GOOD NEWS IN RESTATED FINANCIALS!!
From my reading of the financial reports, this $40.7 Million loss isn't actually a loss of money spent... but rather it is a matter of how the assets purchased with company currency (shares) are being carried on the books.
I'll have to dig a bit deeper, but I think it is an impairment that keeps the property(s) from being recognized at the full value.
Here are the relevant paragraphs (Page 65 of the 2019 Audited Financials):
"22. CORRECTION OF ERRORS IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS
"The Company’s previously issued financial statements have been restated to reflect the correction of errors relating to the valuation of shares issued in connection to the acquisitions of Colony Energy, LLC, Black Dragon Energy, LLC, Rolling Rock Resources, LLC, and City of Gold, LLC (collectively, “the LLCs”). These shares should have been valued using the fair value of the shares on the date it was issued. This restatement was announced in the Company’s current report on Form 8-K filed on July 15, 2019. In addition, the Company determined there were impairment indicators and wrote down the rights to the mineral exploration project to $1. As a result, the Company recorded an impairment of rights to the mineral exploration project of $39,530,233 and a deferred tax liability recovery of $9,500,000, for a net write off of $30,030,233.
"The Company had measured the above acquisitions based on the par value of the shares issued to acquire the LLCs. The Company has determined that its common shares issued are traded in an active market and should have been recorded based on the quoted market price of the shares on the date it was issued. Therefore, the Company has revised its accounting to record the transactions based on the fair value of the shares issued."
SOOOO... it seems to me that the writing down of the City of Gold assets... ended up saving the company almost $10 Million in tax liability.
ALL OF WHICH I MIGHT ADD IS PRETTY MUCH EXACTLY WHAT THE COMPANY DISCLOSED WHEN THEY FIRST ANNOUNCED THE ACCOUNTING ISSUES BEING DEALT WITH.
Go FTMR!!
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