Cariboo Rose Announces Allocation of Cost Base on Spin-out Completion, Grants Options
December 13, 2011
Vancouver, BC, December 13, 2011 – Cariboo Rose Resources Ltd. (TSX-V: CRB) (“Cariboo Rose”) has completed the spin-out of its interest in the Woodjam copper-gold project to Consolidated Woodjam Copper Corp. (TSX-V: WCC) (“Woodjam Copper”), and Cariboo Rose shareholders have received approximately 0.70 of a Woodjam Copper share for each Cariboo Rose share held as of the close of November 25, 2011, the effective date.
The Canadian federal income tax consequences of the spin-out transaction are summarized in the information circular of Cariboo Rose dated August 26, 2011, as filed on the SEDAR website. In particular, shareholders should reduce the Adjusted Cost Base (“ACB”) of Cariboo Rose shares by an amount which should then be recorded as the acquisition cost of the Woodjam Copper shares.
Management of Cariboo Rose has calculated that the ACB of each post-spin-out common share of Cariboo Rose should be reduced to 27.2% of its pre-spin-out ACB and that 72.8% of the ACB of each pre-spin-out common share of Cariboo Rose should be recorded as the acquisition cost of each Woodjam Copper share. This fair value ACB adjustment calculation is based on the relative Cariboo Rose and Woodjam Copper closing share prices for the five trading days from December 2, 2011 to December 8 2011. No such determination of fair value by Cariboo Rose is binding on the Canadian tax authorities.
Cariboo Rose has also granted stock options to eleven directors, officers and employees for the purchase of 2,700,000 shares of Cariboo Rose at an exercise price of $0.10 per share for a period of ten years from the date of grant. Subsequent to this grant of options, there will be options outstanding for the purchase of 2,850,000 shares. Cariboo Rose presently has 28,516,577 shares issued and outstanding.
Donald Sharp, C.A., director and chief financial officer of both Cariboo Rose and Woodjam Copper, has read and takes responsibility for this news release.
J.W. (Bill) Morton, P.Geo. President and CEO Cariboo Rose Resources Ltd.
Contact: Paul Way, Business Development Manager Phone: (604) 681-7913, Toll Free: 888-656-6611; email: firstname.lastname@example.org
About Cariboo Rose Resources Limited Cariboo Rose Resources is a prospect generating mineral exploration company with four gold, copper and molybdenum exploration projects in British Columbia and the Yukon. Properties include the Canadian Creek copper-gold property located in the White Gold District of the Yukon optioned to Castillian Resources Corp. (TSX-V: CT); the Cowtrail gold property optioned to Dajin Resources Corp. (TSX-V: DJI) located in the Cariboo region of south-central British Columbia; the Carruthers Pass copper-zinc-silver property in north-central British Columbia optioned to La Quinta Resources Corporation (TSX-V: LAQ); and the Pat gold-copper property in the Cariboo region of south-central British Columbia. Cariboo Rose trades on the TSX Venture exchange under the symbol “CRB”. For more information please visit the Company’s website at www.cariboorose.com.
Neither the 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.
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