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ARDEA RESOURCES LIMITED — Capital/Financing Update 2022
May 12, 2022
64421_rns_2022-05-12_a0204cb7-5856-4e9c-86ff-559414f36c53.pdf
Capital/Financing Update
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Tax Information Guide for KalGold return of capital
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ASX & Media Release
13 May 2022
ASX Symbol
ARL
Ardea Resources Limited
Suite 2 / 45 Ord St West Perth WA 6005
PO Box 1433 West Perth WA 6872
Telephone
+61 8 6244 5136
With the end of the 2022 FY approaching, the board of Ardea Resources Limited ( Ardea ) wishes to advise Ardea shareholders that following the transfer of all of the shares in Kalgoorlie Gold Mining Limited ( KalGold) owned by Ardea and the subsequent capital raising and listing on the ASX of KalGold, that Ardea is able to provide our tax advisors comments on the indicative cost base of these in-specie shares.
The tax advice received proposes shareholders treat the in-specie shares they received in KalGold as a return of equity capital for income tax purposes including for capital gains tax records.
Our tax advisers recommend this would have the impact of creating a cost base for each KalGold share distributed to Ardea shareholders of $0.20 per KalGold share received and have an equal reduction in their cost base in their shares in Ardea.
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Directors
Mat Longworth Non-Executive Chair
Andrew Penkethman Managing Director & CEO
Ian Buchhorn Technical Executive Director
Executive Management
Sam Middlemas Company Secretary & CFO
Alex Mukherji Manager Land Access & Compliance
Mike Miller
General Manager Technical Services
Issued Capital
Fully Paid Ordinary Shares 169,737,772
Options 4,000,000
Directors/Employee Performance Rights 4,422,000
Calculated as follows:
| Calculated as follows: | |
|---|---|
| KalGold shares transferred to Ardea shareholders | 35,000,100 |
| Value per KalGold share | $0.20 |
| Total Ardea shares on issue at that date | 138,034,219 |
| Ratio of KalGold shares to Ardea shares | 0.2536 |
| Ardea share cost base reduction | $0.20*0.2536 |
| = $0.0507 per share |
As an example of this application:
At the date of the return of capital Alex had 100,000 Ardea shares.
On a rounded basis Alex would have received 25,360 shares in KalGold (based on the in-specie share distribution of 1 KalGold share for every 3.94 Ardea shares owned at the record date) valued at $0.20 per KalGold share, or $5,072. This $5,072 is now Alex’s cost base for 25,360 shares in KalGold.
If Alex’s Ardea shares were purchased for $0.40, the cost base is reduced from $0.40 to $0.3493 ($0.40 - $0.0507). If Alex were to sell 100,000 Ardea shares at $0.60 today, the profit would be 100,000*($0.60-0.3493) = $25,070.
This update is provided for general indicative information purposes only and cannot be considered formal tax advice. Ardea shareholders who have any queries regarding the tax implications of the Capital Return should consult their own professional tax advisor for definitive advice.
ABN 30 614 289 342