RE: RE: RE: RE: This is not even funny.Resource companies often issue flow-through shares at a premium compared with their common shares. "They take into account that there will be a tax benefit to the buyer," says Young. "So, if their regular stock trades at $1, they [might] issue the flow-through shares at $1.25." But if the premium is too high, it's harder to realize returns. Experts agree that when the premium reaches 30%, there's no benefit to investors.
If you buy a flow-through fund, examine its fee structure. Some funds charge a sales commission (typically, about 6%) of the original investment, plus upfront or ongoing management fees and/or a performance bonus. Other partnerships charge a small annual management fee (say, 1%) or none at all, and then take between 10% and 50% of the profits in excess of a certain return on investment.
Young warns, however, that flow-throughs have no initial liquidity. To reap the benefits of the tax deduction, you must hold the shares for 18 to 24 months, after which you may sell them. (In the case of an LP, the units are typically rolled into a resource-based mutual fund.) "I wouldn't recommend that flow-through shares make up any more than 15% of a portfolio," adds Young. "Not unless you're heavily involved in the resource industry and you only want to invest in an industry you know."
They pay 19% premium, and cannot sell for 18 to 24 months. We get 10 million and AMC has to spend it on exploration.
A bought deal financing they could spend at Tim Horton’s. what’s not to like about this? Saying we have to raise money anyway, because the pay as you go thing will take years and we could miss this gold market completely. Seems good all the way around, If the premium is higher than 30% then it stops being a good investment and you might just as well pay the taxes. Think of it as a RRSP just because you get a $1000 deduction does not mean the government sends you a check for $1000 only the taxes on $1000. If your tax bracket is high enough you can make this work. IN CLOSING THIS IS THE BEST WAY TO RAISE MONEY WITH THE LEAST DILUTION. You sell shares only and at 50 cents not much lower than 42 plus warrents.