Kirkland Lake, Ontario–(Newsfile Corp. – June 13, 2019) – Mistango River Resources Inc. (CSE: MIS) (“Mistango”) Orefinders Resources Inc. (“Orefinders“) recently purchased Mistango shares in the secondary market with a view to obtaining control of Mistango, and in particular Mistango’s Omega Property. Since then, Orefinders has been spreading misleading information and false allegations in its news releases.
Orefinders’ latest allegations are a classic case of blurring the facts to create confusion and negative press to affect Orefinders’ desired result – eventual control of Mistango. In a press release dated yesterday, Orefinders alleges that Mistango’s CFO has a “potential” conflict of interest because she is also employed by an accounting firm Parker Simone LLP and Parker Simone LLP is part of a global non-service network in which the auditors of Mistango are also associated with.
To be clear, Mistango’s auditors are Kreston GTA LLP. Kreston GTA LLP is a separate legal entity from Kreston International, an English company which provides no services to clients and is a global network of independent accounting firms. Parker Simone LLP, where Mistango’s CFO works, is part of this global network. Not only is there no conflict of interest in this type of situation, but Chartered Professional Accountants’ Code of Professional Conduct says so. Orefinders failed to mention that the Code specifically states:
“Another firm or entity will not be considered to be a network firm simply by virtue of the existence of:
…co-operation to facilitate the referral of work or solely to respond jointly to a request for a proposal for the provision of a professional service; or
– references on stationery or in promotional materials to an association with other firms or entities that does not constitute a larger structure of co-operating firms or entities as described in the definition of network firm;
The definition of a network firm refers to co-operating entities that share significant professional resources. Shared professional resources may be considered to be significant where there is an exchange of people or information, such as where staff is drawn from a shared pool, or a common technical department is created within a larger structure to provide participating firms or entities with technical advice that they are required to follow. Shared professional resources will not be considered to be significant when they are limited to common audit methodology or audit manuals or a shared training endeavour, with no exchange of personnel or client or market information. Similarly, the sharing of costs limited only to the development of such common audit methodology, audit manuals or a shared training endeavour will not be considered to give rise to a network firm relationship.”
Based on the above, neither Parker Simone LLP, Kreston GTA LLP nor Kreston International LLP are “network firms”. If Orefinders had read the CPA Code of Conduct carefully, it would have known this fact. In any event, references to “network firms” refer to the entities themselves and not to the persons who are partners or employees thereof. Therefore, no conflict exists.
Orefinders also claims that Mistango did not respond to these allegations. This is not true. The allegations were responded to on May 28, 2019 in a letter from Mistango’s lawyer.
In its typical fashion, Orefinders’ disclosure is lacking and is attempting a ruse on shareholders.
Mistango will continue to work hard in the best interests of the corporation and stave off attacks from self-serving entities.
Mistango is a Canadian-based exploration and development company focusing on its Omega Mine project, with other properties in Ontario. For additional information about Mistango and its mining properties, please visit Mistango’s website:
For further information please contact:
Donald Kasner, COO
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/45592