Urgent Action Required: Increased Capital Gains Tax threatens Flow-Through Regime

Life and death issue for junior mining company

Canada's largest gold mine, the 10th largest in the world was defined exclusively using flow-through financed drilling on a large +1M metre drill program. It is one of the largest employers in the area and one of the largest contributors to local, provincial and federal tax coffers since opening in 2011. It will continue to do so for decades to come, and is a shining example of how the flow-through share regime pays tremendous benefits in return. The large +1.6M metre Windfall gold project drill program was also financed exclusively using flow-through financing, and we expect it will in a few short years be a similar large local employer and strong contributor to local, provincial and federal taxes. The flow-through financing regime is critical to these success stories and is critical to the development of future discoveries, employment and economic growth.

Flow through funding is of direct benefit to financing the exploration and discovery of new resources. These discoveries result in the development of new mines and thousands of nee jobs. Often in remote areas providing opportunity and employment on areas that have few options. Thus it is also one of the best ways to provide benefits and opportunities for First Nations people. Further removing flow through funding would drastically lower exploration and the resultant development of nee resources. This is particularly worrying when we are in need of finding and developing strategic metals and metals used and needed for a low carbon economy.

The Canadian mining industry needs the support provided by program. Flow Through shares fund high risk mining projects that are essential to the Canadian economy.

It is critical to maintain FTS as it is a significant source of exploration funding in the north and assists small communities, including indigenous communities to thrive and develop skills . it encourages exploration that might otherwise be delayed and mines are jobs, taxes and exports that are positive for the Canadian economy.

this mechanism is a win/win and key to incubating new resource value in the very high risk exploration sector

I have been CFO of a junior mining company doing exploration in the far North which supported northern communities and was largely funded by issuance of flow through shares. Without those shares that work and support of the north would not have been possible.

Flow-through is critical to discoveries across Canada.

Flow through has been around for about 40 years and has been key in keeping mineral exploration alive and well in Canada through peaks and troughs. Mining and exploration are a cornerstone of Canada's economy. Flow through dollars raised for mineral exploration in Canada's financial centres are an effective transfer of wealth to the rural and northern communities.

So important for Canadas north and small communities all across Canada.

What is obvious to everyone in the mining sector and to policy makers in Quebec supported by decades of economic data is that the flow-through regime creates jobs at no net tax loss to treasury. It's time to adopt evidence based tax policy and overcome the mischaracterization of the flow-through regime as as tax gift to the rich. Join in, forward the petition, call and meet your federal and provincial members of parliament before a change in tax law eliminates or severely limits the use of flow-through shares in mining.

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