Nevada
|
|
98-040020
|
(State
or other jurisdiction of
|
|
(I.R.S.
Employer Identification No.)
|
incorporation
or organization)
|
|
|
PART
I
|
|
|
||
|
|
|
||
Item
1.
|
Description
of Business
|
2
|
||
Item
2.
|
Description
of Property
|
12
|
||
Item
3.
|
Legal
Proceedings
|
13
|
||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
14
|
||
|
|
|
||
PART
II
|
|
|
||
|
|
|
||
Item
5.
|
Market
for Common Equity and Related Stockholder Matters
|
14
|
||
Item
6.
|
Management's
Discussion and Analysis or Plan of Operation
|
15
|
||
Item
7.
|
Financial
Statements
|
18
|
||
Item
8.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
19
|
||
Item
8A.
|
Controls
and Procedures
|
20
|
||
Item
8B.
|
Other
Information
|
|
||
|
|
|
||
PART
III
|
|
|
||
|
|
|
||
Item
9.
|
Directors,
Executive Officers, Promoter and Control Persons; Compliance
with
Section 16(a) of the Exchange Act
|
20
|
||
Item
10.
|
Executive
Compensation
|
22
|
||
Item
11.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
23
|
||
Item
12.
|
Certain
Relationships and Related Transactions; Director Independence
|
24
|
||
Item
13.
|
Exhibits
|
24
|
||
Item
14.
|
Principal
Accountant Fees and Services
|
24
|
||
|
|
|
||
SIGNATURES
|
|
25
|
• |
risks
and uncertainties relating to the interpretation of drill results,
the
geology, grade and continuity of mineral
deposits;
|
• |
results
of initial feasibility, pre-feasibility and feasibility studies,
and the
possibility that future exploration, development or mining results
will
not be consistent with our
expectations;
|
• |
mining
and development risks, including risks related to accidents, equipment
breakdowns, labor disputes or other unanticipated difficulties
with or
interruptions in production;
|
• |
the
potential for delays in exploration or development activities or
the
completion of feasibility studies;
|
• |
risks
related to the inherent uncertainty of production and cost estimates
and
the potential for unexpected costs and
expenses;
|
• |
risks
related to commodity price
fluctuations;
|
• |
the
uncertainty of profitability based upon our history of
losses;
|
• |
risks
related to failure to obtain adequate financing on a timely basis
and on
acceptable terms for our planned exploration and development
projects;
|
• |
risks
related to environmental regulation and
liability;
|
• |
risks
that the amounts reserved or allocated for environmental compliance,
reclamation, post-closure control measures, monitoring and on-going
maintenance may not be sufficient to cover such
costs;
|
• |
risks
related to tax assessments;
|
• |
political
and regulatory risks associated with mining development and exploration,
particularly as it relates to operations in
Russia;
|
• |
other
risks and uncertainties related to our prospects, properties and
business
strategy;
|
• |
our
ability to implement our business
plan;
|
• |
our
ability to hire and maintain the personnel necessary to operate
our
business.
|
Item 1. |
Description
of Business
|
• |
insufficient
ore reserves;
|
• |
fluctuations
in production costs that may make mining of ore
uneconomic;
|
• |
declines
in the price of gold;
|
• |
significant
environmental and other regulatory
restrictions;
|
• |
labor
disputes;
|
• |
geological
problems;
|
• |
pit
walls or tailings dam failures;
|
• |
natural
catastrophes such as floods or
earthquakes;
|
• |
political
risks associated with operations in developing countries;
and
|
• |
the
risk of injury to persons, property or the
environment.
