SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

               Quarterly Report Pursuant to Section 13 or 15(d) of
                         Securities Exchange Act of 1934

                  For the quarterly period ended March 31, 1997

                         Commission File Number 0-16019

                    INTERNATIONAL PRECIOUS METALS CORPORATION
 ------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)

                           Province of Ontario, Canada
 ------------------------------------------------------------------------------
                           (Jurisdiction of formation)

                                   86-0766060
                         Employer Identification Number

                   4633 S. 36th Place, Phoenix, Arizona 85040
 ------------------------------------------------------------------------------
                    (Address of principal executive officers)

                                 (602) 414-1830

                         (Registrant's telephone number)





Number of common shares outstanding on March 31, 1997: 16,586,090


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes  No X.









<PAGE>




                    INTERNATIONAL PRECIOUS METALS CORPORATION





                                    CONTENTS

Part 1.  Financial Information                                              Page

Item 1. Condensed Consolidated Financial Statements


         Consolidated Balance Sheets
           March 31, 1996 and 1997                                           4-5

         Consolidated Statements of Loss and Deficit
           Three Months Ended March 31, 1996 and 1997                          6

         Consolidated Statements of Cash Flow
           Three Months Ended March 31, 1996 and 1997                          7

         Consolidated Statements of Deferred Mineral Exploration Expenditures
           Three Months Ended March 31, 1996 and 1997                          8

         Notes to Consolidated Financial Statements                         9-17

Item 2.  Management's Discussion and Analysis of Financial                 18-19
             Condition and Results of Operations


Part II.  Other Information

Item 2.   Changes in Securities                                               20

Item 6.   Exhibits and Reports on Form 8-K                                    20






                                       2
<PAGE>


Currency

     All dollar amounts set forth in this report are in Canadian dollars, except
where  otherwise  indicated.  The  following  table  sets forth (i) the rates of
exchange for the Canadian dollar,  expressed in United States dollars, in effect
at the end of each of the periods indicated;  (ii) the average of exchange rates
in effect on the last day of each month during such periods;  and (iii) the high
and low exchange rates during each such periods,  in each case based on the noon
buying  rate in New  York  City for  cable  transfers  in  Canadian  dollars  as
certified for customs purposes by the Federal Reserve Bank of New York:

<TABLE>

<CAPTION>
                                        Three months 
                                           ended
                                          March 31,               Year ended December 31,
                                            1997      1996         1995           1994         1993         1992
                                            ----      ----         ----           ----         ----         ----
<S>                                       <C>       <C>          <C>            <C>          <C>           <C>   
Rate at end of period.................    $.7228    $.7301       $.7323         $.7128       $.7544        $.7865
Average rate during period............     .7321     .7334        .7305          .7300        .7729         .8235
High..................................     .7487     .7515        .7527          .7632        .8046         .8757
Low...................................     .7228     .7215        .7023          .7103        .7439         .7761

</TABLE>

On May 12,  1997,  the noon buying  rate for $1.00  Canadian  was $.7194  United
States.





                                       3
<PAGE>
<TABLE>
<CAPTION>
                        INTERNATIONAL PRECIOUS METALS CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                              (In Canadian Dollars)
                                   (Unaudited)




                                                                             December 31,          March 31,
                                                                                 1996                 1997
                                                                           -----------------    -----------------
                                  ASSETS
<S>                                                                        <C>                  <C>   
CURRENT ASSETS

   Cash                                                                        $  2,644,000         $  6,309,000
   Other assets (Note 5)                                                          1,340,000            1,629,000
                                                                           -----------------    -----------------

   Total current assets                                                           3,984,000            7,938,000
                                                                           -----------------    -----------------


OTHER ASSETS

   Deferred mineral exploration expenditures (Note 6)                            13,050,000           13,809,000
   Capital assets (Note 7)                                                        1,030,000            1,312,000
                                                                           -----------------    -----------------

   Total other assets                                                            14,080,000           15,121,000
                                                                           -----------------    -----------------

   Total assets                                                                $ 18,064,000         $ 23,059,000
                                                                           =================    =================
</TABLE>






   The accompanying notes are an integral part of these financial statements.

