COEUR D'ALENE, ID, March 31 /CNW/ - WGI Heavy Minerals, Inc. (TSX: WG)
today announced it would release its annual financial results for the year
ended December 31, 2005 later than the statutory filing deadline of March 31,
2006 for the reasons discussed below. The Company has informed the securities
regulators of the pending delay and formally requested an extension.
The events, which contributed to the delay in the preparation of WGI's
audited annual financial statements, are as follows:
1. Unexpected difficulties were encountered in completing the audit
procedures required in connection with the financial statements for
Transworld Garnet India Pvt. Limited and for the other operations in
India;
2. Unexpected difficulties were encountered in completing the audit
procedures required in connection with the acquisition and operations
of International Waterjet Parts, Inc. which was acquired in 2005 and
operates in a new line of business compared to WGI's other operations;
3. WGI's Chief Executive Officer's employment was terminated and he was
replaced in June 2005;
4. WGI's Chief Financial Officer was hired in November 2005; and
5. There were significant changes in the management of Transworld Garnet
India Pvt. Limited during the last fiscal year. WGI expects to file
the financial statements on or before May 31, 2006.
The British Columbia Securities Commission will be imposing a management
cease trade order, affecting insiders of WGI Heavy Minerals, Inc. and may
impose an issuer cease trade order if WGI does not file the Financial
Statements on or before May 31, 2006, which date is two months after the
filing deadline for the Financial Statements. An issuer cease trade order may
be imposed sooner than May 31, 2006 if WGI fails to file its Default Status
Reports on time. The Company intends to issue a default status report on a
bi-weekly basis during the default period and acknowledges that a failure to
do so my result in an issuer cease trade order being imposed against the
Company sooner.
The Company is working hard with the auditors to complete the audit and
file the annual audited financial statements, MD&A and AIF. The Company is
intent on filing at the earliest possible moment.
WGI Heavy Minerals, Inc. is a fully integrated miner, producer, and
marketer of industrial-grade minerals. The Company's operations include mining
and processing facilities in Washington and Idaho, U.S. (International
Waterjet Parts & Emerald Creek Garnet), and Tamil Nadu and Andhra Pradesh,
India (Bengal Bay Garnet).
This press release contains forward-looking statements concerning the
business, operations, and financial performance and condition of WGI Heavy
Minerals, Incorporated. A number of the matters discussed and statements made
in the press release contain forward-looking statements reflecting current
expectations regarding future assets. When used in this press release, the
words "believe", "anticipate", "intend", "estimate", "expect", "project", and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such words. These forward-
looking statements are based on current expectations and are naturally subject
to risks, uncertainties, and changes in circumstances beyond management's
control that may cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Factors that may
cause such differences include but are not limited to: exploration and
development risks; risks related to permits and title to property; risks
related to foreign countries and regulatory requirements; operating hazards;
foreign currency fluctuations; competition; fluctuations in the market price
of mineral commodities and transportation costs; uncertainty as to
calculations of mineral deposit estimates; uninsured risks; and dependence
upon key management personnel and executives. Actual results may differ
materially from those expressed here. You should not place undue reliance on
such forward-looking statements. The Company is under no obligation to update
or alter such forward-looking statements, whether as a result of new
information, future events, or otherwise.
Notice of Default
1. WGI Heavy Minerals, Incorporated ("WGI") is not able to file audited
annual financial statements for the year ended December 31, 2005
("Financial Statements") on or before the filing deadline of March 31,
2006.
2. The events which contributed to the delay in the preparation of WGI's
Financial Statements are as follows:
(a) Unexpected difficulties were encountered in completing the audit
procedures required in connection with the financial statements
for Transworld Garnet India Pvt. Limited and for the other
operation in India;
(b) Unexpected difficulties were encountered in completing the audit
procedures required in connection with the acquisition and
operations of International Waterjet Parts, Inc. which was
acquired in 2005 and operates in a new line of business compared
to WGI's other operations;
(c) WGI's Chief Executive Officer's employment was terminated and he
was replaced in June 2005;
(d) WGI's Chief Financial Officer was hired in November 2005; and
(e) There were significant changes in the management of Transworld
Garnet India Private Limited during the last fiscal year. WGI
expects to file the Financial Statements on or before May 31,
2006.
3. The securities commissions or regulators may impose an issuer cease
trade order if WGI does not file the Financial Statements on or before
May 31, 2006, which date is two months after the filing deadline for
the Financial Statements. An issuer cease trade order may be imposed
sooner than May 31, 2006 if WGI fails to file its Default Status
Reports on time.
4. WGI intends to satisfy the provisions of Appendix B of CSA Staff
Notice 57-301 as long as it remains in default of the filing
requirement for the Financial Statements.
5. WGI is not subject to any insolvency proceedings.
%SEDAR: 00002893E