|
Item 2. |
Description
of Properties
|
Item 3. |
Legal
Proceedings
|
Item 4. |
Submission
of Matters to a Vote of the
Securityholders
|
Item 5. |
Market
for Our Common Stock and Related Stockholder
Matters
|
Periods
|
High
|
Low
|
|||||
|
|
|
|||||
October
23, 2006 to December 31, 2006
|
$
|
4.50
|
$
|
1.15
|
|||
Financial
Quarter
Ended:
|
|||||||
March
31, 2007
|
$
|
7.00
|
$
|
3.80
|
|||
June
30, 2007
|
$
|
7.60
|
$
|
3.85
|
|||
September
30, 2007
|
$
|
0.65
|
$
|
0.15
|
|||
December
31, 2007
|
$
|
0.522
|
$
|
0.20
|
Item 6. |
Management's
Discussion and Analysis or Plan of
Operation
|
Budget
|
Total
US$
|
|||
Prospecting
- Mapping, geochemical sampling, due diligence of potential acquisition
targets
|
2,
458, 000
|
|||
Construction
|
400,000
|
|||
Payment
for mining sites
|
5,
000, 000
|
|||
Purchase
of deposits
|
450,
000
|
|||
Material
- technical expenses
|
80,
000
|
|||
Machines
and equipment
|
2,
003, 000
|
|||
Other
expenses
|
600,
000
|
|||
Administrative-and-managerial
expenses
|
437,000
|
|||
|
||||
Total
cost
|
11,
428, 000
|
Report
of Independent Registered Public Accounting Firm
|
F-1
|
|
Balance
Sheets
|
F-2
|
|
Statements
of Operations and Comprehensive Loss
|
F-3
|
|
Statements
of Stockholders' Equity
|
F-4
|
|
Statements
of Cash Flows
|
F-5
|
|
Notes
to Financial Statements
|
F-6 – F-17
|
/s/ SF, Partnership, LLP | |
Toronto,
Canada
|
CHARTERED
ACCOUNTANTS
|
2007
|
2006
|
||||||
ASSETS
|
|||||||
Current
|
|||||||
Cash
|
$
|
2,930
|
$
|
7,879
|
|||
Prepaid
expenses
|
31,229
|
-
|
|||||
Total
Current Assets
|
34,159
|
7,879
|
|||||
Loan
Receivable
(note 4)
|
1,009,925
|
1,000,000
|
|||||
Total
Assets
|
$
|
1,044,084
|
$
|
1,007,879
|
|||
LIABILITIES
|
|||||||
Current
|
|||||||
Accounts
payable
|
$
|
80,626
|
$
|
25,282
|
|||
Accrued
liabilities
|
47,069
|
-
|
|||||
Advance
from related party (note 10)
|
-
|
240
|
|||||
Loans
payable (note 5)
|
155,042
|
-
|
|||||
Total
Current Liabilities
|
282,737
|
25,522
|
|||||
Total
Liabilities
|
282,737
|
25,522
|
|||||
STOCKHOLDERS'
EQUITY
|
|||||||
Capital
Stock (note 6)
|
|||||||
Authorized
|
|||||||
1,000,000,000
common stock, par value $0.0001 per share
|
|||||||
Issued
and outstanding 41,219,311 (2006 - 81,000,000) common
stock
|
4,122
|
8,100
|
|||||
Additional
Paid-in Capital
|
1,551,698
|
1,036,900
|
|||||
Accumulated
Other Comprehensive Loss
|
(209,075
|
)
|
-
|
||||
Deficit
Accumulated During the Development Stage
|
(585,398
|
)
|
(62,643
|
)
|
|||
Total
Stockholders' Equity
|
761,347
|
982,357
|
|||||
Total
Liabilities and Stockholders' Equity
|
$
|
1,044,084
|
$
|
1,007,879
|
Period
|
||||||||||
from Date of
|
||||||||||
