On June 18, 2012 the shareholders of Geodex's approved by our shareholders the sale of the Sisson project to Northcliff Resources Ltd. ("Northcliff"). In July Geodex shareholders received their Northcliff shares for the Sisson sale. The close of the Sisson transaction marked the end of a significant chapter of Geodex's corporate history from 2004 to 2012. It was marked by the acquisition of a lightly explored tungsten-molybdenum deposit that Geodex successfully drilled and developed. The Sisson Project is now recognized as one of the world's largest greenfield tungsten deposits and is located in New Brunswick, Canada. The transaction enables Geodex shareholders to retain the significant value that the Sisson Project represents through direct ownership of Northcliff shares.
Tax effects of the transaction are as follows:
For Canadian Investors
The distribution of Northcliff shares to Geodex shareholders was treated as a return-of-capital. Each share of Northcliff received is valued with a cost-base of $0.45 per share with a corresponding decrease in the cost base of Geodex shares.
For US Investors
Please click this linked form 8937