RE:RE:RE:RE:RE:RE:New Press Release - LAURION Announces Proposed Non-Brokered Private Placement of Flow-Through SharesThey are called "flow through shares". The company does not generate revenue and therefore has a loss every year. Flow through shares are an incentive the Canadian government gives junior miners to promote investments. In effect the loss is transfered to the purchaser of the shares.
So, assuming the purchaser is in the highest marginal tax bracket (52-54%), they are effictively buying the shares at $0.21-0.25. Mining companies will add a premium (typically 15-30%) to account for the tax savings.
This PP has been hinted at by Laurion for a while now. The goal to raise 2.6 million for the 2025 was in the September presentation. The issue is the premium is on the lower end and I would have liked to have seen these priced over 0.50.
Regardless, I am sure it will be oversubscribed and I like what they are planning to do with the money. The drill program for next year looks especially promising and should be enough to support an initial MRE for the area around the Sturgeon River Mine.