A draft Class Ruling from the Australian Taxation Office noted the demerger relief would likely be available provided the demerger is implemented in accordance with the tax requirements for demerger relief and as outlined in the company's plans.
This ruling only applies to South Boulder shareholders who held their shares in South Boulder on capital account and are residents of Australia for income tax purposes.
Shareholders in South Boulder will gain shares in Duketon through an in specie distribution of 100% of the shares in Duketon to shareholders of South Boulder on a one for four basis.
This will involve about 31 million Duketon shares to be issued.
Duketon will own 100% of the gold and base metals rights in the Duketon Project, located within the well-known Achaean Duketon Greenstone Belt, which also contains Regis Resources NL's (ASX:RRL) Moolart Well Gold Project.
Key prospects are the Terminator Gold Prospect and Thomson's Bore Gold Prospect with numerous prospective targets to follow up on in the future.
Duketon will also hold a 100% interest in the Lake Lefroy and Cutters projects as well as minority stakes in the Cardabia, Pilgangoora and Georgina Basin projects.
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