Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Do the graphite deposits owned by the Corporation meet the definition of mineral resource?
Position: Yes.
Reasons: Based on the opinion provided by NRCan.
XXXXXXXXXX
2012-044964
L. Zannese
(613) 410-9134
June 18, 2013
Dear XXXXXXXXXX:
Re: Mineral Resource Certification
This is in response to your letter dated May 28, 2012, in which you requested certification pursuant to subparagraph (d)(i) of the definition "mineral resource" in subsection 248(1) of the Income Tax Act (the "Act") with respect to the graphite deposits owned by XXXXXXXXXX located in the town of XXXXXXXXXX (the "Property").
The Property is located about XXXXXXXXXX. The Property lies within the town limits of XXXXXXXXXX. The Property consists of XXXXXXXXXX active claims and XXXXXXXXXX leases (covering XXXXXXXXXX leased claims). The mineral leases cover both surface rights and sub-surface rights with a XXXXXXXXXX year term.
The Minister of Natural Resources has advised that the principal mineral, graphite, to be extracted from the mineral deposits located on the Property is an industrial mineral contained in non-bedded deposits. It is therefore our view that the graphite deposits on the Property will qualify as a mineral resource pursuant to subparagraph (d)(i) of the definition of this term in subsection 248(1) of the Act.
Yours truly,
Fiona Harrison, CPA, CA
Manager
Resources Section
Reorganizations Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2013
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2013
Email this Content