Dec '07/Jan '08

Mining Matters

Flow-through mining shares make giving easy

By L. Clinton

The PDAC Mining Matters program is a non-profit charitable organization created by the Prospectors and Developers Association of Canada’s education committee over a decade ago. We should all thank these dedicated individuals for identifying the need to educate young Canadians about the vital role that mining plays in their lives.

Since Mining Matters was founded, approximately 400,000 elementary students have participated in its award-winning study units, and an exciting new program, Discovering Diamonds, is informing secondary school students of developments that have made our country one of the largest diamond producers in the world. Mining Matters continually strives to update, enhance and expand its programs and resources.

To achieve its mission objectives, the program relies on contributions from corporations and individuals involved in the mining industry.

Edward G. Thompson, past president of PDAC, has been instrumental in promoting the donation of flow-through shares as a meaningful way for members of the mining industry to support the program’s charitable mission and realize significant tax benefits.

“Donating flow-through mining shares is a particularly attractive tax strategy for the investor. The net purchasing cost is considerably lessened between the original tax write-off and further deductions resulting from a charitable receipt,” said Thompson.

The elimination of capital gains on stocks, bonds and mutual funds means that a contribution to Mining Matters will result in a tax receipt equal to the fair market value of your gift. Rather than being subject to the 50 per cent capital gains tax payable on shares sold during your lifetime, accrued capital gains on donated shares are exempt from taxes. You will be able to use the entire amount of your tax credit against other sources of income. In effect, the tax benefit arising from your gift is the same as if your donated securities were cash.

Since Mining Matters’ flow-through share program was established earlier this year, several prominent industry members have joined Thompson in donating shares to the organization.

Mining Matters is deeply indebted to the following for their generous donations: Edward G. Thompson, past president, PDAC; James Gill, president and CEO, Aur Resources Incorporated; Donald McInnes, CEO and vice chairman, Plutonic Power Corporation, and president, Blackstone Ventures Incorporated; and Robert Schafer, vice president, business development, Hunter Dickinson Incorporated.

“These gifts greatly enhance our ability to deliver mining education programs,” said Laura Clinton, project coordinator of Mining Matters.

To learn more about donating shares, please contact Durham Sims, Mining Matters’ investment advisor at RBC Dominion Securities.

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