                                        4
<PAGE>
<TABLE>
<CAPTION>
                    INTERNATIONAL PRECIOUS METALS CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                              (In Canadian Dollars)
                                   (Unaudited)




                                                                             December 31,          March 31,
                                                                                 1996                 1997
                                                                           -----------------    -----------------
                               LIABILITIES
<S>                                                                           <C>                  <C>          

CURRENT LIABILITIES

   Accounts payable and accrued charges                                       $     553,000        $     403,000
   Debentures (Note 8)                                                              798,000              251,000
   Vehicle and equipment loans                                                       69,000               60,000
                                                                           -----------------    -----------------

   Total current liabilities                                                      1,420,000              714,000
                                                                           -----------------    -----------------

LONG TERM LIABILITIES

   Vehicle and equipment loans                                                      231,000              224,000
   Deferred premium on flow-through shares                                          464,000              464,000
                                                                           -----------------    -----------------

   Total long-term liabilities                                                      695,000              688,000
                                                                           -----------------    -----------------

   Total liabilities                                                              2,115,000            1,402,000
                                                                           -----------------    -----------------

CONTINGENCIES AND COMMITMENTS (Note 10)

SHAREHOLDERS' EQUITY

   Share capital                                                                 47,590,000           53,566,000

   Deficit                                                                      (31,641,000)         (31,909,000)
                                                                           -----------------    -----------------

   Total stockholders' equity                                                    15,949,000           21,657,000
                                                                           -----------------    -----------------


   Total liabilities and stockholders' equity                                  $ 18,064,000         $ 23,059,000
                                                                           =================    =================
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>
                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
                              (In Canadian Dollars)
                                   (Unaudited)




                                                      Three months ended
                                            March 31,              March 31,
                                               1996                   1997
                                         -----------------      ----------------

INCOME

   Interest Income                        $         4,000         $       36,000
                                         -----------------      ----------------

   Total Income                                     4,000                 36,000
                                         -----------------      ----------------


EXPENSES

   Debenture interest                                -                     -
   Administrative                                  94,000                769,000
   Amortization                                    16,000                 71,000
                                         -----------------      ----------------

   Total expenses                                 110,000                840,000
                                         -----------------      ----------------

LOSS FOR THE PERIOD                               106,000                804,000

DEFICIT, BEGINNING OF PERIOD                   29,000,000             31,105,570

COSTS OF ISSUING SHARES                              -                      -
                                         -----------------      ----------------


DEFICIT, END OF PERIOD                         29,000,000             31,909,000

LOSS PER SHARE (Note 11)                     $       0.01        $          0.05
                                         =================      ================


Weighted Average Number of
Common Shares Outstanding                      10,498,706             15,722,688
                                         =================      ================



   The accompanying notes are an integral part of these financial statements.

                                       6
<PAGE>
<TABLE>
<CAPTION>
                    INTERNATIONAL PRECIOUS METALS CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                              (In Canadian Dollars)
                                   (Unaudited)



                                                                                        Three months ended
                                                                              March 31,                    March 31,
                                                                                 1996                         1997
                                                                           -----------------            -----------------
<S>                                                                        <C>                          <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO
  THE FOLLOWING ACTIVITIES

     OPERATING:
      Loss for the period from continuing operations
       (less write-off of mineral exploration expenditures)                   $    (106,117)               $    (804,000)
      Items not affecting cash                                                       16,577                       69,000
                                                                           -----------------            -----------------
                                                                                    (89,540)                    (735,000)
                                                                           -----------------            -----------------
      Changes in non-cash working capital components affecting operations:
      Prepaids, deposits and accounts receivable                                     15,342                     (341,000)
      Accounts payable and accrued charges                                          (94,009)                     (50,000)
                                                                           -----------------            -----------------
                                                                                    (78,667)                    (391,000)
                                                                           -----------------            -----------------

      Mineral exploration expenditures                                           (1,043,128)                    (759,000)
                                                                           -----------------            -----------------
      Cash used in continuing operations                                         (1,211,335)                  (1,885,000)
      Discontinued petroleum operations                                                -                            -
                                                                           -----------------            -----------------
     Cash used in operating activities                                           (1,211,335)                  (1,885,000)

     INVESTING:
      Exploration advances                                                             -                            -
      Loans and advances                                                               -                            -
      Related party advances                                                         66,477                      (51,000)
      Related party shares                                                             -                            -
      Furniture, fixtures, and capital assets                                      (309,330)                    (375,000)
      Cash of acquired entities                                                        -                            -
      Investment                                                                       -                            -
      Acquisition of mineral rights to property                                        -                            -
                                                                           -----------------            -----------------
     Cash (used in) provided by investing activities                               (242,853)                    (426,000)
                                                                           -----------------            -----------------

