Update to Shareholders Dear Fosterville South Shareholder,
With drilling ongoing at Lauriston, assays pending at Golden Mountain and Lauriston, drill permits applied for on multiple projects and a strong treasury of close to $30 million in cash, we are in great shape to grow the company.
Our note today relates to a specific question raised by many shareholders regarding Leviathan Gold spinout shares held in registered accounts.
Your brokerage firm may have indicated to you that the Leviathan shares currently in your registered accounts (such as RRSPs, TFSAs etc) are not eligible to remain in those accounts indefinitely.
The reason they are not yet “eligible” is that the company is not yet publicly trading. Once trading, the Leviathan Gold spinout shares will immediately become eligible for registered accounts. In the first tax return filed by Leviathan Gold in respect of its first taxation year, Leviathan Gold will elect, for tax purposes, to be deemed to have been a public corporation from date of its incorporation. As shares of a public corporation are eligible for registered accounts, this election will have retroactive effect and thus the Leviathan Gold shares will for tax purposes be eligible for registered accounts from the date of the incorporation.
As to when the shares will be trading, we have completed the spinout transaction and have submitted all documentation on this to the applicable regulatory bodies. At this point, we are just waiting for TSXV approval of the listing date. Once in hand, we will issue a news release that states the trade date. We expect and believe this will occur shortly.
So, there is no need for action on your part if you want to simply leave the shares in your registered account until such time these shares trade. Please consult with your broker and tax advisor if you have specific questions on this or need any information as to strategy and ramifications.
Thanks for your support. Leviathan has two excellent gold projects, is permitted to commence drilling and has a strong treasury given the recent oversubscribed $12.9 million funding. We are very excited to see this strong management team advance these projects.
Regards
The Fosterville South Team