Q: At the time of the transaction announcement, I had assumed the original ACB from Karora would follow, and the transaction would not be a taxable event. My concern was how would the $0.608/share be treated. I enquired, and received this passed along from their tax dept, "This was a return of capital spin-off followed by a mixed consideration third-party acquisition.It was effectively a fair market value disposition because the consideration was a mix of cash and shares.  To be tax deferred in Canada it has to be shares only." 
In other words, the entire transaction would be taxable this year. (The ACB on the WGX shares reflects that.)

Is this your understanding?  If so, any idea why they would structure the deal this way?  Doing so would seem decidedly non shareholder friendly. 
Thank you for your comments. Tim

Q: Hi there, thanks for your answer regarding WGX. Follow up;

Are the shares currently trading at a fair price, cheap, etc? Can you provide ratios to support your views?

Your thoughts on not hedging at this point?

Your thoughts on current management/board?

Could WGX be a takeover target itself here?

Any two/three company ideas as to who would benefit taking them over?

Is the momentum for gold strong enough to break through $3K? Or could it fall sharply next week based on the US election results, your thoughts would be appreciated?

Thanks!

Q: Hi there, your thoughts on WGX results?
Are the shares trading at a fair price here based on current gold price?

Thanks!