Business Context and Reporting Period
This Form 6-K filing by Tanzanian Royalty Exploration Corporation (TRX Gold Corp) was submitted on January 15, 2013. The filing serves as a formal Notice of Change of Auditors. The company is a foreign issuer reporting under Rule 13a-16 of the Securities Exchange Act of 1934.
Key Financial Metrics
The filing text does not provide specific financial data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document is exclusively focused on corporate governance regarding the audit firm.
Material Changes
- Auditor Change: The Audit Committee has recommended changing the company's auditors from KPMG LLP to Ernst & Young LLP (E&Y).
- Effective Date: The change is effective upon the expiry of KPMG's current appointment at the close of the annual shareholders' meeting scheduled for February 28, 2013.
- Board Approval: The Board of Directors approved this recommendation on December 20, 2012.
Guidance, Outlook, and Risks
Management Commentary: The change in auditors resulted from a review of the Corporation's audit requirements by the Audit Committee. KPMG has not been proposed for reappointment.
Auditor Confirmations:
- KPMG confirmed that it has not expressed any reservations in its reports for the fiscal years ended August 31, 2012, and August 31, 2011.
- The Corporation confirms there are no "reportable events" as defined in National Instrument 51-102.
- Both KPMG and E&Y have reviewed the notice and confirmed their agreement with the statements contained therein.
Risks and Contingencies: No specific financial risks or contingencies are detailed in this filing.
Investor Verification Checklist
- Verify the outcome of the auditor change at the annual shareholders' meeting on February 28, 2013.
- Review the upcoming financial statements prepared by Ernst & Young LLP to ensure continuity in reporting standards.
- Confirm that no undisclosed "reportable events" have occurred since the December 2012 board approval.
- Check subsequent filings for the first financial report issued under the new auditor.