Toronto (December 17, 2020) — The Prospectors & Developers Association of Canada (PDAC) welcomes the federal government’s draft legislative proposals to protect jobs and save operations within the junior mining exploration sector and with other flow-through share issuers, by extending the timelines for spending the capital they raise via flow-through shares.
"The mineral exploration and development sector is a crucial component of the Canadian economy, generating significant economic and social benefits, particularly for northern and remote communities all across the country. This proposed legislation will help provide the necessary support for the industry, contribute to its recovery, and allow us to help kick-start Canada's economic recovery in 2021," says PDAC President Felix Lee.
As the impact of COVID-19 continues to cause significant global disruptions, the Canadian mineral exploration sector has seen many junior companies and small businesses facing pandemic-imposed challenges such as voluntary shutdowns or difficulty accessing the field due to travel restrictions.
The government’s proposed legislation will ensure mineral exploration companies with operations impacted by COVID-19 would be allowed additional time to incur eligible expenses, allowing them to safely plan when to best continue operations, and avoid penalties that would normally come from not meeting original flow-through share timelines.
Canada’s mineral exploration and mining industry generates significant economic and social benefits in remote communities, Indigenous communities, and cities, employing 719,000 workers and contributing $109 billion annually to GDP. It is the largest private-sector industrial employer on a proportional basis of Indigenous people in Canada.