Serabi Gold plc Miscellaneous

 
TIDMSRB 
 
 
   For immediate release 
 
   1 April 2021 
 
   Serabi Gold plc 
 
   ("Serabi" or the "Company") 
 
   Financial and Accounting update 
 
   Serabi Gold plc advises that the release of the audited annual financial 
results for the year ended 31 December 2020 ("Accounts"), originally 
scheduled to be issued on 31 March 2021 to comply with the requirements 
of Canadian securities laws where the Company is also listed, has been 
delayed. 
 
   The delay is due to local audit issues in Brazil which the Company is 
working with its auditors to resolve. The Company envisages being able 
to publish its Accounts in accordance with the requirements of the AIM 
Rules, but if the delay is likely to have any effect on this, then a 
further announcement will be made in due course. 
 
   During the course of audit work in Brazil,  the UK executive management 
of the Company became aware on 16 March 2021 that certain cash 
withdrawals amounting to approximately US$80,000 during the first 
quarter of 2020 lacked documentary support and this has required further 
local audit work which is ongoing and is having an impact on timing of 
the publication of the Accounts. 
 
   As a result of the delay to the publication of the Accounts, , it is 
expected that a cease trade order will be issued by Canadian securities 
regulatory authorities and trading in the Company's shares on the 
Toronto Stock Exchange  will be suspended until such time as the 
Accounts are filed. 
 
   Given the delay in publication of the Accounts, the Board is also 
providing a further update on trading for the year ended 31  December 
2020. As had been previously highlighted, revenue for the fourth quarter 
would be lower than in preceding periods as a result of lower levels of 
gold being sold in the period, a result of normal fluctuations in the 
timings of sales and gold stocks on hand.  During the first quarter of 
2021, the Group finalised the gold and metal content of two shipments of 
copper/gold concentrate that were sold during the third quarter of 2020. 
The final agreed gold assay of the copper/gold concentrate for both 
these sales was lower than the provisional assay undertaken by the 
Palito laboratory and as a result the Group realised, during the first 
quarter of 2021, a revenue adjustment of approximately US$970,000 
reflecting the reduction in the revenue generated from these sales.  As 
this related to sales undertaken during 2020, this adjustment will be 
reflected in the reported revenue for 2020. 
 
   The Company also confirms that it has now redeemed in cash the 
outstanding Convertible Loan Notes held by Greenstone Resources II LP, 
being US$2 million together with accrued interest of approximately 
US$200,000 and the arrangement fee and other expenses of approximately 
US$333,000. In addition, the Company is finalising arrangements for the 
remainder of the Equinox debt in respect of the acquisition of Coringa 
and which as of 31 March 2021 was approximately US$3.6 million including 
accrued interest. Current cash balances amount to US$20.5 million. 
 
   Enquiries: 
 
 
 
 
Serabi Gold plc 
Michael Hodgson                                     Tel: [phone] 
Chief Executive                                     Mobile: [phone] 
 
Clive Line                                          Tel: [phone] 
Finance Director                                    Mobile: [phone] 
 
Email: mailto:[e-mail] 
[e-mail] 
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Website: http://www.serabigold.com 
www.serabigold.com 
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Beaumont Cornish Limited 
 Nominated Adviser and Financial Adviser 
Roland Cornish                                      Tel: [phone] 
Michael Cornish                                     Tel: [phone] 
 
Peel Hunt LLP 
 UK Broker 
Ross Allister                                       Tel: [phone] 
 
 
 
 
   Copies of this announcement are available from the Company's website at 
www.serabigold.com. 
 
   Neither the Toronto Stock Exchange, nor any other securities regulatory 
authority, has approved or disapproved of the contents of this 
announcement. 
 
   Qualified Persons Statement 
 
   The scientific and technical information contained within this 
announcement has been reviewed and approved by Michael Hodgson, a 
Director of the Company. Mr Hodgson is an Economic Geologist by training 
with over 26 years' experience in the mining industry. He holds a BSc 
(Hons) Geology, University of London, a MSc Mining Geology, University 
of Leicester and is a Fellow of the Institute of Materials, Minerals and 
Mining and a Chartered Engineer of the Engineering Council of UK, 
recognising him as both a Qualified Person for the purposes of Canadian 
National Instrument 43-101 and by the AIM Guidance Note on Mining and 
Oil & Gas Companies dated June 2009. 
 
   Forward Looking Statements 
 
   Certain statements in this announcement are, or may be deemed to be, 
forward looking statements. Forward looking statements are identi ed by 
their use of terms and phrases such as "believe", "could", "should" 
"envisage", "estimate", "intend", "may", "plan", "will" or 
the negative of those, variations or comparable expressions, including 
references to assumptions. These forward looking statements are not 
based on historical facts but rather on the Directors' current 
expectations and assumptions regarding the Company's future growth, 
results of operations, performance, future capital and other 
expenditures (including the amount, nature and sources of funding 
thereof), competitive advantages, business prospects and opportunities. 
Such forward looking statements re ect the Directors' current beliefs 
and assumptions and are based on information currently available to the 
Directors. A number of factors could cause actual results to differ 
materially from the results discussed in the forward looking statements 
including risks associated with vulnerability to general economic and 
business conditions, competition, environmental and other regulatory 
changes, actions by governmental authorities, the availability of 
capital markets, reliance on key personnel, uninsured and underinsured 
losses and other factors, many of which are beyond the control of the 
Company. Although any forward-looking statements contained in this 
announcement are based upon what the Directors believe to be reasonable 
assumptions, the Company cannot assure investors that actual results 
will be consistent with such forward looking statements. 
 
   ENDS 
 
 
 
 

(END) Dow Jones Newswires

April 01, 2021 12:30 ET (16:30 GMT)

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