VanadiumCorp Receives Mining Tax Credits
VANCOUVER, BRITISH COLUMBIA – August 8, 2019, VanadiumCorp Resource Inc. (TSX-V “VRB”) (the “Company”) is pleased to announce it has received $556,117.00 CDN from the Province of Quebec on a positive decision regarding files dating back to 2002. The Company will use the funds to further develop its mining assets and the VanadiumCorp Electrochem Process Technology (VEPT).
The government of Quebec supports mineral exploration within its borders with a tax credit system that refunds expenses for eligible companies. Société Plan Nord and other branches of the Quebec government have also played an integral role in advancing the adjacent vanadium, titanium, magnetite mining project in the region.
From the Province of Quebec
Québec has significant mining potential that accounts for one-fifth of Canada’s mineral production. The province produces and beneficiates 15 metals and 14 non-metallic minerals, making it the most diverse resource base in Canada. This diversification is set to increase with the arrival of tantalum, vanadium, and apatite mining projects.
Québec is strategically located above the Northeastern United States. It is close to major population and industrial centers and has easy access to Europe and Asia thanks to its deepwater ports. Québec also works closely with associations that represent the mining sector and with host communities. The latter are natural project partners and work with the government to develop the mining sector and promote it while respecting the principles of sustainable development. The results of the Fraser Institute’s most recent survey are indicative of the interest Québec has generated among mining investors. The province was ranked the 6th most attractive region in the world according to the mining and exploration companies surveyed.
Québec has one of the friendliest business climates for mining investments. Under the Mining Tax Act, Québec’s tax regime includes various measures to support companies in different phases of the mining cycle, including:
- A refundable duties credit for losses, a unique measure in Canada, which provides a refund of up to 16% of the amount of eligible work (exploration-related development and preproduction development);
- An allowance for community consultations, including First Nations consultations, for mining projects (allows mining companies to deduct a portion of these costs);
- An environmental studies allowance so mining companies can deduct a portion of the costs incurred to produce studies on the social and environmental impact of their projects.
The Act also helps stimulate mining in Québec, including on Plan Nord territory, through:
- An exploration allowance that adds an extra 25% to exploration expenses incurred on Plan Nord territory;
- An additional allowance for mines located on Plan Nord territory to offset the high costs associated with starting production at a mine on this territory.
The mining tax system also facilitates the processing and transformation of extracted mineral substances. For example, companies can get an allowance to acquire assets used in ore processing. The allowance is a percentage of the cost of the items and is determined based on the nature of the processing activity. This percentage is one of the most advantageous in Canada.
VanadiumCorp Resource Inc. is an integrated technology and mining company focused on developing the exclusive supply chain for vanadium based energy storage and emerging technologies that utilize vanadium. VanadiumCorp is focused on commercializing the most efficient and sustainable recovery method to produce vanadium with jointly developed process technology. VanadiumCorp also holds a significant vanadium-titanium-iron bearing resource base in mining friendly Quebec, Canada including the 100% owned Lac Dore Project adjacent to Blackrock Metals Inc. and the 100% owned Iron-T Project near the Glencore (Bracemac-McLeod) Matagami Copper-Zinc Mine.
On behalf of the board of VanadiumCorp:
President and Chief Executive Officer
For more information:
President and CEO, VanadiumCorp Resource Inc. (TSX-V: “VRB”)
By phone: 1-604-385-4489
By email: firstname.lastname@example.org