The METC is a 15% non-refundable tax credit on eligible expenses, known as flow-through mining expenditures. All funds raised using flow through shares and the METC must be spent on early-stage grassroots mineral exploration in Canada.
An Intergovernmental Working Group report noted that: “Although it is difficult to assess what proportion of the increased FTS usage in 2009 is attributable to the 15% METC per se … it is believed that the tax credit contributed to maintaining investors’ interest in exploration, particularly in recent troubled times.”
If Canada is to once again lead the world as the number one spot to raise capital in the minerals industry, the METC can play a key role. In fact, Australia has recently followed Canada’s tax innovation and introduced its own exploration development incentive in 2015.