Flow-Through Investments

To encourage investment in more speculative, resource-based ventures, the Federal and Provincial Governments of Canada have created Flow-Through Investments. 

Investors in these unique shares of a company, or portfolio of companies, can receive "non-refundable" tax credits which reduce their income tax payable.  The reduction of paid income tax effectively lowers the net cost of your investment to just a fraction of a comparable purchase in a traditional, common share.

The funds from Flow-Through shares are used by Resources-based companies to explore for new deposits and develop existing properties towards production.

   Traditional Flow-Through PDF                     B.C. Super Flow-Through PDF

Investment in Resource Flow-Through are complex tax and investment instruments and are not suitable for everyone.  Potential Investors should consult both investment and tax specialists to determine whether a Flow-Through is an appropriate investment vehicle. 

Frequently Asked Questions:

Who should invest in Flow-Through Shares?

Typically, Investors in the top marginal tax bracket would receive the most benefit from a flow-through investment. However, most investors, regardless of their income level, would likely receive some benefit from investing in flow-through shares. 

Investors should also be comfortable with risk and volatility in the value of their investment. Due to the highly speculative nature of resource exploration, the value of the investment could vary widely.

What am I investing in?

An investment in a Flow-Through Share is required to be used for the exploration and / or development towards production and must be kept separate from general operating funds. After the tax deductions are made, capital gains are possible.  Some shares even allow for conversion into other investments.

How do I invest?

Please contact Golden Capital Securities and ask to speak to an Investment Representative.  Contact Info.