EX-99.03 4 exhibit3.htm EX-99.03 Exhibit  EX-99.03

British Columbia Securities Commission

BC FORM 51-901F

                                 
ISSUER DETAILS:
    
    
 
                                
NAME OF ISSUER
   FOR QUARTER ENDED
   DATE OF REPORT
 
                                
Avino Silver & Gold Mines Ltd.
   October 31, 2001
   December 28, 2001
 
                                
 
    
    
 
                                
ISSUER ADDRESS:
    
    
 
                                
Suite 400, 455 Granville Street
    
    
 
                                
 
    
    
 
                                
CITY   PROVINCE
   POSTAL CODE
   ISSUER FAX NO.
   ISSUER TELEPHONE NO.
 
                                
Vancouver,   British Columbia
   V6C 1T1
   (604) 682-3701
   (604) 682-3600
 
                                
CONTACT PERSON
   CONTACT’S POSITION
   CONTACT TELEPHONE NO.
 
                                
Andrea Regnier
   Accountant/Secretary
   (604) 682-3701
 
                                
Website: www.avino.com
   e-mail: dawnpacific@telus.net
    
 
                                
 
    
    

CERTIFICATE
The three schedules required to complete this Report are attached and the disclosure contained therein has been approved by the Board of Directors. A copy of this Quarterly Report will be provided to any shareholder who requests it.

     
DIRECTOR’S SIGNATURE   DATE SIGNED
Signed:   YY/MM/DD
“LOUIS WOLFIN”
  01/12/28
 
   
 
    
DIRECTOR’S SIGNATURE
  DATE SIGNED
 
    
Signed:
  YY/MM/DD
 
    
“ERNEST CALVERT”
  01/12/28
 
   

1

AVINO SILVER & GOLD MINES LTD.
Interim Balance Sheet
(Unaudited – Prepared by Management)

                 
    October 31,   January 31,
    2001   2001
 
   $       $    
ASSETS
                
 
                
Current asset:
                
Cash
     1,119       6,267  
Accounts receivable and prepaid expenses
     33,175       9,880  
Due from related parties (Note 8.b)
     54,125       2,057  
 
                
 
     88,419       18,204  
Mineral property interests (Note 4)
     3,285,036       3,236,838  
Investments (Note 5)
     1,157,533       1,689,347  
Other assets (Note 6)
     46,830       82,386  
 
                
 
     4,577,818       5,026,775  
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
 
                
Current Liabilities:
                
Accounts payable and accrued liabilities
     131,499       131,596  
Payable to related parties (Note 8.c)
     239,661       318,358  
 
                
 
     371,160       449,954  
Debentures payable
     1,440,565       1,415,960  
 
                
 
     1,811,725       1,865,914  
 
                
Shareholders’ equity:
                
Capital stock (Note 7)
     12,931,788       12,595,199  
Contributed surplus
     184,967       184,967  
Deficit
     (10,248,793 )     (9,517,436 )
 
                
 
     2,867,962       3,262,730  
Deduct: 14,180 shares held for future disposition-at cost
     (101,869 )     (101,869 )
 
                
 
     2,766,093       3,160,861  
 
                
 
     4,577,818       5,026,775  
 
                

On behalf of the Board:
“Louis Wolfin”
     Director
“Ernest Calvert”
     Director

AVINO SILVER & GOLD MINES LTD.
Interim Statement of Operations and Deficit
(Unaudited – Prepared by Management)

                                 
    3 months ended   9 month ended
    October 31,   October 31,
    2001   2000   2001   2000
 
   $       $       $       $    
 
                                
Revenue:
                                
Interest
     (153 )     22       (1,690 )     (421 )
 
