Geomark Exploration Ltd.
TSX VENTURE : GME

Geomark Exploration Ltd.

September 27, 2010 08:00 ET

Geomark Exploration Ltd. Announces Tax Information for Canadian Shareholders

CALGARY, ALBERTA--(Marketwire - Sept. 27, 2010) - Geomark Exploration Ltd. (Geomark) (TSX VENTURE:GME) announces important tax information for Canadian shareholders who participated in the exchange of Comaplex Mineral Corp. (Comaplex) common shares for Geomark and Agnico-Eagle Mines Ltd. (Agnico-Eagle) common shares pursuant to the acquisition agreement between Comaplex, Geomark and Agnico-Eagle (the "Arrangement"). The Arrangement closed on July 6, 2010. 

The fair market value of the Geomark shares received by the Comaplex shareholders on the date the Arrangement closed has been determined as $1.02 per share after all final adjustments have been made. The fair market value of the Geomark shares at the time of the exchange was not in excess of Comaplex's paid-up capital and therefore there is no deemed dividend. As a result, if a Canadian shareholder's adjusted cost basis (ACB) of their Comaplex shares at the time of the closing was in excess of $1.02 per share, a capital gain will not be realized as a result of the exchange of shares. In addition, the balance of the shareholder's Comaplex ACB in excess of $1.02 per share will be allocated to the Agnico-Eagle shares that were received as part of the Arrangement.

However, if a Canadian shareholder's Comaplex ACB was less than a $1.02 per share at the time of the closing of the Arrangement, a capital gain will be realized on the exchange equal to the difference between their ACB and $1.02 and the shareholder will not have any amount of their Comaplex ACB allocated to the Agnico-Eagle shares that were received as a result of the Arrangement 

The ACB of all Geomark shares issued as a result of the Arrangement is $1.02 per share.

All shareholders are advised to consult with their own tax advisors concerning their individual circumstances. This information is not exhaustive of all possible income tax considerations, but provides general information and is not intended to be legal or tax advice to any particular holder of Geomark or Agnico-Eagle shares that were received from the Comaplex Minerals Corp. plan of arrangement dated July 6, 2010. Holders or potential holders of Geomark or Agnico-Eagle shares resulting from the July 6, 2010 transaction should consult their own legal and tax advisors as to their particular tax consequences of holding shares.

Geomark Exploration Ltd. is a junior company headquartered in Calgary, Alberta that explores for precious and base metals. The Company's business strategy is to generate the majority of its prospects internally, acquire properties in geologically favourable areas and conduct appropriate exploration programs to develop their economic potential. Geomark is currently investigating and developing its mineral assets and claims located in Ontario, the Northwest Territories and Nunavut, as well as continuing to produce oil and natural gas in the Western Canadian Sedimentary Basin. Geomark Shares trade on the TSX Venture Exchange under the trading symbol "GME".

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Geomark Exploration Ltd.
    George F. Fink
    President and Chief Executive Officer
    403.262-1400
    or
    Geomark Exploration Ltd.
    Garth E. Schultz
    Chief Financial Officer
    403.262-1400
    or
    Geomark Exploration Ltd.
    Kirsten Kulyk
    Manager, Investor Relations
    403.262-1400
    info@geomark.ca