Skygold Ventures Ltd. (TSX VENTURE:SKV) (the "Company") today has filed an amendment to its unaudited interim financial statements and management's discussion and analysis for the three month periods ended March 31, 2008 and 2007, which were originally filed by the Company on May 29, 2008.
There were two significant changes that were made to the financial statements as follows:
- The original filing by the Company did not include the necessary adjustments for future income taxes on the renouncement of exploration expenditures to the investors of flow-through shares during the respective prior years. The effects for the three month period ended March 31, 2008 are the recognition of $946,462 (2007 - $2,078,400) of share issue costs resulting in a reduction of capital stock, an increase in future income tax liability of $817,588 (2007 - $30,000) and a future income tax recovery of $128,874 (2007 - $2,048,000).
- Legal fees for amounts unbilled by the Company's legal counsel in the amount of $48,526 to March 31, 2008 were accrued and are reflected in the amended balance sheet under Current Liabilities. The legal fees incurred were with respect to the Company's proposed agreement with Wildrose Resources Ltd.
As a result of the two adjustments above, the net loss for the period declined from $581,194 (2007 - $112,309) to $500,846 (2007 - net income of $1,936,090). Further, the changes result in an increase in total liabilities of $866,114 (from $4,127,504 to $4,993,618) and a corresponding reduction in shareholders' equity (from $19,015,745 to $18,149,631) on the balance sheet as at March 31, 2008.
The Company's audit committee of the Company's board of directors has determined that it is necessary to restate the interim financial statements and management's discussion and analysis for the items as noted above. Accordingly, the financial statements and management's discussion and analysis as previously published and filed in respect of such periods should no longer be relied upon.
SKYGOLD VENTURES LTD.
Brian Groves, President
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Skygold Ventures Ltd.
(604) 684-0279 (FAX)
B&D Capital Partners
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR U.S. DISSEMINATION