TORONTO, April 02, 2024 (GLOBE NEWSWIRE) -- The Government of Canada announced an extension to the Mineral Exploration Tax Credit (METC) through March 31, 2025.
The 15-per-cent METC for investors in flow-through shares "provides important support to junior mineral exploration companies working to unlock Canada’s tremendous mineral wealth, creating jobs, and growing the economy," the government states in a news release. The extension represents $65 million to support investment in domestic mineral exploration and will generate multi-fold economic impacts in many regions and communities across the country.
"PDAC is pleased that the Government of Canada listened our call and renewed the Mineral Exploration Tax Credit," said Lisa McDonald, PDAC Executive Director. "The one-year extension falls short of our recommended five-year term but is a positive step in bolstering investment into early-stage mineral exploration in Canada."
The METC is a made-in-Canada financial incentive that provides flow-through share (FTS) investors with an additional 15% non-refundable tax credit when funds are directed towards greenfield exploration.
"For two decades, the METC has played a pivotal role in the competitiveness of Canada's mineral exploration sector and attracted billions in domestic investments," said Raymond Goldie, PDAC President. "We thank Minister Freeland for this extension and Minister Wilkinson for supporting the renewal of this vital program."
According to the Government of Canada, the METC supported over 300 companies to raise equity by issuing eligible flow-through shares to more than 12,400 investors in 2021 alone.
"Canada’s abundant minerals and metals are a key driver of our economy," the government’s news release states. "Canada has the talented workers, infrastructure, innovation, and environmental stewardship necessary to sustainably develop our natural resources, creating good-paying jobs that grow the economy. By investing in the exploration and mining sector, the government’s economic plan is enabling sustainable natural resource development, creating good jobs, growing the economy, and advancing Indigenous economic participation."
Read the government’s announcement.
Media Contact:
Scott Barber
Senior Manager, Communications
Prospectors and Developers Association of Canada
416.362.1969 X244
sbarber@pdac.ca
