Deputy Prime Minister Chrystia Freeland has announced the extension of the 15-percent mineral exploration tax credit for investors in flow-through shares for an additional year, which is now valid until March 31, 2025.
Initially set to expire this month, the tax credit has provided “important support” to junior mineral exploration companies across Canada. This extension is anticipated to inject $65 million into the sector, bolstering mineral exploration investment.
“Canada has an abundance of the minerals needed to build our net-zero economy. Supporting exploration efforts to find mineral deposits is a key part of creating the next generation of good-paying mining jobs across the country, including in northern and remote communities,” Freeland said.
Sponsored · Antimony Resources
She emphasized that the government’s “economic plan is investing in good opportunities for workers and the supports businesses need to grow, to build an economy that works for everyone.”
The 15-percent tax credit serves as a vital incentive for mineral exploration companies, particularly junior companies, enabling them to raise capital by offering individual investors additional incentives to finance early-stage mineral exploration endeavors through flow-through shares.
In 2021, this tax credit supported over 300 companies, the government reports, facilitating equity raising through eligible flow-through shares to more than 12,400 investors.
Aligned with Canada’s Critical Minerals Strategy, the federal government introduced the 30-percent critical mineral exploration tax credit in 2022. This credit targets exploration expenditures aimed at critical minerals essential for various industries such as battery production, clean technology, and semi-conductors.
However, it’s noteworthy that the 30-percent critical mineral exploration tax credit cannot be claimed alongside the 15-percent mineral exploration tax credit.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
