Gold Star Resources Corp. Files Audited Annual Report With SEDAR

Gold Star Resources Corp. [NEX: GXX.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Cash decreased from $3,028 as of June 30/06, to $426 as of June 30/07. GST receivables, though, increased by $5,037 in the same time period to $7,173. As a result, current assets increased from $5,164 as of the end of FY '06 to $7,599 as of the end of FY '07. Current liabilities decreased from $147,769 to $58,669, due to a $29,792 decrease in accounts payable & accrued liabilities and a $59,308 decrease in amounts due to related parties. Consequently, the working capital deficiency shrunk from $142,605 as of the end of FY '06 to $51,070 as of the end of FY '07. Book value increased from -2.72 cents/share to -0.859 cents/share. The decreases in current liabilities and increase in book value were caused by $378,250 worth of proceeds from the private-placement issuance of 2,225,000 common shares in FY '07, as explained in Note 4 (b). Note 4(c) discloses that there are currently 2,225,000 warrants outstanding from that placement, with exercise price of 23 cents per warrant and expiry date of March 6, 2008.

Net loss before other items for FY '07 increased to $279,904 from $204,221 in FY '06. Most of the expenses categories increased in FY '07: accounting and legal expense increased $10,021 to $44,127; interest and bank charges increased by $69 to $484; consulting fees increased to $41,500 by the same amount; general exploration expense increased from nil to $39,789; and, office, rent and telephone expenses increased by $12,361 to $40,466. Investor communication, trade shows and web site expenses decreased by $129 to $4,473; transfer agent and regulatory fees decreased by $1,632 to $10,174; and, write-off of mineral property expenditures decreased by $26,296 to $68,891. Net loss increased from 3.90 cents/share to 4.82 cents/share. As explained in Note 3, the addition of the mineral property expenditues in FYs '07 and '06 was due to the abandonment of two options on two different properties, one during each fiscal year. As of June 30th of this year, Gold Star has $1,103,044 of non-capital tax losses, $74,186 of which expire in 2008, and unclaimed resource deductions in the amount of $1,076,171.

The accompanying M D & A [PDF file] says that three properties have been abandoned by Gold Star since 2004, and that the company is "desirous of finding a mineral project and has been actively looking at several properties... but there are certain conditions to meet. Any project the Company wishes to acquire must have a 43-101 report to comply with regulatory requirements. In addition, the Company needs to engage personnel with mineral exploration experience to assess, monitor and manage the projects." It also discloses that the consulting fees and exploration expenses were paid to find a property that meets these conditions, and that the company had had no revenue since, most recently, as of the beginning of FY 2006. GXX.H closed Monday at 19 cents/share, up 1 cent/share since Friday's close.