Barkerville Gold Mines Limited: Files Amended Financial Statements and MD&A
TORONTO, July 27, 2015 - Barkerville Gold Mines Ltd. (TSXV: BGM) (the "Company") announces that it has, with the assistance of its auditors, identified certain inaccuracies related to the previously filed financial statements (the "Financial Statements") and management discussion and analysis (the "MD&A") for the three month period ended May 31, 2014. As a result, the Company has filed amended and restated Financial Statement and MD&A, copies of which are available under the Company's profile on SEDAR at www.sedar.com. The effect of the restatement is detailed as follows:
| May 31, 2014 | May 31, 2014 | ||||||
| As previously reported | Restatement | As restated | |||||
| Consolidated Statement of Financial Position | |||||||
| Amounts receivable | $ | 831,980 | $ | 65,123 | (a) | $ | 897,103 |
| Inventory | $ | 1,519,274 | $ | -382,531 | (b) | $ | 1,136,743 |
| Mineral properties and deferred development costs | $ | 11,803,040 | $ | 448,576 | (b) | $ | 12,251,616 |
| Gold loan facility | $ | -14,124,429 | $ | 1,325,678 | (c) | $ | -12,798,751 |
| Provision for site reclamation and closure | $ | -5,732,349 | $ | 13,499 | (d) | $ | -5,718,850 |
| Deferred tax liability | $ | -1,159,000 | $ | 51,000 | (e) | $ | -1,108,000 |
| Share capital | $ | -126,783,790 | $ | -26,666 | (f) | $ | -126,810,456 |
| Accumulated deficit | $ | 133,435,337 | $ | -1,494,679 | (g) | $ | 131,940,658 |
(a) The restatement was due to valuation of trade receivable and revenue. The trade receivable and revenue was previously valued on the date when gold ounces were settled but should be valued at the date of when the risks and rewards of ownership have been transferred to the customer in accordance with the agreement entered into between the Company and its customer.
(b) The restatement related to misallocation of costs between Mine Development and Inventory.
(c) The restatement related to the change in valuation of Gold Loan Facility not recorded.
(d) The restatement was due to over accrual of accretion for Site Reclamation Provision.
(e) The restatement was due to change in deferred tax liability not recorded.
(f) The restatement was due to legal fees related to private placement not being recorded to share issue cost and loss on shares for debt not recorded.
(g) The restatement was related to total impact on the Consolidated Statements of Loss and Other Comprehensive Loss.
| Three months ended | Three months ended | ||||||
| May 31, 2014 | May 31, 2014 | ||||||
| As previously reported | Restatement | As restated | |||||
| Consolidated Statement of Loss and Other Comprehensive Loss | |||||||
| Revenue | $ | 2,664,237 | $ | 180,390 | (a) | $ | 2,844,627 |
| Cost of sales and direct costs | $ | -1,927,054 | $ | -211,735 | (h) | $ | -2,138,789 |
| Mine operating expense | $ | -1,998,995 | $ | 277,781 | (h) | $ | -1,721,214 |
| Corporate administration | $ | -748,532 | $ | 30,723 | (f) | $ | -717,809 |
| Finance expense | $ | -1,246,528 | $ | 13,499 | (d) | $ | -1,233,029 |
| Change in fair value of derivative | $ | - | $ | 1,325,678 | (c) | $ | 1,325,678 |
| Loss on shares for debt | $ | - | $ | -57,390 | (f) | $ | -57,390 |
| Loss on gold sales | $ | - | $ | -115,267 | (a) | $ | -115,267 |
| Income tax recovery | $ | - | $ | 51,000 | (e) | $ | 51,000 |
| Net loss for the period | -4,273,124 | 1,494,679 | (g) | -2,778,445 |
| Three months ended | Three months ended | ||||||
| May 31, 2014 | May 31, 2014 | ||||||
| As previously reported | Restatement | As restated | |||||
| Consolidated Statement of Cash Flows | |||||||
| Total cash outflows from operating activities | $ | -5,042,954 | $ | -64,244 | (i) | $ | -5,107,198 |
| Total cash ouflows from investing acitivites | $ | -1,354,263 | $ | 94,968 | (i) | $ | -1,259,295 |
| Total cash outflows from financing activities | $ | 6,522,722 | $ | -30,725 | (i) | $ | 6,491,997 |
| Consolidated Statement of Equity | |||||||
| Share capital | $ | 126,783,790 | $ | 26,666 | (f) | $ | 126,810,456 |
| Accumulated deficit | $ | -133,435,337 | $ | 1,494,679 | (g) | $ | -131,940,658 |
(h) The restatement was related reclassification of costs between Mine Operating and Cost of Sales and Direct Costs.
(i) The restatement in cash outflows from operating activities consists of adjustment of a 161,892 in items included in net loss which do not involve cash and adjustment of $(226,135) in change in non-cash working capital. This adjustment also impacted investing and financing activities.
The Company will continue to review its financial disclosure for the remaining periods in 2014 and may determine to restate further financial statements and related management discussion and analysis for additional periods.
For further information on Barkerville Gold Mines Ltd., please contact:
Tom Obradovich
President & Chief Executive Officer
(416) 361-2511
tobradovich@sympatico.ca
Cautionary Statement on Forward -Looking Information
Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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