Prospectors & Developers Association of Canada (PDAC)

Prospectors & Developers Association of Canada (PDAC)

March 29, 2012 18:21 ET

Prospectors and Developers Association of Canada Welcomes Extension of Mineral Exploration Tax Credit in 2012 Federal Budget

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:

  • The Government will propose legislation to streamline the review process for major economic projects.
  • $54 million over two years to renew the Major Projects Management Office initiative.
  • $13.6 million over two years to support consultations with Aboriginal peoples under the CEAA.
  • $400 million to help increase private sector investments in early-stage risk capital, and to support the creation of large-scale venture capital funds led by the private sector.
  • Phasing out the corporate tax credit for pre-production mining expenditures.

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.

Contact Information

  • Prospectors and Developers Association of Canada (PDAC)
    Carolyn Foster
    Communications Specialist
    416.362.1969 x233
    cfoster@pdac.ca