Sunergy, Inc (the "Company") (PINKSHEETS: SNEY) is pleased to
report it is filing its Form 10-K for the year ending, December 31,
2011 with the SEC today. Our 10Q for March 31, 2012 will be the
next and last financial report required to be filed to become fully
compliant with our SEC reporting requirements and
www.otcmarkets.com will be notified of the updated financials and
disclosure statements so that the Company can be listed as
"Current" in its filings, thereby removing the Caveat Emptor.
Management expects this to be completed in the next few weeks.
The following discussion will highlight items from our 10-K and
put them in perspective to show how we have brought our mining
business in both Ghana and Sierra Leone to the level that an
infusion of new capital will result in development focused on
establishing sustainable cash flow in each project.
- Caveat Emptor and Capital Raised during 2011 -- $992,050 -- On
December 13, 2010, we received the Caveat Emptor designation from
Pink Sheets which has made raising either equity or debt difficult.
In 2011 we managed to raise $992,050 of Capital comprised of
$782,050 of equity and $210,000 in secured debt financing. $157,500
of this debt was settled with restricted shares in 2011. While we
have been successful in raising enough capital to buy and pay for
the dredge equipment and the 2011 exploration operations and to pay
for audit and accounting fees to file our delinquent financial
statements which are now nearly complete, we previously have not
had the ability to raise any significant additional capital to
advance our exploration and mining operations. We do, however, have
a substantial amount of existing warrants that once the market
price of Sunergy stock is above the warrant strike price by an
attractive amount ("in the money") then the warrants could be
exercised which would inject more than $2,000,000 of new capital.
This will enable us to ramp up operations in both Ghana and Sierra
Leone with an eye to developing sustainable cash flow. We have
already received exercise notices for over 25,000,000 warrants in
the last 18 months.
- Operating Expenses 2011 -- $1,201,916 -- Operating expenses for
the year ended December 31, 2011, increased by approximately 74% as
compared to the comparative period in 2010 primarily as a result of
an increase in exploration costs and administrative expense. Our
exploration efforts increased predominantly because we implemented
a dredging operation on the Pampana River Concession in Sierra
Leone with our 8" dredges purchased for this purpose. The material
recovered is now being tested at Hazen Research Laboratory in
Denver Colorado to determine the specific mineralogical content and
to design a pilot plant for separation of the most marketable
precious and rare earth minerals. Exploration and development cost
are expected to go up substantially over the next three years as we
ramp up pilot and small scale production operations. With over 40
KM of river on our concession, future exploration designed to
develop resources and reserves will be undertaken limited only by
our future financial capabilities. Our Ghana project is looking for
a joint venture partner for immediate gold recovery and cash
flow.
- Asset Growth 2011 to $2,064,019 -- Purchased new equipment
- Debt Incurred 2011 -- $544,000 -- Includes Management
Compensation and Accounts Payable Related Parties which may be
settled for restricted shares.
- Management Compensation 2011 -- $141,000 -- There were no
shares issued for Management Compensation in 2011 due to the Caveat
Emptor operating to prevent these shares from becoming unrestricted
and entering the market system. Management also was not paid cash
during this period so the collective Management salaries of
$141,000 is shown as a debt or liability on our balance sheet and
is included in our Accounts Payable.
- Accounts Payable Related Parties -- $172,202 -- This amount is
owed to related parties that have advanced funds for operations of
the Company during 2011. The parties have indicated their
willingness to convert this debt to restricted shares.
- Shareholder Equity -- Our Shareholder Equity decreased in 2011
from $1,811,410 to $1,519,443 because of our increase in debt from
$91,592 in 2010 to $544,576 in 2011. The above amounts of Debt,
once settled will reduce our debt by $313,202 and allow additional
cash contributions through equity placements or existing warrant
exercise to fuel the future growth of our business in West Africa.
These debt settlements will increase our shareholders equity.
