Palladon Ventures Ltd.-Amended and Restated Financial Statements
July 20 2009 - 2:25PM
Marketwired
Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:
PLL)(FRANKFURT: PV-1) - As a result of a review by the British
Columbia Securities Commission (the "BCSC"), Palladon is pleased to
issue the following press release.
The BCSC's review is part of their ongoing Continuous Disclosure
Review Program. The review identified several matters with respect
to the Company's financial statements for the interim periods
ending August 31, 2008 and November 30, 2008 and their accompanying
Management Discussion and Analysis ("MDA").
As a result of the review, the Company is filing of amended and
restated financial statements for the interim periods ending May
31, 2008, August 31, 2008 and November 30, 2008. Accompanying the
amended financial statements were amended and restated Management,
Discussion and Analysis for the same periods.
All three periods were amended and restated to rectify various
accounting errors and to consistently apply accounting treatment
from the prior year audit.
The August 31, 2008 statements were amended and restated to
reflect early adoption of Handbook Section 1601, Consolidations,
Handbook Section 1602, Non-controlling Interests, and Handbook
Section 1582, Business Combinations, as these sections apply to
Palladon's June 2008 acquisition of the portion of Palladon Iron
Corporation that it did not already own.
Specifically, goodwill in the amount of $69.0 million in the
originally filed August financial statements was restated as a
$60.5 million write off directly to the deficit account. The net
result of this accounting change was to reduce shareholder equity
from $75.4 million in the original statement to $5.1 million in the
amended statement.
Loans payable of $34.5 million in the original August statements
were restated to $36.7 million and also moved to current
liabilities because the maturity date was within one year.
Similarly to August, the original November goodwill amount of
$69.0 million was eliminated in the amended November statement, and
originally stated shareholders' equity of $72.0 million was changed
to a negative $0.9 million.
Also in November, inventory originally recorded as $1.1 million
was reclassified as Mineral Properties, with the corresponding
Mineral Properties amounts changing from $23.0 million originally
to $24.9 million as restated.
The Company has also filed a business acquisition report with
respect to the acquisition of the portion of Palladon Iron
Corporation that it did not already own.
Palladon will continue to update investors as information
becomes available.
On Behalf of the Board of Directors,
John W. Cutler, President & Chief Executive Officer
About Palladon
Palladon Ventures Ltd. is a junior resource company focused on
advancing the Comstock/Mountain Lion iron mine in Iron County,
Utah. Palladon also holds gold exploration projects in Nevada, Utah
and Argentina.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the Company's: (1) belief that shipping run-of-mine ore in the
current environment is uneconomic; (2) ability to evaluate shipping
options for run-of-mine ore should market pricing improve; (3)
ability to evaluate a possible near-term shipping opportunity for
concentrate production in Mexico; (4) evaluation of a turnkey
solution that would involve iron ore processing, loading, and
shipping in vessels that are owned by the steel producer; (5)
belief that ore samples that are currently being processed should
be available in the next two weeks; (6) belief that SRK's initial
assessment should be available in the next few weeks. (7) belief
that the Phase 2 assessment of the Aeromagnetic survey results will
soon be available; (8) ability to continue to evaluate longer-term
options including construction of a concentrate plant and
production of higher order products, such as pig iron.
Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Such
statements are subject to risks and uncertainties that may cause
actual results, performance or developments to differ materially
from those contained in the statements. No assurance can be given
that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them.
These forward-looking statements reflect management's current
views and are based on certain expectations, estimates and
assumptions which may prove to be incorrect. A number of risks and
uncertainties could cause our actual results to differ materially
from those expressed or implied by the forward-looking statements,
including: (1) a downturn in general economic conditions in North
America and internationally, (2) the inherent uncertainties and
speculative nature associated with mineral exploration and
production, (3) a decreased demand for minerals, (4) any number of
events or causes which may delay or cease exploration and
development of the Company's property interests, such as
environmental liabilities, weather, mechanical failures, safety
concerns and labour problems; (5) the risk that the Company does
not execute its business plan, (6) inability to retain key
employees, (7) inability to finance operations and growth, (8)
other factors beyond the Company's control (9) the risk that the
Company will not be able to raise funds due to Luxor Capital Group
and (10) the risk that the Company is unable to finalize
arrangements with the alternative port. These forward-looking
statements are made as of the date of this news release and, except
as required by law, the Company assumes no obligation to update
these forward-looking statements, or to update the reasons why
actual results differed from those projected in the forward-looking
statements.
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.
Contacts: Palladon Ventures Ltd. John W. Cutler President &
CEO 801.521.5252 801.521.5454 (FAX) info@palladonventures.com
www.palladonventures.com / www.ironbullmining.com