Department of Finance Canada announced an extension of the Mineral Exploration Tax Credit.
The credit had been scheduled to expire on March 31, 2025. The extension keeps it available until March 31, 2027.
Finance Canada said the extension was expected to provide $110 million to support mineral exploration investment.
The credit supports junior mineral exploration companies by helping them raise equity through flow-through shares.
In 2022, the Mineral Exploration Tax Credit helped about 200 companies raise equity by issuing eligible flow-through shares to more than 10,100 investors.
The announcement also noted the separate 30% Critical Mineral Exploration Tax Credit, introduced in 2022 as part of Canada's Critical Minerals Strategy for certain critical mineral exploration expenses incurred in Canada and renounced to flow-through share investors.
The tax-policy mechanism is targeted. Rather than funding a mine directly, the credit improves the after-tax economics for investors who finance early-stage exploration.
The business relevance is tied to capital formation. Junior exploration companies often need outside equity before a project has production revenue, and flow-through-share tax treatment is one way the federal tax system supports that financing.