Manitoba Mining Information

Flow-through Share Financing

The PDAC has taken the correct position in advocating the continuation of the Investment Tax Credit for Exploration or ‘super’ flow-through program. This program has been instrumental in generating new mining investments in Canada. The following are highlights from the PDAC website explaining the association’s stance on this issue.

Canada’s Mineral Exploration Tax Credit, formerly known as the Investment Tax Credit for Exploration (ITCE) and familiarly known as the ‘super’ flow-through program, has been a very successful program for mineral exploration in Canada. The program was due to come to an end in May 2007 but was extended on March 19, 2007, to March 31, 2008. The PDAC continues to advocate that this important program be extended beyond that date in a series of rolling three-year extensions, with annual reviews of the program’s benefits..

The program has contributed significantly to mineral exploration activity and to new mineral discoveries in Canada. Here are some data:

• Exploration expenditures in Canada have risen from approximately $300 million in the late 1990s to an estimated $1.722 billion in 2006, the highest total for exploration and deposit appraisal expenditures since 1987 and 1988.
• Canada remains the number one destination for exploration investment in the world.
• New mineral discoveries in Canada rose from a low of 15 in 1999 to a high of 268 in 2005.
• The program helps to maintain Canada’s competitiveness in the face of fierce global competition for exploration investment.

The ‘super’ flow-through program keeps exploration dollars in Canada, particularly in northern and rural areas, for Canadian projects.

Read More about this at PDAC