Tous Actualités
Suivre
Abonner NewWest Gold Corporation

NewWest Gold Corporation

NewWest Gold Corporation Reports Third Quarter Results

Lakewood, Colorado, November 9 (ots/PRNewswire)

- All figures in US Dollars
     Third Quarter Highlights
     -   Successfully completed IPO; listed on TSX
     -   Announced Phase One drilling program results at Long Canyon
     -   Subsequent to quarter-end, NewWest reported multiple high grade
         intercepts at its Sandman project and positive results from roadcut
         rock-chip samples at Long Canyon
NewWest Gold Corporation (TSX:NWG) ("NewWest"), one of the largest
holders of precious metals mineral rights projects in Nevada's gold
trends,  today announced its third quarter results for the three
months and nine  months ended September 30, 2006. The net loss for
the three months ended  September 30, 2006 was US$3.1 million or
US$0.06 per share, compared to  US$1.2 million or US$0.02 per share
in the comparable period last year. The  net loss for the nine months
ended September 30, 2006 was US 5.3 million or  US$0.10 per share
compared to US$4.6 million or US$0.09 per share in the  comparable
period last year. The increase in losses can primarily be attributed
to increased exploration drilling expenses related to the Sandman
and Long Canyon projects as well as stock-based compensation expense
and  bonuses paid in conjunction with the IPO. Total expenses for the
quarter  were US$3.3 million, compared to US$1.3 million last year.
On August 29, 2006, NewWest successfully completed an initial
public  offering (IPO) raising net proceeds of US$15.8 million to
help fund the  advancement of its projects along the pipeline and
into production. As a  result of the IPO, NewWest's working capital
was US$13.2 million at the end  of the third quarter. The Company
anticipates that this level of working  capital will be sufficient to
fund its planned exploration activities  through 2007.
"Since our IPO, NewWest has made tremendous progress on our active
projects as demonstrated by the results of our Phase One drill
programs at  Sandman and Long Canyon," said Steve Alfers, President
and Chief Executive  Officer. "The working capital provided by our
IPO positions us to  aggressively pursue our Phase Two drill
programs, allowing us to expand our  knowledge of the mineralization
and structure of the mineralization at both  projects and move
towards establishing additional resources."
Full interim consolidated financial statements and notes, as well
as  management's discussion and analysis, are available on NewWest's
website at  www.newwestgold.com, or www.sedar.com.
Project Update
During the third quarter, NewWest announced results from its Phase
One  drilling program at Long Canyon, one of NewWest's principal
projects in the  Eastern Great Basin area of Elko County, Nevada. The
drilling program  successfully extended the known mineralization
approximately 500 feet to  the Northeast and 1,200 feet to the
Southwest, defining a current  cumulative strike length of
approximately 3,000 feet. Gold mineralization  remains open in all
directions and at depth. The best results at Long  Canyon include
grades of 0.585 ounces of gold per ton (oz Au/ton) over 45  feet and
0.092 oz Au/ton over 85 feet. For a full description of the Long
Canyon Phase One results, please see the Company's news release dated
September 21, 2006. The release, drill results and a drill hole map
are  available at www.newwestgold.com.
Roadcut rock-chip sample results from Long Canyon were released
subsequent to the end of the third quarter, supporting the
interpretation  of structure and stratigraphy of the geologic model.
Phase Two drilling at  Long Canyon is scheduled to begin this month
to further define the size and  geometry of the mineralization. For a
full description of the Long Canyon  roadcut rock-chip results,
please see the Company's news release dated  October 31, 2006. The
release and a map of the locations of the mineralized  roadcut
intervals are available at www.newwestgold.com.
NewWest and AuEx Ventures Inc. ("AuEx") agreed by way of a letter
of  intent to complete a definitive joint venture agreement for the
Long Canyon  project whereby the two parties will combine their
respective land  positions in the Long Canyon Area. The joint venture
agreement is currently  being negotiated and is expected to be
completed in the near future. It is anticipated that under the terms
of this agreement, the Company will act as operator and may earn a
51% interest in the consolidated project if it spends US$5 million on
the project over a five year period. After completion, the  Company
may elect to carry AuEx through feasibility, if warranted, thereby
earning an additional 14%.
Subsequent to quarter-end, NewWest reported multiple high-grade
intercepts at its Phase One drilling program at its Sandman Project
in  Humboldt County, Nevada. The drilling continued to produce
high-grade  intercepts associated with known mineralization at Silica
Ridge, Southeast  Pediment and North Hill. The drilling also
identified new gold  mineralization at Abel Knoll, including 420 feet
of continuous  mineralization with an average grade of 0.087 oz
Au/ton. The success of the  Phase One drilling demonstrates the
potential of the district exploration  program. Phase Two drilling at
Sandman, which includes an additional 100  holes, is underway. For a
full description of the Sandman Phase One results,  please see the
Company's news release dated October 16, 2006. The release,  drill
results and drill hole maps are available at www.newwestgold.com.
Conference Call and Webcast
Management will host a conference call at 10 a.m. ET on Thursday,
November 9, 2006 to discuss the third quarter results. The call can
be  accessed by dialling 416-644-3422 or 1-866-250-4907. A replay of
the call  will be available until midnight on November 23, 2006. It
can be accessed  by dialing 1-877-289-8525 or 416-640-1917 and
entering the passcode  21206625 followed by the number sign. The
webcast can be accessed at  NewWest's web site at
www.newwestgold.com/net.
Qualified Person
Michael Gustin, Ph.D., of Mine Development Associates, Reno,
Nevada,  is NewWest's qualified person as defined by NI43-101 and has
reviewed and  approved the technical data in this news release.
About NewWest Gold Corporation
NewWest Gold Corporation is one of the largest holders of precious
metals mineral rights in Nevada's gold trends, spanning approximately
623, 000 acres. NewWest holds a total of 19 exploration projects,
including two  projects with measured and indicated resources that
are NI43-101 compliant.  NewWest's goal is to advance its projects
along the pipeline into  production. NewWest has active drilling
programs underway at Northumberland,  Sandman and Long Canyon.
Forward-Looking Statements
This news release includes certain "forward-looking statements"
within  the meaning of Canadian securities laws. Forward-looking
statements involve  risks, uncertainties and other factors that could
cause actual results,  performance, prospects and opportunities to
differ materially from those  expressed in such forward-looking
statements. Forward-looking statements in  this news release, include
but are not limited to, economic performance,  statements regarding
potential mineralization and reserve exploration, and  future plans
and objectives of NewWest Gold Corporation including future
exploration and development. Any number of important factors could
cause  actual results to differ materially from these forward-looking
statements,  including those set out in the Company's prospectus
dated August 18, 2006,  as well as future results. Although the
Company believes that the  assumptions and factors used in preparing
the forward-looking statements  are reasonable, undue reliance should
not be placed on these statements,  which only apply as of the date
of this news release, and no assurance can  be given that such events
will occur in the disclosed timeframes or at all.  The Company
disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information,
future  events or otherwise.
                            NEWWEST GOLD CORPORATION
                   INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                          (EXPRESSED IN U.S. DOLLARS)
                      FOR THE THREE AND NINE MONTHS ENDED
                              SEPTEMBER 30, 2006
                      (Unaudited - Prepared by Management)
                            NEWWEST GOLD CORPORATION
                        (a British Columbia Corporation)
                          CONSOLIDATED BALANCE SHEETS
                                  (US Dollars)
                                                             As at
                                                  September 30,  December 31,
                                                      2006           2005
                                                 -------------- -------------
                                                   (Unaudited)
     Assets
     Current
       Cash and cash equivalents.................$  13,553,944  $      24,251
       Accounts receivable trade.................       98,205         14,900
       Accrued interest receivable...............        1,853         20,656
       Prepaid expenses and other................      489,143          4,953
                                                 -------------- -------------
       Total current assets......................   14,143,145         64,760
     Property, plant and equipment (net).........    4,390,424      4,329,735
     Northumberland Project......................   10,187,605     10,187,605
     Reclamation bonds...........................      987,720        947,506
                                                 -------------- -------------
     Total assets................................$  29,708,894  $  15,529,606
                                                 -------------- -------------
                                                 -------------- -------------
     Liabilities and Shareholders' Equity
     Current
       Accounts payable trade and
        accrued expenses.........................$     871,132  $     764,457
       Due to Predecessor Companies..............       22,765        919,545
       Current portion of reclamation costs......       73,253         72,196
                                                 -------------- -------------
       Total current liabilities.................      967,150      1,756,198
     Long-term reclamation costs.................      938,310        892,152
     Shareholders' equity(Note 3)................   27,803,434     12,881,256
                                                 -------------- -------------
     Total liabilities and shareholders' equity..$  29,708,894  $  15,529,606
