RE:RE:SXG going nuts down underWhat this is in reference to is management's evaluation of all possible scenarios to get shares into the hands of investors in the most tax-friendly way possible. The original plan was to commence with a non-dividend distribution of shares (i. e. return of capital from original MAW investment). However, with the recent run-up in prices they may be considering other alternatives.
A possible alternative may be SXG acquiring MAW and spinning off some of the assets dedicated to the uranium play and keeping the gold assets. This would be a very advantageous tax-free scenario, however it could cause a muddling of value that we saw between the Rajapalot and Sunday Creek projects.
Timing is also vitally important in terms of a distribution. We would want to receive shares whilst they are at the lowest possible market price in order to alleviate any potential tax bill if the ultimate methodology to get shares into our hands triggers taxes.