Traditional finance avenues for junior miners in Canada are becoming scarcer, says PearTree Securities CEO Lisa Davis, contrasting sharply with Australia’s robust mining investments supported by large superannuation funds.
This scarcity in funding exacerbates challenges in exploration and development for junior explorers, Davis said in a recent interview.
Davis is concerned about the uncertain renewal of the Mineral Exploration Tax Credit, and changes to the alternative minimum tax that could further deter investments in the mining sector by diminishing the attractiveness of flow-through share financings.
“I think it would be devastating for the industry, which is really struggling right now,” Davis told The Northern Miner’s western editor, Henry Lazenby, during the recent Prospectors and Developers Association of Canada’s annual convention in Toronto.
Davis underlines the crucial role of tax incentives in driving capital toward mining exploration and the significant impact government policies can have on the industry’s health and future.
Watch the full video below.
Joint venture videos are paid-for content in arrangement with The Northern Miner.
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