease) in the period
|
|
|
(342
|
)
|
|
|
1,812
|
|
|
|
1,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, beginning of period
|
|
|
1,550
|
|
|
|
51
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, end of period
|
|
$
|
1,208
|
|
|
$
|
1,863
|
|
|
$
|
1,208
|
|
The accompanying notes are an integral part of these financial statements.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
STATEMENTS OF STOCKHOLDERS’ (DEFICIENCY) EQUITY
PERIOD FROM INCEPTION, APRIL 21, 2006, TO MARCH 31, 2013
(Stated in U.S. Dollars)
|
NUMBER OF COMMON SHARES
|
|
PAR VALUE
|
|
ADDITIONAL PAID-IN CAPITAL
|
|
ACCUMULATED OTHER COMPREHENSIVE INCOME
|
|
DEFICIT ACCUMULATED DURING THE EXPLORATION STAGE
|
TOTAL
|
Beginning balance, April 21, 2006
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
-
|
April 24, 2006 - shares issued for cash at $0.00001
|
6,000,000
|
|
60
|
|
-
|
|
-
|
|
-
|
60
|
Net loss for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
(10,440)
|
(10,440)
|
|
|
|
|
|
|
|
|
|
|
-
|
Balance, June 30, 2006
|
6,000,000
|
|
60
|
|
-
|
|
-
|
|
(10,440)
|
(10,380)
|
March 28, 2007 - shares issued for cash at $0.10
|
1,070,000
|
|
10
|
|
106,990
|
|
-
|
|
-
|
107,000
|
Net loss for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
(36,562)
|
(36,562)
|
Unrealized foreign exchange gain
|
-
|
|
-
|
|
-
|
|
6,309
|
|
-
|
6,309
|
|
|
|
|
|
|
|
|
|
|
-
|
Balance June 30, 2007
|
7,070,000
|
|
70
|
|
106,990
|
|
6,309
|
|
(47,002)
|
66,367
|
Net loss for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
(67,681)
|
(67,681)
|
Realized foreign exchange gain
|
-
|
|
-
|
|
-
|
|
(6,309)
|
|
|
(6,309)
|
|
|
|
|
|
|
|
|
|
|
-
|
Balance, June 30, 2008
|
7,070,000
|
-
|
70
|
-
|
106,990
|
-
|
-
|
|
(114,683)
|
(7,623)
|
Net loss for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
(22,415)
|
(22,415)
|
|
|
|
|
|
|
|
|
|
|
-
|
Balance, June 30, 2009
|
7,070,000
|
|
70
|
|
106,990
|
|
-
|
|
(137,098)
|
(30,038)
|
Net loss for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
(13,061)
|
(13,061)
|
|
|
|
|
|
|
|
|
|
|
-
|
Balance, June 30, 2010
|
7,070,000
|
|
70
|
|
106,990
|
|
-
|
|
(150,159)
|
(43,099)
|
Net loss for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
(88,253)
|
(88,253)
|
|
|
|
|
|
|
|
|
|
|
-
|
Balance, June 30, 2011
|
7,070,000
|
|
70
|
|
106,990
|
|
-
|
|
(238,412)
|
(131,352)
|
Net loss for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
(107,104)
|
(107,104)
|
|
|
|
|
|
|
|
|
|
|
-
|
Balance, June 30, 2012
|
7,070,000
|
|
70
|
|
106,990
|
|
-
|
|
(345,516)
|
(238,456)
|
Net loss for the period
|
-
|
|
-
|
|
-
|
|
-
|
|
(82,002)
|
(82,002)
|
|
|
|
|
|
|
|
|
|
|
-
|
Balance, March 31, 2013
|
7,070,000
|
|
70
|
|
106,990
|
|
-
|
|
(427,518)
|
(320,458)
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2013
(Stated in U.S. Dollars)
Organization
The Company was incorporated in the State of Nevada, U.S.A., on April 21, 2006.
Exploration Stage Activities
The Company has been in the exploration stage since its formation and is primarily engaged in the acquisition and exploration of mining claims. Upon location of a commercial minable reserve, the Company expects to actively prepare the site for its extraction and enter a development stage. During the fiscal year 2012, the Company entered into an agreement with Mayan Mineral Ltd. to acquire a resource property in Nevada (Note 4). Currently, the Company is actively looking for other mineral properties for its planned business operation.
Going Concern
These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.
The general business strategy of the Company is to acquire and explore mineral properties. The continued operations of the Company and the recoverability of mineral property costs is dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain necessary financing to complete the development of its properties, and upon future profitable production. The Company has not generated any revenues or completed development of any properties to date. Further, the Company has a working capital deficit of $320,458 (June 30, 2012 - $238,456), has incurred losses of $427,518 since inception, and further significant losses are expected to be incurred in the exploration and development of its mineral properties. The Company will require additional funds to meet its obligations and maintain its operations. There can be no guarantee that the Company will be successful in raising the necessary financing. Management’s plans in this regard are to raise equity financing as required.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might result from this uncertainty.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2013
(Stated in U.S. Dollars)
Basis of Presentation
The unaudited financial statements as of March 31, 2013 included herein have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. This disclosure presumes funds will be available to finance on-going development, operations and capital expenditures and the realization of assets and the payment of liabilities in the normal course of operations for the foreseeable future.
