Is this the last kick at the can for raising money via flow-through shares ?

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Is this the last kick at the can for raising money via flow-through shares ?

posted on Jan 13, 2009 05:41AM

Is this the last kick at the can for raising money via flow-through shares ?

Note: Super Flow-Through Tax Credits are set to expire on March 31, 2009

“ To promote mining in Canada, the federal government has made available certain tax deductions for investments in this sector. To encourage the exploration and development of Canadian natural resources, the government allows Canadian natural resource companies to issue common shares that entitle the holder to certain tax benefits. These shares are called flow-through shares. “

All tax credits are set to expire as at March 31, 2009. Normally, federal budgets are not released until April or Many, and this year, a federal election is widely expected.

Canadian natural resource companies have certain expenses, known as Canadian Exploration Expenses (CEE), which can be deducted 100 % for tax purposes by the purchasers of flow-through shares. In addition to benefiting a taxpayer in the current taxation year, these tax deductions can be carried back 3 years and carried forward 7 years.

In addition, there is also a 15 % tax credit available to investors anywhere in Canada for grass roots mining exploration expenses incurred in Canada -- this applies only to mining of metals and minerals, and not for extraction of oil and gas. For investors in every province and territory of Canada, the tax credit is at least 15 % as long as the grass roots mining exploration occurs somewhere in Canada. In addition, some (but not all) of the provinces and territories have added their own tax credit, ranging from 5 % in Ontario to 20 % in British Columbia. The provincial tax credit only applies if the investor is resident in the province, and the exploration occurs in the same province. In addition to benefiting a taxpayer in the current taxation year, these tax credits can be carried back 3 years and carried forward 10 years.