TORONTO, Aug. 6 /CNW Telbec/ - Carlisle Goldfields Limited (TSX: CGJ)
(Carlisle or the company) has recently been the subject of an assessment by
Canada Revenue Agency (CRA) of flow-through expenditures incurred and
renounced for 2006 and 2007. At a subsequent meeting of the Board of Directors
the board was made aware of all details of the assessment. It was concluded
that the company had not used a significant amount of flow-through money to
incur exploration expenses, but rather, used such funds for general and
The renunciation shortfall initially declared by CRA is $1,777,535 with
taxes payable amounting to $342,177. The company has reported this in its most
current MD&A and Financial Statements available on SEDAR. Under the
subscription agreements entered into by the company with the investors, the
company is required to compensate the investors for the amount of any possible
income tax reassessment resulting from the failure by the company to incur
flow-through expenditures for the entire proceeds of the financing.
The company has filed a notice of objection to the assessment and
anticipates a reduction in the liability recorded. As a result the company has
recorded approximately $242,000 related to the indicated assessment that has
yet to be finalized. In addition, $480,000 was transferred from future income
taxes payable to a reserve for claims anticipated from the purchasers of the
flow-through shares, should they be re-assessed by CRA reducing the allowable
tax deductions they claimed.
As a result of the foregoing the following management changes have
The former President and CEO, Mr. Steven Mlot, has been terminated and
replaced by Mr. Carl McGill.
The CFO, Mr. Ray Mitchell, tendered his resignation effective July 16,
2008. We are currently interviewing new candidates for this position.
Mr. Peter Karelse, the current exploration manager, will retain his role.
For further information:
For further information: Carl J. McGill, President & CEO, (416)
368-0028, Fax: (416) 703-3695, firstname.lastname@example.org; Renmark Financial
Communications Inc.: Neil Murray-Lyon: email@example.com; Jen
Power: firstname.lastname@example.org; Media - Eva Jura:
email@example.com, (514) 939-3989, Fax: (514) 939-3717,