Flow-through Shares

A share-financing scheme introduced by the Canadian government in 1983 to stimulate mining by enabling a private or corporate investor to write off investment in mineral exploration within Canada against income.

Within three years US$550 million was raised, of which three-quarters went into gold exploration. The flow-through shares helped many small mining companies who would never have been able to raise other financing but many projects came to nothing and the tax-break was later phased out.