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Commentary: Deciding whether or not to use flow-through shares in Quebec

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Mining exploration activities in Canada have attracted widespread interest over the past few decades and is today considered by most as a sector in its own right. Flow-through shares financings have helped raise significant capital for mining companies.

However, when evaluating the suitability of a flow-through financing, an operating corporation must also assess the discounted value of the tax deductions and tax incentives it is intending to forgo. Discounting their value allows the corporation to better appraise their current worth and more accurately evaluate the premium it must obtain to make flow-through financing economically advantageous. See our Dentons Insight.