With tax season on the horizon, many investors find themselves grappling with their financial strategies, especially in the realm of flow-through and the burgeoning demand for critical minerals. In a recent InvestorNews interview hosted by Tracy Weslosky, the Founder and President of WCPD Inc., Peter Nicholson shared his expert insights on these pivotal topics.

Flow-through, a seasoned tax code since 1954, plays a significant role as the year draws to a close. Nicholson pointed out that the coming months are prime for securing tax deductions, given the vast financial activity underpinning ongoing drilling operations. He expressed an optimistic view, believing that the market might be on the cusp of a positive pivot. One area driving this sentiment? Critical minerals.

The global demand for critical minerals, such as lithium, uranium, cobalt, copper, zinc, rare earths, and nickel, is skyrocketing. Governments worldwide are rallying behind this sector, while the media underlines the urgency of multiplying our current mineral reserves by five or even ten times. The mismatch between soaring demand and the lagging supply signifies potential price surges in the offing.

Yet, amidst these economic intricacies, Nicholson brings to the fore an innovative approach – the charitable flow-through model. As the brainchild behind this model, he boasts a 17-year impeccable track record. At its core, the model embraces the inherent volatility of the flow-through space by aligning with institutional investors. By offering them a 15-20% discount, these investors buy shares almost instantaneously, guaranteeing liquidity and a promising ROI. The real kicker? Channel this to charity, and a donation of $10,000 might only set you back by $100. Conversely, without the charitable angle, investors can anticipate a net return of roughly 25% post-fees.

Given the abundance of flow-through opportunities, it’s easy for investors to feel swamped. Nicholson’s advice? Think of it as crafting a diversified portfolio. By synergizing with leaders in the mining sector and weighing investments across stocks, GICs, and bonds, investors can find balance and stability. Notably, timing is paramount; historically, the window from April to August has proven most auspicious for acquisitions.

In the ever-evolving landscape of flow-through and critical minerals, Peter Nicholson stands as a beacon of knowledge. For those eager to delve deeper, he will be hosting an upcoming master class on these topics under the aegis of the Critical Minerals Institute on Tuesday, November 9^th at 7PM. We extend our thanks to Nicholson for his illuminating discourse, further cementing his stature as an industry maven.

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About WCPD Inc.

Wealth Creation Preservation & Donation Inc.‘s (WCPD Inc) financial planning strategies help increase your personal wealth by tailoring financial solutions that fit the client’s personal circumstances. Their highly personalized boutique services offer unique financial solutions while working in tandem with larger financial institutions and industry partners. They do not sell products and advice based on sales targets and product launches.

In addition to Insurance Services, WCPD also offers access to some of Canada’s most exciting opportunities in the resources sector, including financings for this essential sector in our economy.  In particular, WCPD is a proud supporter of critical minerals, which are crucial to green technologies of the future.

To learn more about WCPD Inc., click here.

Disclaimer: WCPD Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

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Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

Flow-through Offers an Opportunity to Reduce Taxes and Donate to Charity for High Net Worth Investors and Companies in Canada

In the InvestorIntel interview with WCPD Inc.‘s Founder and President Peter Nicholson, well known for the creation of the charitable flow-through model; Tracy Weslosky asks if right now is the time for investors to investigate flow-through.

Peter Nicholson starts with: “Absolutely, and for a couple of reasons. One is that you could run out of products where there just isn’t any flow-through available at any price. And secondly, the prices tend to get worse for the investors, and the donors later in the year.” Adding that “because the issuers and liquidity providers that take away the risk demand higher margins on their side of the business because they know that they’ve got the investors, donors over the barrel because the end of the tax year is coming. This is a good time consistently after the federal budget till about September, Labour Day has always been, the best pricing for investors to buy flow-throughs.”

