Post by oracle on Nov 17, 2008 16:31:17 GMT -5
Can anyone help translate this into plain English? What the hell does this mean? I noticed in my brokerage account that DRV and MacMinerals Inc. show up with the correct number of shares for each, however there is a place asking for "Enter Costs Basis". There still is no value assigned for the Shares???
Do we shareholders have to enter a value in our "Enter Costs Basis" based on the following letter? Also, did anyone else receive this letter?;
For tax purposes, each shareholder needs to assign or split the cost base value of their MMG shares between the shares of DRV received and the shares of MacMillan Minerals received.
Receiving the MacMillan Minerals shares will not be reported by us as a dividend because their total value was less than the paid up capital of MacMillan Gold Corp. and therefore represent a redistribution of paid in capital to all existing MMG shareholders.
Receiving the Duran shares in exchange for MacMillan Gold shares is exempt from being deemed a disposal and new aquisition because it was done under a court ordered Plan of Arrangement.
We feel that since MMG was $0.155 last and DRV is $0.40 and each 2 MMG received 1 DRV, shareholders should consider reporting 100% of their MMG cost base as the new cost base of the DRV they received. That would result in using a cost base of NIL for the new shares of MacMillan Minerals Inc.
If you wish to assign a value to MacMillan Minerals Inc. and do not wish to use NIL, you may wish to consider using a nominal value such as $0.001 per share.
George A Brown
Former President & CEO
MacMillan Gold Corp.
Do we shareholders have to enter a value in our "Enter Costs Basis" based on the following letter? Also, did anyone else receive this letter?;
For tax purposes, each shareholder needs to assign or split the cost base value of their MMG shares between the shares of DRV received and the shares of MacMillan Minerals received.
Receiving the MacMillan Minerals shares will not be reported by us as a dividend because their total value was less than the paid up capital of MacMillan Gold Corp. and therefore represent a redistribution of paid in capital to all existing MMG shareholders.
Receiving the Duran shares in exchange for MacMillan Gold shares is exempt from being deemed a disposal and new aquisition because it was done under a court ordered Plan of Arrangement.
We feel that since MMG was $0.155 last and DRV is $0.40 and each 2 MMG received 1 DRV, shareholders should consider reporting 100% of their MMG cost base as the new cost base of the DRV they received. That would result in using a cost base of NIL for the new shares of MacMillan Minerals Inc.
If you wish to assign a value to MacMillan Minerals Inc. and do not wish to use NIL, you may wish to consider using a nominal value such as $0.001 per share.
George A Brown
Former President & CEO
MacMillan Gold Corp.