RE:Question
The flow thru FCU is raising must be used for canadian exploration expenses. CRA audits to ensure the flow thru funds raised were used for exploration. If not, the investors who bought the flow thru are re-assessed individually by CRA and must pay back the tax credit in the following year. There would be some unhappy campers. Also the company that failed to spend the funds is penalized based on the funds not spent on exploration. The 12.5 million has to go in the ground or it would cost the company and investors collectively millions. The income tax act dictates what qualifies. Nobody in the industry itemizes. Relax this is a premium junior and it will recover on route to PDAC.