UEX Corp fka UEX

[Destinator]

Yesterday's post

I stated the following:

I was wrong when I got excited about the potential for a spin-out of CoEX because I based that excitement on UEX's history and my personal past experience with that spin-out. When I sobered up and looked into my Crystal Ball, I now see a different picture. I should have looked into my Crystal Ball before jumping the gun on the share split. On this one I 'might' be able to elaborate later. For now, I will simply suggest that readers keep an open mind. Times have changed and may continue to change going forward or back.

Confused? Sorry about that. I'm just not ready to share that part right now. Some of you will possibly figure it out.

Now that the Canadian election results are in, I can explain what I meant by the above.

It is important to understand that when Pioneer Metals spun out UEX, the spin out was considered to be a Capital Gain which was taxed at 1/2 the usual tax rate back in that time. Since then, the preferred Capital Gains tax Rate has been eliminated and replaced with a FULL RATE tax.

Yesterday, Canadians re-elected a Socialist Govt albeit in a minority. That same party eliminated the Capital Gains tax preferred rate. The people also elected enough 2nd party socialists that may form a Coalition Govt to form an official govt. At one of these parties' post election rally, their supporters were yelling "TAX THE RICH". That means that the newly eliminated preferred Capital Gains will remain 'eliminated''.

So how is this pertinent to UEX shareholders? What this means is that if CoEX gets spun out in this 'TAX THE RICH ENVIRONMENT', it will be considered to be a Capital Gain taxable at the full Income Tax rate as opposed to the old preferred Capital Gains Tax rate that used to tax only 1/2 of the Capital Gain. That policy was in place to encourage investment in companies that actually employ people.

Prior to the election results, there was hope that if a more Investor friendly party would have won a majority that the Preferred Capital Gains Tax would have been re-instated. That won't happen now because the party that did win the election has a history of implementing tax increases and the party that they might form a coalition with, wants to "TAX THE RICH" even more. It is a good assumption that 'Tax the rich' means TAX ANY INVESTORS and BUSINESSES.

Hence, Roger now has more 'justinfication' to consider a different alternative for CoEX. Unless of course he wants to expose his shareholders who hold shares outside of a Registered plan to a big tax hit by proceeding with a spin out while this new minority or coalition govt is in place. At the very least, Roger will have to wait until an 'investor friendly' government comes into power.

Now, is not the time for a spin out. Instead, any value from the West Bear property should be used in such a way as to "Maximize" value for UEX shareholders instead of the Government tax coffers through Retail Investor's gains. So how can he do that? For now, expand the Uranium and Cobalt resources as best he can and keep other options open for the Cobalt. You never know what opportunities and publicity waits in store for a company that holds three elements required to combat the so called Climate Change which the Socialists claim they really want to address. Perhaps we can lobby them to exempt COBALT and Uranium Investors from taxation altogether. Maybe we can add nickel to the mix too.

Check with your tax adviser before you listen to anything I stated about tax. I'm just an armchair miner who relies on a Crystal Ball for my investment decisions while getting high on some neighbor's second hand pot smoke which the current Canadian government legalized during their 1 rst term in office.