The financial advantage enjoyed by Quebec resource companies – O3 Mining


(Kitco News) – O3 Mining CEO Jose Vizquerra has named financial incentives from Canada and Quebec as pillars of support for the resource sector.

On Monday, Vizquerra spoke with Kitco at the Mining Investment Event of the North in Quebec City.

O3 Mining (TSXV: OIII) has a portfolio of assets in Val-d’Or, Quebec covering over 65,000 hectares. Our projects contain 2.86 million ounces of gold from M&I resources at 1.18 g/t Au and 0.77 million ounces of gold from inferred resources at 3.04 g/t Au.

Vizquerra said Quebec has many infrastructure advantages, such as an extensive hydroelectric and road network. Resource companies also enjoy financial benefits.

In Canada, a flow-through share is a type of common stock that allows the original purchaser to claim a tax deduction equal to the amount invested. The flow-through share regime allows public companies to transfer certain exploration expenditures made on Canadian soil to investors, writes the PDAC in its explanation of flow-through shares.

“Flow-through share financing contributes more than 65% of funds raised on Canadian exchanges for exploration across the country, generating significant exploration activity within Canadian borders,” writes the PDAC.

In addition, Quebec allows substantial deductions from the taxable income of an investor who acquires flow-through shares. In all cases, it offers a basic deduction of 100% of the cost of flow-through shares.

“One of the great things about Canada is the ability for junior mining companies to acquire flow-through shares,” V said. “In the case of Quebec, we have the opportunity to get better terms [for] fluid, which is fantastic.”

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.


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