Glacier Valley Mining & Metals

Fine gold recovery with Arctic MinerTM Technology!

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TAX SHELTER

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Mining in Alaska

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Explanation of Tax Shelter

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AN INVESTMENT OPPORTUNITY THAT IS TAX DEDUCTIBLE

 

 

  [Most Recent Quotes from www.kitco.com]

 

Glacier Valley Mining and Metals

4750 Wolverine Rd. / Palmer, Alaska 99645

Direct (562) 400-0411

Dear Professional Advisor/Investor:

     The recent increase in the value of Gold has made this program even more valuable.

    We are working to acquire GOLD (Au) mining leases in the State of Alaska for  development. The claims are placer deposits which contain Gold (Au) bearing alluvium.  Depending upon location, Au ranges from .76 to .92 fineness.

   We are offering an IRS approved investment opportunity that is tax deductible with an approximate 3 to 1 write off as the means of financing the development of a mining property.  Return is strictly dependent upon the recoverable Au on the property leased.  We must lease property rather than purchase to qualify this program under IRS Code.  We sublease to the investor in order to maximize the tax advantages.

    We will sub-lease tonnage to you and develop this ground on your behalf at $70 per ton, subject to a surcharge if the price of Au continues to rise, thereby denoting a devaluation of the dollar. The minimum amount of tonnage available per mining unit is 1,500 tons (1,000 cubic yards).   There are 450 units at this volume available. The cost of each unit is $105,000 total, including processing fee.

    For example, if your tonnage were to average 2/10 oz. of Gold per ton, the gold having a fineness of .92, estimating Gold at $1,000 per troy ounce, the potential GROSS return on investment before royalty deduction or deductions for any remaining amount on the mining unit would be $276,000.  See below for both investment options.

    There are only 675,000 tons of material available for development in this program comprising a total of 450 investment units.

An investor may purchase more than one unit.

Where else would you find an investment opportunity where the risk decreases due to the increasing price of Gold.  Further, what else would provide you with a return in-kind that protects the value of your return?

See TAXSHELTER

TO QUALIFY YOUR INVESTMENT FOR A 3:1 TAX WRITE OFF:

1.      The Investor purchases a sublease mining unit with a 34% ($35,700.00) down payment for each mining unit subleased, comprising an approximate 1/3 purchase of the full price of $105,000 per mining sublease unit, the full price including the charge for processing the alluvium to recover any Gold.

2.      The Investor signs a full recourse promissory note for the balance of $69,300.00.

3.      The Investor makes a fully tax deductable monthly interest payment at 10% APR giving a $577.50 monthly interest payment due the 1st of each month until the mining operation is active and recovered gold pays the balance as stated in para. 5 below.

4.      You are then fully “at risk” and qualify to write off the full $105,000 purchase price for an approximate 3:1 write off for the mining unit sublease on your federal income taxes.  Depending on your current tax status, you may apply any tax benefits to your past taxes up to 3 years to recover past taxes paid, or you may carry any tax benefits from this program forward for up to 15 years.

5.     The amounts to be deducted from any gold recovered from the investor's mining unit would be the royalty to the claimholder, usually 10% of the gross amount of metal recovered, and any remaining amount on the promissory note necessary to pay off the $105,000 cost of the mining unit.  In the example given above, your potential net would be $276,000-$27,600 (10% royalty)-$69,300 (recovery of the remaining cost of the mining unit sublease) for a potential net return in kind of approximately $179,100 over and above any tax benefits.  All recovered gold will be accounted for per sublease mining unit, and will be paid “in kind”  (in Gold) minus any royalty, any remaining amount on the cost of the mining unit and any production surcharge.   The claimholder royalty may be less or more than 10% depending upon the history of the property.

ALTERNATIVE PAYMENT OPTION RESULTING IN A 1:1 TAX WRITE OFF:

  1. The investor has the option of paying the full $105,000 for a mining unit, and receiving a 1:1 write off.  In which case, the return would be without any deduction for the remaining cost of the mining unit.  For example, the potential gross recovery of Gold at $1,000 per troy oz. at .92 fineness at 2/10th troy oz. per ton  would be $276,000.  The potential net would be $276,000-$27,600 (10% royalty)-$105,000 (recovery of the remaining cost of the mining unit sublease) for a potential net return in kind of approximately $179,100 over and above any tax benefits. 

DIFFERENCE IN THE TWO PAYMENT OPTIONS:

  1. The 34% down payment of $35,700 provides less initial exposure and allows you to keep the balance of $69,300 against gold recovery from the mining unit.  The cost of the mining unit is the same whether paid in full or by putting down 34%, except that the investor also pays a $577 per month 10% monthly interest charge on the remaining balance until the company is paid for the full $105,000 mining sublease unit price.
  2. The $105,000 full payment gives a 1:1 write off, but the investor does not have to pay monthly interest payments.

MINING INVOLVES RISK. 

     For that reason, we cannot and will not guarantee any specific recovery, other than to state that the process equipment will be a state of the art alluvial multi-stage mineral jig plant with on-board water recycling designed by Alaskans in the business in order to make the Gold recovery as efficient as possible and the operation as environmentally acceptable as possible. 

NOTE:  IF AU CONTINUES TO RISE, PROCESSING COSTS WILL INCREASE DUE TO THE RELATIVE DEVALUATION OF THE DOLLAR, MEANING A SURCHARGE AGAINST TOTAL PRODUCTION AT THE TIME OF SALE AMOUNTING TO A PERCENTAGE INCREASE WITH RESPECT TO THE PRICE OF AU AT THE BEGINNING OF THE PROJECT VERSUS THAT AT THE TIME OF SALE.  THIS PROCESSING SURCHARGE WILL BE ADDED TO THE PROCESSING COST. ANY DECREASE IN THE PRICE OF AU WILL NOT RESULT IN ANY DECREASE IN THE COST OF PROCESSING RESULTING FROM A DECLINING VALUE.  FOR EXAMPLE, IF THE PRICE OF AU AT THE START OF THE PROJECT IS $1,000/TR OZ, AND AT THE TIME OF SALE RISES TO $1,600 PER TR OZ, THE COST OF PROCESSING WOULD BE $112 PER TON VERSUS THE $70 FIGURED INTO THE COST OF THE LEASE.  OBVIOUSLY, IN ANY INCREASE IN THE PROCESSING COST WILL BE TAX DEDUCTIBLE.

     Instead of your tax dollars going to the government to fund various projects that you may not be interested in or disagree with, the tax dollars that you would otherwise be paying to the federal government  would now be working for you to create an opportunity to increase your personal wealth via this program.

      If you need additional information please contact us by e-mail or contact your local authorized representative.

     THERE IS AN IMPENDING GOLD RUSH STARTING, AND PROPERTY WILL SOON BE DIFFICULT TO PROCURE ON A PERCENTAGE ROYALTY RETURN BASIS.  FURTHER, INCREASING INFLATION WILL IMPACT THE COST OF OPERATIONS.  IF YOU WANT TO HEDGE AGAINST MONETARY INFLATION, THIS IS AN EXCELLENT OPPORTUNITY.  YOU SAVE IN TAXES, AND YOU RECEIVE GOLD IN RETURN.

     Please go to our TAXSHELTER page for more details and the forms necessary to participate.

 Sincerely,

George J. Deden , President

GJD/sdb

 

©Copyright 2013 by George J. Deden, All Rights Reserved