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ARTICLE · 29 DECEMBER 2023

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Reflecting On Flow-Through Shares As We Wrap Up 2023

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Since 2022, we have seen important tax and securities law developments in Canada relating to flow-through shares.

CanadaTax
Tera Parizeau
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James Lyle
James Lyle
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Since 2022, we have seen important tax and securities law developments in Canada relating to flow-through shares. This Cassels Comment highlights some of the key flow-through share updates that issuers and investors should keep in mind as another year of flow-through financings comes to a close.

CRITICAL MINERAL EXPLORATION TAX CREDIT (CMETC)

In 2022, the Federal government published its critical mineral strategy which outlined ambitious objectives and initiatives for Canada to become a global supplier of choice for critical minerals. One of the key tax measures that was announced by the federal government included a 30% federal critical mineral exploration tax credit (the CMETC), in respect of specified mineral exploration expenses incurred in Canada and renounced to flow-through share investors. An investor is allowed to claim the CMETC in respect of certain minerals — namely, copper, nickel, lithium, cobalt, graphite, rare earth elements, scandium, titanium,

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