Tracy Weslosky goes on to ask Peter Nicholson about the critical mineral tax advantages, and they discuss added provincial benefits. Peter explains that WCPD Inc. assists, in addition to high net worth individuals, holding companies and operating companies with big tax to pay. Stating that “there is no alternate minimum tax in holding companies and operating companies. So if you’ve got tax to pay, we can definitely help on the individual side — and on the corporate side, too.”

To access the full InvestorIntel interview, click here

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About WCPD Inc.

Wealth Creation Preservation & Donation Inc.‘s (WCPD Inc) financial planning strategies help increase your personal wealth by tailoring financial solutions that fit the client’s personal circumstances. Their highly personalized boutique services offer unique financial solutions while working in tandem with larger financial institutions and industry partners. They do not sell products and advice based on sales targets and product launches.

In addition to Insurance Services, WCPD also offers access to some of Canada’s most exciting opportunities in the resources sector, including financings for this essential sector in our economy.  In particular, WCPD is a proud supporter of critical minerals, which are crucial to green technologies of the future.

To learn more about WCPD Inc., click here.

Disclaimer: WCPD Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In this InvestorIntel interview during PDAC 2023, Tracy Weslosky talks with Peter Nicholson, Founder and President of WCPD Inc. discusses charity flow-through financings.

Peter explains that in 2006, there was a tax law change that promoted more philanthropy to donate public shares and not be subject to capital gains tax. He saw an opportunity in flow-through shares, which are all capital gains and therefore the best public shares to give.

Charity flow-through shares have compelling and exciting characteristics, as they not only raise money for companies to help them develop but also donate money to worthwhile causes.

He explains that many people at PDAC now know what charity flow-through shares are, but it is still complex for those not in the tax world and that WCPD has found liquidity providers, which are institutions or high-net-worth individuals that understand the mining business and will buy all the flow-through shares from them immediately as long as they sell at a discount.

To access the full InvestorIntel interview, click here.

Subscribe to the InvestorIntel YouTube channel by clicking here.

About WCPD Inc.

Wealth Creation Preservation & Donation Inc.‘s (WCPD Inc) financial planning strategies help increase your personal wealth by tailoring financial solutions that fit the client’s personal circumstances. Their highly personalized boutique services offer unique financial solutions while working in tandem with larger financial institutions and industry partners. They do not sell products and advice based on sales targets and product launches.

At WCPD Inc. the onus is never on clients to initiate discussions. They are always working to anticipate client needs and tailor the right solutions.

In May 2006, the firm made history when Dr. Earl Wynands, an eminent anesthesiologist and Order of Canada recipient, participated in the first flow-through share transaction without paying a capital gain. Since then, they have performed more transactions than any other firm, leading to charitable donations north of $300 million by our clients across Canada.

In addition to Insurance Services, WCPD also offers access to some of Canada’s most exciting opportunities in the resources sector, including financings for this essential sector in our economy.  In particular, WCPD is a proud supporter of critical minerals, which are crucial to green technologies of the future.

To learn more about WCPD Inc., click here.

Disclaimer: WCPD Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In a world filled with opinions, controversies, and disagreements, one issue most Canadians can agree on is the push for a greener future.

Reducing greenhouse emissions. Preserving our natural environment. And transitioning to a low-carbon economy.

These are all goals worth pursuing.

Who would have thought that mining would play an essential role? 

In April 7^th of last year, Canada opened the eyes of many Canadians when it announced its first ever Critical Minerals Strategy – a new set of laws, regulations and tax incentives to help boost the supply of critical minerals, or the building blocks of technology and green energy solutions. 

“The world economy is going green,” Chrystia Freeland, Deputy Prime Minister and Minister of Finance, said at the last Federal Budget. “Canada can be in the vanguard, or we can be left behind.”

Think cobalt for electric car batteries and wind turbines. Think titanium for solar panels and aerospace technology, or copper for circuit boards and electronics.

The fact is, the average Canadian understands these technologies are important, but has no clue what it takes to actually produce them. Mention mining, and it sometimes conjures images of our grandparents’ generation – destructive, archaic, invasive and damaging to the natural world.

