|
Castle Gold Filing Of First
Quarter Financial Statements Delayed Cease Trade Order Applied
Vancouver, BC, June [11], 2008 - Castle Gold Corporation (TSX-V: CSG) (the
"Company" or "Castle Gold") announces that the British
Columbia Securities Commission, the Alberta Securities Commission and the
Ontario Securities Commission (collectively, the "Commissions")
have issued a cease trade order suspending the trading of the common shares
of the Company effective immediately, as a result of the delay in filing
its unaudited consolidated interim financial statements (the "Interim
Financial Statements") for the three month period ended March 31, 2008
(and interim management discussion and analysis related thereto) by the
required filing date May 30th, 2008 under applicable Canadian securities
laws.
The Company sincerely regrets the imposition of the cease trade order and
the inconvenience this has caused for shareholders. Prior to receiving the
cease trade order at the close of trading yesterday, the Company had been
working with representatives from the Commissions and was of the
understanding that other interim measures were available to it, pending the
filing of its Interim Financial Statements, that would not have resulted in
the cease trade order. This delay does not relate in any way to the
soundness of the Company's mining operations and the Company is absolutely
not subject to any insolvency proceedings.
The delay in the filing of the Interim Financial Statements was brought
about primarily due to a time delay in the Company receiving and compiling
financial information and documentation from its Guatemalan subsidiary, a
50:50 partnership which was not prepared in accordance with Canadian
generally accepted accounting principles, and which is required in order
for the Company's management to complete the Interim Financial Statements.
This issue was exacerbated by the recently announced resignation of the
Company's Chief Financial Officer (CFO). At this time, the Company expects
to be able to file the Interim Financial Statements by no later than June
23, 2008, and will concurrently apply to the Commissions for a revocation
of the cease trade order.
Since the filing date was missed on May 30th, 2008 the Company's Board
appointed a new President and CEO on June 2nd, 2008. The new President and
CEO, Tom Atkins, has actively started the recruitment process to hire a
qualified full time CFO. The Company would like to assure its shareholders
that it is committed to the creation of accounting processes and standards
in Guatemala that will support the timely filing of financial statements.
The new President and CEO and new CFO will, among other duties, prioritize
all company and inter-company accounting procedures to ensure timely
continuous disclosure filings in the future. The former President and CEO,
Chris Babcock, has remained on as a consultant to ensure a professional
hand over of the accounts (among other things) to the new President and CEO
and new CFO.
About Castle Gold
Castle Gold Corporation is a growth focused gold producer currently
expanding gold production within the America's. Castle Gold owns a 100%
interest in the El Castillo gold mine in Mexico and a 50% interest in the
El Sastre gold mine in Guatemala. Castle Gold is also advancing exploration
and development work at its La Fortuna gold project in Mexico and at its El
Sastre, El Arenal, Bridge and Lupita Projects in Guatemala.
ON BEHALF OF THE BOARD OF DIRECTORS,
"Thomas Atkins"
Thomas Atkins
President and CEO
For further information please contact:
Thomas Atkins
President and CEO
Tel: 416 214 4809
or by fax, 416 214-4877, email, info@castlegoldcorp.com or visit our website, www.castlegoldcorp.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this news release.
|