Resource Capital Gold Corp GDPEF

exploration assets and tax credits

[LeftBook]

Are exploration assets and tax credits interchangeable ?

Assume the exploration asset are traded not developed.

 

 

ANX acquired the Goldboro project for ~$15/oz in May 2017. 

 

M+I        457,000

Inferred  372,900

Total       830,300 

 

Value      $12.45M

 

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RCG has approximately $20M of tax credits.

What is the equivalent ounces in an exploration asset ?

eg. 1,330,000 ounces

 

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Notes:

 

https://www.anacondamining.com/2017-03-03-Anaconda-Mining-and-Orex-Exploration-Execute-Arrangement-Agreement

 

[LeftBook]

1) In theory RCG could have used the $12M the tax credits to buy Goldboro instead of paying tax on operations. 2) conversely I imagine that a buyer might buy tax credits at, say, 50c on the dollar if were possible. It would not make sense to pay full price. They could pay any tax obligations without risk. For an example in the June 2018 Annual Report RCG notes: "that the attributes are