SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of AUGUST , 2003.
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IMA EXPLORATION INC.
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(Translation of registrant's name into English)
#709 - 837 West Hastings Street, Vancouver, British Columbia, V6C 3N6, Canada
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): _______
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): _______
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3- 2(b): 82-_____________
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned, thereunto duly authorized.
IMA Exploration Inc.
(Registrant)
Date August 29, 2003 By /s/ William Lee
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(Signature)
William Lee, Director and Chief Financial Officer
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1 Print the name and title of the signing officer under his signature.
IMA EXPLORATION INC.
Suite 709 - 837 West Hastings Street,
Terminal City Club Tower,
Vancouver, B.C. V6C 3N6
Tel: 604-687-1828 Fax: 604-687-1858 Toll Free: 800-901-0058
Internet: www.imaexploration.com E-mail: info@imaexploration.com
TSX Venture Exchange: IMR OTC Bulletin Board: IMXPF
Frankfurt & Berlin Exchanges: IMT (WKN 884971)
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NEWS RELEASE AUGUST 29, 2003
2ND QUARTER REPORT
IMA has released its June 30, 2003 interim report. The following is a summary of
the information in the report.
Three Months Ended June 30, Six Months Ended June 30,
-------------------------- --------------------------
2003 2002 2003 2002
$ $ $ $
EXPENSES
Administrative and management services 57,900 57,715 117,150 116,415
Bank charges and interest 2,692 3,838 5,969 5,337
Corporate development and investor relations 97,524 72,272 170,666 123,212
Depreciation 5,546 4,892 11,092 9,784
General exploration 63,369 37,775 121,593 52,702
Office and sundry 18,058 9,510 26,033 18,300
Printing 7,646 13,380 14,682 17,935
Professional fees 20,322 72,051 48,266 75,058
Rent, parking and storage 13,244 17,922 27,106 35,802
Salaries and employee benefits 48,990 47,496 97,934 96,459
Telephone and utilities 9,382 6,480 19,806 13,319
Transfer agent and regulatory fees 30,807 20,234 35,345 26,756
Travel and accommodation 21,775 63,006 32,770 74,794
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LOSS BEFORE THE FOLLOWING (397,255) (426,571) (728,412) (665,873)
FOREIGN EXCHANGE (22,066) (12,873) (4,717) (9,462)
INTEREST AND MISCELLANEOUS INCOME 11,935 3,093 16,711 6,305
------------ ------------ ------------ ------------
LOSS FOR THE PERIOD (407,386) (436,351) (716,418) (669,030)
DEFICIT - BEGINNING OF PERIOD (14,467,977) (12,951,518) (14,158,945) (12,718,839)
------------ ------------ ------------ ------------
DEFICIT - END OF PERIOD (14,875,363) (13,387,869) (14,875,363) (13,387,869)
============ ============ ============ ============
BASIC AND DILUTED LOSS
PER COMMON SHARE $(0.01) $(0.02) $(0.02) $(0.03)
============ ============ ============ ============
OVERVIEW
The Company owns outright, or has the right to acquire through various option
agreements, interests in a number of exploration properties in Argentina and one
property in Peru.
The properties on which the Company has concentrated its exploration efforts are
Navidad, Las Bayas, Mogote and Rio Tabaconas. The Company has also acquired,
through staking, interests in a number of properties in Chubut. With its focus
on the Navidad property, the Company is considering farm-outs for some of its
properties as a means by which exploration can be conducted. At the Navidad
property a drilling program, budgeted to cost approximately US$1.5 million, is
scheduled to begin in late September. The Company is also anticipating that a
follow-up program will be required.
PROPERTY UPDATE
The Company's mineral property groups are Valle de Cura , Gualcamayo, NW San
Juan and Chubut in Argentina; and, in Peru, Rio Tabaconas. For the quarter ended
June 30,2003, the Company focused mainly in Argentina on staking new grassroots
properties in the Chubut region and completing exploration work on the Mogote
property, within the NW San Juan Group, and on the Las Bayas and Navidad
Properties within the Chubut Group.
a) Argentina
Valle de Cura
The Company has no exploration budget commitment for the Valle del Cura region
in Argentina as this group of properties is covered under the existing option
agreement with Barrick Gold Corp.
