Algold Resources Ltd. Provides Further Update on Covid-19 and Extension to File Interim and Annual Financial Statements and Management's Discussion and Analysis
Montreal - June 1st, 2020 - Algold Resources Ltd. (TSXV:ALG) - ("Algold" or the "Corporation") wishes to provide an update on the Press Release issued April 30, 2020 relating to the COVID-19 pandemic as it effects the Corporation and the status of the filing of its annual financial statements and accompanying management's discussion and analysis, and related CEO and CFO certifications, for the financial year ended December 31, 2019 (the "Annual Filings"), and the filing of its interim financial statements and accompanying management's discussion and analysis, and related CEO and CFO certifications, for the first quarter of 2020 ending March 31, 2020 (the "Interim Filings"). The Corporation issued the required press release to obtain an extension pursuant to decision N?2020-PDG-0023 issued by the Autorite des marches financiers ("AMF Temporary Exemption"). Algold is relying on this extension period due to delays experienced as result of the COVID-19 pandemic. The lockdown resulting from the outbreak of COVID-19 pandemic has created unprecedented disruptions in the global economy and stock markets. Algold's Board of Directors and Management continue to take all necessary precautions to ensure the health of its employees and consultants and to manage the short-term challenges to its business. However, due to a lack of funds exacerbated by the COVID-19 pandemic, the Corporation will not be able to file (i) the Annual Filings prior to June 14, 2020, as required under the AMF Temporary Exemption, and (ii) its Interim Filings prior to July 14, 2020, as required under the AMF Temporary Exemption.
The Corporation also announces that it will be making an application to Autorite des marches financiers ("AMF"), the Corporation's principal securities regulator in Canada, under Policy Statement 12-203 respecting Management Cease Trade Orders ("PS 12-203") requesting that a management cease trade order ("MCTO") be granted in respect of the late filing of the Annual Filings and Interim Filings. There is no guarantee that a MCTO will be granted.
Further, if a MCTO is granted, the Corporation's directors and senior officers and other insiders will not be able to trade the Corporation's securities while the MCTO is in effect, and the Corporation will be required to comply with the provisions of the alternative information guidelines as set out in PS 12-203 for so long as the MCTO remains in effect, including the issuance of bi-weekly default status reports by way of press releases. The Corporation is not currently subject to any insolvency proceedings. If the Corporation provides any material information to any of its creditors during the period in which the MCTO is in effect, the Corporation will also be required to file a material change report under its profile on SEDAR (www.sedar.com) containing such information.
The Corporation is, and has for some time been, taking active steps to address the going concern issues exacerbated by the impact of the COVID-19 pandemic and is actively seeking additional funding to be secured in the coming months.
Unless and until such time as the Corporation files the Annual Filings, the Interim Filings and its Annual Report, shareholders and potential investors of the Corporation are urged to exercise extreme caution when dealing in the securities of the Corporation. If a MCTO is granted but the Corporation is unable to file the Annual Filings and Interim Filings prior to the expiry of the MCTO, it is anticipated that the AMF will issue a general "failure to file" cease trade order ("CTO") prohibiting the trading by any person of any securities of the Corporation, including trades in the Corporation's common shares made through the TSX Venture Exchange, which would take effect shortly after the expiry of the MCTO and would remain in place until such time as the Annual Filings and Interim Filings have been filed. Trading prices and volatility of the Corporation's securities may be negatively affected and any investment in such securities could suffer a significant decline or total loss in value.
The Corporation will make further announcements with respect to the status of the Annual Filings and Interim Filings as and when appropriate.
Additional information regarding Algold is available on SEDAR www.sedar.com. The TSX Venture Exchange and its Regulatory Services provider (as per meaning assigned to this term in TSX Venture Exchange's policies) bear no liability as to the relevance or accuracy of this press release.
ABOUT ALGOLD
Algold Resources Ltd. is focused on the exploration and development of gold deposits in West Africa. The board of directors and management team are seasoned resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
1320, boul. Graham, bureau 132, Mont-Royal, Quebec, H3P 3C8, www.algold.com
Benoit La Salle, FCPA, FCA
Chairman and Chief Executive Officer
b.lasalle@algold.com
+1 (514) 889 5089
Alex Ball
Executive VP, Finance and Corporate Development
+1 (647) 919 2227
a.ball@algold.com
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