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News Release
Prospectors and Developers Association of Canada welcomes extension of mineral exploration incentive in June 2011 federal budget
TORONTO (June 6, 2011) – Scott
Jobin-Bevans, president of the Prospectors and Developers Association of
Canada (PDAC), expressed support for the inclusion of the Mineral
Exploration Tax Credit (METC) in the Government of Canada’s budget,
announced today.
“On behalf of our members, many of whom
are involved in raising financing for grassroots exploration, I am
pleased that the federal government has proposed that the Mineral
Exploration Tax Credit be extended for another year,” said Dr.
Jobin-Bevans. “Investment in mineral exploration is the first step in
addressing Canada’s decline in mineral reserves and the METC program
plays a critical role in encouraging investment in Canadian-based
projects.”
The 2011
federal budget proposes that the Mineral Exploration Tax Credit, known
also as the super flow-through share program, that was scheduled to
expire at the end of March 2011 be extended for an additional year to
March 31, 2012. As stated in today’s budget, exploration and development
of Canada’s rich mineral resources offer important investment and
employment benefits in many parts of the country, particularly in rural
and remote regions. The 15-per-cent Mineral Exploration Tax Credit helps
companies raise capital by providing an incentive to individuals who
invest in flow-through shares issued to finance mineral exploration.
“The PDAC and the Canadian Mineral Industry Federation have
recommended that, to facilitate long-term planning, the Mineral
Exploration Tax Credit be made a permanent feature of the federal income
tax system,” said Jobin-Bevans. “The Standing Committee on Finance
(2009) had previously recommended that the METC be extended and, while
today’s announcement does not make the program permanent, it is
encouraging to see the federal budget propose that the program be
continued for another year.”
About the PDAC
The PDAC is a national organization with 8,000 members representing the
range of companies and individuals in mineral exploration and
development. Our individual members include prospectors, geoscientists,
consultants, mining executives, students and people working in the
drilling, financial, legal and other supporting fields. The
association’s corporate members include exploration and junior mining
companies (small and medium-sized enterprises or SMEs), major producing
companies, and organizations providing services to the industry.
Contact information:
Philip Bousquet
Senior Program Director
Prospectors and Developers Association of Canada
Tel 416 362 1969,
ext. 230
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