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As a result of a review by the British Columbia Securities Commission,
we are issuing the following press release to clarify our disclosure.
At the time of the acquisition of Rimfire Minerals
Corporation, the Company accounted for this transaction as the purchase of
assets, allocating the fair value of the consideration (trading shares of the
Company) to the assets acquired. This included an allocation of $7,974,288 to
the mineral property interests. The new board of directors and management
team conducted a detailed review of the Company's properties and operations,
and concluded that, considering the market conditions for obtaining
additional funding at the time of the detailed review and the short and
long-term potential of its portfolio of mineral properties, it was prudent to
devote the majority of the Company's existing resources to the development of
the Whistler Project.
Based on this evaluation, the new management revised the fair value of the
mineral properties acquired, based on expected minimal future expenditures on
these properties, to $156,500. The new management, on the advice of its
auditors, consequently reallocated the balance of the acquisition fair value
of $7,817,788 previously allocated to the mineral properties, to
"Goodwill", representing the estimated fair value of "a strong
post-acquisition board of directors who have expertise in capital markets and
project advancement and an enhanced management team which is skilled in
leveraging the potential of exploration properties through strong project
management and strategic partnerships".
Based on further analysis and review conducted after April 26, 2010, the
Company has concluded that the characterization of $7,817,788 as goodwill was
inappropriate under Canadian GAAP. The Company has determined that the
appropriate method of accounting for the events which occurred after the
completion of the acquisition transaction, including the change in the board
and management, and the detailed review of the Company's properties and
operations, is on a prospective basis.
The consolidated financial statements for the year ended December 31, 2009
have therefore been restated to present the $7,817,788, which was previously
presented as "Goodwill", as a cost of the acquired mineral property
interests of Rimfire. In addition, a subsequent
impairment loss of $7,817,788 was recognized as at September 30, 2009 on
re-evaluation of the fair value of the mineral property interests acquired
and was charged to operations. This resulted in an increase in the net loss
for the year and a consequent increase in accumulated deficit as at December
31, 2009.
All interim periods affected by these changes have been amended and restated.
The revised financial statements were filed on SEDAR on November 24, 2010.
On behalf of Kiska Metals Corporation
"Jason Weber"
Jason Weber, P.Geo., President & CEO
CAUTIONARY STATEMENT: No stock exchange, securities
commission or other regulatory authority has approved or disapproved the
information contained herein. This News Release includes certain
"forward-looking statements". Other than statements of historical
fact, all statements included in this release, including, without limitation,
statements regarding future plans and objectives of Kiska Metals Corporation,
are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual
results to differ materially from Kiska's
expectations are the risks detailed herein and from time to time in the
filings made by Kiska Metals Corporation with securities regulators. Those
filings can be found on the Internet at http://www.sedar.com and http://www.sec.gov/edgar.
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