                                                 -------------- -------------
                                                 -------------- -------------
     Approved on Behalf of the Board,
     Signed:  Marvin Kaiser
     Director
     Signed:  Richard Graff
     Director
              The accompanying notes are an integral part of these
                             financial statements.
                            NEWWEST GOLD CORPORATION
                        (a British Columbia Corporation)
               CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
                            (Unaudited, US Dollars)
                                                      Three Months Ended
                                                         September 30,
                                                      2006           2005
                                                 -------------- -------------
     Revenues                                    $     126,622  $      74,970
     Expenses:
       Exploration(Note 7)......................     1,673,826        613,429
       Operations...............................        57,919         39,266
       Reclamation accretion expense............        16,650         18,029
       General and administrative...............     1,567,895        581,647
       Depreciation and amortization............         6,657          4,600
                                                 -------------- -------------
       Total expenses...........................     3,322,947      1,256,971
     Other income (expense):
       Interest expense(Note 5).................             -              -
       Interest income..........................        63,542          5,164
       Other income (expense), net..............             -          (500)
                                                 -------------- -------------
       Total other income (expense).............        63,542          4,664
                                                 -------------- -------------
     Loss from continuing
      operations before taxes..................    (3,132,783)    (1,177,337)
     Income tax provision.......................             -              -
                                                 -------------- -------------
     Loss from continuing operations...........    (3,132,783)    (1,177,337)
     Loss from discontinued operations..........             -              -
                                                 -------------- -------------
     Net loss.................................. $  (3,132,783) $  (1,177,337)
                                                 -------------- -------------
                                                 -------------- -------------
     Accumulated deficit beginning of period....
     Accumulated deficit end of period..........
     Loss per share from continuing operations.. $      (0.06) $       (0.02)
                                                 -------------- -------------
                                                 -------------- -------------
     Net loss per share......................... $      (0.06) $       (0.02)
                                                 -------------- -------------
                                                 -------------- -------------
     Weighted average shares outstanding........    52,945,475     50,000,000
                                                 -------------- -------------
                                                 -------------- -------------
                                                       Nine Months Ended
                                                          September 30,
                                                       2006           2005
                                                 -------------- -------------
     Revenues                                    $     192,337  $     106,040
     Expenses:
       Exploration(Note 7)......................     2,842,895      1,268,461
       Operations...............................        92,525         43,002
       Reclamation accretion expense............        49,948         56,277
       General and administrative...............     2,604,434      1,594,347
       Depreciation and amortization............        17,162         13,536
                                                 -------------- -------------
       Total expenses...........................     5,606,964      2,975,623
     Other income (expense):
       Interest expense(Note 5).................             -    (1,640,976)
       Interest income..........................       105,309         15,761
       Other income (expense), net..............        11,055         15,873
                                                 -------------- -------------
       Total other income (expense).............       116,364    (1,609,342)
                                                 -------------- -------------
     Loss from continuing
      operations before taxes...................    (5,298,263)   (4,478,925)
     Income tax provision                                    -              -
                                                 -------------- -------------
     Loss from continuing operations............    (5,298,263)   (4,478,925)
     Loss from discontinued operations..........             -      (130,264)
                                                 -------------- -------------
     Net loss................................... $  (5,298,263) $ (4,609,189)
                                                 -------------- -------------
                                                 -------------- -------------
     Accumulated deficit beginning of period....$(144,963,254) $(138,598,843)
                                                 -------------- -------------
                                                 -------------- -------------
     Accumulated deficit end of period..........$(150,261,517) $(143,208,032)
                                                 -------------- -------------
                                                 -------------- -------------
     Loss per share from continuing operations.. $       (0.10) $      (0.09)
                                                 -------------- -------------
                                                 -------------- -------------
     Net loss per share......................... $       (0.10) $      (0.09)
                                                 -------------- -------------
                                                 -------------- -------------
     Weighted average shares outstanding........    50,992,615     50,000,000
                                                 -------------- -------------
                                                 -------------- -------------
              The accompanying notes are an integral part of these
                              financial statements.
                            NEWWEST GOLD CORPORATION
                        (a British Columbia Corporation)
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                            (Unaudited US Dollars)
                                                      Three Months Ended
                                                         September 30,
                                                      2006           2005
                                                 -------------- -------------
     Cash flows from operating activities:
     Loss from continuing operations............ $  (3,132,783) $ (1,177,337)
     Adjustments to reconcile loss from
      continuing operations to net cash used
      in operating activities:
       Depreciation and amortization............         6,657          4,600
       Reclamation accretion expense............        16,650         18,029
       Reclamation expenditures.................        (2,733)             -
       Stock-based compensation(Note 3).........       653,126              -
       Loss on disposal of assets...............             -            500
       Interest accrued on loans to
        Ultimate Shareholder....................             -              -
       Changes in operating working capital:
         Accounts receivable trade..............       (38,002)      (59,816)
         Accrued interest receivable............        39,042        (5,164)
         Accounts payable trade
          and accrued expenses..................       624,840        128,406
         Loan from Predecessor Companies........       943,776        501,261
         Repayment of Loan from
          Predecessor Companies.................    (1,222,199)             -
         Prepaid expenses and other.............      (421,239)         5,937
                                                 -------------- -------------
       Net cash used in operating activities
        from continuing operations..............    (2,532,865)     (583,584)
                                                 -------------- -------------
     Cash flows from investing activities:
       Capital expenditures.....................       (60,853)       (3,720)
       Cash retained by Predecessor
        Companies on restructuring
        of NewWest Delaware.....................             -              -
                                                 -------------- -------------
       Net cash used in investing activities
        from continuing operations..............       (60,853)       (3,720)
                                                 -------------- -------------
     Cash flows from financing activities:
       Net proceeds from issuance of shares
        from initial public offering............    15,807,333              -
        Reclamation bonds.......................       (12,414)             -
       Contributions from Ultimate Shareholder..             -        585,000
       Loan from Predecessor Company............             -              -
       Repayment of loan from
        Predecessor Company.....................             -              -
                                                 -------------- -------------
       Net cash provided by financing activities
        from continuing operations..............    15,794,919        585,000
       Effect of exchange rate changes
        on cash and cash equivalents............           971              -
       Net cash provided by (used in)
        continuing operations...................    13,202,172        (2,304)
       Net cash used in discontinued
        operations..............................             -              -
                                                 -------------- -------------
       Increase (decrease) in cash
