The loan is included in the financial statements in
accordance with existing terms which require

repayments in equal semi-annual installments commencing
September 15, 1983 and ending March 15, 1988.

The company is presently negotiating the conversion of
the term loan into retractable preferred shares with a
variable dividend rate of 50 percent of bank prime rate
plus one and one-half percentage points. The successful
completion of these negotiations is subject to a favourable
tax ruling from Revenue Canada-Taxation.

Brinco Limited and Subsidiaries
NOTES TO ‘THE CONSOLIDATED

FINANCIAL STATEMENTS
December 31, 1984

Interest on long-term debt in 1984 amounted to
$6,500,000 (1983 -$6,800,000).

Current Bank Indebtedness

Bank indebtedness includes demand bank loans and
cheques issued but not cashed.

5. Income and Mining Taxes

The Company has deferred income taxes which would
otherwise be payable as the result of claiming for tax
purposes amounts which have not been recorded in the
accounts. The deferred income taxes included in the
balance sheet have accumulated at various rates and it is
not practicable to reconcile the rate of deferral with the
income tax rate of 52 percent applicable to a company
operating in British Columbia.

6. Shareholders’ Equity

CAPITAL STOCK

The Company has available losses which may be applied
against taxable incomes up to 1987 in the aggregate
amount of approximately $9,100,000. No recognition of
the possible future income tax benefits due to the
application of these losses has been recorded in the
financial statements.

Authorized

10,000,000 Preferred Shares with a par value of $5.50 each, issuable in series

35,000,000 Common Shares without nominal or par value

1984 1983

Issued
1,869,779 7% cumulative convertible redeemable retractable
Preferred Shares Series A (1983-1,869,818)

7,272,728 8% cumulative convertible
Preferred Shares Series C (1983-7,272,728)

17,454,937 Common Shares (1983-17,077,843)
7,762,632 Class A Common Shares (1983-7,762,632)
Total capital stock

RETAINED EARNINGS (DEFICIT)

Net cost of Common Shares purchased pursuant to the
1974 tender offer to shareholders

(in thousands)

$ 10,284 $ 10,284

40,000
59,551
54,882
164,717
(8,603)
156,114

40,000
58,176
54,882
163,342
(8,674)
154,668

(54,882)
$101,232

(54,882)
$ 99,786