TORONTO, Jan. 27, 2016 /CNW/ – Cerro Grande Mining Corporation (the “Company” or “CEG“) (CSE:CEG) (OTCQB:CEGMF) announced that it will not be able to file its annual Financial Statements, annual MD&A and related CEO and CFO certifications for the fiscal year ended September 30, 2015 (collectively, the 2015 Disclosure Documents), within the period prescribed for the filing of such documents under Part 6 of National Instrument 51-102 Continuous Disclosure Obligations and under Part 4 of National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, namely within 120 days of year-end being January 28, 2016.
Despite its efforts, the Corporation is currently not in a position to timely file the 2015 Disclosure Documents, primarily as a result of unanticipated time delays in completing the financial reconciliations necessary to complete the audit.
The Corporation has made an application to the Ontario Securities Commission (the OSC) for a management cease trade order (the MCTO), which would restrict all trading in securities of the Corporation, whether direct or indirect, by management of the Corporation. The MCTO would not affect the ability of shareholders who are not insiders of the Corporation to trade their securities. There is no certainty that the MCTO will be granted. If the MCTO is not issued by the OSC, the applicable Canadian securities regulatory authorities could issue a general cease trade order against the Corporation for failure to file the 2015 Disclosure Documents within the prescribed time period.
The Corporation’s board and management are working expeditiously to meet its obligations relating to the filing of the 2015 Disclosure Documents. The Corporation expects to file the 2015 Disclosure Documents on or before February 15th, 2016.
The Corporation confirms that it intends to satisfy the provisions of the alternative information guidelines set out in sections 4.3 and 4.4 of Policy Statement 12-203 Cease Trade Orders for Continuous Disclosure Defaults for so long as it remains in default as a result of the late filing of the 2015 Disclosure Documents. During such period, Cerro Grande will issue bi-weekly default status reports in the form of further press releases, which will also be filed on SEDAR. The Corporation confirms that there are no insolvency proceedings against it as of the date of this press release. The Corporation also confirms that there is no other material information concerning the affairs of the Corporation that has not been generally disclosed as of the date of this press release.
The Company is a minerals producing, exploration and development company with properties and activities currently focused in Chile.
Cautionary Statement on Forward-Looking Information
This news release contains certain “forward-looking information” as such term is defined under applicable Canadian securities laws. All disclosure herein, other than information regarding historical fact, regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions or courses of action, including any future-oriented financial information with respect to prospective financial performance, financial position or cash flows that is presented either as a forecast or a projection, is forward looking information. The forward- looking information contained in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. With respect to the forward-looking information contained in this news release, the Company has made assumptions regarding its ability to complete the Financial Statements and MD&A in a timely manner. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations. Any forward-looking information speaks only as of the date on which It is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason.