JV Video: Peartree CEO sizes up Canada’s unique flow-through regime, changes to fed tax rules

Flow-through financing plays a crucial role in supporting Canada’s junior mining sector. This unique-to-Canada financing model, which PearTree Financial Services helped pioneer, facilitates over 90% of exploration investment across the country. 

The flow-through model allows resource companies to renounce tax expenses associated with exploration activities in Canada to investors, who can deduct the expenses in calculating their own taxable income. 

This year, however, Canada introduced changes to the alternative minimum tax (AMT) and capital gains inclusion rate that created uncertainty in the market.  

PearTree Financial founder and CEO Ron Bernbaum evaluates how Ottawa’s new tax rules are impacting the mining sector, and the outlook for critical mineral exploration, which plays a key role in the green energy transition. 

Watch the full interview with MINING.com’s Devan Murugan below.

Joint venture videos are paid-for content in arrangement with The Northern Miner Group.