Arcan Resources Ltd.
TSX VENTURE : ARN

Arcan Resources Ltd.

April 27, 2012 17:43 ET

Arcan Resources Settles With Former Employee

CALGARY, ALBERTA--(Marketwire - April 27, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Company") resolved a dispute with a former employee and obtained a Consent Judgment ("Judgment") in the Court of Queen's Bench of Alberta.

In January 2012, in the course of a review of the records of a past employee, Arcan's management identified and resolved with the former employee a series of issues concerning services paid for between 2008 to 2011 to entities controlled by the employee. Management immediately reported its findings to the Board of Directors, commissioned an independent third party audit as to the claims in dispute and instructed Arcan's legal counsel to take all appropriate steps for repayment of the disputed amounts. Negotiations resulted in the parties entering into a Consent Judgment in the amount of approximately $4.5 million.

The Company has reviewed the effect of these transactions on its historical financial statements for the periods in question and has provided an independent audit report to Arcan's auditors. Management and the Board of Directors have determined that the effect on Arcan's financial results for such periods would not be material and accordingly the Company will not be effecting a restatement of the Company's previously filed financial statements.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Arcan Resources Ltd.
    Ed Gilmet
    Chief Executive Officer and President
    (403) 262-0321
    egilmet@arcanres.com

    Arcan Resources Ltd.
    Douglas Penner
    Executive Vice President and Chief Financial Officer
    (403) 262-0321
    dpenner@arcanres.com

    Arcan Resources Ltd.
    Suite 2500, 308 - 4th Avenue SW
    Calgary, AB T2P 0H7
    (403) 262-0321