Canada Fluorspar Announces Restatement of Third Quarter Financial Statements
January 14 2011 - 4:45PM
PR Newswire (Canada)
TORONTO, Jan. 14 /CNW/ -- TSX Venture Exchange Trading Symbol: CFI
TORONTO, Jan. 14 /CNW/ - Canada Fluorspar Inc. (TSX-V: CFI) (the
"Company") announces that in connection with the closing of its
previously announced financing of 11,000,000 common share special
warrants ("Special Warrants"), it will file a prospectus to qualify
the distribution of common shares and common share purchase
warrants of the Company issuable on the exercise of the Special
Warrants. The prospectus will include the financial statements for
the interim period ended September 30, 2010 with comparative
figures to the same period ended September 30, 2009. The figures
for the comparative 2009 period shall be restated to reflect
certain timing changes in the recognition of flow-through
expenditures and certain expenses related to the Company's
qualifying transaction that closed on April 15, 2009. The items
that are impacted by the restatement were originally accounted for
during the quarter ended December 31, 2009 however they should have
been accounted for during the quarter ended September 30, 2009. The
Company's December 31, 2009 annual financial statements and the
results for the period ended September 30, 2010 are unaffected as a
result of this restatement. The substance of the changes is as
follows: Flow Through Share Renouncement During the period from
January 1, 2009 to September 30, 2009, the Company renounced
Canadian exploration expense ("CEE") expenditures of $3,615,000
relating to its flow through financing. The Company has restated
the September 30, 2009 balance sheet and statement of earnings for
the period ended September 30, 2009 to record the future income tax
benefits renounced on flow through shares resulting in a decrease
in capital stock of $1,048,350, an increase in future income tax
liability of $7,815 and future income tax recovery of $1,040,535.
Reverse takeover transaction As a result of the share exchange on
the amalgamation of the predecessor companies Burin Fluorspar Ltd.
and Rivera Capital Corp., control of the combined companies passed
to the former shareholders of Burin, which is identified as the
acquirer for accounting purposes. The Company has restated its
statement of deficit for the period ended September 30, 2009 to
account for the acquisition of Rivera as a recapitalization of
Burin. As a result, the net assets of Rivera are charged against
the deficit resulting in an increase of $477,858 in the opening
deficit for the period, a decrease in other assets of $327,763, a
decrease in payables and accruals of $13,007 and corresponding
adjustment to the deficit to show effect of the allocation of the
purchase price for $163,102. Other adjustments The Company has also
restated its expenses with an increase in accounting, audit and
legal expense of $47,034, an increase in capital stock of $17,034,
and an increase in payables and accruals of $30,000. The Company's
December 31, 2009 annual financial statements and the financial
statements for the period ended September 30, 2010 are unaffected
as a result of this restatement. ABOUT CANADA FLUORSPAR INC. The
Company is a specialty mineral resource company engaged in the
development and production of fluorspar deposits at its property
located in St. Lawrence, Newfoundland, Canada, and is moving
forward to reactivate existing underground fluorspar mines, expand
an existing mill, construct a new, environmentally-sound Tailings
Management Facility and build a new deep-water marine terminal in
the outer St. Lawrence Harbor for the export of fluorspar
concentrate product. For more information please see:
www.canadafluorspar.com Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. This news release does
not constitute an offer to sell or a solicitation of an offer to
buy any of the securities in the United States of America. The
securities have not been and will not be registered under the
United States Securities Act of 1933 (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within the
United States or to U.S. Persons (as defined in the U.S. Securities
Act) unless registered under the U.S. Securities Act and applicable
state securities laws, or an exemption from such registration is
available. Advisory Regarding Forward Looking Statements This press
release contains forward-looking statements which include, but are
not limited to: current development and operating objectives and
outlook, expectations, opinions, forecasts, projections, guidance
or other statements that are not statements of fact. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot give any
assurance that such expectations will prove to be correct. Results
of the Company may be affected by a variety of variables and risks
associated with mining development, such as loss of market,
volatility of commodity prices, currency fluctuations, imprecision
of reserve estimates, environmental risks, competition from other
producers, ability to access sufficient debt and equity capital
from internal and external sources, ability to generate sufficient
cash flow to meet its current and future obligations, regulatory
approvals affecting construction and mining operations; as a
consequence, actual results could differ materially from those
anticipated or implied in the forward-looking statements. The
Company's forward-looking statements are expressly qualified in
their entirety by this cautionary statement and are made as of the
date of this news release. Unless otherwise required by applicable
securities laws, the Company does not intend nor does it undertake
any obligation to update or review any forward-looking statements
to reflect subsequent information, event, results or circumstances
or otherwise. On behalf of Canada Fluorspar Inc.: Lindsay Gorrill,
President and CEO, Canada Fluorspar Inc., Tel: 1-800-823-8095,
lgorrill@canadafluorspar.com; or Ali Mahdavi, Partner, Spinnaker
Capital Markets Inc., am@spinnakercmi.com
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