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INTRODUCTION:
Glacier Valley Mining and Metals
16033 Bolsa Chica St. #104-149
Huntington Beach, CA 92649
Direct (562) 400-0411 Fax (419) 844-5850
Dear Professional Advisor/Investor:
Do
you like paying taxes? No? Then don't, legally. We are offering an IRS
registered tax shelter program with an approximate 3 to 1 write off with
a potential 3 to 1 return on dollars invested.
We
have acquired mining leases in the State of Alaska. The claims are
placer deposits and contain Gold bearing alluvium. The most recent assay
reports on the project indicate that the values of the Gold bearing
alluvium
are from two-tenths (2/10) of an ounce up to and beyond one ounce of
Gold per ton. Since placer deposits do not normally run true, we feel
that there is conservatively about two-tenths (2/10) of an ounce of Gold
per ton.
We
are willing to sub-lease this placer for developmental purposes. We will
sub-lease tonnage to you and develop this ground on your behalf at the
cost of $28.00 a ton. The minimum amount of tonnage available is 3,750
tons. The cost to develop this ground is $105,000.00. If your tonnage
does average 2/10 oz. of Gold per ton, and estimating Gold at $400.00
per ounce, your return on investment would be $300,000.00. There is only
1,668,750 tons of material available for development. That is a total of
450 investment units available. An investor may purchase more than one
unit.
The
formula for the tax shelter program works as follows. With a 34% down
payment per unit, $35,700.00, for development and your signature on a
full recourse promissory note for the balance of $69,300.00, with
interest of 10% due monthly you are at risk for that amount and
subsequently have a legitimate deduction of $105,000.00. The IRS states
that you have to be at risk in order to get the tax benefit or tax
credit. Depending on your current tax status you may go back 3 years on
your back taxes and get those monies returned to you, or you may carry
those tax benefits forward for 15 years.
This tax shelter is an excellent way to avoid, legally, the paying of
taxes. It is actually funded entirely by Uncle Sam. Instead of your tax
dollars going to the government to fund various projects that you may
not be interested in, these tax dollars are now working for you to
create an opportunity, by IRS regulations, to increase your personal
wealth via the tax shelter. If you need additional information please
contact us by e-mail or contact your local authorized representative.
Sincerely,
George J. Deden , President
GJD/sdb
DUE DILIGENCE BY
ACCOUNTANT / ATTORNEY:
Glacier Valley Mining and Metals
16033 Bolsa Chica St. #104-149
Huntington Beach, CA 92649
Direct (562) 400-0411 Fax (419) 844-5850
Dear Professional Advisor/Investor:
In
order for your accountant or attorney to verify the legitimacy of the
tax shelter program they must perform their due diligence. We will
provide them with all the information they need in order to do so. If
they follow the directions given, it will take them less than three
hours.
Remember that the IRS says that you have to be at risk in order to get
the tax benefit or tax credit. As far as the deductibility of
development expenses, section 616(a) of the Internal Revenue Code (IRS
Code of 1954, as amended) allows the tax payer to deduct "all
expenditures paid or incurred during the taxable year for the
development of a mine or other natural deposit (other than oil or gas
well) if paid or incurred after the existence of ores or minerals in
commercially marketable quantities has been disclosed, the tax payer,
under section 616(b) of the code may elect to defer these expenses.
Section 616(a) of the Internal Revenue Code of 1954 provides that there
shall be allowed as a deduction in computing taxable income all
expenditures paid or incurred during the taxable year of the development
of a mine or other natural deposit (other than oil or gas well) if paid
or incurred after the existence of ore or minerals in a commercially
marketable quantities has been disclosed. This section shall not apply
to expenditures for the acquisition or improvement of property of a
character which is subject to the allowances for depreciation provided
in section 167, but allowances for depreciation shall be considered, for
purposes of this section as expenditures".
Treasury regulation 616(a) states that development expenditures under
616 are those which are made after such time when, in consideration of
all facts and circumstances (including actions of the tax payer)
deposits of ore or other minerals are shown to exist in sufficient
quantity to reasonably justify commercial exploitation by the tax payer.
Under section 616(a) a tax payer is allowed a deduction for development
expenditures whether or not such expenditures are made in the
development or production state of the mine or natural deposit. It is
not necessary that the tax payer incur the development costs directly.
He may engage a contractor to make these expenditures on his behalf.
Remember that you must be at risk in order to receive your tax credit or
benefit. Section 465, in general, states: "that the amount of any loss
sustained from certain activities in a given taxable year by a tax payer
other than a corporation that is not a Sub-Chapter S corporation, a
personal holding company or any other corporation in which five or fewer
individuals own more than fifty percent of such corporations outstanding
capital stock, is 'AT RISK' in such activity at the end of the taxable
year". This is a schedule C investment on the 1040 form and represents
an income or loss from a sole proprietorship and not a limited
partnership.
In
order to maximize the security of our tax shelter program we will have
an extensive record keeping process for those who invest in the program.
A list of our investors will be kept at our head office, our mine site,
with the IRS in Kansas City, Kansas. If in the event you are audited by
the IRS you will refer them directly to us and we will satisfy their
requests by sending them a copy of the original authorization letter
issued by the IRS in 1984. All IRS offices do not specialize in tax
shelters so we will assist them in their audit.
If
you decide to invest in the tax shelter program you are allowed to visit
the mine site. This is by appointment only because of company security
policy.
Again, if you would like to avoid paying taxes, please contact your
local authorized representative as soon possible.
All
deposits will be wired directly to Glacier Valley Mining and Metals in
the State of California. Banking information will follow as soon as you
decide to invest. Remember this is a shelter that is limited in
participants.
