Mining’s old guard needs strong medicine
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TORONTO, ONTARIO–(Marketwire – March 29, 2012) – The Prospectors and Developers Association of Canada (PDAC) welcomes the inclusion of the Mineral Exploration Tax Credit (METC) in the Government of Canada’s budget tabled today.
“I want to congratulate the Government for again including this measure in the budget,” says PDAC President Glenn Nolan. “This is important for our industry’s competitiveness as this program keeps exploration dollars in Canada, particularly in northern and rural areas.”
The METC was scheduled to expire on March 31, 2012. Economic Action Plan 2012 proposes to extend the credit for an additional year, until March 31, 2013.
“We believe this is a budget that demonstrates continued support for the mineral exploration sector,” says PDAC Executive Director Ross Gallinger. “The PDAC has been a champion of the METC and continues to work with the Federal Government to advocate for measures that support the industry.”
“We have worked hard on behalf of our members, many of whom are involved in raising financing for grassroots exploration,” says Gallinger. “Junior companies are relied upon to conduct initial stage, grassroots exploration leading to new mineral discoveries and hopefully new mines. This is a high-risk venture and is wholly dependent on access to capital supplied by interested investors.”
The 15% 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. “Investment in mineral exploration is the first step to encouraging investment in Canadian-based projects,” says Nolan. “This is a vitally important economic development initiative that will provide tremendous benefit to all Canadians.”
Other announcements in the 2012 Federal Budget include:
About the PDAC
The Prospectors and Developers Association of Canada (PDAC) is a national association representing the mineral exploration and development industry. The PDAC has close to 9,000 individual and corporate members.
