Flow-through share

1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).


A flow-through share is available to mining and petroleum companies to facilitate financing their exploration and development activities. These equity shares are issued by resource companies to new investors. Investors receive an equity interest in the company and income tax deductions associated with new expenditures incurred by the company on exploration and development. Flow-through shares are available to all mining and petroleum companies, but are of greater benefit to non-taxpaying junior exploration companies. These companies are unable to use income tax deductions for exploration and development against their corporate income and are willing to forgo the deduction to new investors.

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