GREY:GDPEF - Post by User
Comment by
LeftBookon Apr 27, 2019 1:41pm
59 Views
Post# 29679075
RE:exploration assets and tax credits
RE:exploration assets and tax credits
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 subject to review, and potential adjustment by tax authorities".
3) in a merger, RCG and the other party would have to reach an agreement about the value of off-balance items like tax credits. I think the tax credits substantial value to the table.