Supporting Jobs and Safe Operations of Junior Mining Companies

This policy extends the period that junior mining exploration companies and other issuers of flow through shares (FTS) have to spend the capital raised through the use of FTS agreements by an additional 12 months. This policy applies to FTS agreements that were entered into to fund Canadian exploration expenditures (CEE) using the general rule after March 2018 and before the end of 2020 or, in the case of the look-back rule, in 2019 and 2020. The policy provides an additional 12 months for firms to incur eligible CEE before losing the tax benefits tied to the FTS or having to pay fines associated with failing to incur expenses within the time frame specified by the agreement.

PBO estimates that the net cost of the policy will be $32.5 million from 2019-2020 to 2021-2022.