Strategic Metals Announces Positive Restatement of June 30, 2016 and September 30, 2016 Results
VANCOUVER, BC--(Marketwired - March 06, 2017) - Strategic Metals Ltd. (TSX VENTURE: SMD) announces that it has restated and will be re-filing its unaudited financial statements and Management Discussion and Analysis for the quarters ended June 30, 2016 and September 30, 2016, which has resulted in favourable adjustments to its reported income (loss).
During a review of its September 30, 2016 financial statements, it was discovered that the reported loss on the deconsolidation of subsidiary Silver Range Resources Ltd. ("Silver Range") was incorrect. On the deconsolidation, the Company had inadvertently removed the pre-deconsolidation losses of Silver Range from equity and reported them as a current period loss. The correction of the error reduces the reported loss from $5,164,791 to a gain of $828,008. In addition, a dilutive loss of $480,000 was recorded on subsidiary Rockhaven Resources Ltd. share issue, which has been recalculated to be a loss of only $262,335. The loss was originally recorded as a current period loss, but generally, such dilutive losses are an adjustment to equity. As such, the reported loss of $480,000 has been removed from income (loss), and the adjusted loss of $262,335 recorded as a reduction of retained earnings and an increase in non-controlling interest. Overall, the adjustments increase income (loss) for the period by $6,472,799 and result in reallocations within equity only, with no effects on the amounts reported on the statement of changes in financial position. The adjustments increase the reported basic and diluted earnings per share from $0.00 per share to $0.07 per share for the nine months ended September 30, 2016, and from $0.04 per share to $0.12 per share for the six months ended June 30, 2016. The adjustments originate in the three months ended June 30, 2016, which result in changes to the reported amounts for the three and six months ended June 30, 2016 and for the nine months ended September 30, 2016, with no effect on the three months ended September 30, 2016.
These adjustments have no effects on the cash flows or working capital of the Company and the Company continues to have working capital in excess of $30 million dollars.
ON BEHALF OF THE BOARD
"W. Douglas Eaton"
President and Chief Executive Officer
For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com.
Neither the 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 may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
Contact
Corporate Information
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568
Investor Inquiries
Richard Drechsler
V.P. Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com
http://www.strategicmetalsltd.com