New Guinea Gold Corporation: New Chief Financial Officer and Amended Financial Statements
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/16/12 -- New Guinea Gold Corporation ('NGG' or the 'Company') (TSX VENTURE: NGG)(FRANKFURT: NG8) is pleased to announce it has further strengthened its management team through the appointment of Mr. Ben Graham as its Chief Financial Officer, replacing Mrs. Lisa Hartin effective immediately. Mr. Graham is a qualified CPA and brings over ten years of experience in senior accounting and financial roles in both listed and unlisted Australian public companies.
Subsequent to the approval and filing of the Company's financial statements for the three and nine months period ended September 30, 2011, the Company entered in to a non-binding agreement with PNG Gold Corporation for a potential business combination. To ensure the most accurate information was available for inclusion in the Information Circular the Company's Board engaged BDO Dunwoody to conduct a review of the accounting treatment of the Company's transition to IFRS and of previously reported GAAP figures.
As a result of that review, certain adjustments to the financial statements for the three and nine month periods ended September 30, 2011 were identified, as well as the requirement to restate certain comparative Canadian GAAP figures. Full details of these adjustments can be found in Notes 22 and 23 in the amended Financial Statements filed on Sedar.
The impact of the adjustments to the previously reported figures for the period ending September 30, 2011 was a reduction in Equity of $4,891,970 to $20,595,069, which was primarily the result of a re-valuation of inventory as at the review date.
The profit after tax for the nine months ending September 30, 2011 was reduced by $1,835,644 to $1,670,639, after taking into account the combined effect of the adjustment to cost of sales (adjustment to inventory) and the revised accounting treatment for the disposal of plant and equipment which had been incorrectly recorded.
For the three months to September 30, 2011, the Company has recorded a re-stated loss after tax of $(6,732,512), after previously reporting a profit for the quarter of $1,688,175. The movement of $8,420,687 was primarily the result of an impairment expense recognised during the quarter in relation to AFS investments. Readers are asked to refer to Notes 22 and 23 in the lodged amended Financial Statements for a full reconciliation of the adjustments made to the previously reported Canadian GAAP comparative figures. These adjustments primarily relate to the accounting treatment of the Company's investment in PNG Gold Corporation (formerly Normanby Mining Corporation), Coppermoly Limited and Pacific Kanon Gold Corporation.
Acting CEO Mr Greg Heaney said 'I am very pleased to have Ben join us. We now have a very solid management team in place and a Board who are very committed to maximising the Company's value to its shareholders. I am looking forward to working with both to do so.'
About New Guinea Gold Corporation
NGG is a premier junior explorer and miner in Papua New Guinea, with direct and indirect interests in eight gold and two porphyry copper-gold-molybdenum properties. With 90,000 + metres of drilling completed, gold or copper-gold-molybdenum mineralization has been discovered on all of the properties. The Company's premier property, the Sinivit Mine, has been producing gold since August 2007. The Company is focused on expanding the exploration program, increasing production from the mine and developing the gold, copper and tellurium resources.
For further information on this release or on other NGG projects such as the Sinivit Gold Mine, please contact info@newguineagold.ca, or access our website - www.newguineagold.ca.
ON BEHALF OF THE BOARD
Greg Heaney, ACTING CEO
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of NGG, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on 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:
New Guinea Gold Corporation
Greg Heaney
ACTING CEO
+61(7) 3003 0100
+61(7) 3003 0054 (FAX)
info@newguineagold.ca
www.newguineagold.ca