Gualcamayo
The Company has no exploration budget commitment for the Gualcamayo region in
Argentina.
NW San Juan
In February, the Company received an offer to joint venture the property from
Amera Resources Corporation ("Amera"). Amera has a common director with IMA and
accordingly an independent committee of the Board of Directors of the Company
was formed to negotiate and settle on the terms of the farm-out agreement with
Amera. After negotiations the Company entered into an agreement to option this
property to Amera, a private company which, as of August 8, 2003, has filed a
preliminary prospectus with the TSX Venture Exchange (the "Exchange") and the BC
Securities Commission. Amera has a common director with the Company and the
farm-out to Amera is also subject to Exchange approval. Under the terms of the
agreement, Amera can earn 51% interest by spending US$1,250,000 in exploration
and development expenditures on the property and issuing 1,650,000 of its common
shares to the Company in varying amounts over 5 years. Included in the
expenditure commitment of Amera is an obligation to reimburse the Company for
all the expenditures it has incurred on the property.
Chubut
Early in 2003, the Company staked a number of properties in various areas of the
province of Chubut. Some of the properties staked included Costa, Lago, Pico,
Corcovado, Loma Alto and Nueva Ruta properties. These properties were staked in
order to target geological environments prospective for low sulphidation gold
veins. Other properties staked included Penascudo and Gan Gan and extensions to
the previously staked Costa property. The Company also has rights to other
properties through various staking programs. The Company's inventory of resource
exploration properties in Chubut is an asset which is to be developed through
exploration programs or given the focus of exploration efforts at Navidad
through third party agreements.
On March 6, 2003, the Company entered into an agreement to sell a 100 %
undivided interest in Lago Pico (10,000 ha), Loma Alta (10,000 ha) and Nueva
Ruta (4,180 ha) to Amera. The terms of the agreement were approved by the
independent committee of the Company. Upon approval by the Exchange, Amera will
issue 500,000 common shares to the Company. In addition, in the event that a
decision is made to place any of the properties into commercial production, the
Company will receive a bonus of US$250,000 and a 3 % net smelter return royalty.
On May 28, 2003, the Company granted Ballad Ventures Ltd. ("Ballad"), a public
company listed on the Exchange, an exclusive right to enter into an option
agreement with IMA to earn up to 85 % interest in the Penascudo property. This
right was exercised by Ballad on August 12, 2003 and Ballad's participation is
subject to acceptance for filing with the Exchange. To earn the 85 % interest in
the property, Ballad must complete US$1,800,000 of exploration work by October
31, 2008, issue 500,000 shares to the Company, make a further US$300,000 cash
payment, issue 500,000 shares and complete a feasibility study on or before
October 31, 2008. Ballad is an arm's length junior exploration company.
On August 27, 2003, the Company finalized terms for a farm-out of a 1,000
hectare Chubut property to Consolidated Pacific Bay Minerals ("Pacific Bay"), an
arm's length junior exploration company. Under the terms of the option
agreement, Pacific Bay can earn a 51% interest by funding US$625,000 of
exploration and issuing 900,000 shares. Pacific Bay's participation is subject
to acceptance for filing with the Exchange. Pacific Bay can increase its
interest to 70% by funding costs to prepare a feasibility study.
Navidad Project
On February 3, 2003 the Company announced the discovery of high-grade
silver-lead-copper mineralization on it's 100% owned Navidad Property in
north-central Chubut Province. Since this discovery, the Navidad Project has
become the focus of the Company's exploration efforts.
Rock chip sampling and geologic mapping have defined three distinct yet related
styles of mineralization at the Navidad Project; namely "bonanza-grade
structures", "mineralized carapace breccia", and "galena matrix breccia". These
mineralization styles have been mapped along a linear ridge named "Navidad
Ridge" that is comprised of "Barite", "Galena", and "Navidad Hills".