In the opinion of the Company’s management these financial statements reflect all adjustments necessary to present fairly the Company’s financial position at March 31, 2013 and the results of its operation for the nine months then ended. Operating results for the nine months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the year ending June 30, 2013. It is suggested that these financial statements be read in conjunction with June 30, 2012 audited financial statements and notes thereto.
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
The financial statements of the Company have been prepared in accordance with US GAAP. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. Actual results may vary from these estimates. The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below.
a) Exploration Stage Enterprise
The Company’s financial statements are prepared using the accrual method of accounting and according to the provisions of ASC 915 “Accounting and Reporting for Development Stage Enterprises,” as it devotes substantially all of its efforts to acquiring and exploring mineral properties. Until such properties are acquired and developed, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage.
b) Cash
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. There are no cash equivalents as at March 31, 2013 (June 30, 2012: $Nil).
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2013
(Stated in U.S. Dollars)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c) Mineral Property Acquisition Payments
The Company expenses all costs incurred on mineral properties to which it has secured exploration rights prior to the establishment of proven and probable reserves. If and when proven and probable reserves are determined for a property and a feasibility study prepared with respect to the property, then subsequent exploration and development costs of the property will be capitalized.
The Company regularly performs evaluations of any investment in mineral properties to assess the recoverability and/or the residual value of its investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable.
d) Exploration Expenditures
The Company follows a policy of expensing exploration expenditures until a production decision in respect of the project and the Company is reasonably assured that it will receive regulatory approval to permit mining operations, which may include the receipt of a legally binding project approval certificate.
e) Asset Retirement Obligations
The Company has adopted ASC 410, “Accounting for Asset Retirement Obligations”, which requires that an asset retirement obligation (“ARO”) associated with the retirement of a tangible long-lived asset be recognized as a liability in the period which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated asset.
The cost of the tangible asset, including the initially recognized ARO, is depleted, such that the cost of the ARO is recognized over the useful life of the asset. The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. The fair value of the ARO is measured using expected future cash flow, discounted at the Company’s credit-adjusted risk-free interest rate. To date, no significant asset retirement obligation exists due to the early stage of exploration. Accordingly, no liability has been recorded.
f) Use of Estimates and Assumptions
The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2013
(Stated in U.S. Dollars)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
g) Financial Instruments
ASC 820, “Fair Value Measurements and Disclosures” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:
Level 1 - Quoted prices in active markets for identical assets or liabilities;
Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and
Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.
The Company’s financial instruments consist principally of cash, accounts payable and accrued liabilities, and loan payable. Pursuant to ASC 820, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of the other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.
The Company’s operations are in Canada, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.
h) Environmental Costs
Environmental expenditures that relate to current operations are charged to operations or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are charged to operations. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company’s commitments to plan of action based on the then known facts.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2013
(Stated in U.S. Dollars)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
i) Income Taxes
The Company accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” and ASC 740 — Accounting for Uncertainty in Income Taxes, which require the liability method of accounting for income taxes. The liability method requires the recognition of deferred tax assets and liabilities for future tax consequences of temporary differences between the financial statement basis and the tax basis of assets and liabilities.
j) Basic and Diluted Net Loss Per Share
The Company reports basic loss per share in accordance with ASC 260 – “Earnings Per Share”. Basic loss per share is computed using the weighted average number of common stock outstanding during the period. Diluted loss per share is computed using the weighted average number of common and potentially dilutive common stock outstanding during the period. Diluted loss per share is equal to basic loss per share because there are no potential dilutive securities.
k) Foreign Currency Translation
The Company’s functional currency is the U.S. dollar. Transactions in foreign currencies are translated into U.S. dollars at the rate of exchange prevailing at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated into U.S. dollars at the rate prevailing at the balance sheet date. Non-monetary items are translated at the historical rate unless such items are carried at market value, in which case they are translated using exchange rates that existed when the value were determined. Any resulting exchange rate differences are recorded in the statement of operations.
