Did anyone get a tax thing in the mail regarding the dividend?

This will depend on who you are using for trading. Questrade does not provide you with a gain loss statement for example, you need to calculate this all yourself. I use questrade and I have to calculate my own gains/losses.

If you are provided with a gain loss statement, the adjustment should be in this statement. It doesn't hurt to double check to see if they have calculated it correctly.

It wasn't a dividend. It was a reduction of your cost base.

Here is a direct quote from the new release from August 12, 2013:

A tax free cash distribution of $0.0275/share as a return of capital has been declared to shareholders of record on Tuesday, August 20, 2013 (the "Record Date"). In general terms, a return of capital is not included in income by shareholders but does reduce the cost of a share for income tax purposes.

The full news release can be seen here:

http://www.copperfoxmetals.com/s/NewsReleases.asp?ReportID=597528&_Title=Copper-Fox-Provides-Update-on-Corporate-Activities

What it means is that your original purchase price decreased slightly (by $0.0275 per share).

So if you sold shares after August 20, 2013 up to December 31, 2013, you need to adjust your case base. For example, if you had a cost base of $1.0275 previously, it would now be $1.00. So if you sold shares in this scenario, your loss would be less.

Of course you may have sold then purchased multiple times. If you sold all your shares after August 20, then bought more shares, your cost base for your new share purchase, would not be affected by this return of capital.

If you shares are sitting in a TFSA or RSP, you don't need to worry about this.

Feel free to pm if you have further questions or want more detail.

Question #1:

Your TFSA does not reset. If your 25,500 shares are now worth $8,000 for example, selling those shares then taking out that $8,000 would then mean that you have room of $8,000 in the coming year (you have to wait till the next year) plus the yearly TFSA increase allotment of $5,500 for 2014 giving you total room in 2014 of $13,500.

Question #2:

Yes, if you buy within the 30 (calendar) days, it is considered a superficial loss. The superficial loss is added to the adjusted cost base of the repurchased or substitute shares. When the repurchased or substitute shares are sold, the loss can be claimed (if they haven't increased such that their is no loss). In terms of settlement date vs actual sale date, I haven't seen any discussion in that area, so I would assume the later date to be sure. I imagine you can buy on the 30th day.

Of course a superficial loss isn't the end of the world, you are just denying yourself of a loss today which you are still likely entitled to at a later date.

It is a slow Thursday, I'm going to guess (note this is not from the mouth of Teck or CUU) CUU's answers for your questions. Not trying to be a jerk here, I just don't think CUU can really tell us anything that we don't already know at the AGM. Good luck to all.

1. What is the status of the EA? Is Teck planning on submitting the EA soon? Is it possible Teck will try and incorporate any of the drill results from this year into a new RE and FS and EA, delaying the whole shebang even further?

I think the EA is the most important catalyst that will get our 25% sold so I'm trying to establish a timeline.

Teck is currently working on the submission of the EA, they will inform us when it is submitted. Incorporating new drill results will delay the process, Teck is satisfied with going forward with the EA with no new drills included.

2. Do we have any information on drilling this year? How many drills, are they sticking to the recommendations from the FS, is the drilling to the East a change of plan? When can we expect results? What sort of results is Elmer looking for? When we look at the drill results how can we tell that the waste will move into the inferred category?

Thus far Teck has followed the FS. However, they have identified some strategic differences that they will be looking into which I cannot expand upon at this time.

3. Is Teck also proceeding with the recommendations from the FS to improve the recoveries, for example? Will we ever find out any information about that?

Teck is working towards improving recoveries, nothing concrete to present related to this at this time. Work is ongoing.

4. In their talks with big market investors, what sort of response are they getting?

You would have to ask Teck, they do not share this information with us. With the macro pictures as it is, it is difficult to determine.

5. What does Elmer think it will take for the stock price to go up? Are we just going to sit low until the eventual buyout?

CUU does not have any direct control over the stock price. We believe the macro picture is holding the mining industry down at this point.

6. Are they looking at making a significant investment in another project? How are the potential acquisitions going? Are they looking within Canada, or elsewhere?

At this time we are focussing on Arizona.

I left out the expenses to be paid back to Teck's subsidiary. I'm just not certain of the cost here. Is it 1.2 million?