     FINANCING:
      Issue of convertible debentures for cash                                         -                            -
      Debentures                                                                       -                        (547,000)
      Repayment of debenture                                                           -                            -
      Issue of shares for cash                                                    1,953,866                    6,512,000
      Premium on flow-through shares                                                   -                            -
      Costs of issuing shares                                                          -                            -
      Vehicle and equipment loans                                                      -                          11,000
                                                                           -----------------            -----------------
     Cash provided by financing activities                                        1,953,866                    5,976,000
                                                                           -----------------            -----------------

INCREASE (DECREASE) IN CASH DURING PERIOD                                           499,678                    3,665,000
CASH, BEGINNING OF PERIOD                                                           389,856                    2,644,000
                                                                           -----------------            -----------------
CASH, END OF PERIOD                                                           $     889,534                 $  6,309,000
                                                                           =================            =================

</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       7
<PAGE>
                    INTERNATIONAL PRECIOUS METALS CORPORATION
      CONSOLIDATED STATEMENTS OF DEFERRED MINERAL EXPLORATION EXPENDITURES
                              (In Canadian Dollars)
                                   (Unaudited)




                                                      Three months ended
                                                     March 31,     March 31,
                                                       1996          1997
                                                    -----------   ----------

PROPERTY

United States of America

             Engineering & Consulting              $ 1,014,000  $   651,000

             Exploration                                  --           --

             Option Fees                                  --           --
                                                   -----------  -----------

               Total                               $ 1,014,000  $   651,000
                                                   -----------  -----------


Canada
      

             Engineering & Consulting                     --           --

             Exploration                                29,000      108,000

             Option Fees                                  --           --
                                                   -----------  -----------

               Total                                    29,000      108,000
                                                   -----------  -----------

             Grand Total                           $ 1,043,000  $   759,000


Cumulative Mineral Property Costs
Deferred, beginning of period                        9,658,000   13,050,000
                                                   -----------  -----------

Cumulative Mineral Property Costs
Deferred, end of period                            $10,701,000  $13,809,000
                                                   ===========  ===========




   The accompanying notes are an integral part of these financial statements.

                                       8
<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997





1.   Presentation of Interim Information

     In  the  opinion  of  the  management  of  International   Precious  Metals
     Corporation   (the   Company),   the   accompanying   unaudited   condensed
     consolidated financial statements include all normal adjustments considered
     necessary to present  fairly the  financial  position as of March 31, 1997,
     and cash flows and the results of  operations  for the three  months  ended
     March 31, 1996 and 1997. Interim results are not necessarily  indicative of
     results for a full year.

     The condensed  consolidated financial statements and notes are presented as
     permitted by Form 10-Q and do not contain certain  information  included in
     the company's  audited  financial  statements  and notes for the year ended
     December 31, 1996


2.   Business Organization

     The  company is  amalgamated  under the laws of the  Province  of  Ontario,
     Canada.  In 1995 the company changed its name from  International  Platinum
     Corporation to International  Precious Metals  Corporation.  On October 23,
     1995, The company  consolidated  (reverse split) its issued and outstanding
     capital by changing  each common share into  one-tenth  of a common  share.
     Information  pertaining to share  capital,  options,  warrants and loss per
     share for 1996 and 1997 have been  stated on a post  consolidated  (reverse
     split) basis.

3.   Continuation of business

     These  consolidated  financial  statements  have been  prepared  on a going
     concern basis which assumes the realization of assets and the  satisfaction
     of liabilities and commitments in the normal course of business.

     The company is a development  stage corporation and as all of the company's
     properties are presently in the exploration  stage, the continuation of the
     company as a going  concern is dependent  upon its ability to obtain equity
     financing  to  permit  the  further  exploration  and  development  of  its
     properties.

     As well,  it is the  intention of the  company's  management  to seek joint
     venture partners for several of the company's  properties.  To achieve this
     end, management has prepared detailed reports on each of the properties and
     engaged independent consultants to market the company's properties.

     The consolidated financial statements do not give effect to adjustments, if
     any,  that may be  necessary  should the company be unable to continue as a
     going  concern  and be required  to realize  its assets and  liquidate  its
     liabilities in other than the normal course of business. In this event, the
     amounts realized on disposal of its assets may be  substantially  less than
     their recorded amounts.

                                       9
<PAGE>
                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997
4.   Significant accounting policies

   (a)  Basis of financial statement presentation

     The  accompanying   consolidated   financial  statements  are  prepared  in
     accordance with the accounting principals generally accepted in Canada. The
     major difference  between these  accounting  principles and those generally
     accepted in the United  States is  discussed in Note 10 of the Notes to the
     Consolidated  Financial Statements. These  financial statements include the
     accounts   of   its   subsidiary,1020632    Ontario   Inc. (Georgia  Lake).
     Additionally,   the  accounts  of  Hellens-Eplett  Mining  Inc.,  Jamestown
     Platinum  (Pty)  Limited and South Africa Mining (Pty)  Limited,  corporate
     exploration  joint  ventures,  have been included  using the  proportionate
     consolidation  method.  The exploration  operations of these joint ventures
     were discontinued in 1995.