3. RECENT ACCOUNTING PRONOUNCEMENTS ADOPTED
In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, which is effective for annual reporting periods beginning after December 15, 2011. This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. In addition, items of other comprehensive income that are reclassified to profit or loss are required to be presented separately on the face of the financial statements. This guidance is intended to increase the prominence of other comprehensive income in financial statements by requiring that such amounts be presented either in a single continuous statement of income and comprehensive income or separately in consecutive statements of income and comprehensive income. The Company adopted ASU 2011-05 on July 1, 2012 and there was no material impact on the Company’s financial position or results of operations upon the adoption.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2013
(Stated in U.S. Dollars)
3. RECENT ACCOUNTING PRONOUNCEMENTS (Continued)
In September 2011, the FASB issued an update to ASC Topic 350, “Intangibles — Goodwill and Other.” This ASU amends the guidance in ASC Topic 350-20 on testing for goodwill impairment. The revised guidance allows entities testing for goodwill impairment to have the option of performing a qualitative assessment before calculating the fair value of the reporting unit. The ASU does not change how goodwill is calculated or assigned to reporting units, nor does it revise the requirement to test annually for impairment. The ASU is limited to goodwill and does not amend the annual requirement for testing other indefinite-lived intangible assets for impairment. The Company adopted ASC Topic 350 on January 1, 2013 and there was no material impact on the Company’s financial position or results of operations upon the adoption.
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11 “Balance Sheet (Topic 210)—Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 requires an entity to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. ASU 2011-11 is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Retrospective disclosure is required for all comparative periods presented. The Company adopted ASU 2011-11 on January 1, 2013 and there was no material impact on the Company’s financial position or results of operations upon the adoption.
In July 2012, the FASB issued ASU No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). The amendments in this update provide an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. ASC 2012-02 is effective for fiscal years and interim periods beginning after September 15, 2012. The Company adopted ASU 2012-02 on January 1, 2013 and there was no material impact on the Company’s financial position or results of operations upon the adoption.
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2013
(Stated in U.S. Dollars)
4. MINERAL CLAIM INTEREST
On June 29, 2012 the Company entered into an agreement with Mayan Minerals Ltd. to acquire a resource property in Nevada. The property consists of two Minerals Lode Claims totaling 40 acres in the Fairview mining district, Churchill County, Nevada. The property is located 98 air miles southeast of Reno and is accessible by road. It is in the vicinity of the Bell Mountain Mining Project which lies along the Eastern margin of the Walker Lane mineral belt which contains a number of past-producing gold-silver deposits and major mining districts (e.g. Tonopah, Rawhide, Paradise Peak). All of the land underlying the property is administered by the US Bureau of Land Management. There is no private land in the area. The core of the GSR property is a block of 2 unpatented mining claims, covering 40 acres.
The Company paid $3,177 for recording and maintenance fee during the nine months ended March 31, 2013.
As at March 31, 2013, the titles of above claims have not been transferred to the Company and the related purchase consideration has not been determined as well.
5. CAPITAL STOCK
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a)
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On April 24, 2006, the Company issued 6,000,000 common shares at $0.00001 per share to two founding shareholders.
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b)
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On March 28, 2007, the Company closed its public offering and issued additional 1,070,000 common shares at $0.10.
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c) The Company has no stock option plan, warrants or other dilutive securities.
6.
LOAN PAYABLE
Loan payable consists of the following:
$130,451 (June 30, 2012: $111,006) was payable to 0787129 B.C. Ltd. of which $51,272 and $34,827 were the result of the assignment and transfer from loan payable to ATP Corporate Services Corp. and Bobcat Development, respectively. The loan amount is unsecured, interest-bearing at 12% per annual and due on demand. During the period ended March 31, 2013, the Company incurred and accrued interest expense of $10,560 (nine months ended March 31, 2012: $7,156).
$10,520 (June 30, 2012: $Nil) was payable to Bobcat Development (a non-related party). The loan amount is unsecured, interest-bears at 12% per annual and due on demand. During the period ended March 31, 2013, the Company incurred and accrued interest expenses of $306 (nine months ended March 31, 2012: $nil).
GOLDEN STAR RESOURCE CORP.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2013
(Stated in U.S. Dollars)
7.
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CONTRACTUAL OBLIGATIONS AND COMMITMENTS
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On July 1, 2010, the Company entered into a consulting agreement for services relating to corporate and financial affairs with a non-related party for a term of 24 months, unless terminated earlier, for a consideration of $30,000 a year and payable $2,500 per month. The agreement will automatically renew for a further 24 months unless one of the party gives a notice of nonrenewal. During the period ended March 31, 2013, the Company incurred and accrued a total consulting fee of $22,500 (nine months ended March 31, 2012: $22,500) in connection with the consulting agreement.
On July 1, 2010, the Company entered into an administrative services agreement with ATP Corporate Services for providing administration services over a term of 24 months for a consideration of $1,500 per month. The agreement will automatically renew for a further 24 months unless one of the party gives a notice of nonrenewal. Pursuant to the administrative services agreement, ATP Corporate is also entitled for reimbursement of office and rent expenses incurred. During the period ended March 31, 2013, the Company incurred and accrued a total of $13,500 and $4,500 (nine months ended March 31, 2012: $13,500 and $4,500) for the administrative expense and office expense.