Catalyst amends deal to acquire La Verde from Teck

2013-10-08 16:04 ET - News Release

Mr. John Greenslade reports

CATALYST COPPER ENTERS LETTER OF INTENT TO ACQUIRE 100% INTEREST IN LA VERDE COPPER PROJECT, MEXICO

Catalyst Copper Corp. has entered into a non-binding letter of intent with Teck Resources Ltd. (TRL) to modify the terms of an agreement dated April 9, 2013, for the acquisition of the La Verde project by Catalyst, subject to completion of formal documentation and appropriate approvals, including TSX Venture Exchange approval.

The property is currently held 60 per cent Catalyst and 40 per cent indirectly by TRL through a wholly owned subsidiary (TRL Holdco), all subject to a 0.5-per-cent net-smelter royalty held by a third party Mexican corporation.

The letter of intent sets out certain general terms for an agreement pursuant to which Catalyst would, on closing of the revised agreement, indirectly acquire a 100-per-cent interest in the property (subject to the existing NSR) on the following basis.

Equity issue

Catalyst will issue to TRL Holdco or a designated TRL affiliate a number of common shares of the company that will result in Teck owning 19.9 per cent of Catalyst's issued and outstanding shares.

TRL Holdco will have the right, not the obligation, for as long as it owns at least 5 per cent of the issued and outstanding shares of Catalyst, to participate in any future equity financings to the extent of its percentage ownership at the time of such financing.

Participation on future sale of property

If Catalyst sells or options, directly or indirectly, all or a portion of the property to a third party at any time during a 24-month period commencing from the date of the revised agreement, Catalyst shall pay TRL Holdco in kind, exclusive of the first $1-million, as follows:

We seek Safe Harbor.




My summary:

- CCY has obtained 100% of La Verde




- CCY is issuing shares to Teck which results in Teck owning 19.9% of CCY. CCY already has approximately 279,000,000 shares out (not considering fully diluted amount for simplicity). An additional 69,400,000 shares bringing the total to 348,400,000 would make the new shares for Teck to ~equal 19.9%. The current value of these shares is 69,400,000 x .015 = $1,041,000.




- Teck can take part in private placements. Their involvement is limited to their percent of ownership. So currently they can buy up 19.9% of a private placement.




- If a part of La Verde (or all) is sold to another party, Teck receives 20% of the proceeds if the sale takes place within the first 12 months, 10% if in the later 12 months (two year time period). With a current market cap of 4,180,000, I will assume a major partner will want to be in control, so taking 60% of 4,180,000 x 20% proceeds (assuming sale within next 12 months) = 501,600.




- Teck receives 0.5% royalty related to property, CCY can buy this out for $10 million at any time.




- If La Verde goes to production, CCY pays $10 million to Teck. If there is a change of control of CCY (one party owning 50% or more of the outstanding shares of CCY). 50% of this 10,000,000 needs to be paid immediately.




- CCY needs to pay back the Teck subsidiary for La Verde related expenses. This will be done through a private placement or other financing. The financing/private placement needs to be at least for 1.2 million. I would assume this is the approximate amount for the expenses. This requirement does not appear to be immediate, however CCY clearly will need mone in the bank.




The April 9, 2013 agreement stated that CCY needed to pay Teck 20,000,000 cash, or 25,000,000 equivalent consisting of shares (no more than 19.9% of outstanding shares) and cash with a minimum being 12,500,000. As I showed above, 19.9% ownership with a new share issuance has a value of 1,041,000. With 12,500,00 cash (which CCY doesn't have) and shares of a value of 1,041,000, CCY could not reach the required 25,000,000.






So what exactly did CCY give (with 0.015 current share price)?




$1,041,000 worth of shares (.015 price per share)




$10,000,000 estimated value of a .5% royalty




$10,000,000 upon reaching a production decision




$501,600 - 20% or 10% of proceeds from sale of all or a portion of La Verde.




---------------




$21,542,600




Now if the current share price was $0.06 (roughly the value in April before original agreement was presented). The cost is as follows:




$4,164,000 (1,041,000 x 4) worth of shares (.06 price per share)




$10,000,000 estimated value of a .5% royalty




$10,000,000 upon reaching a production decision




$2,006,400 (4 x $501,600) - 20% or 10% of proceeds from sale of all or a portion of La Verde.




---------------




$26,170,400




So overall not a bad deal for both parties.