More than 30 mining companies with combined interests in 32 million acres of diamond exploration property across Canada have entered into share-purchase agreements with Caratax Diamond Exploration Ltd. Partnership 1993.
The flow-through fund offering, being set up to provide exploration financing for the junior companies and a tax shelter for investors, will close Sept. 30.
Flow-through funds involving mining companies were last popular in the late-1980s, during the gold-exploration boom. The tax writeoff scheme carried extra incentives then. Currently, investors in flow-through shares are allowed to claim deductions of 100%.
The general partner of the fund is Toronto-based Caratax Management Inc. The fund covers companies active in the Lac de Gras and Dubawnt areas of the Northwest Territories, in Alberta and Saskatchewan, and in Quebec’s Le Tac area.
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