GREY:MPRXF - Post by User
Post by
ERealon Oct 17, 2011 2:40am
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Post# 19154846
What does this mean?
What does this mean?"The net proceeds from the sale of Units are expected to be used to fund Mega's exploration and development activities, and for general corporate and working capital purposes. The proceeds from the sale of Flow-Through Units are expected to be used by Mega to incur Canadian Exploration Expenses (as defined in the Income Tax Act (Canada)) ("Qualifying Expenditures") on the continued exploration of Mega's mineral properties prior to December 31, 2012. Mega will specifically budget $6 million for Qualifying Expenditures for its Monument Bay project in Manitoba and $1 million for Qualifying Expenditures for its projects in Ontario. Mega will renounce the Qualifying Expenditures to subscribers of the Flow-Through Units effective on or prior to December 31, 2011."They will renounce qualifying expenditures to subscribers? Can someone explain what this means? Are they getting a tax refund and giving it to the unit subscribers?