Inception
|
||||||||||
(May 21, 2003)
|
||||||||||
through
|
||||||||||
December 31,
|
||||||||||
2007
|
2006
|
2007
|
||||||||
Revenue
|
$
|
-
|
$
|
4,127
|
$
|
68,739
|
||||
Cost
of Sales
|
-
|
3,259
|
60,508
|
|||||||
Gross
Profit
|
-
|
868
|
8,231
|
|||||||
Expenses
|
||||||||||
Professional
fees
|
340,152
|
29,482
|
384,979
|
|||||||
Office
and general
|
82,603
|
1,097
|
87,635
|
|||||||
Salary
and benefits
|
80,000
|
-
|
80,000
|
|||||||
Consulting
fees
|
20,000
|
-
|
20,000
|
|||||||
Bad
debt
|
-
|
26,915
|
26,915
|
|||||||
Total
Expenses
|
522,755
|
57,494
|
599,529
|
|||||||
Operating
Loss
|
(522,755
|
)
|
(56,626
|
)
|
(591,298
|
)
|
||||
Other
Income
|
||||||||||
Debt
forgiveness
|
-
|
5,900
|
5,900
|
|||||||
Net
Loss
|
(522,755
|
)
|
(50,726
|
)
|
(585,398
|
)
|
||||
Unrealized
loss on investment
|
(209,075
|
)
|
-
|
(209,075
|
)
|
|||||
Comprehensive
Loss
|
$
|
(731,830
|
)
|
$
|
(50,726
|
)
|
$
|
(794,473
|
)
|
|
Net
Loss per Share
|
||||||||||
Basic
and Diluted
|
$
|
(0.01
|
)
|
(0.00
|
)
|
|||||
Basic
and Diluted Weighted Average Number of Common Shares Outstanding
During
the Year
|
59,891,775
|
80,084,932
|
Deficit
|
|||||||||||||||||||
Accumulated
|
Accumulated
|
||||||||||||||||||
Number of
|
Additional
|
During the
|
Other
|
||||||||||||||||
Common
|
Capital
|
Paid-in
|
Development
|
Comprehensive
|
Stockholders'
|
||||||||||||||
Shares
|
Stock
|
Capital
|
Stage
|
Loss
|
Equity
|
||||||||||||||
Balance,
May 21, 2003 (note 6)
|
1,000,000
|
$
|
1,000
|
$
|
4,000
|
$
|
-
|
$
|
-
|
$
|
5,000
|
||||||||
Net
loss for the period
|
-
|
-
|
-
|
(1,728
|
)
|
-
|
(1,728
|
)
|
|||||||||||
Balance,
December 31, 2003
|
1,000,000
|
$
|
1,000
|
$
|
4,000
|
$
|
(1,728
|
)
|
$
|
-
|
$
|
3,272
|
|||||||
Common
shares issued for cash (note 6)
|
1,000,000
|
1,000
|
39,000
|
-
|
-
|
40,000
|
|||||||||||||
Net
loss for the year
|
-
|
-
|
-
|
(4,513
|
)
|
-
|
(4,513
|
)
|
|||||||||||
Balance,
December 31, 2004
|
2,000,000
|
$
|
2,000
|
$
|
43,000
|
$
|
(6,241
|
)
|
$
|
-
|
$
|
38,759
|
|||||||
Net
loss for the year
|
-
|
-
|
-
|
(5,676
|
)
|
-
|
(5,676
|
)
|
|||||||||||
Balance,
December 31, 2005 - as previously reported
|
2,000,000
|
$
|
2,000
|
$
|
43,000
|
$
|
(11,917
|
)
|
$
|
-
|
$
|
33,083
|
|||||||
Restated
to give retroactive effect to the November 23, 2006 1 for 40 stock
split
(note 6)
|
78,000,000
|
6,000
|
(6,000
|
)
|
-
|
-
|
-
|
||||||||||||
December
31, 2005 - as restated
|
80,000,000
|
8,000
|
37,000
|
(11,917
|
)
|
-
|
33,083
|
||||||||||||
Common
shares issued for cash
|
1,000,000
|
100
|
999,900
|
-
|
-
|
1,000,000
|
|||||||||||||
Net
loss for the year
|
-
|
-
|
-
|
(50,726
