December 16, 2024 – Record Resources Inc. (TSX-V: REC) reports that the company filed restated Q3 2024 financial statements with the corresponding management discussion & analysis.
The decision follows a review that amends the accounting treatment of the company’s Kirkland Lake Gold exploration properties, which impacted the previously reported figures and has led to the need for this correction. As a result, the previous Q3 2024 financial statements and the corresponding management discussion & analysis should no longer be relied upon.
The effect of the restatement does not impact the company’s ongoing cash position and the changes are non-cash in nature. All other disclosure in the amended and restated financial statements and corresponding amended MD&A remains essentially the same as when such documents were originally filed except for certain noted subsequent events.
Amikougami and Otto gold exploration properties:
During the year ended and as of September 30, 2023, due to the limited availability of market capital to budget substantive expenditures on the further exploration for and evaluation of the mineral property, the carrying value of this Amikougami and Otto Kirkland Properties was at $1 after the impairment. As of June 30, 2024, the Company has determined that it would able to complete its desired financing towards the end of the calendar year 2024 to further developing this Kirkland mineral property and has reversed the entire impairment of $416,328.
Kenogami East gold exploration property:
During the year ended and as of September 30, 2023, due to the limited availability of market capital to pay the cash consideration and to budget substantive expenditures on the further exploration for and evaluation of the mineral property, the value of this Kenogami East Gold Property was at $Nil after the impairment. As of June 30, 2024, the Company has determined that it would able to complete its desired financing towards the end of the calendar year 2024 to further developing this Kenogami East Gold Property and has reversed the entire impairment of $32,835.
The Company has determined that it should have reversed the impairment on the Kirkland property as of June 30, 2024 as the Company has announced a proposal to raise $330,000 LIFE offering and an additional $150,000 private placement, through two non-brokered private placements to be closed toward the end of 2024. (see November 21, and 28, 2024 news releases) The company plans to use a portion of the financing to further develop the 100% owned Kirkland properties.
The company wishes to further clarify disclosure regarding planned use of proceeds from financing (see November 21, December 12, 2024 news releases). Proceeds from the planned financing are intended for exploration and evaluation of the company’s gold exploration properties and general working capital.
“Record Resources is unwavering in its commitment to unlocking the full potential of its gold portfolio. While we are excited about the growth prospects in the hydrogen sector, particularly as AI-driven data centers and the evolving new economy drive unprecedented energy demand, our gold assets in Kirkland Lake remain the bedrock of our strategy from which we are building on and adding more assets. In this record gold price environment, these properties provide unmatched stability and value, positioning us to thrive amidst the incoming U.S. administration’s monetary policies, which are expected to favor real assets like gold. This fundamental strength is further reinforced by new investment guidelines from Canadian pension funds, which highlight the strategic relevance of our real asset approach”, said Record Resources’ CEO, Michael Judson.
The corrected Q3 2024 financial statements and MD&A are now available at SEDAR+ (www.sedarplus.com) under the Company’s issuer profile.
For more information please contact:
Michael C. Judson, Chairman & CEO
Record Resources Inc.
T. +1-514-865-5496
Website: www.recordgoldcorp.com