        and cash equivalents....................    13,202,172        (2,304)
       Cash and cash equivalents at
        beginning of period.....................       351,772          9,034
                                                 -------------- -------------
       Cash and cash equivalents
        at end of period........................ $  13,553,944  $       6,730
                                                 -------------- -------------
                                                 -------------- -------------
                                                       Nine Months Ended
                                                          September 30,
                                                       2006           2005
                                                 -------------- -------------
     Cash flows from operating activities:
     Loss from continuing operations............ $  (5,298,263)  $(4,478,925)
     Adjustments to reconcile loss from
      continuing operations to net cash used
      in operating activities:
       Depreciation and amortization............        17,162         13,536
       Reclamation accretion expense............        49,948         56,277
       Reclamation expenditures.................        (2,733)       (2,374)
       Stock-based compensation(Note 3).........       653,126              -
       Loss on disposal of assets...............           300          1,850
       Interest accrued on loans to
        Ultimate Shareholder....................             -      1,640,976
       Changes in operating working capital:
         Accounts receivable trade..............       (83,305)      (87,264)
         Accrued interest receivable............        18,813       (15,492)
         Accounts payable trade
          and accrued expenses..................       105,674        187,760
         Loan from Predecessor Companies........     1,668,049        501,261
         Repayment of Loan from
          Predecessor Companies.................    (2,564,829)             -
         Prepaid expenses and other.............      (484,190)             -
                                                 -------------- -------------
       Net cash used in operating activities
        from continuing operations..............    (5,920,248)   (2,182,395)
                                                 -------------- -------------
     Cash flows from investing activities:
       Capital expenditures.....................       (78,149)       (7,890)
       Cash retained by Predecessor
        Companies on restructuring
        of NewWest Delaware.....................             -      (391,013)
                                                 -------------- -------------
       Net cash used in investing activities
        from continuing operations..............       (78,149)     (398,903)
                                                 -------------- -------------
     Cash flows from financing activities:
       Net proceeds from issuance of shares
        from initial public offering............    15,807,333              -
        Reclamation bonds.......................       (40,214)             -
       Contributions from Ultimate Shareholder..     3,760,000      2,758,000
       Loan from Predecessor Company............     1,700,000              -
       Repayment of loan from
        Predecessor Company.....................    (1,700,000)             -
                                                 -------------- -------------
       Net cash provided by financing activities
        from continuing operations..............    19,527,119      2,758,000
                                                 -------------- -------------
       Effect of exchange rate changes
        on cash and cash equivalents............           971              -
       Net cash provided by (used in)
        continuing operations...................    13,529,693        176,702
       Net cash used in discontinued
        operations..............................             -      (268,209)
                                                 -------------- -------------
       Increase (decrease) in cash
        and cash equivalents....................    13,529,693       (91,507)
       Cash and cash equivalents at
        beginning of period.....................        24,251         98,237
                                                 -------------- -------------
       Cash and cash equivalents
        at end of period........................  $ 13,553,944  $       6,730
                                                 -------------- -------------
                                                 -------------- -------------
              The accompanying notes are an integral part of these
                             financial statements.
                            NEWWEST GOLD CORPORATION
                        (a British Columbia Corporation)
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              (Unaudited US Dollars, unless otherwise indicated)
     1. BASIS OF PRESENTATION
        These unaudited interim consolidated financial statements of NewWest
        Gold Corporation (the "Company") have been prepared in accordance
        with Canadian generally accepted accounting principles. These interim
        consolidated financial statements of the Company do not include all
        information and note disclosures as required under Canadian generally
        accepted accounting principles for annual financial statements. The
        interim consolidated financial statements should be read in
        conjunction with the Company's consolidated annual financial
        statements included in the Company's final prospectus dated as of
        August 18, 2006.
        The assets and liabilities of the Company's British Columbia company,
        whose functional currency is the Canadian dollar, are translated at
        the exchange rate in effect on the last day of the period, and income
        and expenses are translated at the average exchange rate during the
        reporting period. The net effect of translation gains and losses is
        accumulated as a separate component of shareholders' equity. The
        functional currency of all of the Company's other subsidiaries is the
        United States ("US") dollar. The consolidated financial statements
        and related notes are presented in US dollars, unless otherwise
        indicated.
        The Company's consolidated financial statements have been prepared on
        a going concern basis, which presumes the realization of assets and
        discharge of liabilities in the normal course of business for the
        foreseeable future. The Company is currently an exploration and
        development stage company and does not have any mining operations
        which generate revenues or profits. Further, there can be no
        assurance that the Company will either achieve or maintain
        profitability in the future.
        The Company believes that the net proceeds from its initial public
        offering will be sufficient to meet its working capital requirements
        and its currently anticipated expenditure levels through 2007.
        Additional financing by way of other public offerings, private
        placements or bank borrowings will also be required in the future,
        the outcome of which cannot be predicted at this time. These
        consolidated financial statements do not include any adjustments and
        reclassifications of assets and liabilities, which might be necessary
        should the Company be unable to continue its exploration and
        development efforts.
     2. HISTORY OF THE COMPANY
        Formation
        On and as of June 30, 2005, a restructuring was completed where
        NewWest Delaware Corporation (a Delaware Corporation)("NewWest
        Delaware") consolidated the rights to possess, explore, develop and
        mine the precious metals mineral interests of Western States Minerals
        Corporation, Zaca Resources Corp. and 26 Ranch Inc. (collectively,
        the "Predecessor Companies" and each individually a "Predecessor
        Company").
        On and as of May 3, 2006, the Company was incorporated under the
        Business Corporations Act as a British Columbia company.
        The Company was formed for the initial purpose of, through a series
        of transactions completed on July 5, 2006, acquiring certain precious
        metal mineral interests consisting of mineral rights located on
        private lands and mining claims located on public lands in the United
        States. These mineral interests are located primarily in the state of
        Nevada, with smaller land positions in the states of California, Utah
        and Arizona. The mineral interests were 100% controlled by Mr. Jacob
        E. Safra ("the Ultimate Shareholder") through NewWest Delaware and
        its wholly owned subsidiary Nevada Western Gold Corporation, as well
        as Western States Royalty Corporation (together referred to as the
        "Sellers"). Following completion of the series of transactions and
        the IPO, NWG Investments (the "Principal Shareholder") owns
        approximately 86% of the Company, and 100% of the Principal
        Shareholder is indirectly controlled by the Ultimate Shareholder. As
        part of the series of transactions completed, 50 million common
        shares were issued and outstanding as of July 5, 2006.
        For financial reporting purposes, the Sellers and the Predecessor
        Companies' results are considered to be the historical results of the
        Company under the continuity of interest basis of accounting
        Completion of Offering
        On August 29, 2006, the Company completed its initial public offering
        and issued 8.2 million common shares for gross proceeds of
        approximately $18.5 million. The Underwriters were issued an
        additional 192,000 common shares on September 29, 2006 pursuant to an
        over-allotment option granted in connection with the initial public
        offering for gross proceeds of approximately $0.4 million
        (collectively, "IPO"). The Underwriters were paid a 7% commission,
        totaling approximately $1.4 million. An additional $1.7 million of
        expenses were incurred in connection with the IPO, resulting in net
        proceeds of approximately $15.8 million.
     3. SHARE CAPITAL
        Shareholders' Equity
                                                                 Accumulated
                                      Shares      Common Stock     Deficit
                                  -------------- -------------- -------------
         Balance at
