The front of a brochure that the Prospectors and Developers Association of Canada (PDAC) recently had printed was designed to alert politicians to the danger currently faced by Canada’s mining industry and, with the involvement of other concerned Canadians, to stimulate the federal government to take constructive steps to correct the situation. The text of the brochure points out that, with the cancellation of the Mineral Exploration Depletion Allowance (MEDA) in 1987 and the more recent cancellation of its successor, the Canadian Exploration Incentive Program (CEIP), the junior resource sector no longer offers attractive investment potential. Flow-through shares are not the marketable stock that they once were.
Without revitalized public financing, junior companies are on the brink of collapse.
The brochure outlines ways in which the marketability of flow-through shares can be restored, specifically the need to dispense with the Cost Base and Cumulative Net Investment Loss (CNIL) tax rules, and calls on the federal government to implement these revisions as quickly as possible.
The brochure has been sent to all PDAC members, mining and prospecting associations across Canada, chambers of commerce and other organizations. All recipients are urged to send the brochure to their federal and provincial MPs and to local mayors with a letter endorsing the need to dispense with the Cost Base and CNIL rules. Robert Ginn is president of the Prospectors and Developers Association of Canada. .N6
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