The Company advises that it has encountered delays in completing the audit of its financial statements for the fiscal year ended February 28, 1997. The delay has occurred principally because the Company's former auditors recently determined that they did not feel qualified, because of Spanish language issues, to conduct an audit of the Company's financial statements following the acquisition of Minera Finisterre S.A. de C.V., a Mexican corporation. Golden Hemlock has engaged a new firm of auditors to conduct the audits both in Canada and in Mexico. However, the new audit firm encountered conflicts in scheduling the availability of its Spanish-speaking staff, such that the audit could not take place in time to meet the filing deadline pursuant to the Securities Act which was July 18, 1997.
The audit is now scheduled to take place in the second half of the month of August, and the Company anticipates the audit results will be available at about the end of the month. As a consequence, the Company will be unable to provide audited financial statements to its shareholders in time to hold its annual meeting before August 31, 1997. Because audited financial statements presented to an annual meeting must not be more than six months old, the Company has decided to have an audit performed at the additional date of May 31, 1997. This audit will take place at the same time as the audit of the February 28, 1997 financial statements.
The Company will not be issuing its financial statements for the quarter ended May 31, 1997 until the audit thereof is complete. Accordingly, the Company is delinquent for the filing of its annual audited financial statements and for the filing of the financial statements for the first fiscal quarter. The British Columbia Securities Commission has been advised in writing of this situation. There are no accounting or disclosure matters of dispute between the Company and its former auditors.
The Company anticipates calling its annual meeting for 1997 for a date in September or October 1997 which will conform to the availability of the requisite audited financial statements.
Peter B. Hill (800) 559-0517 |
