Mineral exploration tax credit

Flow-through shares allow companies to renounce or “flow-through” tax expenses associated with their Canadian exploration activities to investors, who can deduct the expenses in calculating their own taxable income. The mineral exploration tax credit is an additional benefit, available to individuals who invest in flow-through shares, equal to 15% of specified mineral exploration expenses incurred in Canada and renounced to flow-through share investors. Eligibility for this credit is extended to flow- through share agreements entered into before April 1, 2016 and in respect of eligible expenses which may be incurred until the end of 2017.