   (b) Deferred mineral exploration expenditures

     All direct  expenditures  related to the  exploration  and  development  of
     mineral  properties  in which the company  has a  continuing  interest  are
     deferred,  pending  the  determination  of the  economic  viability  of the
     project. Costs related to projects terminated or abandoned are written-off;
     costs related to successful projects will be capitalized and amortized over
     the estimated life of the projects using a unit of production method.

   (c) Deferred premium on flow through shares

     The premium received on flow-through shares, representing the excess of the
     price paid by an investor  for  flow-through  shares over the market  value
     stipulated in the offering memorandum with respect to such shares, has been
     deferred and is written-off  or amortized as the related  projects on which
     the flow-through funds were expended are written-off or amortized.

   (d) Amortization

     Capital  assets  are  stated at cost.  Amortization  is  recorded  at rates
     calculated to charge the cost of vehicles and office equipment and fixtures
     to operations over their estimated useful lives of five years on a straight
     line basis.  Amortization relating to machinery and equipment used directly
     in the  exploration of projects has been deferred.  Maintenance and repairs
     are charged to  operations  as incurred.  Gains and losses on disposals are
     calculated  on the  remaining  net book value at the time of  disposal  and
     included in income.


   (e) Foreign currency translation

     Monetary assets and liabilities in foreign  currencies have been translated
     into Canadian dollars at the exchange rates prevailing at the balance sheet
     date.  Other  assets and  liabilities,  revenue and  expenses  arising from
     foreign  currency  transactions  have been  translated at the exchange rate
     prevailing at the date of the  transaction.  Gains and losses  arising from
     these translation policies are included in income.


                                       10
<PAGE>
                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997


5. Other assets                                                March 31
                                                               --------
      Related parties                                    1996             1997
                                                         ----             ----
       -   Advances ( Note 8)                        $ 565,000       $ 1,095,000

       -  Investment in common shares, at cost
              Namibian Copper Mines Inc., 1% interest    -0-             409,000

      Prepaids, deposits and sundry receivables        132,000           125,000
                                                     ---------------------------
                                                     $ 697,000       $ 1,629,000
                                                     ===========================

The advances to related parties are unsecured,  non-interest bearing and have no
specific terms of repayment.


6. Deferred mineral exploration expenditures

     Presented  below is a  discussion  of the  status of each of the  company's
     significant mineral properties.

     (a)  Black Rock Property

     The  Company  holds  rights to  unpatented  mining  claims on federal  land
     administered by the U.S. Bureau of Land Management located approximately 92
     miles west of Phoenix, Arizona (the "Black Rock Property"). On May 9, 1997,
     the  Company  entered  into an  agreement  with  an  affiliate  of  Phoenix
     International  Mining,  Inc.  ("Phoenix")  pursuant to which a wholly-owned
     subsidiary  of the  Company  will  pay an  aggregate  of  US$27,000,000  to
     Phoenix's  affiliate,  consisting  of  US$17,000,000  in cash and 1,000,000
     common shares valued at US$10.00 per share, to acquire all of the rights to
     the unpatented  mining claims  comprising the Black Rock Property which the
     Company  does not  presently  own. As the first of two  payments  under the
     Purchase  Agreement,  the  Company's  subsidiary  on May 9,  1997  paid  to
     Phoenix's  affiliate  US$500,000  plus  4,000,000  common  shares (of which
     3,000,000  common shares will be held by Phoenix's  affiliate to secure the
     Company's obligation to make the second payment).  The Company's subsidiary
     will make a second payment of US$16,500,000 on July 15, 1997 (at which time
     Phoenix's  affiliate will return  3,000,000  common shares to the Company).
     The Company  expects to raise cash for the second payment  through  private
     placements  of its  securities,  but its  ability  to do so will  depend on
     factors beyond its control, including economic and market conditions.

     On May 1997, the Company  acquired  rights to an additional 40 square miles
     north of and  contiguous  to the Black Rock  Property by staking and filing
     lode claims  (each  relating  to a 40-acre  area) and placer  claims  (each
     relating to a 160-acre area) with respect to that area. Aerial photography,
     regional and detailed  geological mapping,  sampling,  a geophysical survey
     and compilation of existing and new data is currently under way to generate
     potential drill targets in the area.
   
