Firefly Metals (FFM.TO) said Wednesday that an Australian Tax Office (ATO) ruling confirms that certain shareholders who held Firefly shares on capital account will not be assessed for taxation purposes.
The in-specie distribution involved the transfer of 60 million ordinary shares in Bellavista Resources to Firefly shareholders on May 1. The distribution arose from Firefly's sale of Pickle Crow and Sioux Lookout Projects in Ontario to Bellavista earlier this year.
The ATO Class Ruling applies to certain classes of FireFly shareholders, including those who, on the record date of May 4, held their FireFly shares on capital account and were not 'temporary residents' of Australia on the payment date, a statement said.
The ruling confirms that the in-specie distribution was a return of FireFly's share capital of $0.045 per share, a capital return, and not a taxable dividend. The ATO has also confirmed that anti-avoidance provisions will not be applied to treat any part of the capital return as an unfranked dividend.
Firefly Metals closed up $0.18, to $2.28 on Tuesday on the Toronto Stock Exchange.