The Prospectors and Developers Association of Canada (PDAC) has welcomed the federal government’s draft legislative proposals to extend the timelines for spending the capital that junior mining exploration companies raise through flow-through shares.
The proposed legislation, announced this week, would protect jobs and save operations within the mining exploration sector by allowing juniors to safely plan when best to continue operations impacted by Covid-19, stated PDAC in a statement on Thursday.
The extended timelines would help junior explorers avoid penalties that would normally come from not meeting original flow-through share timelines.
The government first announced on July 10, its proposal to extend the timelines by 12 months to help businesses through the challenges many are facing as a result of the pandemic, including voluntary shutdowns or difficulty accessing the field.
"The mineral exploration and development sector is a crucial component of the Canadian economy, generating significant economic and social benefits, particularly for northern and remote communities all across the country. This proposed legislation will help provide the necessary support for the industry, contribute to its recovery, and allow us to help kick-start Canada's economic recovery in 2021," said PDAC president Felix Lee in a media statement.