I took a chunk of it.

Am I happy with the SP? Hell no. Am I okay with it? Yep.

It's my first time through the process of purchasing flow through shares but I believe the net cost per share is somewhere in the ballpark of $1.35. (I wrote a post about it once - I'm guessing at the numbers this time) So I don't really have many regrets. That is unless I had the foresight to hang onto that $$, wait for the SP drop to it's low of around 1.35 - buy and then sell at around the high at $2.80. And do that one more time with Freewest after the fact. But if I had that power I'd be somewhere else I'm sure.

As far as the majority of shareholders who took them? Well, I don't think there is the same tax benefits for corporations/institutional as there are for individual investors with the Flow Through Shares. I have no clue, but I would guess that many of the FTS were sold to individuals - probably wealthy clients of investments firms? So I would think that there are several people in the same boat as me who will simply see the blue sky in the tax write off.

Now...there is another side to this coin - I believe. I can get the Flow Through Tax Write off which is great. Makes the net cost as I mentioned above at 1.35 . The kicker with these shares is that you DO pay capital gains in the long run, and the negative is that you pay on the ENTIRE AMOUNT as you have an adjusted cost base of zero.

That means if I buy a 2.80 FT Share - I can write that entire amount against my income. Great. I'm in the highest tax bracket so it is even more beneficial to me.

If and when I sell that share - lets say it's at $3. I don't pay cpaital gains on 20 cents. I pay on $3.00! That sucks. So...maybe it's a good time to liquidate these shares while the price is low?

Hmm. I think I just may have convinced myself. I'm going to look into this further. On my Waterhouse account the FT Shares used to be in a different line - since the hold period ended they all lumped into the same line. Might have to make a call to the accountant?

If I find anything else, I'll share it here.

So get this. Champion minerals releases a Flow Through share PP at .60 a couple of days ago. Their Share Price is now above 80 cents. So, if you wanted that you could buy shares at 60 cents, net cost of like 35 cents and they are presently worth 80 cents on the market! Not bad, eh?

Quite honestly I don't why I would ever buy regular shares again when there are deals like that out there. Perhaps another reason why money is not flowing into NOT? I've seen a lot of prospects out there in the TSXV. So many have equally compelling stories as NOT. I think this year we could see a flood of money coming into the TSXV in general but in 6-8 months kind of thing. Then it will be difficult to hold this puppy back, no matter what.

B