And by buying the entire issued capital of a company that pegs a...

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Black Cat

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1603

02/12/17

03:24

Post #: 29309975
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Originally posted by Blythefan ↑

The point is, Artemis holds its tenure under various subsidiaries or assignees, and Novo's subsidiary Karratha Gold Ltd is making JV's with the Artemis subsidiaries. These JV's must be done separately because the tenements are held by the 3 ARV subsidiaries, and the way it works in the mining tenement sphere is that dealings upon a tenement are registered on each tenement individually.

Therefore, if tenement A is held by Subsidiary A, and Tenement B by Subsidary B,

Tenement C by Subsidary C (and those are subsidiaries of Company Z)
etc, and JV Partner X wants 50% of Tenements A, B, C, then it registers its interests against those tenements (as defined by the deal between the two controlling companies) as JV's between A-X on Tenement A, B-X on Tenement B, C-X on tenement C.

The point of holding tenements via subsidiaries? Well, I haven't looked into the dealings histories in this case, but often companies buy tenements from prospectors or small private equity concerns via purchasing the controlling companies outright instead of transferring the tenement ownership itself (which is a transaction attracting stamp duty transfer).

So there may be no 'point' in this beyond it being just the way that the tenement ownership is historically set up.

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And by buying the entire issued capital of a company that pegs a tenement/s the shareholders of the company the subject of the purchase swap one piece of paper for another - in specie - and are not taxed until they sell the shares of the company for which they exchanged their shares in the company purchased. Welcome to Australia's tax laws.

ARV Price at posting: 30.5¢ Sentiment: Buy Disclosure: Held
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