As described more fully in the management information circular which was mailed to shareholders of Almaden Minerals Ltd. on May 15, 2015, for the purposes of the Income Tax Act (Canada),
- each Shareholder acquired its common shares of Almadex at a cost equal to their fair market value at the Effective Time, and
- each Shareholder acquired its “new” common shares of Almaden at a cost equal to the amount, if any, by which the adjusted cost base of the Shareholder’s “old” common shares of Almaden exceeds the fair market value at the Effective Time of the common shares of Almadex received under the Plan of Arrangement.
Each shareholder received 0.6 of an Almadex share for each Almaden share held. Almaden has obtained a professional valuation which ascribes to the common shares of Almadex at the Effective Time (as at July 30, 2015) an aggregate fair market value of CAD$14.76 million, which equates to CAD$0.336 per common share, or CAD$0.202 for each 0.6 of a Common share of Almadex.
Almaden will prepare its tax returns based on this valuation, and believes that it would be reasonable for the Shareholders to also rely on the valuation for their own tax purposes. However the valuation is not binding on the Canada Revenue Agency.
The foregoing is qualified entirely by the Circular and is not intended to be tax advice to any particular Shareholder. Shareholders are encouraged to read the Circular in full and to consult with their own tax advisors having regard to their own circumstances.
Almaden Updates Stakeholders on Permitting Progress for the Ixtaca Project, Mexico
Almaden appoints Dr. John Thomas as Vice President, Project Development, to oversee detailed engineering and construction of the Ixtaca Gold/Silver Deposit, Mexico
Almaden Announces Results of Annual General Meeting; Provides Update on Ixtaca Project
Almaden hosted Women in Mining, Mexico as part of its efforts to promote training and employment opportunities for women at the Ixtaca project. Watch the video here +