FirstMiss gets nod from IRS

The Internal Revenue Service will allow FirstMiss Gold (NASDAQ) to be spun off, tax-free, from parent First Mississippi (NYSE).

The ruling allows the parent to distribute to its stockholders its 14.7 million shares of FirstMiss without recognition of

taxable income by either First Mississippi or its stockholders.

Based on the number of shares currently outstanding, the

stockholders would receive about seven-tenths of a share of

FirstMiss for each share of First Mississippi owned.

The spinoff is aimed at separating the chemical business from the gold business. The value of the two stocks would then be greater than just one.

A 35-hole program of infill drilling is under way on the

Turquoise Ridge deposit at FirstMiss’s Getchell gold mine in northern Nevada. Twelve core rigs are currently gathering data for a prefeasibility study, expected in July.

The results of the study will determine the timing of the

spinoff.

Currently, all exploration activities are being conducted within the 33,000-acre Getchell property.

The company sold forward 191,000 oz. gold for delivery over the next 13 months using spot deferred contracts at prices ranging from US$387 to US$421 per oz.