U.S. Resident Shareholders
US TAX FILINGS
Important Information For US Shareholders Who Previously Held Argentex Shares (AGXMF)
If you held Argentex Mining Corporation (“Argentex”) shares on August 19, 2016 – the date on which Argentex was acquired by Austral Gold Limited (“Austral Gold”) – you are entitled to receive approximately 0.56 Austral Gold shares (the “Exchange Shares”) for each Argentex share held by you on that date. However, if you held your Argentex shares in a US. account, you may not have received your Exchange Shares yet. If this is the case please read below.
If your Exchange Shares are not showing in your U.S. Account it is because your broker is the registered shareholder and has not transferred the registration to you.** To remedy this situation you must contact your broker and ask them to register the shares with a CDS Participant in Canada so they can be traded on the TSX Venture Exchange (“TSX-V”). If your broker is unable to do that, they should request that Computershare Canada, Austral Gold’s Transfer Agent, transfer the shares into your name. Once this is done, you will need to find a broker that can trade those shares for you on the TSX-V.
In the U.S., the Depository Trust Company (or DTC) acts as a depository for all of the securities deposited in accounts with US brokers, banks and trust companies (hereafter, “U.S. Accounts”). When you deposit your securities into a US Account, the broker, bank or trust company deposits them with DTC in electronic form, by way of a ‘book entry’ that recognizes the position as being held by the broker, bank or trust company. It is important to note that DTC does not recognize any individual accounts or account holders. By way of example, if ten people each deposit ten shares of the same issuer into their separate accounts with the same U.S. broker, DTC would record one overall position for that broker consisting of all 100 shares – it would be left to the broker to allocate the 100 shares represented by that position into the ten separate accounts.
Despite efforts to reach agreement with DTC, Austral Gold’s shares are not DTC eligible and your Exchange Shares could not be deposited into your U.S. Account when they were issued on August 19, 2016. By default, these Exchange Shares were issued in the name of your broker, bank or trust company. If the Broker held a Canadian license and were able to register them with CDS, the Canadian electronic registry company (equivalent to CTC in the U.S.), then these shares should appear in shareholders accounts, and nothing further needs to be done.