Petrominerales Announces Share Dividend Program
June 6, 2013 (Source: Marketwired) — Petrominerales (TSX:PMG) (BVC:PMGC) is pleased to announce that, as approved by our Board, and by our shareholders at our annual and special meeting of shareholders held on May 9, 2013, we have implemented a share dividend program (“SDP”). The SDP allows shareholders to elect to receive cash dividends in the form of shares of Petrominerales issued at a 5% discount to the price of our shares, calculated based on the weighted average market price of Petrominerales’ shares on the Toronto Stock Exchange for the five trading days prior the dividend payment date.
Participation in the SDP is entirely optional. If a shareholder wishes to continue to receive dividends declared by Petrominerales in the form of cash, no action is required to be taken. Shareholders will continue to receive dividends as declared in the form of cash, unless they elect to receive share dividends pursuant to the SDP. It is expected that Petrominerales will declare the dividend to be paid on July 15, 2013, to shareholders of record on June 30, 2013, as payable either in cash or shares pursuant to the SDP.
The SDP will provide many shareholders with a favorable Canadian tax treatment and the opportunity to acquire Petrominerales shares at a discount. Participation in the SDP is not expected to generate dividend income for Canadian shareholders holding their shares in taxable accounts. Shares issued under the SDP are expected to have a nominal cost for Canadian tax purposes and, as a result, receipt of share dividends under the SDP will effectively result in a downward adjustment to the shareholder’s cost base and would be taxed as a capital gain or loss upon the eventual sale of the shares. In addition, Canadian shareholders participating in the SDP may also benefit if the tax rate on capital gains is lower than the tax rate on dividend income applicable to their individual circumstances. Non-Canadian shareholders holding Petrominerales shares in a taxable account who elect to participate in the SDP are not expected to be subject to Canadian withholding taxes that typically range from 15% to 25% on dividends paid by Petrominerales. Therefore, the number of shares received under the SDP will reflect the entire amount of the share dividend.
All shareholders are advised to consult their own tax and financial advisors regarding the tax and financial consequences to them of receiving cash or share dividends. For more details on the potential tax consequences of the SDP, please refer to Petrominerales’ Information Circular dated April 1, 2013, filed on SEDAR at www.sedar.com and also available on our website at www.petrominerales.com.
Shareholders wishing to participate in the SDP should contact their brokers or intermediary or, in the case of registered shareholders, contact our transfer agent, Computershare Trust Company of Canada at 1-800-564-6253 or at www.investorcentre.com/service. Further information in respect of the SDP, as well as the necessary enrolment form for registered shareholders, will be available on our website.
Petrominerales Ltd. is an international oil and gas company operating in Latin America since 2002. Our high-quality land base and multi-year inventory of exploration and development opportunities in Colombia, Perú and Brazil provide long-term growth potential for years to come.
Get our daily investorintel update
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.