Liquidity and Solvency
Orefinders is in the exploration stage and therefore has no regular cash flow. As at October 31, 2016, the Company had a working capital deficiency of $596,308 (2015: positive working capital of $217,624).
As at October 31, 2016, the Company had current assets of $527,838 (2015: $256,587), total assets of $9,516,441 (2015: $8,358,263) and total liabilities of $1,124,146 (2015: $38,963). The Company has no long-term debt. There are no known trends in the Company’s liquidity or capital resources.
As at October 31, 2016, the principal assets of the Company are its mineral exploration properties, amounting to $8,988,603 (2015: $8,092,380).
Cash increased by $123,242 during the year ended October 31, 2016 (2015: $104,695). Cash used in operating activities amounted of $349,580 (2015: $415,392) and cash used for exploration and evaluation expenditures amounted to $276,805 (2015: $384,163). These decreases were offset by cash provided by the issue of common shares and warrants in the amount of $367,850 (2015: $300,000), proceeds from the sale of capital assets in the amount of $15,000 (2015: $Nil), royalty sale revenue, net of legal fees of $34,554 (2015: $Nil) and proceeds on loan payable advanced in the amount of $450,000 (2015: $Nil) during the year ended October 31, 2016.
Cash flow to date has not satisfied the Company’s operational requirements. The development of the Company may in the future depend on the Company’s ability to obtain additional financings. In the past, the Company has relied on the sale of equity securities to meet its cash requirements. Future developments, in excess of funds on hand, will depend on the Company’s ability to obtain financing through joint venturing of projects, debt financing, equity financing or other means. There can be no assurances that the Company will be successful in obtaining any such financing or in joint venturing its property.