Expert: Steven Taylor - 4/16/2010

Question
Hello,

In 1986 I purchased stock in 7 Canadian mining companies that I would like to determine the value for, current company if still viable and the best way to redeem or write them off.  I have the price paid for all of these except one that I would like to find the stock price for on the date on the certificate.  I only have the original stock certificates that were issued at the time of purchase.

Arbor Resources Inc. - Now Klondike Gold & Klondike Silver?
Achates Resources Ltd. - Now Saratoga Electronic Solutions Inc.?
Goldsil Resources Ltd. - Now Esperanza Silver Corp.?
Lode Resource Corp. - Now North American Tungsten Corp. Ltd.?

Golden Tiger Mining Exploration Co. Inc.
Barexor Minerals Inc.
Maghemite Inc. (Canadian Ferrite Corp.)

I would like to determine the price of Achates Resources Ltd. on March 26, 1986, the date stamp on the certificate.

If any of these stocks have no value, as you mention quite frequently in your answers, and I have documentation of the purchase price for the stock, is there any standard or accepted method for writing the loss off for US tax purposes.  I expect that to be an issue if a stock is no longer listed or traded but I still have the original certificate that can't be sold or the original company experienced a name change and I don't hold that replacement certificate.

Any information and comments would be appreciated.
Ron

Answer
Ron, from the information I have available:

Arbor did a 1 for 10 reverse and became Klondike Gold, which later distributed shares of Klondike Silver on the basis of 1 share of silver for every 5 of gold. Each company currently trades for about 5 cents per share.

Achates did a 1 for 5 reverse, then a 1 for 4 reverse and became Saratoga, which trades for about 15 cents per share. Unfortunately, I do not have the exact price of the stock on that date, but I believe it was about 72 cents per share.

Goldsil merged into International Mahogany on the basis of 0.22 new for every 1 old share. Mahogany did a 1 for 10 and became Esperanza, which is fully reporting to the SEC in the US (you can read their filings at www.sec.gov) and trades for about $1.65 a share.

Lode did a 1 for 5 reverse and then a 1 for 3 reverse and became North American Tungsten, which trades for about 22 cents per share.

Golden Tiger did a 1 for 5 reverse and became Tiger Resources Inc., which was cease-traded and delisted in 1990.

Barexor was delisted in 1992.

Maghemite went broke and was delisted in 1991.

For the companies that still trade, you can contact the transfer agents who will be able to reorganize your old shares into the new shares which can then be sold.  The agent for the Klondikes, Saratoga, and Esperanza is Computershare (www.computershare.com). North American's agent is CIBC Mellon (www.cibcmellon.com). For the others, I cannot give you specific tax advice on how to write those off. However, I do suggest you contact a broker who will be able to confirm this information and should also be able to give you written confirmation that they have no current value.