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Sandfire Resources America Inc C.SFR


Primary Symbol: V.SFR Alternate Symbol(s):  SRAFF

Sandfire Resources America Inc. is a Canada-based mining exploration and development company. The Company is engaged in the acquisition, exploration, and development of resource properties. The resource properties are located in the State of Montana in the United States. The Black Butte Copper Project is located north of White Sulphur Springs, the project’s property includes the Johnny Lee Deposit, which contains a copper. The Black Butte Copper Project is an underground mine. The Company is an 86.9% subsidiary of Sandfire Resources Ltd.


TSXV:SFR - Post by User

Post by Montrose2on Jan 09, 2008 12:49pm
447 Views
Post# 14174821

Split to Three

Split to ThreeHave been through this before and SFR's statement indicates it is following the same path. There is no "disposition". Rather there is retention of the originally held shares - for example 20,000 SFR. There is then a "distribution" on a proportionate basis ie: 1 for 4. In that example you would end up holding. 20,000 Original SFR 5,000 New Company 1 5,000 New Company 2. What happens is that you must amend your adjusted cost base so that your original cost is distributed amongst the three companies. The company will provide the formula at the time. There are no capital gains until such time as you dispose of any of the three companies shares. There also are no fees associated with receipt of the new companies. Similar to an I.P.O. in that the fees are absorbed by the issuer. In my previous experience the share price of the initial "mother" company fell but at the end the aggregate value of all companies was greater than the "pre-split" value. Onward and Upward.
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