Company: FMST
Filing Date: 2025-06-20
Form Type: 20-F
Source: 0001171843-25-004004
Chunk: 173

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: 20-F
Item: Item 10
Chunk 173
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 S. federal income tax principles, and each U. S. Holder therefore should assume that any distribution by us with respect to common shares will constitute ordinary dividend income. Dividends received on common shares by corporate U. S. Holders generally will not be eligible for the “dividends received deduction”. Subject to applicable limitations and provided we are eligible for the benefits of the Canada-U. S. Tax Treaty or the common shares are readily tradable on a United States securities market, dividends paid by us to non-corporate U. S. Holders, including individuals, in respect of common shares generally will be eligible for the preferential tax rates applicable to long-term capital gains for dividends, provided certain holding period and other conditions are satisfied, including that we not be classified as a PFIC in the tax year of distribution or in the preceding tax year. The dividend rules are complex, and each U. S. Holder should consult its own tax advisors regarding the application of such rules.

Sale or Other Taxable Disposition of Common Shares

Upon the sale or other taxable disposition of common shares, a U. S. Holder generally will recognize capital gain or loss in an amount equal to the difference between the U. S. dollar value of cash received plus the fair market value of any property received and such U. S. Holder’s tax basis in such common shares sold or otherwise disposed of. A U. S. Holder’s tax basis in common shares generally will be such U. S. Holder’s U. S. dollar cost for such common shares. Gain or loss recognized on such sale or other disposition generally will be long-term capital gain or loss if, at the time of the sale or other disposition, the common shares have been held for more than one year.

Preferential tax rates currently apply to long-term capital gain of a U. S. Holder that is an individual, estate, or trust. There are currently no preferential tax rates for long-term capital gain of a U. S. Holder that is a corporation. Deductions for capital losses are subject to significant limitations under the Code.

Additional Considerations

Receipt of Foreign Currency

The amount of any distribution paid to a U. S. Holder in foreign currency, or on the sale, exchange or other taxable disposition of common shares generally will be equal to the U. S. dollar value of such foreign currency based on the exchange rate applicable on the date of receipt (regardless of whether such foreign currency is converted into U. S. dollars at that time).