|
)
|
-
|
(50,726
|
)
|
|||||||||||
Balance,
December 31, 2006
|
81,000,000
|
$
|
8,100
|
$
|
1,036,900
|
$
|
(62,643
|
)
|
$
|
-
|
$
|
982,357
|
|||||||
Common
shares issued for cash (note 6)
|
194,311
|
19
|
414,413
|
-
|
-
|
414,432
|
|||||||||||||
Common
shares issued for services (note 6)
|
25,000
|
3
|
2,497
|
-
|
-
|
2,500
|
|||||||||||||
Warrants
issued for cash (note 6)
|
-
|
-
|
93,888
|
-
|
-
|
93,888
|
|||||||||||||
Common
shares cancelled (note 6)
|
(40,000,000
|
)
|
(4,000
|
)
|
4,000
|
-
|
-
|
-
|
|||||||||||
Net
loss for the year
|
-
|
-
|
-
|
(522,755
|
)
|
-
|
(522,755
|
)
|
|||||||||||
Unrealized
loss on investment, net of income taxes of $0
|
-
|
-
|
-
|
-
|
(209,075
|
)
|
(209,075
|
)
|
|||||||||||
Balance,
December 31, 2007
|
41,219,311
|
$
|
4,122
|
$
|
1,551,698
|
$
|
(585,398
|
)
|
$
|
(209,075
|
)
|
$
|
761,347
|
Period
|
||||||||||
from Date of
|
||||||||||
Inception
|
||||||||||
(May 21, 2003)
|
||||||||||
through
|
||||||||||
December 31,
|
||||||||||
2007
|
2006
|
2007
|
||||||||
Cash
Flows from Operating Activities
|
||||||||||
Net
loss
|
$
|
(522,755
|
)
|
$
|
(50,726
|
)
|
$
|
(585,398
|
)
|
|
Adjustment
to reconcile non-cash item:
|
||||||||||
Issuance
of common stock for services
|
2,500
|
-
|
2,500
|
|||||||
Changes
in working capital:
|
||||||||||
Prepaid
expenses
|
(31,229
|
)
|
-
|
(31,229
|
)
|
|||||
Accounts
payable
|
55,344
|
25,193
|
80,626
|
|||||||
Accrued
liabilities
|
47,069
|
-
|
47,069
|
|||||||
Accounts
receivable
|
-
|
26,915
|
-
|
|||||||
Net
Cash (Used in) Provided by Operating Activities
|
(449,071
|
)
|
1,382
|
(486,432
|
)
|
|||||
Cash
Flows from Investing Activities
|
||||||||||
Loan
receivable
|
(219,000
|
)
|
(1,000,000
|
)
|
(1,219,000
|
)
|
||||
Net
Cash Used in Investing Activities
|
(219,000
|
)
|
(1,000,000
|
)
|
(1,219,000
|
)
|
||||
Cash
Flows from Financing Activities
|
||||||||||
Issuance
of common stock and warrants for cash
|
508,320
|
1,000,000
|
1,553,320
|
|||||||
Advance
from related party
|
(240
|
)
|
(3,660
|
)
|
-
|
|||||
Loans
payable
|
155,042
|
-
|
155,042
|
|||||||
Net
Cash Provided by Financing Activities
|
663,122
|
996,340
|
1,708,362
|
|||||||
Net
(Decrease) Increase in Cash
|
(4,949
|
)
|
(2,278
|
)
|
2,930
|
|||||
Cash
- Beginning of Period
|
7,879
|
10,157
|
-
|
|||||||
Cash
- End of Period
|
$
|
2,930
|
$
|
7,879
|
$
|
2,930
|
1.
|
Description
of Business and Going Concern
|
a)
|
Description
of Business
|
b)
|
Going
Concern
|
2.
|
Summary
of Significant Accounting
Policies
|
a)
|
Reporting
Currency
|
b)
|
Revenue
Recognition
|
c)
|
Comprehensive
Income (Loss)
|
d)
|
Asset
Retirement Obligations
|
2.
