The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News – February 16, 2018
A drill taps the Ace of Hearts zone during the winter drill program carried out at the 3 Aces gold project in the Yukon.
Golden Predator Mining Corp. Feb. 13 announced the completion of an C$8.38 million overnight marketed offering, a financing that will help fund continued ongoing exploration at the company's 3 Aces gold project in southeastern Yukon.
As part of the financing, Golden Predator issued 9.21 million flow-through units at a price of C91 cents per flow-through unit. Each unit consists of one Class A common share and half of a purchase warrant, with each full warrant exercisable into a Golden Predator share for C$1.00.
The units were issued on a "flow-through" basis for purposes of the Income Tax Act (Canada).
Under Canada's Income Tax Act, a flow-through financing allows mineral exploration companies to transfer their exploration expenses to individual investors that purchase the shares.
Most exploration companies do not generate revenues, so they do not need the tax write off, however, the flow-through investor can apply his portion of the exploration expense to reduce or eliminate his tax liability.
The exploration company must spend the flow-through dollars raised on a qualifying mineral project in Canada within two years of closing the financing.
Golden Predator said the money raised from its sale of the flow-through units will be used to continue exploration at 3 Aces, an expansive property that hosts numerous high-grade gold deposits and occurrences.
-SHANE LASLEY
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