Inspiration Mining

Welcome To The Inspiration Mining HUB On AGORACOM The company is exploring for nickel deposits on its Langmuir property near Timmins, Ontario; for nickel-gold-copper on its Cleaver and Douglas properties; and for molybdenum and rare earth elements at recently acquired Desrosiers property.

over 14 years ago

in response to whaler's message

It seems to me that under the current structure, if Langmuir/Metal Mines is sold, ISM will have to pay taxes and then when the remaining proceeds are distributed, the shareholders will have to pay taxes.

If Metal Mines is spun off per the proposed plan, I do not believe that will be a taxable event as it is a distribution of assets. Then Metal Mines can be acquired by someonce buying the shares and there will only be the one taxable event.

The problem with the Nitinat deal, IMHO, was that there was a third party involved and it did not have a time limit. It was an open ended option. That deal was also delayed waiting on NItinat to raise the money necessary to go forward with the public offering. Also, the NZZ shares went to ISM with a one year holding period to satisfy the underwriters.

Under the proposed structure, there is no third party involved. I don't see any intent by the company to sell shares to the public through a public offering. It will be just a matter of registering the shares distributed to the ISM shareholders for sale to the public. As I see it, no money to raise and no holding period required.

Wild