|
Summary
of Significant Accounting Policies (cont'd)
|
d)
|
Asset
Retirement Obligations (cont'd)
|
e)
|
Income
Tax
|
f)
|
Impairment
of Long-lived Assets
|
2.
|
Summary
of Significant Accounting Policies (cont'd)
|
g)
|
Earnings
(Loss) per Share
|
h)
|
Concentration
of Credit Risk
|
SFAS
No. 105, "Disclosure of Information About Financial Instruments with
Off-Balance-Sheet Risk and Financial Instruments with Concentration
of
Credit Risk," requires disclosure of any significant off-balance-sheet
risk and credit risk concentration. The Company does not have significant
off-balance-sheet risk or credit concentration.
|
The
Company provides credit to its clients in the normal course of its
operations. It carries out, on a continuing basis, credit checks
on its
clients and maintains provisions for contingent credit losses that,
once
they materialize, are consistent with management's
forecasts.
|
i)
|
Use
of Estimates
|
2.
|
Summary
of Significant Accounting Policies (cont'd)
|
j)
|
Share-Based
Payment
|
k)
|
Recent
Accounting Pronouncements
|
2.
|
Summary
of Significant Accounting Policies (cont'd)
|
k)
|
Recent
Accounting Pronouncements (cont'd)
|
2.
|
Summary
of Significant Accounting Policies (cont'd)
|
k)
|
Recent
Accounting Pronouncements (cont'd)
|
2.
|
Summary
of Significant Accounting Policies (cont'd)
|
k)
|
Recent
Accounting Pronouncements (cont'd)
|
3.
|
Financial
Instruments
|
4.
|
Loan
Receivable
|
5.
|
Loans
Payable
|
6.
|
Capital
Stock
|
6.
|
Capital
Stock (cont'd)
|
Weighted
|
||||||||||
Weighted
|
Average
|
|||||||||
Average
|
Remaining
|
|||||||||
Number of
|
Exercise
|
Contractual
|
||||||||
Warrants
|
Price
|
Term
|
||||||||
Balance,
January 1, 2006
|
-
|
$
|
-
|
|||||||
Issued
during the year
|
1,000,000
|
2.50
|
1.97
Years
|
|||||||
Exercised
during the year
|
-
|
-
|
||||||||
Forfeitures
during the year
|
-
|
-
|
||||||||
Expired
during the year
|
-
|
-
|
||||||||
Balance,
December 31, 2006
|
1,000,000
|
$
|
2.50
|
1.97
years
|
||||||
Issued
during the year
|
55,555
|
$
|
7.00
|
1.42
years
|
||||||
Exercised
during the year
|
-
|
-
|
||||||||
Forfeitures
during the year
|
-
|
-
|
||||||||
Expired
during the year
|
-
|
-
|
||||||||
Balance,
December 31, 2007
|
1,055,555
|
$
|
2.74
|
0.99
years
|
Weighted
|
|||||||||||
Weighted
|
Average
|
||||||||||
Range
of
|
Average
|
Remaining
|
|||||||||
exercise
|
Number of
|
Exercise
|
Contractual
|
||||||||
prices
|
Warrants
|
Price
|
Term
|
||||||||
$
|
2.50
|
1,000,000
|
$
|
2.50
|
0.97
year
|
||||||
$
|
7.00
|
55,555
|
$
|
7.00
|
1.42
years
|
7.
|
Income
Taxes
|
Expected
income tax recovery at the statutory rate - 31%
|
$
|
(164,145
|
)
|
|
Valuation
allowance
|
164,145
|
|||
Current
provision for income taxes
|
$
|
-
|
Net
operating loss carryforward
|
$
|
183,815
|
||
Valuation
allowance for deferred income tax assets
|
(183,815
|
)
|
||
Deferred
income tax assets
|
$
|
-
|
$
|
1,728
|
|||
2024
|
4,513
|
|||
2025
|
5,676
|
|||
2026
|
50,726
|
|||
2027
|
522,755
|
|||
$
|
585,398
|
8.
|
Subsequent
Events
|
9.
