In December, the Prospectors & Developers Association of Canada (PDAC) welcomed the federal government’s draft legislative proposals to protect jobs and save operations within the junior mining exploration sector and other flow-through share issuers, by extending the timelines for spending the capital they raise through flow-through shares.
The mineral exploration and development sector is a crucial component of the Canadian economy, generating significant economic and social benefits, particularly for northern and remote communities all across the country, says PDAC president Felix Lee.
“This proposed legislation will help provide the necessary support for the industry, contribute to its recovery, and allow us to help kick-start Canada’s economic recovery in 2021,” he adds.
As the impact of Covid-19 continues to cause significant global disruptions, the Canadian mineral exploration sector has seen many junior companies and small businesses facing pandemic-imposed challenges such as voluntary shutdowns or difficulty accessing the field owing to travel restrictions.
Government’s proposed legislation will ensure mineral exploration companies with operations impacted by the pandemic are allowed additional time to incur eligible expenses, allowing them to safely plan when to best continue operations, and avoid penalties that would normally come from not meeting original flow-through share timelines.