         December 31, 2005......    50,000,000  $ 157,844,510  $(144,963,254)
         Contribution from
          Ultimate Shareholder...             -      3,760,000              -
         Net proceeds from
          issuance of shares
          from IPO...............     8,392,000     15,807,333              -
         Stock based
          compensation...........             -        653,126              -
         Net loss................             -              -    (5,298,263)
         Cumulative translation
          loss...................             -              -              -
                                  -------------- -------------- -------------
         Balance at
         September 30, 2006.....    58,392,000  $ 178,064,969  $(150,261,517)
                                  -------------- -------------- -------------
                                  -------------- -------------- -------------
                                    Cumulative
                                   Translation   Shareholders'
                                    Adjustment      Equity
                                  -------------- --------------
         Balance at
          December 31, 2005...... $           -  $  12,881,256
         Contribution from
          Ultimate Shareholder...             -      3,760,000
         Net proceeds from
          issuance of shares
          from IPO...............             -     15,807,333
         Stock based
          compensation...........             -        653,126
         Net loss................             -     (5,298,263)
         Cumulative translation
          loss...................           (18)           (18)
                                  -------------- --------------
         Balance at
          September 30, 2006..... $         (18) $  27,803,434
                                  -------------- --------------
                                  -------------- --------------
         Outstanding Share Data
         As of September 30, 2006, 58,392,000 common shares were issued and
         outstanding. In addition, there were 2,027,500 stock options
         outstanding, as noted below.
         Stock Options
         The stock option activity for the three and nine months ended
         September 30, 2006 follows:
                                                                   Weighted
                                                                   Average
                                                  September 30,    Exercise
                                                      2006         Price(1)
                                                 -------------- -------------
         Stock options outstanding at
          beginning of period...................              - $           -
         Granted................................      2,027,500          2.25
         Exercised..............................              -             -
         Expired and/or cancelled...............              -             -
                                                 -------------- -------------
         Stock options outstanding at
          end of period.........................      2,027,500 $        2.25
                                                 -------------- -------------
                                                 -------------- -------------
         Exercisable stock options..............        405,500 $        2.25
                                                 -------------- -------------
                                                 -------------- -------------
         (1) Weighted average exercise price is calculated using the C$2.50
             exercise price converted to US$ using the September 30, 2006
             exchange rate of 1.1113.
        The 2006 stock options granted have a term of 10 years, with 20%
        vested on the grant date and then 20% shall vest each year thereafter
        on the anniversary of such grant date for the next four years. The
        fair value of the 2006 stock options granted was calculated using the
        Black-Scholes option pricing model with the following assumptions:
        dividend yield 0%, expected volatility of 69.45%, risk free interest
        rate of 4.5 percent, and expected lives of 6.25 years. The stock-
        based compensation expense for the three and nine months ended
        September 30, 2006 was $653,126, of which $77,312 was charged to
        exploration expenses and $575,814 was charged to general and
        administrative expenses.
     4.  PREPAID EXPENSES AND OTHER
                                                                   As at
                                                                September 30,
                                                                    2006
         Annual property rental fees...........................$     311,662
         Drilling deposits.....................................       95,000
         Prepaid insurance.....................................       42,528
         Prepaid property tax..................................       10,301
         Fuel inventory........................................       18,106
         Other.................................................       11,546
         Total prepaid expenses and other......................$     489,143
     5.  RELATED PARTY TRANSACTIONS
         At September 30, 2006, the Company had no employees. The Predecessor
         Companies provide personnel and other services to the Company at
         cost. During the nine months ended September 30, 2006 and 2005,
         advances were made to the Company from Predecessor Companies,
         primarily in respect of these services, of approximately $1,668,049
         and $501,261, respectively, substantially all of which was repaid
         during the nine months ended September 20, 2006. In addition,
         advances outstanding from Predecessor Companies as of December 31,
         2005 of $919,545 were also repaid during the nine months ended
         September 30, 2006. At September 30, 2006, advances to the Company
         from Predecessor Companies totaled $22,765. The Company intends to
         transfer employees to the Company on January 1, 2007.
         During the nine months ended September 30, 2006 and 2005, the
         Ultimate Shareholder made additional capital contributions to the
         Company in the amount of $3,760,000 and $2,758,000, respectively.
         During the nine months ended September 30, 2006, a Predecessor
         Company made a $1.7 million non-interest bearing advance to the
         Company, which was repaid in May 2006.
         The Predecessor Companies received loans from the Ultimate
         Shareholder to finance its activities in the aggregate amount of
         $48,599,798 at June 30, 2005 bearing interest at rates ranging from
         6.5% to 7%. These loans, which were unsecured and payable on demand,
         were retained by the Predecessor Companies on the June 30, 2005
         restructuring of NewWest Delaware (see Note 2). During the nine
         months ended September 30, 2005, interest expense on these loans was
         $1,640,976. No principal or interest payments were made on these
         loans during the 2005 period.
     6.  TAX CONTINGENCIES
         In connection with the series of transactions referred to in Note 2,
         an application for a withholding certificate was made to the Internal
         Revenue Service in the United States indicating that there would be
         no tax liability to the Principal Shareholder on the sale and
         transfer and, as a result, there would be no withholding tax
         liability. Pending receipt of this withholding certificate, the
         Company withheld and pledged 5 million common shares that would
         otherwise have been delivered to the Principal Shareholder pursuant
         to a withholding and pledge agreement. In September 2006, the
         withholding certificate was received from the Internal Revenue
         Service in the United States confirming that there will be no tax
         liability to the Principal Shareholder on the sale and transfer, and
         the 5 million shares were subsequently released to the Principal
         Shareholder.
     7.  EXPLORATION
         Exploration expenditures for the three and nine months ended
         September 30, 2006 and 2005 are as follows:
                                 Three Months ended       Nine Months ended
                                 ------------------       -----------------
                                    September 30,           September 30,
                                    -------------           -------------
         Projects                 2006        2005        2006        2005
         --------                 ----        ----        ----        ----
         Northumberland(1).... $   62,284  $   55,793  $  173,722  $  151,274
         Sandman..............    784,899     155,032   1,279,618     266,314
         Zaca.................      2,655      56,471      15,687     106,277
         Eastern Great
          Basin...............    533,675      98,666     675,182     178,023
         Carlin-Cortez
          Trends..............     34,313      47,134      80,716     132,126
         Other Projects.......      8,680      49,108      28,212     107,856
         Unallocated
          exploration
          personnel and
          overhead............    247,320     151,225     589,758     326,591
                               ----------- ----------- ----------- ----------
         Total                 $1,673,826  $  613,429  $2,842,895  $1,268,461
                               ----------- ----------- ----------- ----------
                               ----------- ----------- ----------- ----------
         (1) Amounts represent expenditures made directly by the Company
             exclusive of the expenditures made by Newmont USA Limited in
             accordance with the joint venture agreement.
         Newmont USA Limited ("Newmont"), a subsidiary of Newmont Mining
         Corporation, completed approximately $845,000 and $1,467,000 of
         exploration expenditures under the Northumberland joint venture
         during the three and nine months ended September 30, 2006 compared
         to approximately $663,000 and $1,169,000 for the same periods in
         2005, respectively.
                            NEWWEST GOLD CORPORATION
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                          (EXPRESSED IN U.S. DOLLARS)
                      FOR THE THREE AND NINE MONTHS ENDED
                              SEPTEMBER 30, 2006
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management's Discussions and Analysis of Financial Condition
