Mega Uranium Restates 2016 Comparative Financial Information

Mega Uranium Restates 2016 Comparative Financial Information

TORONTO, Dec. 21, 2017 (GLOBE NEWSWIRE) -- Mega Uranium Ltd. (TSX: MGA) announces that it has restated certain 2016 comparative financial information (the “Comparative Statements”) in the company’s audited consolidated financial statements for the year ended September 30, 2017, which were filed today on SEDAR under Mega’s profile (www.sedar.com).  The restatement relates to the accounting of Mega’s equity-accounted investment in Toro Energy Limited, arising from differences in the accounting policies of the two entities.

During its financial year ended September 30, 2016, Mega changed its accounting policy for mineral properties and deferred exploration expenditures from capitalizing the costs to recognizing them in the consolidated statement of income and comprehensive income.  During the period, Toro continued to capitalize its own mineral properties and deferred exploration costs but Mega did not make applicable adjustments to reconcile the newly-differing accounting policies when it accounted for its investment in Toro.

The Comparative Statements have been restated to correct the error and the changes to the applicable statements are set out below.  All financial information is reported in thousands of Canadian dollars, except for per share amounts.

The impact on the consolidated statement of financial position as at October 1, 2015 is as follows:

      
  As previously   
 reportedAdjustmentAs restated 
  
STATEMENT OF FINANCIAL POSITION 
 Equity investment$  27,761 $  (9,274)$   18,487   
 Total non‑current assets 41,043  (9,274) 31,769   
 Total assets 43,403  (9,274) 34,129   
 Deficit (296,407) (9,274) (305,681) 
 Total equity 41,671  (9,274) 32,397   
 Total equity and liabilities  43,403  (9,274) 34,129   
 

The impact of this change on the consolidated financial statement as at and for the year ended September 30, 2016 is as follows:

     
  As previously  
 reportedAdjustmentAs restated
  
STATEMENT OF FINANCIAL POSITION 
 Equity investment$  16,953 $  (264)$   16,689  
 Total non‑current assets 55,612  (264) 55,348  
 Total assets 57,214  (264) 56,950  
 Deficit (304,684) (264) (304,948)
 Total equity 57,017  (264) 56,753  
 Total equity and liabilities 57,214  (264) 56,950  
     
STATEMENT OF INCOME AND COMPREHENSIVE INCOME 
 Loss on equity investment $  (10,202)$  9,003 $   (1,199)
 Loss on deemed disposition of equity investment (15) 7  (8)
 Net (loss) income for the year (8,280) 9,010  730  
 Total comprehensive income for the year 14,821  9,010  23,831  
 Basic and diluted (loss) income per share (0) 0  0  
     
STATEMENT OF CASH FLOWS   
 Net (loss) income for the year$  (8,280)$  9,010 $   730  
 Loss on equity investment 10,202  (9,003) 1,199  
 Loss on deemed disposition of equity investment 15  (7) 8  
           

ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia and Canada and a portfolio of equity investments in uranium-focused public and private companies. Further information on Mega can be found on the company’s website at www.megauranium.com. 

For further information please contact:

Investor Relations                                                                                                   
Mega Uranium Ltd.                                                                  
Richard Patricio                                                                         
Chief Executive Officer                                           
T: (416) 643-7630                                                                     
[email protected]
www.megauranium.com