SOURCE: General Metals Corporation

August 14, 2009 07:38 ET

General Metals Provides Guidance on 10-K Filing

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.

Contact Information

  • Contact:
    Wayne Meyerson
    Investor Relations
    General Metals Corporation
    615 Sierra Rose Dr., Suite 1
    Reno, NV 89511
    wayne@gnmtlive.com
    775.583.4636 office
    775.830.6429 cell