Unable to turn a profit in the mineral exploration sector, Flagship Resources (COATS) has joined an ever growing number of over-the-counter companies to abandon their mining interests. Flagship is negotiating for the acquisition of two small companies in the manufacturing sector, and may raise equity funding through the “sophisticated investor” designation of the Ontario Securities Commission.
The company reported a net income for the six months ended May 31 of $9,911, compared with a loss of $252,810 for the same period last year. Last year’s loss, the company said, was generated by a writeoff of its mineral properties and associated deferred expenses. President Joseph Devine said that he was able to sell one of his properties, but couldn’t find a buyer for the other two.
Equity capital totalling $100,000 was raised from the issuance of more than four million shares to Devine and a partner.
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