and  Results of Operations ("MD&A") for the three and nine month
periods ended  September 30, 2006, prepared as of November 8, 2006,
provides information  that management believes is relevant to an
assessment and understanding of  the interim consolidated financial
condition for NewWest Gold Corporation  ("the Company") as at
September 30, 2006 and the results of its operations  and cash flows
for the three and nine month periods then ended. This MD&A  should be
read in conjunction with the Company's annual consolidated financial
statements and the corresponding notes thereto included in the
Company's  final prospectus dated as of August 18, 2006.
The Company's consolidated financial statements have been prepared
by  management in accordance with generally accepted accounting
principles (" GAAP") in Canada. The consolidated financial
statements, related notes and  MD&A are presented in United States
("US") dollars, unless otherwise  indicated.
Certain statements contained in the MD&A are forward-looking
statements that involve risks and uncertainties. The forward-looking
statements are not historical facts, but rather are based on the
current  plans, objectives, goals, strategies, estimates, assumptions
and  projections about the Company's industry, business and future
financial  results. Actual results could differ materially from the
results  contemplated by these forward-looking statements due to a
number of factors , including those discussed in the Company's final
prospectus dated as of  August 18, 2006
Overview
The Company is an advanced gold exploration and development
company  primarily focused in the state of Nevada. The Company is one
of the largest  holders of precious metals mineral rights in Nevada's
gold trends, spanning  approximately 623,000 acres. The Company holds
19 exploration projects,  including advanced stage projects with
measured and indicated resources in  accordance with NI 43-101. The
Company's goal is to advance its projects  along the development
pipeline into production. The Company has active  drilling programs
underway at its three priority projects, Northumberland,  Sandman and
Long Canyon.
Highlights for the 2006 third quarter through the date of this
report  are as follows:
-  Successfully completed initial public offering ("IPO") for net
        proceeds of $15.8 million. The Company's working capital at
        September 2006 was approximately $13.2 million.
     -  The Company had net losses of approximately $3.1 million and
        $5.3 million for the three and nine months ended September 30, 2006,
        respectively. This compares to $1.2 million and $4.5 million for the
        same periods in 2005, respectively. The increase in losses during the
        2006 periods is primarily the result of significantly higher
        exploration drilling costs together with stock-based compensation
        expense and bonuses paid in conjunction with the successful
        completion of the IPO.
     -  Completed Phase One of the Sandman 2006 drilling program, with 84
        reverse circulation ("RC") holes completed, exceeding 27,000 feet.
        This program verified newly discovered zones of mineralization at
        Southeast Pediment and expanded mineralization at Silica Ridge and
        North Hill, both laterally and at depth. A new discovery of high-
        grade gold mineralization at Abel Knoll demonstrates the potential of
        the district exploration program. The drilling continued to produce
        high-grade intercepts associated with known mineralization.
     -  Phase Two of the Sandman 2006 drilling program is underway, designed
        to include an additional 100 holes.
     -  Completed Phase One of the Long Canyon 2006 drilling program,
        consisting of 16 RC drill holes, totaling 6,610 feet, construction of
        access roads, continued surface sampling, and geologic mapping. The
        drilling program successfully extended the known mineralization. The
        program produced 13 drill holes with significant near surface
        intercepts.
     -  Completed roadcut rock-chip sampling at Long Canyon, confirming
        interpretation of the structure and stratigraphy. Phase Two of the
        Long Canyon drilling program is currently being evaluated, with
        drilling to commence in November.
     -  Since May 24, 2006 through September 30, 2006, the Company completed
        approximately $561,000 of project expenditures under the Long Canyon
        joint venture. It is anticipated that under the terms of this
        agreement, the Company, as operator, may earn a 51% interest in the
        consolidated project if it spends $5 million on the project over a
        five year period.
     -  Newmont USA Limited ("Newmont"), a subsidiary of Newmont Mining
        Corporation, completed approximately $1.5 million of project
        expenditures under the Northumberland joint venture during the nine
        months ended September 30, 2006, bringing Newmont's inception to date
        project expenditures to approximately $4.8 million. Under the terms
        of the Northumberland joint venture, Newmont must spend a minimum
        cumulative expenditure through the end of 2006 of $6 million.
Company History
Formation
The Company was formed for the initial purpose of, through a
series of  transactions completed on July 5, 2006, acquiring certain
precious metal  mineral interests consisting of mineral rights
located on private lands and  mining claims located on public lands
in the US, primarily in the state of  Nevada, with smaller land
positions in the states of California, Utah and  Arizona. The mineral
interests were 100% controlled by Mr. Jacob E. Safra  ("the Ultimate
Shareholder") through NewWest Gold Corporation (a Delaware
Corporation) ("NewWest Delaware") and its wholly owned subsidiary
Nevada  Western Gold Corporation, as well as Western States Royalty
Corporation  (together referred to as the "Sellers"). Following
completion of the series  of transactions and the IPO, NWG
Investments (the "Principal Shareholder")  owns approximately 86% of
the Company, and 100% of the Principal  Shareholder is indirectly
controlled by the Ultimate Shareholder.
On June 30, 2005, a restructuring was completed where NewWest
Delaware  consolidated the rights to possess, explore, develop and
mine the precious  metals mineral interests of Western States
Minerals Corporation, Zaca  Resources Corp. and 26 Ranch Inc.
(collectively, the "Predecessor Companies " and each individually a
"Predecessor Company").
Basis of Presentation
The consolidated financial statements of the Company are comprised
of  the combined financial statements of the Sellers and the
Predecessor  Companies using the historical results of operations and
the historical  basis of assets and liabilities of these companies.
Therefore, even though  the Company is a newly incorporated company,
the MD&A is based on the  historical combined financial statements of
the Sellers and the Predecessor  Companies. For financial reporting
purposes, the Sellers and the  Predecessor Companies' results are
considered to be the historical results  of the Company under the
continuity of interest basis of accounting.
The combined results of operations of the Sellers and the
Predecessor  Companies will not necessarily be indicative of the
consolidated financial  position, operating results or cash flows in
the future or what the  consolidated financial position, operation
results or cash flows would have  been had the Company been a
separate, independent publicly-traded company  during the periods
presented. The Company expects that its expenses as a  separate
publicly-traded company may be higher than the amounts reflected  in
the combined consolidated statements of operations.
Summary Financial Information (unaudited)
                           Three Months Ended           Nine Months Ended
                           ------------------           -----------------
     Summary Operating        September 30,               September 30,
     -----------------        -------------               -------------
      Results               2006          2005          2006          2005
      -------               ----          ----          ----          ----
     Revenues.........$    126,622  $     74,970  $    192,337  $    106,040
     Expenses.........$  3,322,947  $  1,256,971  $  5,606,964  $  2,975,623
     Interest
      expense(1)......$          -  $          -  $          -  $  1,640,976
     Loss from
      continuing
      operations......$ (3,132,783) $ (1,177,337) $ (5,298,263) $ (4,478,925)
     Net loss.........$ (3,132,783) $ (1,177,337) $ (5,298,263) $ (4,609,189)
     Net loss per
      share...........$      (0.06) $      (0.02) $      (0.10) $      (0.09)
                                                   September 30, December 31,
                                                   ------------- ------------
     Summary Balance Sheet                              2006         2005
     ---------------------                              ----         ----
     Property, plant and equipment................$ 14,578,029  $ 14,517,340
     Total assets.................................$ 29,708,894  $ 15,529,606
     Total liabilities............................$  1,905,460  $  2,648,350
     Total shareholder's equity...................$ 27,803,434  $ 12,881,256
     (1) The loans giving rise to the interest expense were retained by the
         Predecessor Companies on the restructuring of NewWest Delaware on
         June 30, 2005.
Results of Operations - Three Months and Nine Months Ended
September  30, 2006 and 2005
Summary
Loss from continuing operations for the three months and nine
months  ended September 30, 2006 were $3,132,783 and $5,298,263
compared to $1,177, 337 and $4,478,925 for the same periods in 2005,
respectively. Expenses for  the three and nine months ended September
30, 2006 were $3,322,947 and  $5,606,964 up from $1,256,971 and
$2,975,623 for the same periods in 2005,  respectively. The increase
in losses from continuing operations and  expenses during the 2006
periods can primarily be attributed to  significantly higher
exploration expenses resulting from increased  exploration drilling
costs together with stock-based compensation expense  associated with
stock options granted in August 2006 and bonuses paid in  conjunction
with the successful completion of the IPO.
Revenues
During the three and nine months ended September 30, 2006, the
Company  had $126,622 and $192,337 in revenues from Newmont for
services provided by  the Company related to Newmont's earn-in
requirements at the Northumberland  Project. This compares to $74,970
and $106,040 of revenues from Newmont for  the three and nine months
ended September 30, 2005, respectively. The  higher level of services
