Strategic Resource Acquisition Corporation
NEX BOARD : SRZ.H

Strategic Resource Acquisition Corporation

September 16, 2009 12:28 ET

SRA Announces Delay in Filing Annual Financial Statements, MD&A and AIF

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2009) - Strategic Resource Acquisition Corporation ("SRA" or the "Company") (NEX BOARD:SRZ.H) announces that there will be a short delay in filing its Annual Audited Financial Statements, Management Discussion & Analysis ("MD&A") and Annual Information Form ("AIF") for the Company's financial year ended September 30, 2008, as required by National Instrument 51-102 Continuous Disclosure Obligations.

The delay is a result of the following:

  • the Company filed for creditor protection under Chapter 11 of the United States Code (the "Bankruptcy Code") on January 15, 2009;
     
  • unprecedented market volatility which has required the Company to review the carrying value of its producing assets and mineral properties, select and implement appropriate valuation methodologies during a period of uncertainty of the restructuring process under creditor protection;
     
  • significant management time and effort dedicated to discussions with the Company's existing secured and unsecured creditors, in relation to restructuring of the payments due under the loan facility which was finalized on July 17, 2009, and
     
  • the finalization of the sale of the Company's primary asset, the Middle Tennessee Mines property on May 1, 2009.

The Company will apply to the applicable securities commissions or regulators for a management cease trade order ("MCTO") related to the Company's common shares to be imposed against some or all of the persons who are directors, officers or insiders of the Company instead of a cease trade order being imposed against all securities of the Company. The MCTO would not generally affect the ability of persons who have not been directors, officers or insiders of the Company to trade the securities of the Company.

If the annual audited consolidated financial statements, related MD&A and the AIF are not filed by September 30, 2009, the applicable securities commissions or regulators may impose a cease trade order. A cease trade order may be imposed sooner if the Company fails to satisfy the provisions of the Alternative Information Guidelines required pursuant to National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults (the "Alternative Information Guidelines").

The Company is working with its auditors to complete the audit of the Company's financial statements for the year ended September 30, 2008 as soon as possible and anticipates filing such financial statements and related MD&A and AIF by September 30, 2009. Until its annual consolidated financial statements and related MD&A and AIF are filed, the Company intends to satisfy the Alternative Information Guidelines, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a press release.

Cautionary Statement on Forward-Looking Information

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the future price of zinc or other metal prices, the estimation of mineral resources and realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits and future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of regulatory matters. These statements reflect management's current beliefs and are based on information currently available. Forward-looking statements involve significant risks, uncertainties and assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including those listed in the ''Risk Factors'' section of the Company's prospectus on file with Canadian provincial securities regulatory authorities.

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