|
Commitment
|
10.
|
Advance
from Related Party
|
11.
|
Comparative
Figures
|
Item 8. |
Changes
in and Disagreements with
Accountants
|
Item 8A. |
Control
and Procedures
|
Item 9. |
Directors,
Executive Officers, Promoters and Control Persons; Compliance
with
Section 16(a) of the Exchange Act
|
Name
|
Age
|
Position(s)
|
Period
Serving
|
|||
|
|
|
|
|||
Marcus
Segal
|
36
|
President,
CEO,
|
Since
November 2006
|
|||
|
|
CFO
and Director
|
|
|||
F.
Bryson Farrill
|
79
|
Director
|
Since
September 2007
|
|||
Keith
C. Minty
|
52
|
Director
|
Since
October 2007
|
Item 10. |
Executive
Compensation
|
Compensation
|
Annual
Compensation
|
Long-Term
|
||||||||||||||
Other
|
Awards
|
|||||||||||||||
Name
and
|
Annual
|
Payouts
|
||||||||||||||
Position(s)
|
Year
|
Salary
|
Bonus
|
Comp.
|
||||||||||||
Marcus
Segal
|
2007
|
$
|
80,000
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||
President
and CEO
|
2006
|
-
|
-
|
-
|
-
|
|||||||||||
|
||||||||||||||||
Sheldon
Goldberg*
|
2006
|
-
|
-
|
-
|
-
|
|||||||||||
President
and CEO
|
2005
|
-
|
-
|
-
|
-
|
|||||||||||
|
||||||||||||||||
David
F. Knapfel*
|
2006
|
-
|
-
|
-
|
-
|
|||||||||||
VP,
Treasurer,
|
2005
|
-
|
-
|
-
|
-
|
|||||||||||
Principal
|
||||||||||||||||
Accounting
Officer
|
||||||||||||||||
and
Secretary
|
Name
and Address
|
Amount and Nature of
|
|
|||||
of
Beneficial Owner
|
Beneficial Ownership
|
Percent of Class
|
|||||
|
|
|
|||||
Evgeny
Belchenko (1)
|
15,000,000
|
26.7
|
%
|
||||
Marcus
Segal (2) (3)
|
0
|
*
|
|||||
2643
20th Street
|
|||||||
San
Francisco, CA 94110
|
|
||||||
F.
Bryson Farrill (2) (3)
|
0
|
*
|
|||||
Keith
C. Minty (2) (3)
|
0
|
*
|
|||||
as
a Group (3 persons)
|
(1)
|
The
address for Mr. Belchenko is Lenick Prospect 6, Str. 7, Suite 15-20,
Moscow 119991, Russian Federation.
|
(2)
|
The
address for each of the above identified executive officers and directors
is c/o Stargold Mines, Inc., 1840 Gateway Drive, Suite 200, San Mateo,
California 94404.
|
(3)
|
Mr.
Segal is the President, Chief Executive Officer, Chief Financial
Officer
and a Director of the Company. Messrs. Farrill and Minty are
Directors.
|
Item 12. |
Certain
Relationships and Related Transactions; Director
Independence
|
Item 13. |
Exhibits
|
Exhibit No.
|
Description
|
|
31.1.
|
Certification
by Principal Executive Officer and Financial Officer pursuant to
Rule
13a-14 and Rule 15d-14 of the Securities Exchange Act of
1934.*
|
|
32.1.
|
Certification
by Principal Executive Officer and Financial Officer pursuant to
Section
906 of the Sarbanes-Oxley Act of 2002 (18 USC
1350).*
|
* | Filed herewith |
Item 14. |
Principal
Accounting Fees and
Services
|
Date: April 14, 2008 | ||
STARGOLD MINES, INC. | ||
(Registrant) | ||
By: |
/s/
Marcus Segal
|
|
Name:
Marcus Segal
|
||
Title:
Chief Executive Officer, Chief Financial
Officer,
Secretary, Principal Accounting Officer,
and
Director
|