provided to Newmont is the result of increased  exploration drilling
activities in the 2006 periods compared to the 2005  periods.
Exploration
Exploration spending varies depending on the perceived potential
of  properties in the portfolio and available funds. During 2006, the
Company  has been focused on three priority projects; Northumberland,
Sandman and  Long Canyon. Exploration expenditures were significantly
higher in the  three and nine month periods ended September 30, 2006
primarily due to  exploration drilling at the Sandman and Long Canyon
projects, together with  stock-based compensation expense and bonuses
paid upon the successful  completion of the IPO. Details of
exploration spending by project are as  follows:
                                 Three Months ended       Nine Months ended
                                 ------------------       -----------------
                                    September 30,           September 30,
                                    -------------           -------------
     Projects                     2006        2005        2006        2005
     --------                     ----        ----        ----        ----
     Northumberland(1)........ $   62,284  $   55,793  $  173,722  $  151,274
     Sandman..................    784,899     155,032   1,279,618     266,314
     Zaca.....................      2,655      56,471      15,687     106,277
     Eastern Great Basin......    533,675      98,666     675,182     178,023
     Carlin-Cortez Trends.....     34,313      47,134      80,716     132,126
     Other Projects...........      8,680      49,108      28,212     107,856
     Unallocated exploration
      personnel and
      overhead................    247,320     151,225     589,758     326,591
                               ----------- ----------- ----------- ----------
     Total.................... $1,673,826  $  613,429  $2,842,895  $1,268,461
                               ----------- ----------- ----------- ----------
                               ----------- ----------- ----------- ----------
     (1) Amounts represent expenditures made directly by the Company
         exclusive of the expenditures made by Newmont in accordance with the
         joint venture agreement.
Newmont completed approximately $845,000 and $1,467,000 of
exploration  expenditures at the Northumberland Project during the
three and nine months  ended September 30, 2006 compared to
approximately $663,000 and $1,169,000  for the same periods in 2005,
respectively. The 2006 drilling program for  Northumberland includes
four drill rigs, including reverse circulation ("RC ") and core rigs.
In addition to the expenditures made by Newmont under the  Joint
Venture Agreement, the Company incurred $62,284 and $173,722 of
direct exploration related expenditures during the third quarter and
first  nine months of 2006 compared to $55,793 and $151,274 for the
same periods  in 2005, respectively, related to the Northumberland
Project.
Exploration expenditures at the Sandman Project were higher for
the  three and nine months ended September 30, 2006 than the same
periods in  2005 primarily as a result of exploration drilling
expenditures from the  2006 drill program. The Company recently
completed Phase One of the 2006  drilling program, which included 75
RC holes designed to expand and test  shallow and deep targets at the
known mineralized zones of Southeast  Pediment, Silica Ridge and
North Hill. The Company also completed nine RC  holes to test three
district targets at Abel Knoll, Windmill and Sandbowl  as part of the
Phase One program. In total, 84 holes were completed,  exceeding
27,000 feet. The drilling continued to produce high-grade  intercepts
associated with known mineralization. Phase Two of the 2006  drilling
program is underway, and is designed to include an additional 100
holes with an estimated budget of approximately US$1.2 million.
Exploration expenditures for the Eastern Great Basin Project were
higher for the three and nine months ended September 30, 2006 due to
2006  exploration expenditures related to the Long Canyon project.
The Company  recently completed Phase One of the Long Canyon 2006
drilling program,  consisting of 16 RC drill holes totaling 6,610
feet, construction of access  roads, continued surface sampling, and
geologic mapping. The program  produced 13 drill holes with
significant near surface intercepts. Phase Two  of the drilling
program is underway.
Since May 24, 2006 through September 30, 2006, the Company
completed  approximately $561,000 of project expenditures under the
Long Canyon joint  venture. The Company and AuEx Ventures Inc.
("AuEx") agreed by way of a  letter of intent to complete a
definitive joint venture agreement for the  Long Canyon project
whereby the two parties will combine their respective  land positions
in the Long Canyon Area. The definitive joint venture  agreement is
currently being negotiated and is expected to be completed in  the
near future. Under the terms of this agreement, the Company will act
as  operator and may earn a 51% interest in the consolidated project
if it  spends $5 million on the project over a five year period.
After completion,  the Company may elect to carry AuEx through
feasibility, if warranted,  thereby earning an additional 14%.
Exploration expenditures for the Zaca project, the Carlin-Cortez
projects and other projects for the three and nine months ended
September 30,  2006 were lower than the same periods in 2005 as a
result of the Company's  focus on the 2006 drilling programs for its
three priority projects.
Unallocated exploration personnel and overhead increased in the
three  and nine months ended September 30, 2006 over the 2005 periods
due to  higher exploration staffing levels, stock-based compensation
expense and  bonuses paid.
Exploration expenses for the fourth quarter of 2006 are expected
to  slightly increase over the third quarter of 2006 primarily due to
exploration activities related to the Sandman and Long Canyon
projects.
Operations Expenses
Operating expenses related to equipment services provided to
Newmont  at the Northumberland Project were $57,919 and $92,525
during the three and  nine months ended September 30, 2006,
respectively. This compared to $39, 266 and $43,002 for the same
periods in 2005, respectively. Equipment  services were higher in the
2006 periods primarily as a result of more  equipment services
provided, given the higher level of exploration drilling  activities,
together with higher fuel costs in 2006.
General and Administrative Expenses
General and administrative expenses were $1,567,895 and $2,604,434
during the three and nine months ended September 30, 2006 compared to
$581, 647 and $1,594,347 during the same periods in 2005,
respectively. These  expenses increased in the 2006 periods primarily
as a result of the  recognition of stock-based compensation expense,
bonuses paid upon the  successful completion of the IPO and expenses
associated with being a  separate publicly-traded company.
On August 17, 2006, stock options were granted for 2,027,500
common  shares of the Company at an exercise price equal to the IPO
price of C$2. 50 per share. The 2006 stock options granted have a
term of 10 years, with  20% vested on the grant date and then 20%
shall vest each year thereafter  on the anniversary of such grant
date for the next four years. Under the  fair-value based method of
accounting, the value of the options vested on  the grant date is
recognized immediately as compensation expense, with the  remaining
value of the options being recognized over the applicable vesting
period. The stock-based compensation expense for the three and nine
months  ended September 30, 2006 was $653,126, of which $575,814 was
charged to  general and administrative expenses and $77,312 was
charged to exploration  expenses. Additionally, approximately
$375,000 of bonuses were paid upon  the successful completion of the
IPO, of which $280,000 was charged to  general and administrative
expenses and $95,000 was charged to exploration.
General and administrative expenses for the fourth quarter of 2006
are  expected to decrease from the third quarter of 2006 primarily
due to lower  stock-based compensation expense and no bonus expense,
which will be  somewhat offset by higher public company expenses.
Reclamation Accretion Expense
During the three and nine months ended September 30, 2006
reclamation  accretion expense was $16,650 and $49,948 compared to
$18,029 and $56,277  for the same periods in 2005, respectively. The
decrease in reclamation  accretion expense reflects a decrease in the
overall provision for  reclamation at December 31, 2005.
Interest Expense
During the nine months ended September 30, 2005, the Company
incurred  $1,640,976 of interest expense on loans payable to the
Ultimate Shareholder . These loans were retained by the former
companies on the restructuring of  NewWest Delaware in June 2005.
Interest Income
During the three and nine months ended September 30, 2006, the
Company  had interest income of $63,542 and $105,309 compared to
$5,164 and $15,761  for the same periods in 2005, respectively. The
increase in interest income  in 2006 was primarily the result of
higher cash balances from the IPO that  were invested in interest
bearing accounts together with higher interest rates.
Other Income/Expense
Other expense was $500 for the three months ended September 30,
2005,  which represented a loss on disposal of assets.
Other income was $11, 055 and $15,873 during the nine months ended
September 30, 2006 and 2005,  respectively. Mineral lease payments of
$12,000 were included in other  income during the 2006 and 2005
periods. Other expense during the nine  months ended September 30,
2006 included a foreign exchange loss of $645  and a loss on disposal
of assets of $300. Other income for the same period  in 2005 also
included oil and gas lease payments of $5,723, net of a loss  on
disposal of assets of $1,850. The oil and gas leases were retained by
the former companies on the restructuring of NewWest Delaware.
Income Taxes
As a result of the series of transactions completed in July 2006,
the  Company had a tax basis in excess of its book basis at that date
of  approximately $45 million. Additional losses have been incurred
through  September 30, 2006. The Company recorded a full valuation
allowance against  these future tax assets because of a lack of
sufficient positive evidence  to support the future realization of
these deferred tax assets.
The Sellers and the Predecessor Companies retained their net
operating  loss carry forwards for US federal tax purposes as part of
the series of  transactions completed in July 2006.
Quarterly Financial Information (unaudited)
Summarized unaudited financial data for each of the last eleven