                                
Administrative expenses
                                
Amortization of deferred financing costs
     —       8,088       —       24,263  
Amortization of deferred exchange costs
     23,692       —       47,022       —  
Accounting and audit fees
     201       1,325       937       6,365  
Consulting fees
     7,500       7,500       22,500       22,500  
Interest expense
     45,501       22,407       78,453       74,753  
Insurance, business license and taxes
     838       2,358       941       2,858  
Foreign exchange
     (19,498 )     —       (4,259 )     —  
Investor relations and Shareholder information
     42       16,059       1,308       22,900  
Legal fees
     1,633       6,822       2,258       8,816  
Listings and filing fees
     920       35       1,878       1,340  
Office and administration
     12,012       5,309       26,669       17,460  
Transfer agent fees
     2,560       6,576       5,378       8,676  
Travel and accommodation
     (1,545 )     (1,498 )             3,460  
Salaries and benefits
     3,585       6,863       10,864       22,052  
Loss before the following
     (77,288 )     (81,866 )     (192,477 )     (215,443 )
Equity in loss of affiliate
     (53,475 )     13,616       (531,814 )     (85,254 )
 
                                
(Loss) net income for the period
     (130,763 )     (68,250 )     (724,291 )     (300,697 )
Deficit, beginning of period
     (10,110,964 )     (8,631,392 )     (9,517,436 )     (8,398,945 )
 
                                
Deficit, end of period
     (10,241,727 )     (8,699,642 )     (10,241,727 )     (8,699,642 )
 
                                
(Loss) gain per share
   $ (0.02 )   $ (0.01 )   $ (0.15 )   $ (0.07 )
 
                                

2

AVINO SILVER & GOLD MINES LTD.
Interim Statement of Cash Flows
(Unaudited – Prepared by Management)

                                 
    3 months ended   9 month ended
    October 31,   October 31,
    2001   2000   2001   2000
 
   $       $       $       $    
PROVIDED BY (USED IN)
                                
 
                                
Operating activities:
                                
(Loss) net income for the period
     (130,763 )     (334,154 )     (724,291 )     (232,447 )
 
                                
Items not involving cash:
                                
Equity in loss (income) of
                                
affiliate
     53,475       262,488       531,814       99,291  
Amortization of deferred financing
                                
charges
     —       8,087       —       16,175  
Amortization of deferred foreign
                                
exchange
     14,663       —       24,605       —  
Finance expense
     (45,501 )     —       (78,453 )     —  
Interest expense on debenture
                                
payable
     45,501       —       78,453       —  
 
     (62,625 )     (63,579 )     (167,872 )     (116,981 )
Changes in non-cash working capital
                                
 
                                
items:
                                
Amounts receivable and prepaid
                                
expenses
     (50,404 )     383,030       (75,364 )     380,530  
Accounts payable and accrued
                                
liabilities
     304,719       94,094       336,492       198,607  
Payable to related parties
     (173,482 )     —       (78,697 )     (42,260 )
 
     80,833       477,124       182,431       536,877  
 
                                
 
                                
Investing activities:
                                
Mineral property interest
     (32,973 )     (12,875 )     (48,198 )     (18,092 )
Term deposits
             —       6,075          
Deferred foreign exchange loss
     9,029       —       22,416       —  
Marketable securities
             (397,848 )     —       (397,848 )
 
                                
 
     (23,944 )     (410,723 )     (19,707 )     (415,940 )
 
                                
Increase (Decrease) in cash
     (5,736 )     (2,822 )     (5,148 )     3,956  
Cash, beginning of period
     5,148       6,744       6,267       5,600  
 
                                
Cash, end of period
     1,119       9,566       1,119       9,566  
 
                                

Supplemental cash flow information
Non-cash financing and investing activities:

                                 
Shares issued in settlement of
                                
Amounts payable
     (336,589 )     —       (336,589 )     —  

AVINO SILVER & GOLD MINES LTD.
Notes to Interim Financial Statements
October 31 2001
(Unaudited – Prepared by Management)

1. Summary of significant accounting policies

Joint Venture

Investments in joint ventures are accounted for by the proportionate consolidation method. At the balance sheet date the Company had a 50% interest in a joint venture with Bralorne-Pioneer Gold Mines Ltd. The accompanying financial statements include the Company’s proportionate share of the assets, liabilities and expenses of the joint venture.

