SOURCE: General Metals Corporation

August 24, 2011 05:54 ET

General Metals Discusses Annual Report Filed on Form 10-K

RENO, NV--(Marketwire - Aug 24, 2011) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) filed its 10-K Annual Report for the year ended April 30, 2011 with the SEC and it can be viewed in its entirety at The balance sheet is included and investors should read the notes to financial statements contained in our 10-K.

The report also shows that we had cash in the amount of $14,157 as of April 30, 2011. We spent $311,604 on exploration and development of the Independence Project during the year ended April 30, 2011, with $237,548 expended in the six months ended April 30, 2011, bringing the total expenditures since we acquired the property through April 30, 2011 to $2,873,842.

As reported in the Company's regulatory filings with the SEC, the Company was transitioning throughout much of the year, continuing to complete significant tasks which are required to bring the Independence Project closer to the Company's stated goal of a fully functional and producing property. The progress continues to be significant throughout the last few months.

In May 2010, we announced completion of a current, independent, technical report and resource calculation compliant with Canadian National Instrument 43-101. The report was submitted to BC Securities Commission for review and approval preparatory to a possible listing of the Company on the Toronto Ventures Exchange (TSX-V). The Company received a response from the Commission in the summer of 2010 requesting clarifications. Early this year, the Company began updating the report to include the responses to those items requested by the Commission as well as the results from the 44 drill holes announced after the original report was submitted to the Commission. We expect this report to be completed and resubmitted to the Commission within the next few weeks. This report does not meet SEC Industry Guide 7 guidelines but will provide information in a familiar format for our Canadian and European investors.

During March 2011, we created composite samples for ABA testing at Sierra Environmental Monitoring, Inc. and the tests were completed in May. This is a vital test which must be completed prior to applying for a Waste Water Discharge Permit required for the project to be placed into production. The results of the test are being evaluated by our Company's consultants and we will be reporting these to you as the report and application are completed.

Through March and April 2011, we completed a 3 hole, 1,074 foot core drilling program in the Independence Project shallow mineralized zone recently. The resulting core was logged for geotechnical purposes. We will be splitting and assaying this core and expect results in the next couple of months.

In March 2011, we started a large diameter column leach test on the bulk samples taken in the South Zone of near surface, oxide mineralization which had been previously delivered to the lab. This bulk sample was taken from the underground workings on the property and should provide a very good view of the recovery of gold and silver from the property once the open pit mine has been developed. The column leach tests of this sample are being conducted at 2 and 1 inch. The test is currently coming to a close and the resulting independent report should be available shortly.

Our plans for the year ended April 30, 2012, subject to obtaining sufficient funding, begin with upgrading the Independent Technical Report we are submitting to the BC Securities Commission to become SEC Industry Guide 7 compliant. This process includes completing a pit design and mine plan including scheduling of the ore production and waste mining. The final results will include a feasibility analysis of the mineralization. Additional extractive metallurgical studies may be undertaken to properly develop the mine plan, which the Company believes will see much of the mineralization identified in its drilling converted into proven and/or possible reserve categories. We anticipate initially mining the Hill Zone where the mineralization is close to or at the surface. As part of this work, we will be developing the plan that will allow us to maximize our cash flows early in the production cycle. The initial budget for the work described is $400,000.

"We appreciate all the support and the reception we receive whenever and wherever we share our vision for the Company. We have found new investors in the Company each and every step of the way as we try to improve and increase shareholder value for this significantly undervalued asset, the Independence Project. We are anticipating that the updated report that we will be submitting to the Canadian securities regulators will show improvement in all categories of resources of gold and are excited to share that with you as soon as it becomes available in the near future," said Daniel J. Forbush, President, CEO and CFO. "Even with all the challenges that the Company has faced in the last year, it's still exhilarating to be working on bringing the Project to the forefront in the minds of serious gold mining industry investors. As we share information on the Company and its gold and silver Project with others, describing what we have and the Company's objectives and plans, we find new friends and supporters. We understand that many of our shareholders have been with us for a few years expecting production already; however, we still have more to do to get to that goal. We continue to believe that your patience and our perseverance will be rewarded."

General Metals Corporation and Subsidiaries
(An Exploration Stage Company)
Consolidated Balance Sheets
April 30, April 30,
2011 2010
Current assets
Cash and cash equivalents $ 14,157 $ 9,636
Short-term investments - 177,796
Prepaid expenses 39,791 24,650
Total current assets 53,948 212,082
Other assets
Land 67,742 67,742
Mineral property 613,941 613,941
Property and equipment, net 10,946 16,296
Other assets 35,238 37,800
Total other assets 727,867 735,779
Total assets $ 781,815 $ 947,861

Current Liabilities
Notes payable, current portion $ 6,331 $ 106,750
Accounts payable 354,055 517,495
Accrued liabilities 93,262 120,439
Accounts payable to related parties 124,976 187,994
Loan from related parties 28,800 48,800
Total current liabilities 607,424 981,478
Long-term liabilities
Notes payable, net of current portion 38,342 42,155
Total long-term liabilities 38,342 42,155
Total liabilities 645,766 1,023,633
Commitments and Contingencies
Stockholders' equity/(deficit)
Preferred stock, authorized 50,000,000 shares, par value $0.001, zero issued and outstanding - -
Common stock, authorized 550,000,000 shares, par value $0.001, issued and outstanding on April 30, 2011 and April 30, 2010 is 267,703,983 and 241,253,900 respectively 267,705 241,254
Additional paid-in capital 10,349,877 9,366,698
Subscriptions receivable - (25,000 )
Accumulated deficit during exploration stage (10,481,533 ) (9,658,724 )
Total stockholders' (deficit) 136,049 (75,772 )
Total liabilities and stockholders' equity/(deficit) $ 781,815 $ 947,861

Further details regarding the Independence mineralization, drilling efforts, both historical and current together with current permitting activity are available on the Company's website

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 and developing its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District of Nevada.

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 at its Independence Mine in Nevada or any shallow mining production at any time, that any estimated ounces of gold or silver are contained in the mineralized material in the "Shallow Target," and is proposed to be mined and loaded onto a cyanide heap leach pad, or any future financings that the Company may enter into.

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 annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Wayne Meyerson
    Investor Relations
    General Metals Corporation
    1155 West Fourth Street. Suite 210
    Reno, NV 89503
    775.583.4636 office