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General Metals Corporation : General Metals Provides Guidance on 10-K Filing

^{Published on 2009-08-14 04:54:38, Last Modified on 2009-08-14 04:54:47 - Market Wire}
 

RENO, NV--(Marketwire - August 14, 2009) - General Metals Corporation (the "Company") (OTCBB: [ GNMT ]) (FRANKFURT: GMQ) filed its 10-K Annual Report with the SEC and it can be viewed in its entirety at [ www.sec.gov ]. There was a noticeable upward change in assets on our balance sheet due to restatements in the reported cost of acquisition of the Independence and Ghana properties for the Fiscal year 2008, with a corresponding decrease in Fiscal 2009 due to the sale on the Ghana concession to Sunergy, Inc. The balance sheet is attached below and investors should read the notes to financial statements contained in our 10-K, especially note #3 for the complete discussion of the changes in assets.

We had a deficit in cash on April 30, 2009, but have raised an additional $815,792 in cash subsequently. We had a banner year for exploration activity and results and have been able to advance permitting towards production without any delays. We await our Independent Resource report and have already started advanced metallurgical work which will be used to define the mine plan and pit design, as well as moving resources to a potential reserve category.

Our accrued liability balance of $216,974 as of April 30, 2009 has been satisfied through a $10,000 cash payment and through the issuance of restricted common shares. Since April 30, 2009, service providers received 3,839,166 restricted common shares valued at $129,840 for investor relations, geologic, business development and investor awareness consulting. We wish to thank all those who had confidence in our Company and accepted restricted shares in lieu of cash. This has enabled us to accomplish more with the cash on hand than would otherwise have been possible.

 General Metals Corporation and Subsidiaries (An Exploration Stage Company) Consolidated Balance Sheets April 30, April 30 2008 2009 (Restated) ----------- ----------- ASSETS Current assets Cash and cash equivalents $ - $ 17,600 Short-term investments 1,275,000 - Prepaid expenses (restated) 379,019 15,925 Other receivables 237,500 - Other current assets 245 - ----------- ----------- Total current assets 1,891,764 33,525 ----------- ----------- Other assets Land 67,767 - Mineral property (restated) 613,941 864,869 Investment in general copper - 17,500 Property and equipment, net 25,733 32,164 Other assets (restated) 17,444 17,444 ----------- ----------- Total other assets 724,885 931,977 ----------- ----------- Total assets $ 2,616,649 $ 965,502 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Cash deficit $ 20,057 $ - Notes payable, current portion 2,898 - Accounts payable 465,428 117,686 Accrued liabilities 216,974 - Deferred gain - - Loan from related parties 33,680 - ----------- ----------- Total current liabilities 739,037 117,686 ----------- ----------- Long-term liabilities Notes payable, net of current portion 44,143 - ----------- ----------- Total long-term liabilities 44,143 - ----------- ----------- Total liabilities 783,180 117,686 ----------- ----------- Commitments and Contingencies Stockholders' equity Preferred stock, authorized 50,000,000 shares, par value $0.001, zero issued and outstanding - - Common stock, authorized 220,000,000 shares, par value $0.001, issued and outstanding on April 30, 2009 and April 30, 2008 is 168,183,494 and 93,901,168 respectively 168,184 93,902 Additional paid-in capital (restated) 7,974,740 5,466,530 Subscriptions (receivable)/cash receipts (151,012) (5,500) Accumulated other comprehensive income 25,000 - Accumulated deficit during exploration stage (restated) (6,183,443) (4,707,116) ----------- ----------- Total stockholders' equity 1,833,469 847,816 ----------- ----------- Total liabilities and stockholders' equity $ 2,616,649 $ 965,502 =========== =========== 

At April 30, 2009 we had a $237,500 receivable from the sale of the Ghana concession to Sunergy, Inc. On July 29, 2009 this receivable was settled in full for 2,000,000 restricted shares of Sunergy, Inc.

At April 30, 2009 we had $465,428 in accounts payable, which was predominantly for drilling and assays from the 2008 drilling program at the Independence Mine. Satisfactory payments have subsequently been made and planning with our drillers for the 2010 drilling program is underway. All assay labs are in satisfactory status and there are no holdups or delays.

Dan Forbush, CFO, remarked, "We are very pleased to have cleaned up all of the accounting related to the issuances of stock in the acquisition of our mineral properties and for the clean opinion received from our new independent accountants, Mark Bailey & Co., who performed excellently under the difficult timetable presented. It is satisfying to see that the work done on the Independence project originally purchased at a value of $613,941 has increased its market value, as reflected in the market value of the company, more than ten fold."

A detailed description of the Company's permitting activities leading to production is available at [ www.gnmtlive.com ].

About General Metals Corporation: General Metals Corporation is an aggressive junior minerals exploration and development company, based in Reno, Nevada. The Company is actively exploring its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District, Nevada. Permitting and Engineering for heap leach production is underway at the Independence Mine. The Company recently sold its 150 sq. km. mining concession for gold, diamonds and base metals in Ghana, West Africa for $1,012,500 in cash and stock and retains a royalty.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that the proceeds from the recent private placement will allow the Company to proceed with permitting or advance production timing may not occur.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report on Form 10-KSB, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.