Chairman P.K. Medhi said: "Management is pleased that we have
reached this milestone with the filing of our 2011 10-K. While our
growth has been slowed by our inability to raise adequate capital
to advance our projects as we would like, we have paid all bills
that were required and are current in our payments of fees required
in both Sierra Leone and Ghana. This is no small achievement under
these circumstances. Also, we have very friendly debt, which once
compliant in our filings will mostly go away so that new money in
the enterprise will be able to launch our future cash flow
opportunities."
Mark Shelley, the Company's CFO, views the financials for 2011
in a positive light. He says: "The Company's financial position at
the end of 2011 shows small growth from 2010 which showed
remarkable growth. We are now stabilized and have brought all our
operations to a current and ready to roll status pending the
injection of additional capital. We expect to be fully compliant in
our 1934 act filings with the SEC in the next few weeks and
anticipate our additional funding to follow."
Please see attached comparative Balance Sheet for the years
ended December 31, 2010 and December 31, 2009. Make sure to review
the notes to the Financial Statements contained in their entirety
in the 10-K filed on www.sec.gov or on www.sunergygold.com under
SEC Filings.
About Sunergy: The Company is an aggressive junior mining
exploration and development Company that is production oriented at
the earliest possible profitable opportunity. We control 100% of
the 150 sq. km. Nyinahin mining concession with a full prospecting
license in Ghana, West Africa and the 140.1 sq. km. Pampana River
Rare Earth, Gold and Diamond concession in Sierra Leone, West
Africa. We are focused on near term production of these properties.
We are production and acquisitions oriented and are considering
several additional projects suitable for near term production in
West Africa.
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as
that term is defined in Section 27A of the United States Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Statements in this press release which are not purely historical
are forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future,
including but not limited to, any mineralization, development or
exploration of the Nyinahin and Pampana Mining Concessions.
Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
mineral exploration and difficulties associated with obtaining
financing on acceptable terms. We are not in control of metals
prices and these could vary to make development uneconomic. These
forward-looking statements are made as of the date of this news
release, and we assume no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and
intentions contained in this press release are reasonable, there
can be no assurance that such beliefs, plans, expectations or
intentions will prove to be accurate. Investors should consult all
of the information set forth herein and should also refer to the
risk factors disclosure outlined in our most recent annual report
for our last fiscal year, our quarterly reports, and other periodic
reports filed from time-to-time with the Securities and Exchange
Commission.
SUNERGY, INC.
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2011 2010
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Assets
Current assets:
Cash and cash equivalents $ 85,515 $ 97,251
Deposits - 50,000
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Total current assets 85,515 147,251
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Long-term assets:
Exploratory properties 1,753,497 1,753,497
Property and equipment, net 225,007 2,254
------------- -------------
Total assets $ 2,064,019 $ 1,903,002
============= =============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities $ 205,089 $ 7,601
Accrued interest 101,700 -
Accounts payable-related parties 172,202 83,991
Notes payable 65,585 -
------------- -------------
Total current liabilities 544,576 91,592
------------- -------------
Total liabilities 544,576 91,592
Commitments and contingencies - -
Stockholders' equity:
Common Stock, authorized 3,750,000,000
shares, par value $0.001, issued and
outstanding on December 31, 2011 and
December 31, 2010 is 1,557,717,831 and
1,046,197,880, respectively 1,557,718 1,046,198
Additional paid in capital 3,787,902 2,709,122
Subscriptions payable - 414,861
Deficit accumulated during exploration stage (3,826,177) (2,358,771)
------------- -------------
Total stockholders' equity 1,519,443 1,811,410
------------- -------------
Total liabilities and stockholders' equity $ 2,064,019 $ 1,903,002
============= =============
The accompanying notes are an integral part of these statements.
Contact: Sunergy Inc. Bryan Miller President 707.738.4280
bryan@alliedminingandsupply.com 14362 N. FRANK LLOYD WRIGHT BLVD.
SCOTTSDALE AZ 85260 Phone: 480.477.5810 Fax: 480.477.5811
Investor Relations: Steve Parent 480.326.5435
steve@sunergygold.com