Dr. Paul Lhotka, P.Geo. has performed or directly supervised all exploration
work at the Navidad Project and is the Company's "Qualified Person" for the
project.
A soil sample grid has been completed covering the entire Navidad Ridge area and
encompassing a strike length of 5.8 kilometres. All samples were analyzed by ALS
Chemex by ICP and AA techniques. Sample collection was overseen by Dr. Paul
Lhotka, P.Geo., IMA's Qualified Person on the Navidad Project. Review of the
data for blanks and duplicate samples indicates no contamination or
reproducibility problems were encountered.
Induced Polarization (IP) geophysical surveys utilizing both gradient array and
pole-dipole arrays have been completed at the Navidad Project. The IP surveys
were performed by Quantec Geoscience Ltd.
The IP surveys have identified a chargeability anomaly with a surface footprint
of 1.6 km x 1.3 km that starts near surface in areas of exposed mineralization
at Galena Hill and in some cases extends to depths of approximately 300 metres.
Pole-dipole survey results show an excellent correlation between chargeability
and mapped exposures of more intense examples of galena matrix breccia
mineralization. The large chargeability anomaly extends over 1 km to the
southwest of known mineralization in an area completely obscured by soil cover.
Chargeability anomalies are generally caused by minerals such as: base-metal
sulphides, pyrite, graphite, hematite and magnetite. Pyrite, graphite, hematite,
and magnetite have not been observed on surface at Navidad in quantities that
could explain the anomaly.
A magnetic geophysical survey was performed by Quantec Geoscience and covers the
entire Navidad grid (7.2 x 2.5 km) totalling 88.7 line kilometres (including a
6.2km tie line). Data was collected at 10m intervals along lines spaced 200m
apart. Quantec made standard corrections for diurnal variations and produced
plan maps of the total field magnetic data and pole reduced data. Mapped
mineralization at Navidad, Galena, and Barite Hills is not associated with
magnetic anomalies nor is the IP chargeability anomaly. The area of the large
gradient and pole-dipole IP chargeability anomaly is characterized by a low,
flat magnetic response that indicates magnetite is not the source of the
chargeability anomaly.
The final geophysical survey performed at the Navidad Project measured subtle
differences in the earth's gravitational field. Once appropriate corrections
have been applied, results of these gravity measurements are indicative of
contrasting densities in the rock underlying the survey area. Laboratory tests
of mineralized and unmineralized specimens from the Navidad project indicate
that densities of unmineralized rocks range from 2.19 to 2.64 g/cm3 while
mineralized rocks range from 2.63 to 3.95 g/cm3. Gravity data acquisition was
performed by Proingeo S. A., an Argentine geophysical and topographic survey
contractor. Quantec Geoscience provided consulting services to the Company on
survey design and execution, has reviewed data quality, and built a three
dimensional model of the survey results using the University of British Columbia
(Canada) inversion software. Quantec Geoscience reports raw data quality is very
good. The gravity survey covers an area of approximately 2.2 by 2.5 km centred
on the previously reported IP chargeability anomaly. It includes 385 gravity
stations that were measured on two lines with closely spaced points and
additional points spaced at about 100 by 200m intervals.
In the Galena Hill area, the gravity survey has defined an important anomaly
with multiple peaks approximately 0.8 x 1.1 km in size. This anomaly has a
"donut-like" form with a central low surrounded by higher density values;
amplitude of this anomaly is approximately 0.6 to 0.8 milligals above
surrounding values. This complex anomaly is partly coincident with, but somewhat
smaller in size, than the previously announced Gradient and Pole-Dipole I.P.
chargeability anomaly at Navidad. The anomaly is not reasonably explained by
simple lithologic density variations and is most readily explained by the
presence of sulphide/barite mineralization. Part of the gravity anomaly is
spatially associated with mapped breccia-hosted mineralization on surface and it
correlates very well with potential extensions to this mineralization indicated
by the most intense Pole-Dipole IP chargeability anomaly.
