The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Canada Fluorspar Announces Restatement of Third Quarter Financial Statements

Friday, January 14, 2011

Canada Fluorspar Announces Restatement of Third Quarter Financial Statements16:45 EST Friday, January 14, 2011TSX Venture Exchange Trading Symbol: CFITORONTO, 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 RenouncementDuring 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 transactionAs 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 adjustmentsThe 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.comNeither 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 StatementsThis 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.For further information: 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