                                       11
<PAGE>

                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997


6. Deferred mineral exploration expenditures(continued)

     The Company is continuously  striving to optimize its gold and PGM recovery
     techniques  and advancing to  large-scale  testing.  This test work is also
     invaluable  with  regard to  establishing  a head  grade of the Black  Rock
     Property  mineralization.  To that end,  the Company has under  development
     fire  assay  procedures  on  raw  Black  Rock  Property  samples,   gravity
     concentrates and evaporative residues from leach solutions.  The fire assay
     development  is yielding  positive  results  with gold and PGM  produced as
     physical metal prills.  Non-destructive  elemental  determination  has been
     used to verify elemental  composition of the metal prills recovered by fire
     assay  procedures.  Examples of successful fire assay  procedures for gold,
     platinum  and  rhodium  are  shown  in the  electron  microphotographs  and
     elemental  spectrographs  (plotted via Emission  Dispersion  Spectroscopy).
     Fire assay will eventually be applied toward the Black Rock Property as the
     "yard stick" by which all recovery  procedures  will be measured  regarding
     amenability and efficiency.

     IPM has launched  further  drilling and exploration  work on the Black Rock
     Property  to more fully and  completely  define the extent of the  precious
     metal  deposit.  The new  exploration  drilling  began March 17, 1997.  The
     reverse  circulation  drilling,  on one  kilometer  spacings,  drilling  to
     bedrock,  will test material in areas previously  unexplored by the Company
     on the  property.  This drilling  will also provide  important  data on the
     surrounding eight square kilometers  believed to make up the larger portion
     of the observed geochemical anomaly.

     (b)  Big Trout Lake

     The Company  holds an interest in 223 claims,  totaling  8,920 acres,  on a
     property  located  near Big Trout  Lake in  northwestern  Ontario,  Canada,
     approximately   400  miles  north  of  Thunder  Bay.  An   expenditure   of
     approximately  $200,000 is necessary to keep the property in good standing.
     Since 1990,  the company  has limited its work on the  property  because of
     financial  constraints.  Joint venture  partners are being sought to assist
     with the exploration funding for this prospect.

     (c)  Eagle Lake

     The Company holds 327 claims,  consisting of 10,320 acres, located 20 miles
     west-southwest of Dryden, Ontario,  Canada. All of these claims are in good
     standing at least until 1999.  Drilling  from lake ice,  600 meters of core
     drilling  was  completed  in  early  1997.  Each  of the  two  drill  holes
     intersected  massive  sulfides  up to 10 meters in width,  with no  visible
     precious metals.  One distinct zone of sphalerite  (zinc) with a true width
     of 0.9 meters was also  intersected.  Assays  are yet to be  received.  The
     expenditures  upon  these  claims  will  enable  them  to be  held  in good
     standing.

     The Company has done  limited work on the  property  since 1990,  but still
     holds an interest in the ground and,  subject to the availability of funds,
     plans to explore the property when conditions are favorable.

     (d)  Georgia Lake

     The Company holds 14 claims covering 710.7 acres located at the west end of
     Georgia  Lake,  144  kilometers  northeast of Thunder Bay, in  northwestern
     Ontario,  Canada.  The claims are held under fourteen  10-year leases which
     are in good standing  until June 1, 2001 and thirteen 2 1-year leases which
     are in default. This property is held by the Company as a strategic reserve
     as it expects  lithium to become of  interest  and value with the advent of
     electric autos. Subject to the availability of funds the Company intends to
     undertake further exploration on the property through additional geological
     and other research and analysis,  and, to the extent  consistent  with this
     analysis, the design and implementation of a core drilling program.



                                       12
<PAGE>
                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997



6. Deferred mineral exploration expenditures(continued)

     (e)  Gold Hill

     In 1995,  the company  entered into a four year agreement for the rights to
     explore  the Gold  Hill  property.  Additionally,  within  the terms of the
     agreement  the  company  may  purchase  the  rights  to  the  property  for
     US$1,000,000


7. Capital assets
                                               Accumulated           Net
                                        Cost   amortization    1996       1997
                                        --------------------------------------
Machinery and equipment ............   $591,000   $ 94,000   $182,000   $497,000
Vehicles ...........................    462,000     65,000    122,000    397,000
Office Equipment and fixtures ......    507,000     89,000    124,000    418,000


                                    $ 1,560,000  $ 248,000  $ 428,00  $1,312,000
                                    ============================================


8. Debentures

     The company has not paid the amount outstanding on a debenture of $ 250,000
     by its due date and is  negotiating  the  settlement  of this amount.  This
     amount remains outstanding at March 31, 1997.

