By Teri Kirk
Prospectors and developers from across the globe gathered in Toronto last week to attend the 2016 Prospectors & Developers Association of Canada (PDAC) Convention. Many members attending the event were surprised to hear that PDAC is helping its members to access government funding in the form of grants, contributions, and tax credits.
Traditionally, financing for the mining sector has closely been linked with stock markets. In fact, almost 60% of the 2,340 companies listed on the TSX Venture Exchange are junior prospectors and developers. On the government incentive side of the ledger, a common mechanism to attract investment in mining companies is flow-through shares (FTSs), where investors that acquire FTSs benefit from deductions for resources expenses renounced by the mining company, as well as from investment tax credits for individuals on eligible resource expenses.
While these funding mechanisms are well-known to prospectors and developers, fewer entrepreneurs in the sector are aware of the vast array of other government funding programs that can support innovation, job creation, capital expenses, exporting, and more.
Another misconception about funding in the mining sector is that grants are only for private businesses, not those that trade on the stock market. In fact, some of the largest government funding awards in Canada are made to established (and listed) corporations to support their large-scale innovation and job creation activities, which stimulate the economy.
Last summer, the Prospectors & Developers Association of Canada (PDAC) entered into a new partnership with Funding Portal to ensure its members have access to North America’s full range of government funding for business, as well as improved access to private sector funding in the form of debt and equity.
“We are keen to ensure that our industry gets the full benefit of these products and solutions through their relationship with PDAC,” said Rod Thomas, President, PDAC.
Under its mandate with PDAC, Funding Portal identified that there are currently 47 government funds that are specific to the mining industry, but that there are another 463 objective-based funds that are also open to prospectors and developers. These funds can quickly be found by using the Funding Search tool on the Funding Portal website.
Teri Kirk is Founder and CEO of Funding Portal. You can reach her by email at [email protected].