I should know.

For almost 10 years, I have spoken to Canadians about the merits of charity flow-through shares with an immediate liquidity provider to reduce their taxes, and if they wish to, give more to charities of their choice.  You may have heard about flow-through shares before, which makes sense, considering they have been around since 1954 (three years older than your RRSP).

In essence, flow-through shares are a financial instrument used by the government to raise capital for junior mining companies, through a tax deduction equal to the amount invested.

For nearly 70 years, our government has understood how important it is to provide seed funding to junior companies so they can create jobs, stimulate the economy, and hopefully, find that next big deposit of minerals.

This financial structure has not only generated billions in financings for these junior mining companies, but more than a $1 billion in giving to registered Canadian charities.

Allow me to explain.

When a junior mining company plans to drill, our clients purchase these flow-through shares for the 100% tax deduction and donate them to charities of their choice. The shares are then sold to a pre-arranged liquidity provider at a discount a moment later, eliminating any stock market risk.

The charity receives the cash proceeds, but issues a donation tax receipt to the donor, generating a second 100% tax deduction.

In addition, some clients choose to keep the cash proceeds from the liquidity provider for themselves, generating at least a 25% rate of return via tax savings with no stock market risk.

It’s a tried and true model – the GIC of tax deduction, I like to say – with 9 advanced tax rulings and over 6,000 WCPD client tax filings, with no CRA filing issues.

However, of the thousands of clients I’ve met over the years, how many do you think cared about mining? The answer is almost none, except for mining executives, who are high-taxed clients and buy flow-throughs.

Not only did they not care about mining, but as I said earlier, they often had objections. Isn’t mining bad for the environment? For some clients, that was enough for them to walk away.

Suddenly, with the rise of critical minerals, mining isn’t quite so scary anymore.

In my discussions with Canadians, they now understand that there is no path to a low-carbon future without them.

In total, Canada has identified 31 minerals that are deemed “critical” to this future economy, not to mention our national security.

Now we just have to discover them.

As part of their Critical Minerals Strategy, the government has pledged $3.5 billion to boost infrastructure and improve the supply chain. In addition, it has introduced an enhanced tax credit. Explorations involving critical minerals, such as copper, nickel, lithium and cobalt, will now kick out a 30% tax credit (equal to a 60% tax deduction), on top of our 100% tax deductions from the flow-through structure.

Already, our firm has done several of these deals involving critical minerals.

For the technology and green energy sector, the stakes are high. In September 2021, at a mining conference, Tesla CEO Elon Musk famously quipped: “Please mine more nickel. Telsa will give you a giant contract for a long period of time if you can mine nickel efficiently and in an environmentally sensitive way.”

Put simply, this is an opportunity for Canadian mining to shine.

From the production of green energy solutions, to the decision to buy flow-through shares, Canadian mining is something we can all feel invested in.

When a new mining operation begins, we understand the economic benefits. 

We know this industry is responsible for over 700,000 direct and indirect jobs in Canada. Or that it generates more than $100 billion for our economy. The fact it is the number one employer of Indigenous Peoples makes it even more important. 

But what if I told you that exploration is not just having an impact on our economy, but also on Canadian charities? 

A gold mine in British Columbia could mean millions in donations for cancer research, for example. That nickel deposit in Ontario? It can help build a new wing in a children’s hospital, or secure that crucial piece of equipment.  

It’s a perspective that might not be common in the mining industry—but it is an important one, especially in the world of today.  

In May 2006, our firm WCPD Inc. (Wealth, Creation, Preservation & Donation) made financial services history when Dr Earl Wynands, an eminent anesthesiologist and Order of Canada recipient, participated in the first flow-through share donation structure.

WCPD combined two distinct, yet harmonious tax policies: one to assist our important resource sector, and another to boost what Canadians can give to charities. 