     Relating  to the  Black  Rock  properties,  the  Company  issued in 1995 to
     Phoenix  International  Mining (Phoenix")  debentures  totaling  $3,274,000
     (US$2,400,000).  These  debentures were  convertable into common shares and
     bear interest  starting in 1996. During 1996, the company repaid $2,726,000
     (US$2,000,000)  of debentures using cash of $2,026,000  (US$1,500,000)  and
     issuing 303,000 common shares for $700,000.

     Accounts payable includes $186,000 in unpaid debenture interest,  including
     interest on a debenture discharged in 1994.



                                       13
<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997



9. Related party transactions

     Other assets (Note 5) relate to amounts from and investment in corporations
     which have senior management in common with the company.

     In addition to items disclosed separately in the financial statements,  the
     following  transactions  took place in the normal  course of business  with
     related  parties.  These  transactions are measured at the exchange amount,
     which is the  amount  of  consideration  established  and  agreed to by the
     related parties.

     (a)  At March 31, 1997,  the company  incurred legal and  secretarial  fees
          provided by directors and senior officers of the company  amounting to
          $25,000  (  1996   $12,700).   These   fees  have  been   charged   to
          administrative expense.

     (b)  At March 31,  1997,  consulting  fees were  charged by  directors  and
          senior  officers of the company  amounting to $98,000(1996 - $55,000).
          Of  the  total  fees,   $70,000(1996  $36,000)  has  been  charged  to
          administrative  expenses and  $28,000(1996$19,000)  pertaining to time
          spent  overseeing the Black Rock  exploration has been included in the
          company's deferred mineral exploration expenditures.

10. Contingencies 

     (a)  Interest on debenture

          In 1994, the company  negotiated a settlement of a $500,000  debenture
          plus a portion of interest  owing. As of December 31, 1996, the amount
          of the interest owing is currently in dispute due to alternate methods
          used in interest calculation.  The company is negotiating a settlement
          of this  dispute  and an  additional  amount  of  $75,000  may  become
          payable.

     (b)  Recovery of deferred mineral exploration expenditures

          The recoverability of deferred  expenditures is dependent upon various
          factors, including the existence of economically recoverable reserves,
          the ability to obtain the necessary financing to complete  development
          of  future  profitable   operations  or  profitable  disposal  of  the
          properties.   Pending  the  profitable  operation  or  disposal  of  a
          property,  cash requirements must be provided by future debt or equity
          financing.


                                       14
<PAGE>

                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997


11.  Differences between accounting  principles generally accepted in Canada and
     those in the Unite States

     The  financial  statements  are  prepared  in  accordance  with  accounting
     principles generally accepted in Canada. In these financial statements, the
     major  differences  between  accounting  principles  generally  accepted in
     Canada(  "Canadian GAAP") and those in the United States ("US GAAP") are as
     follows:


     (a)  The company  follows the practice of charging  share issue cost to the
          deficit  account.  Under U.S. GAAP, such costs would be charged to the
          share capital  account.  Although this  difference does not affect net
          shareholders'  equity, under U.S. GAAP the company's share capital and
          deficit accounts would be reduced as indicated below.


     (b)  The company  follows the  practice  of  accounting  for the premium on
          flow-through  shares as a  deferred  credit  which is  written-off  or
          amortized  as the  related  project  expenditures,  on which  the flow
          through funds are expended,  are written off or amortized.  Under U.S.
          GAAP, this premium would be treated as a reduction of deferred mineral
          exploration expenditures. Although this difference does not affect net
          loss,  the  deferred  premium  on   follow-through   shares  would  be
          eliminated  and deferred  mineral  exploration  expenditures  would be
          reduced as indicated below.


     (c)  A business  combination  in 1986 was  accounted for using the purchase
          method of accounting. Under U.S. GAAP, this business combination would
          have been  accounted  for as a pooling of interests.  This  difference
          does not affect net loss for the three months ended March 31, 1996 and
          1997. The deferred exploration expenditures would have been reduced by
          $605,000  as at March  31,  1996 and  1997,  and the  company's  share
          capital  account  would have been  reduced by $676,000 as at March 31,
          1996 and 1997.


     (d)  U.S.  GAAP does not follow the  practice of  deferral of period  costs
          such as certain  administrative  expenses.  This difference would have
          increased  the  net  loss  and  decreased  the  deferred   exploration
          expenditures  by $290,000 for the year ended  December 31, 1995.  This
          difference  does not affect net loss for the three months ending March
          31, 1996 and 1997.