2. Basis of Presentation

These unaudited interim financial statements have been prepared in accordance with the instructions for the preparation of such financial statements contained in the CICA Handbook Section 1751. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such instructions. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended January 31, 2001.

3. Comparative Figures

Certain of the prior years comparative figures have been reclassified to conform to the presentation adopted for the current year.

4. Mineral Properties

Exploration and development expenditures incurred during the period are as follows:

                 
 
   October 31   January 31
 
   9 months   12 months
Balance beginning of period:
   $ 3,236,838     $ 3,210,166  
Bralorne Property {r}
                
Equipment rental
     696          
Consulting
     281          
Drilling and related
     1,266          
Geochemical/assays
     354          
Geophysical
     230          
Liability and property insurance
     91       5,240  
Mine development
     8,362          
Mine power
     3,769       9,143  
Mine office
     498       6,137  
Mine Maintenance
     1,643       1,306  
Mine supplies
     2,088          
Property taxes and assessment
     859       2,742  
Salaries
     3,567          
Staking and prospecting
     395          
Other
     —       2,104  
 
                
 
     24,099          
Balance end of period
   $ 3,260,937     $ 3,236,838  
 
                

AVINO SILVER & GOLD MINES LTD.
Notes to Interim Financial Statements, Page 2 October 31 2001
(Unaudited – Prepared by Management)

5. Investments

Investments consist of:

                 
 
   October 31   January 31
 
   9 months   12 months
 
        
 
                
Investments accounted for using the equity method:
                
Cia Minera Mexicana de Avino S.A. de C.V. (“Cia Minera”)
   $ 727,625     $ 1,259,439  
 
                
Investments carried at cost:
                
Bralorne-Pioneer Gold Mines Ltd.
     422,848       422,848  
Levon Resources Ltd.
     7,060       7,060  
 
                
 
   $ 1,157,533     $ 1,689,347  

6. Other Assets

a) Other assets consist of:

                 
 
   October 31   January 31
 
   9 months   12 months
 
        
Deferred financing charges related to establishing
                
debenture payable
   $ 281,317     $ 281,317  
Deferred foreign exchange loss on debenture payable
     19,900       39,707  
Accumulated amortization
     (281,317 )     (281,317 )
 
                
 
     19,900       39,707  
Term deposits
     33,995       42,679  
 
                
 
   $ 53,895     $ 82,386  

7. Share Capital

Authorized: 25,000,000 common shares without par value
Issued:

                 
Balance, beginning of period
     4,577,686     $ 12,595,199  
 
                
Issued during the period in settlement of debt
     885,839       336,589  
 
                

Balance, end of period 5,463,525 $12,931,788

a) During the period the Company issued 885,839 shares at a price of $0.38 per share in settlement of $336,589 in amounts payable. Included in this settlement was a Director of the Company as to $105,000, a private company controlled by a Director as to $83,558 and a private company managed by two Directors as to $87,789.

AVINO SILVER & GOLD MINES LTD.
Notes to Interim Financial Statements, Page 3 October 31 2001
(Unaudited – Prepared by Management)

8 Related Party Transactions

Related party transactions not disclosed elsewhere in these statements are as follows:

a) During the period the company paid, or made provision for the future payment of the following amounts to related parties:

i) $48,319 to a company with two common directors for reimbursement of costs incurred on behalf of the company for administrative and exploration costs.

ii) $22,500 to a private company controlled by a Director for consulting fees.

b) Included in the accounts receivable is an amount of $5,737 due from companies with common directors.

c) Payable to related parties consist of $65,193 due to a private company controlled by two directors as disclosed in 6.a)i) above; $24,075 due to a private company controlled by a Director; $110,849 due to companies with common directors. and $52,500 due to a Director of the company for a cash loan.

3