Toronto, Ontario – July 25, 2023 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to announce that Manitoba Finance has confirmed that the Company’s Tartan Mine, located near Flin Flon, would be considered a “Major Expansion” and eligible for a tax holiday should the mine re-enter production. Under the Mining Tax Act, companies need to meet certain requirements to receive the tax holiday. Based on the Company’s review and meetings with Manitoba Finance, the Tartan Mine should meet all requirements.
Major Expansions by mining companies in Manitoba are exempt from paying Mining Tax until profits equal the amount of capital spent to open the mine. At the end of the tax holiday, a company will be allowed to depreciate the undepreciated balance against future Mining Tax, further increasing the attractiveness of Manitoba as a jurisdiction to explore and operate. This is in addition to other incentives such as Processing Allowance and Provincial Sales Tax Deduction on electricity, among others. These tax incentives will be incorporated into future economic studies and should increase potential financial returns associated with the Tartan Mine by increasing the Net Present Value (“NPV”) and reducing the payback period.
As detailed in the Company’s June 5, 2023 news release (please click here), other initiatives are underway to improve the potential financial returns at the Tartan Mine, while focused on sustainability such as electric mining, ore sorting and metallurgical test work to further increase gold recoveries. Most importantly, the Company is currently completing its Phase 1 Exploration Program at the Tartan Mine, designed to extend the high-grade gold mineralization at depth. Results will be released once received.
For Further Information, Please Contact:
Interim President & CEO
Canadian Gold Corp.
About Canadian Gold Corp.
Canadian Gold Corp. is a Toronto-based mineral exploration and development company whose objective is to expand the high-grade gold resource at the past producing Tartan Mine, located in Flin Flon, Manitoba. The Company holds a 100% interest in greenfields exploration properties in Ontario and Quebec adjacent to some of Canada’s largest gold mines and development projects, specifically, the Canadian Malartic Mine (QC), the Hemlo Mine (ON) and Hammond Reef Project (ON). The Company is 37.6% owned by Rob McEwen, who was the founder and CEO of Goldcorp and is Chairman and CEO of McEwen Mining.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release of Company contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Canadian Gold’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.