COEUR D'ALENE, ID, Dec. 11 /CNW/ - WGI Heavy Minerals, Incorporated (WGI) (TSX: WG) today announced that its shareholders have approved, at a special meeting of shareholders held earlier today, a resolution authorizing the board of directors to reduce the stated capital account of the common shares of WGI by up to US$0.80 per common share. WGI also received today a final advance income tax ruling from the Canada Revenue Agency that allowed its board of directors to finalize its determination of the portion of the special cash distribution of US$0.80 per common share that can be paid by way of a return of capital, and therefore not be treated as a taxable dividend for Canadian tax purposes.
WGI's board of directors has determined that the special cash distribution of US$0.80 will be made up of US$0.64 to be paid by way of a return of capital and the balance of US$0.16 to be paid as a cash dividend. WGI designates the US$0.16 dividend portion of the above special cash distribution to be an "eligible dividend" pursuant to subsection 89(14) of the Income Tax Act (Canada) and its equivalent in any Provinces of Canada. The board of directors has approved the reduction of the stated capital account of the common shares, on the date the above special cash distribution is paid, by US$0.64 per common share.
The special cash distribution of US$0.80 per common share will be payable on January 12, 2009 to shareholders of record at the close of business on January 2, 2009.
About WGI
WGI Heavy Minerals, Incorporated is a marketer of industrial grade minerals sourced primarily out of India, producer of industrial-grade garnet out of Idaho and Germany and manufacturer of replacement parts for ultra-high waterjet cutting systems in the U.S. The Company's shares are listed on the Toronto Stock Exchange under the symbol WG.
This press release contains forward-looking statements concerning the business, operations, and financial performance and condition of WGI Heavy Minerals, Incorporated. A number of the matters discussed and statements made in the press release contain forward-looking statements reflecting current expectations regarding future assets. When used in this press release, the words "believe", "anticipate", "intend", "estimate", "expect", "project", and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and are naturally subject to risks, uncertainties, and changes in circumstances beyond management's control that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause such differences include but are not limited to: exploration and development risks; risks related to permits and title to property; risks related to foreign countries and regulatory requirements; operating hazards; foreign currency fluctuations; competition; fluctuations in the market price of mineral commodities and transportation costs; uncertainty as to calculations of mineral deposit estimates; uninsured risks; and dependence upon key management personnel and executives. Actual results may differ materially from those expressed here. You should not place undue reliance on such forward-looking statements. The Company is under no obligation to update or alter such forward-looking statements, whether as a result of new information, future events, or otherwise.