Senior members of the Toronto Stock Exchange and Westgold Resources celebrate the company’s listing in September. Credit: Blair McBride
Concerns surrounding the capital gains tax increase haven’t stopped Toronto markets from issuing the highest number of flow-through shares (FTS) in five years, according to new data.
There were 2.9 billion FTS issued last year, generating over C$1 billion for the mining sector and accounting for 10% of mining equity financings, says TMX, owner of the TSX and TSXV.
It’s become a critical tool for the exploration funding system, according to Kendra Johnston, managing director of PearTree Securities, a boutique financing firm focused on the junior Canadian resource sector.
“[FTS are] focused on incentivizing the exploration and development phase of the mining sector which is the high-risk, high-reward phase,” Johnston said in an interview. “You need…
