Cerrado Gold Announces Possible Late Filing of Annual Financial Statements
- Delays in filing annual financial statements due to audit delays at MDN Subsidiary in Argentina.
- Policy changes in Argentina impacting business operations, including currency controls and inflation.
- Ontario Securities Commission denied application for a management cease trade order.
- Potential imposition of a failure-to-file-cease-trade-order if filings are not completed by the deadline.
- Company plans to issue updates on filing timeline and has resources to address any defaults.
- Election to pay interest on a secured note by issuing common shares.
- Possible negative impact on investor confidence due to delayed filings and potential trading restrictions.
- Uncertainty surrounding completion of audit process and finalization of annual filings.
- Risk of failure-to-file-cease-trade-order if deadlines are not met.
- Potential dilution of shares through issuance of common shares to satisfy interest payments.
- Ongoing challenges and complexities in conducting business in Argentina.
- Impact of delays on the company's financial reporting and transparency.
- Delays in audit at its MDN Subsidiary in Argentina to impact annual filing
- Company to satisfy payment of accrued interest on Sprott Note by the issuance of common shares of the Company
TORONTO, ON / ACCESSWIRE / April 25, 2024 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") announces that the filing of its annual financial statements and accompanying management's discussion and analysis for the fiscal year ended December 31, 2023 (the "Annual Filings") may not be finalized by April 29, 2024 (the "Filing Deadline"), being the date that such filings are due under applicable Canadian securities law requirements.
Significant policy changes in Argentina following the change in government in December 2023 have had significant impacts upon, among other things, currency controls and inflation in Argentina which changes have significantly increased complexities and challenges in conducting business in the country, including at the Company's Minera Don Nicolas ("MDN") mine in Santa Cruz province, Argentina. These recent challenges and accompanying complexities are being addressed by the Company and its management team in Argentina, however it has resulted in delays for information at its operating subsidiary in Argentina that is required to complete the audit process. As a result, the Company expects that there may be a delay in completing the audit and finalizing the Annual Filings.
The Company applied to the Ontario Securities Commission (the "OSC") for a management cease trade order (the "MCTO") in connection with the possible delay in the Annual Filings, however the OSC determined not to grant the Company's application for an MCTO on the basis that the application made less than two weeks prior to the Filing Deadline. The Company continues to be in discussion with the OSC regarding the granting of an MCTO. If the OSC maintains its decision not to grant the MCTO application and, in the event the Company is unable complete the Annual Filings by the Filing Deadline, the OSC will impose a failure-to-file-cease-trade-order ("CTO") pursuant to National Policy 11-207. A CTO would prohibit the trading by any person of any securities of the Company in Canada, including trades in the Company's common shares made through the TSX Venture Exchange. Once issued, the CTO will remain in place until such time as the Annual Filings are filed by the Company.
The Company continues work with its auditors to complete the Annual Filings as soon as possible. The Company intends to issue another press release as soon as it has a better understanding as to the timing for completion of the Annual Filings.
The Company has the necessary resources to remedy any default should it occur. Should a default occur, it will comply with the alternative information guidelines set out in National Policy 12-203, including issuing bi-weekly default status reports by way of news releases, which will be filed on SEDAR+.
The Company is not currently subject to any insolvency proceedings. The Company also confirms that there is not other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this press release.
The Company also announces that, in connection with the US
Pursuant to the Note, the Company may elect to satisfy the payment of any accrued and unpaid interest on the Note by the issuance of common shares of the Company (the "Common Shares") at a price per Common Share equal to
Interest due on the Note for the period ending March 31, 2024, amounts to US
About Cerrado
Cerrado Gold is a Toronto-based gold production, development, and exploration company focused on gold projects in South America. The Company is the
In Argentina, Cerrado is maximizing asset value at its MDN operation through continued operational optimization and is growing production through its operations at the Las Calandrias Heap Leach project. An extensive campaign of exploration is ongoing to further unlock potential resources in our highly prospective land package in the heart of the Deseado Masiff.
In Brazil, Cerrado has rapidly advanced the Serra Alta deposit at its Monte do Carmo Project, through feasibility and into production. Serra Alta is expected to be a high-margin and high-return project with significant exploration potential on an extensive and highly prospective 82,542 hectare land package.
In Canada, Cerrado holds a
For more information about Cerrado please visit our website at: www.cerradogold.com.
| Mark Brennan | Mike McAllister |
| CEO and Chairman | Vice President, Investor Relations |
| Tel: +1-647-805-5662 | |
| mmcallister@cerradogold.com |
Disclaimer
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.
This press release contains statements that constitute "forward-looking information" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements regarding the business and operations of Cerrado and the completion and filing of the Annual Filings. In making the forward-looking statements contained in this press release, Cerrado has made certain assumptions. Although Cerrado believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, Cerrado disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
SOURCE: Cerrado Gold Inc.
View the original press release on accesswire.com
FAQ
Why is Cerrado Gold Inc. experiencing delays in filing its annual financial statements?
What did the Ontario Securities Commission decide regarding Cerrado Gold Inc.'s application for a management cease trade order?
What will happen if the company fails to complete the annual filings by the deadline?
How does Cerrado Gold Inc. plan to address any defaults in filing its annual financial statements?
How is Cerrado Gold Inc. planning to pay interest on the secured note issued to Sprott?
What is the amount of interest due on the Note for the period ending March 31, 2024?
