Mining News: Northern Neighbors: Colorado raises $950k
Colorado Resources Ltd. Dec. 29 reported the closing of a C$950,000 financing that involved the issuance of 3.8 million flow-through units at C25 cents each. Each unit consists of one flow-through common share and a warrant that entitles the holder to purchase one non-flow-through Colorado share for C40 cents until Dec. 29, 2017. Under Canada’s Income Tax Act, a flow-through financing allows mineral exploration companies to transfer their exploration expenses to individual investors that purchase the shares. Most exploration companies do not generate revenues, so they do not need the tax write off, however, the flow-through investor can apply his portion of the exploration expense to reduce or eliminate his tax liability. The exploration company, however, must spend the flow-through dollars raised on a qualifying mineral project in Canada within two years of closing the financing. Colorado is currently focused on exploration at KSP, a gold-copper project about 15 kilometers (nine miles) southwest of the historic Snip gold mine in northwestern B.C.; the company is optioning from Seabridge Gold Inc.; KingPin, a large copper-gold property immediately southeast of KSP; and North Rok, a copper-gold project in north-central B.C.