A second gravity high of approximately 260 by 550m in diameter is spatially
associated with mapped Bonanza Grade Structures at Navidad Hill. This anomaly
may be caused by the combination of sulphide mineralization and the denser host
rock of the flow dome at Navidad Hill relative to surrounding sediments. It
covers the portion of the flow dome known to host Bonanza Grade Structures and
their strike extension. Most of the rest of the flow dome is not represented by
a gravity high.
In review, important amounts and grades of silver-copper-lead mineralization are
exposed from Navidad Hill to Barite Hill a distance of over 2,900m. Detailed
mapping and sampling has confirmed the importance of the original discovery
announcement of February 3, 2003. The outcropping mineralization is accompanied
by a soil geochemical anomaly of over 5.8km long and a large IP chargeability
anomaly portions of which show anomalously high gravity values.
Planned work on the Navidad Project includes a significant diamond drill program
and minor additional surface work. The diamond drill program is expected to
commence in late September or early October, 2003 and will include 2 phases of
3,000 metre each of HQ coring predominantly at Navidad and Galena Hills.
US$1,500,000 is budgeted for the Phase I and II drilling at the Navidad Project.
Las Bayas Project
In January, 2003 the Company undertook a diamond drill program on it's 100%
owned Las Bayas project. Prior surface work by the Company had delineated over
15,000 linear metres of quartz veining within an area of approximately 1.5 by
4.0 kilometres. The drill program comprised 1,953 metres of NQ core that was
recovered from 19 drill holes targeting six individual veins. Total cost of this
program was CAD $385,000.
Eighteen of the 19 drill holes completed intersected the targeted
low-sulphidation quartz veins; these intersections ranged in width from 0.4 to
22.1 metres of vein material. This drilling tested approximately 900 metres of
the mapped 15,000 metre strike length of veins exposed at Las Bayas Hill.
The Company has no immediate plans for further work on the Las Bayas property,
however an additional surface program is recommended on the outlying portions of
the property that as yet remain completely untested.
Acquisitions and Farm-outs
The Company continues to be quite active in Chubut province reviewing other
properties and conducting due diligence, with the objective of acquiring
additional prospective properties.
The Company has developed a business plan to have exploration work done on its
non-core properties by way of farm-outs. The Company will be able to have
exploration done on its non-core properties, while focusing its exploration
resources on its core Navidad property.
b) Peru
Rio Tabaconas
In June 2002, the Company announced it would take a more measured approach to
exploration on the project to ensure that local cultural, developmental and
environmental concerns pertaining to mining activities in the region would be
addressed. All exploration activities have been deferred until an agreement with
the local community of Tamborapa can be finalized. The Company has declared
force majeure, as allowed under the property option agreement. A
Company-Community plan has been prepared with the aid of several Peruvian social
economic consultants and has been presented for discussion to the community
leaders, government officials and interested party leaders and as of the date of
this quarterly report no agreement has been reached. Thus the Company will
continue to work with the various social economic consultants to develop a plan
which will be acceptable by all parties in the community of Tabaconas.
SUMMARY OF FINANCIAL RESULTS
For the six months ended June 30,2003, the Company reported a consolidated loss
of $716,418 ($0.02 per share) compared to a loss of $669,030 ($0.03 per share)
for the comparative period in 2002. The increase in the loss experienced by the
Company in 2003, compared to 2002, was attributed to certain operating
expenditures such as $47,454 for increase in Corporate development and Investor
relations, $68,891 for increase in General Exploration and $7,733 increase in
office sundry.