quarters ended September 30, 2006 is as follows (in thousands, except
per  share amounts):
                                                2006 Quarters Ended
                                     September 30     June 30      March 31
     Revenues from continuing
      operations.................... $    126,622  $     65,715  $          -
     Loss from continuing
      operations....................   (3,132,783)   (1,341,274)    (824,206)
     Net loss.......................   (3,132,783)   (1,341,274)    (824,206)
     Net loss per share............. $      (0.06) $      (0.03) $     (0.02)
                                          2005 Quarters Ended
                        December 31  September 30     June 30      March 31
     Revenues from
      continuing
      operations...... $     31,342  $     74,970  $     29,870  $      1,200
     Loss from
      continuing
      operations......   (1,755,222)   (1,177,337)   (1,795,959)  (1,505,629)
     Net loss.........   (1,755,222)   (1,177,337)   (1,928,792)  (1,503,060)
     Net loss
      per share....... $      (0.04)   $    (0.02)   $    (0.04)   $   (0.03)
                                          2004 Quarters Ended
                        December 31  September 30     June 30      March 31
     Revenues from
      continuing
      operations...... $      1,195  $    122,944  $     49,484  $          -
     Loss from
      continuing
      operations......     (735,702)   (1,499,786)   (1,183,863)  (1,109,387)
     Net loss.........     (743,337)   (1,494,758)   (1,161,091)  (1,076,276)
     Net loss
      per share....... $      (0.01) $      (0.03) $      (0.02) $     (0.02)
Liquidity and Capital Resources
The Company is currently an exploration and development stage
company  and does not have any mining operations which generate
revenues or profits.  Further, there can be no assurance that the
Company will either achieve or  maintain profitability in the future.
The Company requires financing to fund its continuing exploration
and  development efforts. In this regard, on August 29, 2006, the
Company  completed its IPO and issued 8.2 million common shares. The
Underwriters  were issued an additional 192,000 common shares on
September 29, 2006  pursuant to an over-allotment option granted in
connection with the IPO.  The net proceeds from the IPO, after
Underwriters commissions and the  expenses of the IPO, were
approximately $15.8 million. The Company believes that the net
proceeds from this IPO will be sufficient to meet its working capital
requirements and  its currently anticipated expenditure levels
through 2007. Additional  financing by way of other public offerings,
private placements or bank  borrowings will also be required in the
future, the outcome of which cannot  be predicted at this time.
Operating Activities
Net cash used in operating activities was $2,532,865 and $583,584
during the three months ended September 30, 2006 and 2005,
respectively.  Net cash used in operating activities during the 2006
third quarter  primarily reflects the loss from continuing
operations, adjusted for stock- based compensation of $653,126. Net
cash used in operating activities  during the 2005 third quarter
primarily reflects the loss from continuing  operations, offset by a
loan from Predecessor Companies of $501,261.
Net cash used in operating activities was $5,920,248 and
$2,182,395  during the nine months ended September 30, 2006 and 2005,
respectively. Net  cash used in operating activities during 2006
primarily reflects the loss  from continuing operations, a net
repayment of advances from Predecessor  Companies of $896,780, and
prepaid expenses of $484,190 (primarily  representing annual property
rental fees), which were offset by the  adjustment for stock-based
compensation of $653,126. Net cash used in  operating activities
during 2005 primarily reflects the loss from  continuing operations
and a loan from Predecessor Companies of $501,261,  adjusted for
interest accrued but not paid on amounts due to the Ultimate
Shareholder of $1,640,976.
Investing Activities
Net cash used in investing activities was $60,853 and $78,149
during  the three and nine months ended September 30, 2006 compared
to $3,720 and  $398,903 for the same periods in 2005, respectively.
The 2006 periods and  the third quarter of 2005 included equipment
purchases. Net cash used in  investing activities for the nine months
ended September 30, 2005 included  $391,013 of cash retained by
former companies on a restructuring of NewWest  Delaware in 2005.
Financing Activities
Net cash provided by financing activities during the three months
ended September 30, 2006 and 2005 was $15,794,919 and $585,000,
respectively. During the 2006 third quarter, net proceeds of
$15,807,333  were received from the IPO. During the 2005 third
quarter, the Ultimate  Shareholder made capital contributions to the
Company of $585,000.
Net cash provided by financing activities during the nine months
ended  September 30, 2006 and 2005 was $19,527,119 and $2,758,000,
respectively.  During the 2006 nine month period, net proceeds of
$15,807,333 were  received from the IPO as mentioned above.
Additionally, during the 2006 and  2005 nine month periods, the
Ultimate Shareholder made capital  contributions to the Company of
$3,760,000 and $2,758,000, respectively.
Contractual Obligations
Mining operations and exploration projects are subject to
extensive  environmental regulations. Pursuant to environmental
regulations, the  Company is required to reclaim the lands that its
activities have disturbed . The estimated undiscounted cash outflows
of these reclamation obligations  remain unchanged from the end of
the previous fiscal year.
During the nine months ended September 30, 2006 and to the date of
this document, the Company has not entered into any contractual
obligations  that are outside the ordinary course of its business.
Related Party Transactions
At September 30, 2006, the Company had no employees. The
Predecessor  Companies provide personnel and other services to the
Company at cost.  During the nine months ended September 30, 2006,
advances were made to the  Company from Predecessor Companies,
primarily in respect of these services,  of approximately $1,668,049,
substantially all of which was repaid. In  addition, advances
outstanding from Predecessor Companies as of December 31 , 2005 of
$919,545 were also repaid during the nine months ended September  30,
2006. At September 30, 2006, advances to the Company from Predecessor
Companies totaled $22,765. The Company intends to transfer employees
from  the Predecessor Companies on January 1, 2007.
During the nine months ended September 30, 2006, the Ultimate
Shareholder made additional capital contributions to the Company in
the  amount of $3.76 million and a Predecessor Company made a $1.7
million non- interest bearing advance to the Company. In May 2006,
NewWest Delaware  repaid the $1.7 million advance.
Contingent Liabilities and Environmental Matters
Environmental Matters
The Company's mining and exploration activities are subject to
various  federal and state laws and regulations governing the
protection of the  environment. These laws and regulations are
continually changing and are  generally becoming more restrictive.
The Company conducts its activities so  as to protect the public
health and environment and believes it is in  substantial compliance
with all applicable laws and regulations. The  Company has made, and
expects to make in the future, expenditures to comply  with such laws
and regulations, but cannot predict the amount of such  future
expenditures. At September 30, 2006, the Company had accrued $1,011,
563 in respect of its reclamation and environmental liabilities.
Tax Contingencies
In connection with the indirect sale and transfer of assets and
liabilities to the Company from the Sellers, an application for a
withholding certificate was made to the Internal Revenue Service in
the US  indicating that there would be no tax liability to the
Principal  Shareholder on the sale and transfer and, as a result,
there would be no  withholding tax liability. Pending receipt of this
withholding certificate,  the Company withheld and pledged 5 million
common shares that would  otherwise have been delivered to the
Principal Shareholder pursuant to a  withholding and pledge
agreement. In September 2006, the withholding  certificate was
received from the Internal Revenue Service in the US  confirming that
there will be no tax liability to the Principal Shareholder  on the
sale and transfer, and the 5 million shares were subsequently
released to the Principal Shareholder.
Other
The other contingent liabilities and environmental matters remain
unchanged from the end of the previous fiscal year.
Critical Accounting Policies and Estimates
The preparation of the Company's consolidated financial statements
requires management to make estimates and assumptions. These
estimates and  assumptions affect the reported amounts of assets and
liabilities, the  disclosure of contingent assets and liabilities as
well as the reported  expenses during the reporting period. Such
estimates and assumptions affect  the determination of the potential
impairment of long-lived assets,  estimated costs associated with
reclamation and property closure costs,  income taxes and assumptions
in determining stock based compensation.  Management re-evaluates its
estimates and assumptions on an ongoing basis;  however, due to the
nature of estimates, actual amounts could differ.
The Company's critical accounting policies remain unchanged from
the  end of the previous fiscal year. The Company's critical
accounting  estimates, other than stock-based compensation discussed
below, also remain  unchanged from the end of the previous fiscal
year.
Stock-Based Compensation
The Company accounts for stock-based transactions using the
fair-value  based method. Under the fair value based method,
compensation cost is  measured at fair value of the options at the
date of grant and is expensed  over the vesting period of the award.
The fair value of the stock options  granted in August 2006 was
calculated using the Black-Scholes option  pricing model with the
following assumptions: dividend yield 0%, expected  volatility of
69.45%, risk free interest rate of 4.5 percent, and expected  lives
of 6.25 years.
Outstanding Share Data
As of November 8, 2006, there were 58,392,000 common shares issued
and  outstanding and there were an aggregate of 5,839,200 common
shares reserved  for issuance upon the exercise of stock options
granted. There were 2,027, 500 stock options outstanding as of
November 8, 2006.
Other Information
Additional information about the Company, including the Company's
final prospectus, is available electronically on SEDAR at
www.sedar.com.

