A study into the benefits of flow- through share financing for miner al exploration has been completed and the results are “very, very positive,” the president of the Quebec Prospectors Association says.
Christian Derosier says the QPA is crossing its fingers in the hope that the 160-page study will convince the federal government of the value of the popular tax shelter. (Two weeks ago federal Finance Minister Michael Wilson announced that some of Canada’s favorite tax breaks could vanish as a result of federal tax reform).
The study won’t be released until after the QPA meets for discussions with Mr Wilson, Federal Mines Minister Gerald Merrithew and Quebec Finance Minister Gerard Levesque (the Quebec government paid for half of the $96,500 study). Mr Derosier says Dec 13 is a likely date.
Preliminary results, released in September, indicate the $286-million loss in revenue for the Quebec government will result in more than $700 million in new revenue over the next three years. Also, the QPA estimates that 1,000 jobs have been created since flow-through was created in 1983 and that another 5,000 stand to be created over the next 10 years.
Another flow-through study is being completed by Prof Basil Kalymon for the Centre for Resource Studies, based in Kingston, Ont. It is now being revised and will probably be published in March or April, 1987, executive director David Anderson says. (A feature on flow-through was included in the November issue of The Northern Miner Magazine).
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