                                       15
<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997


11.  Differences between accounting  principles generally accepted in Canada and
     those in the United States(con't).


     The effect of these differences on the financial statements is as follows:
<TABLE>
<CAPTION>

                                                                        March 31

      (a) Balance Sheet                                         1996              1997
          <S>                                             <C>                  <C>
          Deferred mineral exploration expenditures
            Under Canadian GAAP                           $  7,080,000         $13,809,000
            Premium on flow-through shares - (b) above        (464,000)           (464,000)
            Pooling - (c) above                               (605,000)           (605,000)
            Period costs - (d) above
                                                           --------------------------------

            Under U.S. GAAP                                $ 6,911,000         $12,740,000
                                                           ===============================
          Deferred premium on flow through shares
            Under Canadian GAAP                            $   464,000         $   464,000
            Applied to deferred mineral exploration
               expenditures - (b) above                       (464,000)        $  (464,000)
                                                           --------------------------------
            Under U.S. GAAP                                $      -           $       -
                                                           ================================
          Share capital
            Under Canadian GAAP                            $35,842,000         $53,566,000
            Share issue Costs - (a) above                         -               (536,000)
            Pooling - (c) above                               (676,000)           (676,000)
                                                           --------------------------------

            Under U.S. GAAP                                $35,166,000         $52,354,000
                                                           ================================
          Deficit
            Under Canadian GAAP                            $29,000,000         $31,909,000
            Share issue costs - (a) above                         -                   -
            Pooling - (c) above                                (71,000)            (71,000)
            Period costs - (d) above                       --------------------------------

            Under U.S. GAAP                                $28,929,000         $31,838,000

                                                           ================================
</TABLE>

                                       16
<PAGE>

                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                             March 31, 1996 and 1997



11.  Differences between accounting  principles generally accepted in Canada and
     those in the United States(con't).


     (b)  Statement of loss and deficit:


                                                               March 31
                                                               --------
                                                           1996          1997
                                                           ----          ----

        Net loss for the period under Canadian GAAP     $106,000       $804,000

        Pooling Adjustments - (c) above                     -              -


        Period cost adjustment - (d) above              ________      _________

        Net loss for the period under U.S. GAAP         $106,000       $804,000

                                                        =======================

        Loss per share (Note 9) - under U.S. GAAP           $.01           $.05

                                                            ====           ====


12. Subsequent events

     On May 9, 1997, the Company  entered into an agreement with an affiliate of
     Phoenix  International  Mining,  Inc.(Phoenix),  pursuant to which a wholly
     owned  subsidiary of the Company will pay an aggregate of  US$27,000,000 to
     Phoenix's  affiliate,  consisting  of  US$17,000,000  in cash and 1,000,000
     common shares valued at US$10.00 per share, to acquire all of the rights to
     the unpatented  mining claims  comprising the Black Rock Property which the
     Company  does not  presently  own.  As the  first  two  payments  under the
     Purchase  Agreement,  the  Company's  subsidiary  on May 9,  1997  paid  to
     Phoenix's  affiliate  US$500,000  plus  4,000,000  common  shares (of which
     3,000,000  common shares will be held by Phoenix's  affiliate to secure the
     Company's obligation to make the second payment).  The Company's subsidiary
     will make the second  payment of  US$16,500,000  on July 15, 1997 (at which
     time Phoenix  will return  3,000,000  common  shares to the  Company).  The
     Company  expects  to raise  cash for the  second  payment  through  private
     placement  of its  securities,  but its  ability  to do so will  depend  on
     factors beyond its control, including economic and market conditions.

                                       17
<PAGE>
                    INTERNATIONAL PRECIOUS METALS CORPORATION

ITEM 2: MANAGEMENTS  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS
        OF OPERATION

The  following  discussion  should  be read in  conjunction  with the  Company's
Consolidated Financial Statements and Notes thereto, included elsewhere herein.

Liquidity, Capital Resources and Limited Operations

From  inception,  July 22, 1980, to the end of 1986, the Company's sole activity
related to the exploration for and  investigation  of precious metal deposits in
Canada and the  United  States.  In early  1987,  the  Company  entered  into an
agreement to participate in an oil exploration program in the State of Illinois;
in June 1987,  the  resulting  oil wells  commenced  production  and the Company
realized  its first  operating  operating  revenues.  The Company  has  financed
virtually all of its exploration  activities  through various equity financings,
which  continue to be the  Company's  major source of capital.  Interest  income
realized   from  excess  cash   balances  has  been  applied  to  the  Company's
administrative  costs.  Exploration  for  precious  metals  continues  to be the
Company's  major  activity.  The  company  acquires  its  interests  in  various
properties   either  by  its  own  grass  roots  exploration   efforts,   or  by
participation  in the exploration of properties  owned by others,  in which case
the Company may earn an interest in the  properties  by the  expenditure  of its
funds on the  properties  or by making  payments  or  issuing  its shares to the
property owner. Conversely,  the Company may allow others to earn an interest in
its  properties  by the  expenditure  of their funds on the  exploration  of the
Company's properties..