Contact:

For further information: NewWest Gold Corporation, Jennifer Van
Dinter, Director of Investor Relations, Tel: +1-(303)-425-7042, Fax:
+1-(303)-425-6634, info@newwestgold.com; NewWest Gold Corporation,
Stephen Alfers, President and Chief Executive Officer, Tel:
+1-(303)-425-7042, Fax: +1-(303)-425-6634

Plus de actualités: NewWest Gold Corporation
Plus de actualités: NewWest Gold Corporation
  • 31.10.2006 – 13:04

    NewWest Gold Corporation Reports Positive Results of Roadcut Rock-Chip Samples at Long Canyon

    Lakewood, Colorado (ots/PRNewswire) - NewWest Gold Corporation (TSX: NWG) ("NewWest") today announced results of roadcut rock-chip channel sampling at its Long Canyon project, one of NewWest's principal projects in the Eastern Great Basin area of Elko County , Nevada. NewWest previously reported the results of its Phase One drilling program at Long Canyon on ...

  • 26.10.2006 – 13:21

    NewWest Gold Corporation Announces Conference Call to Discuss Third Quarter Results

    Lakewood, Colorado (ots/PRNewswire) - NewWest Gold Corporation (TSX: NWG) ("NewWest") today announced it will host a conference call and live audio webcast on Thursday, November 9, 2006 , at 10 a.m. ET. Steve Alfers, President and Chief Executive Officer and Pam Saxton, Vice President and Chief Financial Officer, will discuss results for the third quarter ...

  • 16.10.2006 – 16:05

    NewWest Gold Corporation Reports Multiple High Grade Intercepts at Sandman Project

    Lakewood, Colorado (ots/PRNewswire) - NewWest Gold Corporation (TSX:NWG) ("NewWest") today announced results from its Phase One drilling program at its Sandman Project (Sandman), located in Humboldt County Nevada. The Phase One program included 75 reverse circulation (RC) holes designed to expand and test shallow and deep targets at the known mineralized zones ...