RE: RE: RE: Question about PPflow throughs provide immediate tax benefits. which means the people who bought FTSs and warrants in last PP at .50 are already in the money. But I too wonder why they would bother. This can't be only about raising another $300K.
Certain corporations in the mining, oil and gas, and renewableenergy and energy conservation sectors may issue FTSs to help financetheir exploration and project development activities. The FTSs must benewly issued shares that have the attributes generally attached tocommon shares.
Junior resource corporations often have difficulty raising capitalto finance their exploration and development activities. Moreover, manyare in a non-taxable position and do not need to deduct their resourceexpenses. The FTS mechanism allows the issuer corporation to transferthe resource expenses to the investor. A junior resource corporation,in particular, benefits greatly from FTS financing.
The FTS program provides tax incentives to investors who acquire FTSs by allowing:
- deductions for resource expenses renounced by eligible corporations; and
- investment tax credits for individuals (excluding trusts) on resource expenses in the mining sector that qualify as flow-through mining expenditures.