TORONTO (March 22, 2011) – Scott Jobin-Bevans, president of the Prospectors and Developers Association of Canada (PDAC), expressed support for the inclusion of the Mineral Exploration Tax Credit (METC) in the Government of Canada’s budget, announced today.
“On behalf of our members, many of whom are involved in raising financing for grassroots exploration, I am pleased that the federal government has proposed that the Mineral Exploration Tax Credit be extended for another year,” said Dr. Jobin-Bevans. “Investment in mineral exploration is the first step in addressing Canada’s decline in mineral reserves and the METC program plays a critical role in encouraging investment in Canadian-based projects.”
The 2011 federal budget proposes that the Mineral Exploration Tax Credit, known also as the super flow-through share program, that was due to expire at the end of March 2011 be extended for an additional year to March 31, 2012. As stated in today’s budget, exploration and development of Canada’s rich mineral resources offer important investment and employment benefits in many parts of the country, particularly in rural and remote regions.
The temporary 15-per-cent Mineral Exploration Tax Credit helps companies raise capital by providing an incentive to individuals who invest in flow-through shares issued to finance mineral exploration.
“The PDAC and the Canadian Mineral Industry Federation have recommended that, to facilitate long-term planning, the Mineral Exploration Tax Credit be made a permanent feature of the federal income tax system,” said Jobin-Bevans. “The Standing Committee on Finance (2009) had previously recommended that the METC be extended and, while today’s announcement does not make the program permanent, it is encouraging to see the federal budget propose that the program be continued for another year.”
About the PDAC
The PDAC is a national organization with 8,000 members representing the range of companies and individuals in mineral exploration and development. Our individual members include prospectors, geoscientists, consultants, mining executives, students and people working in the drilling, financial, legal and other supporting fields. The association’s corporate members include exploration and junior mining companies (small and medium-sized enterprises or SMEs), major producing companies, and organizations providing services to the industry.
Senior Program Director
Prospectors and Developers Association of Canada
Tel 416 362 1969, ext. 230