Principal Issues: 1. In the hypothetical case provided, what are the proceeds of disposition in respect of the sale of the corporation’s mining claim? 2. Does subsection 35(1) apply?
Position: 1. The POD is equal to the consideration received, in this case the total of cash and the market value of shares acquired in exchange for the claim. 2. No.
Reasons: 1. Question of fact. 2. Subsection 35(1) of the Act applies where an individual who is a prospector acquires shares of a corporation in exchange for the disposition to the corporation of an interest in a right, licence or privilege to prospect, explore, drill or mine for minerals in a mineral resource in Canada
