Flow-through • Issues & Advocacy
October 10, 2003
Three years ago, the Canadian government introduced a 15% non-refundable tax
credit over and above the existing 100% deduction for eligible exploration
expenditures. This new program, known as the ‘super’ flow-through program, has
been very successful in helping junior companies raise much needed funding for
mineral exploration.
Here is some evidence.
This graph demonstrates the cumulative amounts of Canadian Exploration Expense,
or CEE funding, raised in financings each year since 1998. The amounts included
are all flow-through financings raised by companies (regular flow-through as
well as enhanced).
As you can see, the impact of the enhanced
program has been significant. Before its introduction, annual financings
typically reached $70 million. The enhanced program has clearly boosted
exploration funding in this country to a level now in excess of $200 million.
The enhanced program is clearly working.
For more information, contact
David Comba
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