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: Whether a graphite deposit is an industrial mineral contained in a non-bedded deposit (Certification by Minister of Natural Resources)
Position: Yes.
Reasons: Mineral deposit observes the requirements of definition of "mineral resources" in subpara. 248(1)(d)(i). See Certification by Minister of Natural Resources dated March 18, 2016.
XXXXXXXXXX 2013-048868
Veronica B. Pinero
613-670-9045
April 5, 2016
Dear XXXXXXXXXX:
Re: XXXXXXXXXX - Certification of “mineral resource”
This is in response to your letter dated May 14, 2013, where you requested certification, pursuant to subparagraph (d)(i) of the definition of “mineral resource” in subsection 248(1) of the Income Tax Act (the “Act”), (footnote 1) with respect to the graphite deposit that is being explored by XXXXXXXXXX (the “Company”).
The Company holds a XXXXXXXXXX% interest in XXXXXXXXXX mining properties in XXXXXXXXXX which comprise XXXXXXXXXX mining claims covering XXXXXXXXXX (the “Property”). The Property is located in XXXXXXXXXX. Specifically, the Property is located in XXXXXXXXXX. The Property is centred near coordinates XXXXXXXXXX.
The Minister of Natural Resources certified that the principal mineral, graphite, to be extracted from the graphite deposit is an industrial mineral contained in a non-bedded deposit. Therefore, it is our view that the graphite deposit that occurs 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, Reorganization Division
Income Tax Rulings Directorate
FOOTNOTES
Note to reader: Because of our system requirements, the footnotes contained in the original document are shown below instead:
1 Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.).
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