UNITED STATES
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, 2005.
Commission File Number: 001-32558
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 [ ]
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): _______
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): _______
Indicate by check mark whether the registrant by furnishing the information
contained in this Form, 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]
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.
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Date: AUGUST 15, 2005 /s/ Joseph Grosso
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Joseph Grosso,
President & CEO
IMA EXPLORATION INC.
(A Grosso Group Company)
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
American Stock Exchange: IMR
Frankfurt & Berlin Exchanges: IMT (WKN 884971)
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NEWS RELEASE - AUGUST 15, 2005
2ND QUARTER RESULTS
IMA EXPLORATION INC. (IMR:TSX-V) is pleased to provide the interim financial
results of the Company for the quarter ended June 30, 2005:
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2005 2004 2005 2004
$ $ $ $
EXPENSES
Administrative and management services 40,078 48,122 72,314 92,258
Corporate development and investor relations 195,442 78,587 295,471 137,856
Depreciation - 2,904 - 5,748
General exploration 76,032 76,760 95,065 115,036
Office and sundry 47,731 18,162 94,025 35,203
Printing 6,698 9,510 27,255 20,373
Professional fees 273,093 207,058 588,317 307,458
Rent, parking and storage 26,469 20,138 47,503 34,553
Salaries and employee benefits 132,385 51,557 265,460 137,154
Stock based compensation - - 1,800,000 1,871,360
Telephone and utilities 13,292 7,796 28,021 14,069
Transfer agent and regulatory fees 75,628 26,060 105,445 39,656
Travel and accommodation 74,309 55,204 145,989 75,769
Cost recoveries - (19,154) - (33,221)
------------ ------------ ------------ ------------
961,157 582,704 3,564,865 2,853,272
------------ ------------ ------------ ------------
LOSS BEFORE OTHER ITEMS (961,157) (582,704) (3,564,865) (2,853,272)
------------ ------------ ------------ ------------
OTHER EXPENSE (INCOME)
Provision on marketable securities - 132,000 - 132,000
Foreign exchange 44,221 (53,560) 23,714 (102,704)
Gain on disposition of mineral property and
deferred costs - (313,801) - (313,801)
Reorganization costs - 149,589 - 349,589
Interest and other income (31,428) (30,911) (60,796) (51,591)
------------ ------------ ------------ ------------
12,793 (116,683) (37,082) 13,493
------------ ------------ ------------ ------------
LOSS FROM CONTINUING OPERATIONS (973,950) (466,021) (3,527,783) (2,866,765)
Loss allocated to spin-off assets - (355,252) - (131,231)
------------ ------------ ------------ ------------
LOSS FOR THE PERIOD (973,950) (821,273) (3,527,783) (2,997,996)
DEFICIT - BEGINNING OF PERIOD (32,297,003) (19,754,086) (29,597,304) (17,577,363)
DISTRIBUTION OF EQUITY ON
SPIN-OFF OF ASSETS (Note 2) - - (145,866) -
------------ ------------ ------------ ------------
DEFICIT - END OF PERIOD (33,270,953) (20,575,359) (33,270,953) (20,575,359)
============ ============ ============ ============
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2005 2004 2005 2004
$ $ $ $
BASIC AND DILUTED LOSS PER COMMON
SHARE FROM CONTINUING OPERATIONS $(0.02) $(0.01) $(0.08) $(0.07)
============ ============ ============ ============
BASIC AND DILUTED LOSS PER COMMON SHARE $(0.02) $(0.02) $(0.08) $(0.08)
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 45,479,724 40,080,048 44,937,274 39,062,276
============ ============ ============ ============
RESULTS OF OPERATIONS
The Company's operating expenses for the six months ended June 30, 2005 were
$3,564,865 an increase of $711,593 from $2,853,272 in the 2004 period. $339,519
of the 2004 operating expenses had been reclassified as "Loss Allocated to
Spin-Off Assets" which relate to the assets transferred to Golden Arrow. The
allocation was calculated on the basis of the ratio of the specific assets
transferred to assets retained. Certain "Other Income and Expense" items have
been allocated to spin-off assets on the basis of the nature of the income or
expense.
Professional fees increased $280,859 to $588,317 in the 2005 period, primarily
due to legal costs incurred in connection with the Aquiline legal action as well
as increased costs of compliance. In the 2005 period the Company recorded a
non-cash expense of $1,800,000 for stock based compensation for stock options
granted to its employees and directors, a decrease of $71,360 from 2004. Other
notable changes in the operating expenses are: (i) Salaries increased $128,306
due to staff increases (salaries in 2005 are a portion of the monthly fee
charged for services by the Grosso Group while in 2004 the Company directly
employed its staff); (ii) Travel increased $70,220 due to travel to conferences
as well as to South America; (iii) there are no cost recoveries (for shared
administrative costs and rent) from Amera Resources Corporation or Golden Arrow
in the 2005 period; (iv) Corporate development and investor relations increased
$157,615, as the Company has made its shareholders and others more aware of its
Navidad project and its potential, (v) Office and Sundry increased $58,822
mainly due to the increase in insurance premiums and increase in activity, (vi)
Transfer agent and regulatory fees increased $65,789 mainly due to the costs of
the Company's listing on the American Stock Exchange - AMEX.
In the 2005 period the Company recorded interest income of $60,796 compared to
$50,591 in the 2004 period. In the 2004 period the Company recorded
reorganization costs of $349,589, there were no reorganization costs recorded in
2005. No gain or loss was allocated to spin-off assets in 2005, in 2004 a loss
of $131,231 was recorded.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash position at June 30, 2005 was $4,763,797, a decrease of
$2,787,459 from June 30, 2004. During the six months ended June 30, 2005,
options and warrants were exercised which resulted in cash proceeds of
$4,215,145. The Company paid $145,866 to Golden Arrow from the exercise of
warrants that resulted in the issue of Golden Arrow's shares as required by the
terms of the reorganization. As all warrants that were outstanding as of the
effective date of the reorganization have been exercised the Company has no
further obligation to pay amounts to Golden Arrow for the issue of its shares on
the exercise of the Company's warrants.
The Company considers that it has adequate resources to maintain its ongoing
operations but currently does not have sufficient working capital to fund all of
its planned exploration and development work. The expanded work for Phase III of
the Navidad project has been approved in the amount of $2,000,000. The Company
will continue to rely on successfully completing additional equity financing to
further exploration and development of Navidad. There can be no assurance that
the Company will be successful in obtaining the required financing. The failure
to obtain such financing could result in the loss of or substantial dilution of
its interest in its properties.
The Company does not know of any trends, demand, commitments, events or
uncertainties that will result in, or that are reasonably likely to result in,
its liquidity either materially increasing or decreasing at present or in the
foreseeable future. Material increases or decreases in liquidity are
substantially determined by the success or failure of the exploration programs.
ON BEHALF OF THE BOARD
/s/ JOSEPH GROSSO
__________________________________
Mr. Joseph Grosso, President & CEO
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.
2005 NUMBER 15