(Kitco News) - O3 Mining's CEO Jose Vizquerra singled out both Canada's and Quebec's financial incentives as pillars of support for the resource sector.
On Monday Vizquerra spoke to Kitco at the Mining Investment Event of the North in Quebec City.
O3 Mining (TSXV: OIII) has a portfolio of assets in Val-d’Or, Quebec, spanning more than 65,000 hectares. Our projects host 2.86 million gold ounces of M&I resources at 1.18 g/t Au, and 0.77 million gold ounces of inferred resources at 3.04 g/t Au.
Vizquerra said Quebec has many infrastructure advantages, such as extensive hydropower and road network. Resource companies also receive financing advantages.
In Canada a flow-through share is a type of common share that permits the initial purchaser to claim a tax deduction equal to the amount invested. The flow-through share regime allows public companies to transfer to investors certain exploration expenditures conducted on Canadian soil, writes the PDAC in its explainer of flow-through.
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"Flow-through share financing contributes over 65% of the funds raised on Canadian stock exchanges for exploration across the country, generating significant exploration activity within Canadian borders," writes the PDAC.
In addition Quebec allows substantial deductions from the taxable income of an investor who acquires flow-through shares. In all cases, it offers a basic deduction of 100% of the cost of flow-through shares.
"One of the important things about Canada is the ability for junior mining companies to do flow through shares," said V. "In the case of Quebec we have the opportunity to do better terms [for] flow-through, which is fantastic."
