Saskatchewan Mineral Exploration Tax Credit
Last Update: January 24, 2025
SK, Canada
Tax credit for investors in Saskatchewan mineral exploration
Saskatchewan Mineral Exploration Tax Credit at a glance
Eligible Funding
- Up to 45% of project cost
Timeline
- Continuous Intakes
Financing Type
Tax Credits
Eligible Industries
- Mining, quarrying, and oil and gas extraction
Grant Providers
- Government of Saskatchewan
- Ministry of Energy and Resources (SK)
Status
Open
Overview of the Saskatchewan Mineral Exploration Tax Credit program
Non-refundable tax credit of 10% for Saskatchewan taxpayers who invest in shares issued by mining or exploration companies.
Financing terms and conditions
This grant provides tax credit incentives for investing in approved mineral exploration activities in Saskatchewan, offering a substantial tax reduction for participants. The tax credit is designed to enhance Saskatchewan's attractiveness for mineral investment through financial incentives.
- Tax credit ranges from 45% to 60%, consisting of a 30% provincial credit and a 15% to 30% federal credit.
- Investors can deduct exploration expenses renounced by exploration companies from their taxable income.
- Eligible flow-through shares must be purchased from approved mineral exploration companies.
Eligible projects & activities
Examples of admissible projects:
$ 150,000
Installation of exploration camp near Prince Albert for mineral resource assessment
$ 180,000
Diamond drilling program near Flin Flon to identify potential gold deposits
$ 135,000
Soil sampling and geochemical analysis near Regina for copper exploration
$ 210,000
Seismic survey in the La Ronge area for potential diamond exploration
$ 120,000
Magnetic survey in the Athabasca Basin region for uranium exploration
Eligibility criteria of the Saskatchewan Mineral Exploration Tax Credit program
Eligibility for this grant requires compliance with specific conditions set by the Saskatchewan Ministry of Energy and Resources.
- Any mineral exploration company wishing to issue flow-through shares or flow-through warrants must apply to the Saskatchewan Ministry of Energy and Resources.
- The company must receive written permission from the Ministry to raise capital for exploration activities in Saskatchewan.
Who is eligible?
Eligible applicants for the Saskatchewan Mineral Exploration Tax Credit include individual investors who are Saskatchewan residents, financial partnerships, and mineral exploration companies that are approved by the Saskatchewan Ministry of Energy and Resources. Applications for issuing flow-through shares or flow-through warrants must be submitted by mineral exploration companies in accordance with the program's requirements.
Eligible expenses
The Saskatchewan Mineral Exploration Tax Credit (SMETC) program is designed to incentivize exploration activities for the sustainable development of the province's mineral resources. Projects involve financial activities related to mineral exploration investments and issuance of flow-through shares by approved companies.
- Issuance of flow-through shares by mineral exploration companies to raise capital.
- Renunciation of tax expenses related to exploration activities by mineral companies to investors.
- Investment in eligible mineral exploration companies through flow-through shares by individual investors or partnerships.
Eligible geographic areas
Saskatchewan Mineral Exploration Tax Credit is aimed specifically at supporting mineral exploration within the province of Saskatchewan. The eligible geographical area is therefore confined to this province.
- Companies engaged in mineral exploration activities within Saskatchewan.
How to apply to the Saskatchewan Mineral Exploration Tax Credit program
1
Initial Application Submission
- Email a completed Canada Revenue Agency (CRA) Form T100A Flow-Through Share Information – Application for a Selling Instrument T100 Identification Number (SITIN) along with all other related documents required by CRA to metc@gov.sk.ca.
- Include a copy of the CRA approval letter containing the Selling Instrument T100 Identification Number (SITIN) or T100 Identification Number (TIN).
- Provide a list of the Saskatchewan Disposition Number(s) where the mineral exploration is occurring.
Additional information
The SMETC program provides an attractive tax credit for Saskatchewan residents who invest in mineral exploration within the province, encouraging long-term sustainable development of its mineral resources. Investors can benefit from substantial tax deductions while supporting local exploration activities conducted by approved companies.
- Contact: Aaron Saufert, Director, Mineral Programs and Development
- Email for applications/inquiries: metc@gov.sk.ca
- Phone: 306-787-3377
Contact Government of Saskatchewan
metc@gov.sk.ca
306-787-3377
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