RESULTS OF OPERATIONS
Corporate Costs and Other Income
The significant increases in expenditures this period versus prior period are as
follows: (i) corporate development and investor relations - $47,454 of which
$12,650 was for a 3 month coverage on a website "Savvy Investor.com", $9,900 for
various media advertising, $5,279 was for the Annual General Meeting
presentation, $15,795 for the PDAC in Toronto and $3,800 for the Cambridge House
Gold Conference; (ii) general exploration - $68,891 as a result of additional
examination of grassroots properties ($53,828) in the Patagonia region in
Argentina and ($15,063 ) in Peru; (iii) office and sundry - $ 7,733 of which
$2,300 was for computer software, $2,570 for a laptop computer; (vi) salaries
and benefits - $1,475 due to an increase in the cost of benefits with Canada
Life; (v) telephone and utilities - $6,487 due to the increase in correspondence
within North America and South America; (vi) transfer agent and regulatory fee -
$8,589 mainly due to increase in TSX Venture Exchange filing fees for private
placements and stock option plan.
The following expenses decreased for the year (i) Printing - $3,253 as in the
prior year there were extensive maps and folders printed totalling $14,600; (ii)
Professional fees - $ 26,792 as $33,016 was related to the North America and
Europe Market awareness program in the prior year; (iii) Rent, parking and
storage - $8,589 as a result of cost recovery from a private company sharing
office space; (iv) Travel and accommodation - $42,024 as $41,700 was incurred in
the prior year for the North America and Europe market awareness program.
During the period ended June 30,2003 and 2002 the Company did not write-off any
mineral claims and deferred costs.
Interest and miscellaneous income reported for the period ended June 30,2003 was
$16,711 a increase of $10,406 from $6,305 reported in 2002 as a result of more
funds on deposit.
During the period ended June 30,2003 and 2002, the Company did not dispose of
any Viceroy common shares. Through a plan of arrangement completed after June
30, 2003, the 195,500 Viceroy common shares held as marketable securites were
converted to 65,166 Quest Capital Corp. Class A shares , symbol QC.A on the TSX
Exchange, 6,516 Spectrum Gold Inc. common shares and 19,550 Viceroy Exploration
Inc. common shares.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 2003 the Company had working capital of $4,111,836 compared to
$1,744,819 at June 30, 2002. As at June 30, 2003, the Company had cash and cash
equivalents on hand of $4,068,005 (2002 - $1,735,652). Subsequent to the period
ended June 30,2003 the Company issued 124,000 shares for $50,760 on the
exercises of options and 847,767 shares for $633,869 on the exercises of
warrants.
The Company considers that it does have adequate resources to maintain its
ongoing operations and property commitments for the year. The Company may
require additional financing if it proceeds with further planned exploration and
property acquisitions for the remainder of fiscal 2003. The Company will
continue to rely on successfully completing additional equity financing and/or
conducting joint venture arrangements to further exploration on its properties.
There can be no assurance that the Company will be successful in obtaining
additional financing or negotiating joint venture agreements.
INVESTOR RELATIONS
The Company currently does not engage any outside investor relations consultant.
However, during the period ended June 30, 2003 the Company, under a month to
month agreement, retained Raven Capital, a private company owned and managed by
Jack Barnes to provide public relations and consulting primarily targeted to the
North American financial and investment community. Raven Capital has been in the
investor relations business since 1999 providing similar services to public
companies. Raven Capital was paid $7,500 for January, $3,750 per month for
February and March and $7,275 per month for April and May 2003.
ON BEHALF OF THE BOARD
/s/ William Lee
----------------------
Mr. William Lee, CFO
For further information please contact Joseph Grosso, President & CEO, or Sean
Hurd, Investor Relations Manager, at 1-800-901-0058 or 604-687-1828, or fax
604-687-1858, or by email info@imaexploration.com, or visit the Company's web
site at http://www.imaexploration.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or the accuracy of this release. Cautionary Note to US Investors:
This news release may contain information about adjacent properties on which we
have no right to explore or mine. We advise U.S. investors that the SEC's mining
guidelines strictly prohibit information of this type in documents filed with
the SEC. U.S. investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our properties. This news
release may contain forward-looking statements including but not limited to
comments regarding the timing and content of upcoming work programs, geological
interpretations, receipt of property titles, potential mineral recovery
processes, etc. Forward-looking statements address future events and conditions
and therefore involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such statements.
2003 Number 24