Finance Canada announces extension to incur flow-through qualifying expenditures

On 10 July 2020, Canada’s Department of Finance announced proposals to change the flow-through share rules in order to alleviate the challenges faced by exploration companies in the mining industry amid the COVID-19 pandemic. The proposals aim to extend the timeline for resource corporations to incur eligible expenses by 12 months. As of the date of writing, legislative amendments to implement the proposals have not been released.

Background

Generally speaking, a resource corporation issues f…