Sincerely,
George J. Deden, President
GJD/sdb
MINING CLAIM LEASE AGREEMENT:
Glacier Valley Mining and Metals
16033 Bolsa Chica St. #104-149
Huntington Beach, CA 92649
Direct (562) 400-0411 Fax (419) 844-5850
SUB-LEASE OF MINING CLAIMS
This sub-lease is entered into this_______day of __________,2008 by and
between the following parties: whose address for all purposes
herein is: and hereinafter named as sub-lessee, and Glacier
Valley Mining and Metals, whose address for all purposes herein is 16033
Bolsa Chica St. #104-149 Huntington Beach, California 92649, as "Lessors"
and hereinafter will be referred to as Glacier Valley.
WITNESSETH:
Glacier Valley hereby sub-leases to the sub-lessee, and the sub-lessee
hereby takes from Glacier Valley those placer mining claim(s) known as
GVMM 1-4, in the State of Alaska consisting of the amount of _______
tons of material on your behalf with identification number
_____________. The term of this sub-lease shall be for 10 years
commencing on the ________ day of _________________ 2008 and ending on
the ________ day of ________________ 2018 during which term the
sub-lessee agrees to explore the GVMM 1-4, mining claim(s) and making
ready such ore as to putting them into production to recover the
precious metals contained in the placer materials. Such development
shall hereinafter be provided. The sub-lessee shall pay to Glacier
Valley, in consideration of the royalty agreement Glacier Valley is
liable for in the lease with the claim owners a rent equal to 10% of the
gross amount of precious metals recovered by the sub-lessee's mining
operation. The sub-lessee, to insure the success of his proposed
operation shall engage Glacier Valley as the sole contractor and
representative for the sub-lessee's proposed operation on the sub-leased
claims. Glacier Valley warrants and guarantees to the sub-lessee that
Glacier Valley will sub-lease such claims that are necessary for the
sub-lessee to meet the sub-lessee's recovery quotas. Glacier Valley also
warrants that if for any reason Glacier Valley may have to suspend its
operation or surrender its leases we will substitute other Gold bearing
ores that we control.
SIGNED: ________________________________________SUB-LESSEE(1)
SIGNED:________________________________________SUB-LESSEE(2)
SIGNED:________________________________________GLACIER VALLEY
DATE:______2007 PHONE:_______________EMAIL __________________
ADDRESS_______________________________________________________
______________________________________________ZIP_______________
PROMISSORY NOTE:
Glacier Valley Mining and Metals
16033 Bolsa Chica St. #104-149
Huntington Beach, CA 92649
Direct (562) 400-0411 Fax (419) 844-5850
PROMISSORY NOTE DATE:
____________________
For
value received, I/We (maker) promise to pay to the order of Glacier
Valley Mining and Metals, or assignee (holder) at Glacier Valleys bank
in Huntington Beach, California, the sum of
___________________________________________ Dollars with interest on the
unpaid principal amount at the rate of ten percent (10%) per annum,
interest only payable monthly. Principal due on, or before ten years
from the date of execution or upon the completion of the development
contract.
This note is made and delivered in accordance with the accompanying
development agreement dated _________________________2008 between maker
and payee (the agreement). All terms and conditions of the agreement are
incorporated herein by reference as if fully set forth herein. The maker
hereby waives presentation, demand for payment, notice of dishonor,
protest and notice of protest and any and all other notices and demands
in connection with this note, except as herein otherwise expressly
provided.
This note is accepted by the holder with full liability or recourse
against the maker for collection of the note principal. As additional
collateral security therefore, holder shall retain a security interest
in, and to any Gold processed for the maker, as set out in the certain
assignment executed concurrently herewith. Maker shall have the right to
prepay this note, as to both interest and principal, in whole or in
part, at any time, with interest to the date of such payment, and
without penalty. The due date of this note shall not be accelerated in
any way by death, insanity, or bankruptcy of the maker. In case of the
death of the maker, either his estate, if it remains in existence until
the due date of this note, or his heirs, in proportions to their
interests in the estate, shall be liable for this note. The failure of
the holder to exercise any right hereunder shall not be construed as a
waiver or the right to exercise the same, or any other right, at any
time from time to time thereafter. The maker of this note is aware that
this note may be assigned to a financial institution and hereby gives
his consent thereto.
NAME _______________________________________________
ADDRESS ____________________________________________
CITY ________________________________________________
STATE _________________________________ZIP___________
SOC. SEC.# ___________________________________________
SIGNATURE __________________________________________
PHONE________________________EMAIL_________________
PER
UNIT INVESTMENT BREAKDOWN:
Glacier Valley Mining and Metals
16033 Bolsa Chica St. #104-149
Huntington Beach, CA 92649
Direct (562) 400-0411 Fax (419) 844-5850
PER UNIT INVESTMENT
UNIT
PRICE INITIAL DEPOSIT BALANCE
MONTHLY INSTALLMENT
1
$105,000.00
$35,700.00 $69,300.00
$577.50
2
$210,000.00
$71,400.00 $138,600.00
$1,155.00
3
$315,000.00 $107,100.00
$207,900.00 $1,732.50
4
$420,000.00 $142,800.00
$277,200.00 $2,310.00
5
$525,000.00 $178,500.00
$346,500.00 $2,887.50
6
$630,000.00 $214,200.00
$415,800.00 $3,465.00
7
$735,000.00 $249,900.00
$485,100.00 $4,042.50
8
$840,000.00 $285,600.00
$554,400.00 $4,620.00
9
$945,000.00 $321,300.00
$623,700.00 $5,197.50
10
$1,050,000.00 $357,000.00
$693,000.00 $5,775.00
BANKING
INFORMATION: Please go the
CONTACT PAGE for contact information.
©Copyright
2007, 2008 by George J. Deden, All Rights Reserved
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