The federal government has extended the 15-per-cent Mineral Exploration Tax Credit for investors for an additional year.

The Mineral Exploration Tax Credit, which was scheduled to expire on March 31, 2024, provides important support to junior mineral exploration companies. Member of Parliament for Sudbury, Viviane Lapointe,  says the tax credit  is a big boost for junior mining companies. It is also a boost to northern Ontario as it will help to create jobs and grow the economy for many northern communities. The extension is expected to provide $65 million to support mineral exploration investment.

“Sudbury’s abundant minerals and metals are a key driver of our economy. We have the talented workers, infrastructure, innovation, and environmental knowledge needed to develop our natural resources right here in Sudbury. When we invest in exploration and the mining sector, we are investing in generational economic opportunity. The Mineral Exploration Tax Credit is just one of the ways our government is supporting our economy and growth of our communities,” said Viviane Lapointe, Member of Parliament Sudbury.

• The 15-per-cent Mineral Exploration Tax Credit helps mineral exploration companies—especially junior mineral exploration companies—raise capital by providing individual investors with an additional incentive to finance early stage “grassroots” mineral exploration using flow-through shares.
• In 2021, the Mineral Exploration Tax Credit supported over 300 companies to raise equity by issuing eligible flow-through shares to more than 12,400 investors.
• As part of Canada’s Critical Minerals Strategy, in 2022, the federal government introduced the 30-per-cent Critical Mineral Exploration Tax Credit, which supports certain critical mineral exploration expenses incurred in Canada and renounced to flow-through share investors.
  • The Critical Mineral Exploration Tax Credit applies to exploration expenditures targeted at minerals used in the production of batteries and permanent magnets (both of which are used in zero-emission vehicles or are necessary in the production and processing of advanced materials), clean technology, or semi-conductors.
  • The 30-per-cent Critical Mineral Exploration Tax Credit cannot be claimed in addition to the 15-per-cent Mineral Exploration Tax Credit.