Trinity Wood Mining Flow-through

Trinity Wood Mining 2011-I Flow-through Limited Partnership

About Flow-Through

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Peter Browning, President of Trinity Wood Capital Corporation appearing on CP24 with a discussion on Mining Flow Through. To view video, click picture.

Mining and oil & gas flow through shares are essentially common shares of a company which permit the initial purchaser to claim a deduction up to the amount of the share price against any taxable income they might claim. They allow Canadian investors to participate in the resource sector while enjoying significant tax benefits.

The shares themselves are common shares of Canadian resource companies issued to finance the exploration and development of resource properties. The Federal government provides these tax benefits to encourage investment in mining exploration and development companies.

Eligible exploration expenditures have been 100% deductible from income from any source for at least two decades. These deductions effectively reduce or shelter before-tax income. Tax credits apply directly to reduce taxes payable.

The tax credit is non-refundable, which means that the taxpayer must owe tax in order to use the claim. However, it can be carried back and applied against taxes paid in the previous three years. Unused tax credits may also be carried forward for up to ten years.

The result is that small mining operations benefit because they can obtain funds for exploration from investors who can write off the investment with favorable tax deductions. The investors also gain shares in mining companies which may result in solid returns in their own right. It is truly a win-win situation.

Why Now?

• Junior mining exploration market is still in the early stages of recovery and many companies are still trading at very low prices compared to historical highs.
• A weaker US dollar, reduced gold sales by Central Banks, increased buying at the individual and government level in China and very low interest rates will continue to favour gold and precious metals.
• As world economies recover, in particular India and China, demand for base metals will improve leading to higher prices.

Why Trinity Wood Flow-through?

• The Quality of the Team
• Liquidity option in less than 14 months (industry norm is 24 months)
• Our ability to get into positions at little or no premium and to get out at little or no discount to market (unlike our larger competitors)
• Upon liquidation, if the portfolio has maintained its value, you are ahead on average 80% after tax, if the portfolio is down 44%, they still break even after tax (Ontario rates). Click here for a schedule of the break even analysis for all provinces and territories.
• There is no performance incentive to the manager and no reason for them to try and blow out the lights by taking on risky positions
• 100% of your investment is deductible in the year of investment
• minimum equivalent deduction is 121% or greater (before provincial tax credits)
• Investor Loan available from Canadian chartered bank

Investor Loan Offer

A Canadian chartered bank has agreed to offer a loan facility for the purchase of units to each subscriber who applies for a loan and is approved by the bank. Each such loan must be a full recourse loan to the subscriber. The subscriber will have the obligation to fully repay the loan and all interest therein, whether or not distributions are received from the Partnership. Subscribers who are interested in applying for such a loan may down loan the loan application here and should consult their investment advisor.

Specialized Investment Management and Advisory Team

• A knowledgeable team with expertise in portfolio management; mining analysis and corporate finance; mineral exploration geology; mining engineering; and "hands-on" mining company management.
• Robert Callander, Vice President and Portfolio Manager at Caldwell Investment Management, has 30 years experience in the mining industry, including research analysis and corporate finance and has 16 years experience in portfolio management.
• The Portfolio Manager has retained Southampton Associates Inc. (Mineral Industry Consultant). Southampton is a fully-integrated consulting firm providing a wide range of services to consulting geologists, geochemists, geophysicists, mining engineers and metallurgists. Mr. David Wahl, the President of Southampton is a well known and respected figure in the mining industry with over 40 years of experience and an impressive list of accomplishments (available upon request).

 

Tax Information

Trinity Wood Mining 2006 FTLP Undeducted Issue Costs

Trinity Wood Mining 2007-I FTLP Undeducted Issue Costs

Trinity Wood Mining 2007-II FTLP Undeducted Issue Costs

Trinity Wood Mining 2008-I FTLP Undeducted Issue Costs

CA Magazine - Flow-through Investing

Please send any tax related questions to taxinfo@trinitywood.com

Popular Links

Barrick looking for Gold Rally: http://www.theglobeandmail.com/globe-investor/barrick-raises-billions-to-cut-hedges/article1279786/

Copper rally: http://www.theglobeandmail.com/globe-investor/demand-prospects-lift-copper/article1279734/

 

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To obtain additional information please contact us by email at info@trinitywood.com or call the President and CEO, Peter Browning at 416-214-2653 x 228 (toll-free 877-599-3975)