TO
GALORE SHAREHOLDERS & POTENTIAL FLOW THROUGH INVESTORS:
Galore
is seeking expressions of interest in the sale of flow-through units to
qualified investors.
·
Each
flow-through unit will be offered at $0.475 per unit and will consist of one
flow-through common share of Galore and
one-half of one common share purchase
warrant of Galore.
·
Each
whole warrant shall entitle the holder to purchase one common share for a
period of 24 months commencing on the date of issue.
·
The
exercise price of each whole warrant will be $0.75 in year one and $1.00 in
year two.
·
The
flow-through shares entitle purchasers to a 100% income tax deduction, as well
as a 15% federal tax credit plus a BC tax credit for BC resident individuals.
·
The
BC tax credit is 20% and is increased to 30% for exploration within the BC Pine
Beetle Prescribed Area.
·
All
of Galore’s Taseko mineral claims are within the BC Pine Beetle
Prescribed Area.
Sample Calculation for Galore Super
Flow Through:
·
Assumed
that the investor is a BC resident individual incurring personal tax at the
highest income tax rate.
·
Assumed
that all expenditures by Galore are within the BC Pine Beetle Prescribed Area.
|
Sample Investment
|
$ 10,000
|
|
|
|
|
Tax savings from 100% deduction
|
4,370
|
|
BC tax credit (applied against BC taxes)
|
3,000
|
|
Federal tax credit (applied against Federal taxes)
|
1,050
|
|
Total tax savings
|
$ 8,420
|
|
|
|
|
Income tax from inclusion of credits
|
|
|
as taxable income
|
1,770
|
|
|
|
|
Sample after tax cost
|
$ 3,350
|
|
|
|
|
Cost per unit
|
$ 0.475
|
|
|
|
|
Sample after tax cost per unit
|
$ 0.159
|
|
|
|
Interested
parties please contact:
Erica
C. Bearss or Ray D. Torresan
Via
Telephone: 1-604-647-2298 or
Email:
ebearss@galoreresources.com or
rtorresan@galoreresources.com
DISCLAIMER: The above illustration was based
on the Prospectors and Developers Association brochure for “Super”
Flow –Through shares as outlined at www.pdac.ca.
Every investor should consult with their advisors and this illustration should
not be construed as income tax advice.
Erica
C. Bearss
Corporate
Communications
Galore
Resources Inc. (TSX.V - GRI)
Tel.:
604-647-2298
Fax:
604-647-0086
Website:
www.galoreresources.com