In 1996,  proceeds  from  shares  issued  totaled  $12,841,000  and  exploration
activities  resulted in  expenditures  of  $3,290,000.  At March 31,  1997,  the
Company has cash resources of approximately $3,665,000.

Of the  16,586,090  common shares of the Company  outstanding on March 31, 1997,
459,473 were "flow-through"  shares.  "Flow-through" shares are common shares of
the company issued to investors under the terms of agreements which provide that
the   funds    received    will   be   expended    on   Canadian    Explorations
Expenditures("CEE"),  as  defined  in  the  Income  Tax  Act  Canada,  and  that
unexpended  funds will be held in trust.  The CEE so incurred are deductible for
income tax purposes only by the shareholder and, accordingly,  are not available
to the company.

At March 31,  1997,  the Company had a working  capital  surplus of  $7,224,000.
Current assets were $7,938,000,  compare to current liabilities of $714,000, for
a current ratio of 12 to 1. This compares to current assets of  $3,984,000,  and
current  liabilities of $1,420,000 at December 31, 1996,  resulting in a current
ratio of 3 to 1. The Company's  liquidity needs are generally being met from its
available cash resources.

The Company  during the quarter ended March 31, 1997 made  non-interest  bearing
loans to Namibian Copper Mines  Inc.("Namibian") to cover the operating expenses
of Namibian,  including  the  salaries of its  executive  officers.  Namibian is
controlled  by Alan Doyle and shares  office space with the company.  Several of
the executive  officers of Namibian also are executive  officers of the Company.
At March 31,  1997,  Namibian  owed  $419,000  to the Company an account of such
loans.  Failure of Namibian to repay such loans would have a negative  effect on
the liquidity and capital resources of the Company.

                                       18
<PAGE>
                    INTERNATIONAL PRECIOUS METALS CORPORATION

ITEM 2: MANAGEMENTS  DISCUSSION AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS
        OF OPERATIONS (CONTINUED)

 .

The Company is in default on an outstanding  debenture in the amount of $250,000
and is  negotiating  with  the  holder  of the  debenture.  A  failure  of  such
negotiations could have a negative effect on the liquidity and capital resources
of the Company.

Results of Operations

1997 Compared to 1996

The loss for the three  months  ended March 31, 1997 of $804,000 was larger than
the loss for 1996 of $106,000  due  primarily  to  increases  in  administrative
expenses.

Administration  costs of $769,000 for the three months ended March 31, 1997 have
increased  from $94,000 for the three  months  ended March 31,  1996,  primarily
because of  increased  consulting  fees and  increased  compensation  and office
expenses relating to a major expansion of exploration activities by the Company.

Impact of Inflation on the Company

The  Company has no control  over the prices of the  products in which it deals,
i.e.,  precious metals.  The prices of these commodities are determined by world
markets and are subject to volatile fluctuation over short periods of time.

To date,  the major  impact of inflation on the Company has been with respect to
costs which have increased  moderately in recent years in North  America,  where
most of the Company's activities take place.

                                       19
<PAGE>

                    INTERNATIONAL PRECIOUS METALS CORPORATION

                           PART II - OTHER INFORMATION

Item 2 - Changes in Securities

The Company during the first quarter of 1997 made the following issuances within
the United  States in  reliance on the private  offering  exemption  provided by
Section 4(2) of the Securities Act of 1933, as amended:


Date                        Number of Shares              Aggregate Price
----                        ----------------              ---------------
January 24                         3,750                       $6,750
March 5                           18,000                       50,400
March 7                            5,000                       14,000






Item 6 - Exhibits are reports on Form 8-K


          (a)  No exhibits

          (b)  No reports were filed on Form 8-K this quarter


















                                       20
<PAGE>





                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                                     International Precious Metals Corporation



June 20, 1997
                                     /s/ Billie J. Allred
                                     ----------------------------------
                                     Billie J. Allred
                                     Chief Financial Officer


June 20, 1997
 
                                     /s/Tanya Nelson
                                     ----------------------------------
                                     Tanya Nelson
                                     Chief Accounting Officer