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 deposits qualify as a mineral resource, as that term is defined in subsection 248(1) of the Act?
Position: All but one qualifies. NR Can would not issue a certification with respect to a property that the Corporation does not appear to own.
Reasons: Based on the opinion received from Natural Resources Canada dated April 30, 2013.
XXXXXXXXXX
2013-047461
L. Zannese
613-410-9134
June 18, 2013
Dear XXXXXXXXXX:
Re: Mineral Resource Certification
This is in response to your letter dated January 9, 2013, 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 located on the properties described below, owned by XXXXXXXXXX, in the Province of XXXXXXXXXX (the "Properties").
Name of Property Location
XXXXXXXXXX XXXXXXXXXX
The Minister of Natural Resources has certified that the principal mineral, graphite, to be extracted from the graphite deposits located on the Properties, is an industrial mineral contained in non-bedded deposits. It is therefore our view that the graphite deposits on these Properties will qualify as a mineral resource pursuant to subparagraph (d)(i) of the definition of this term in subsection 248(1) of the Act.
You also requested certification of the deposits on the XXXXXXXXXX property. We were advised by Natural Resources Canada that XXXXXXXXXX does not appear to own the mineral rights with respect to this property. As a result, the Minister of Natural Resources was unable to provide a certificate in respect of this property and we cannot provide our opinion with respect to the graphite deposit located on the XXXXXXXXXX property.
Yours truly,
Fiona Harrison, CPA, CA
Manager
Resources Section
Reorganizations Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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