Both tax policies are older than your RRSP. 

Beginning in 1954, Canadians investing in flow-through shares have received a 100% tax deduction. These shares help exploration stage mining companies, with the potential for far-reaching economic benefits from exploration projects that become producing mines.

“It helps us find more exploration dollars, which helps uncover economic mineral deposits, which helps create jobs and a lot of tax revenue for Canada,” Walter Coles Jr. explains, CEO of Skeena Resources Limited (TSX: SKE | NYSE: SKE) in British Columbia. 

“I would say flow-through shares have been critically important to the viability of mineral exploration in Canada.” 

Skeena Resources, based in Vancouver, is developing two projects in the “Golden Triangle” of Northern BC, an area known for its rich deposits of copper, silver and gold. A pre-feasibility study was recently completed, with a full feasibility study expected in the first quarter of next year. 

WCPD has worked with Skeena to raise close to $100 million in charity flow-through for these projects. During the spring of 2020, we brokered the largest single raise in our company’s history—$33.3 million, in the very teeth of the pandemic. And we expect to continue to play an important role in financing Skeena’s future exploration programs.

Our ability to raise capital for junior mining across Canada is outstanding. But there is another story. There are Canadian registered charities, receiving millions in charitable donations that they might not have otherwise received.

Since that day with Dr. Wynands, our firm has also facilitated more than $300 million in net charitable giving via flow-through shares for our clients across Canada. Not to mention over $1 billion of flow-through for mining companies to invest in Canadian exploration.

This is the story behind exploration— and I believe, as we emerge from the worst public health crisis in a generation, it deserves to be told more than ever. 

Once flow-through shares are purchased by our clients, they don’t hold them for long—often less than a minute. The buyer can then sell their shares, at a discount, to a third party, or liquidity provider, thus eliminating any stock market risk for the investor or donor, and/or donate the shares to a registered charity. The charity then sells the shares at the same discounted price, to the liquidity providers. Liquidity providers are usually expert mining institutional investors with a long-term horizon. 

Meanwhile, the liquidity provider takes on the stock risk for the standard four-month private placement hold period. For most of our clients, this is a key benefit.  

Together, these tax policies allow our clients, on average, to give up to three times more to charity, at no additional cost due to the tax efficiency. 

“Flow-through shares have long been an efficient and tax-effective way for our donors to give more to our Foundation,” Tim Kluke says, President and CEO of the Ottawa Hospital Foundation. “It continues to play an important role in our mission to deliver a better tomorrow.” 

Some of our clients keep a portion of the cash from the liquidity provider sale to make a positive investment return via tax savings. But most use the structure to leverage the size of their donations to charities of their choice. 

It’s the whole reason why this tax structure exists—Canada wants more exploration, to create jobs, and it wants more donations for registered Canadian charities. They are simply different sides of the same coin. 

It’s an amazing feeling when a donor could have cut a cheque for $100,000 for a food bank. But after using flow-through shares, she now gives $300,000. It often causes the donor to be that much more generous. 

And in this post-pandemic world, there is no doubt that charities need our help more than ever.

The message is clear: if you have a taxable income greater than $250,000, recently sold a business, or experienced a large capital gain, you can kill two birds with one stone. You can help Canada’s mining industry, while also giving more to charities that need our help. 

So the next time you see a mining exploration, consider this: that operation may also be funding a Canadian charity.

In this InvestorIntel financial education series interview, host Peter Clausi talks to WCPD Inc.’s Founder and President Peter Nicholson on the art of the charitable flow through model. Starting with the history of the flow through, Peter Clausi explains that “flow through” was invented by the Canadian government to help stimulate investment in Canadian minerals and oil and gas. Peter Nicholson goes on to say that with “the government of course wants us to explore more and they want to shoulder some of that risk” and that’s where the WCPD win-win strategy begins.

WCPD, a leading exempt market dealer for the Canadian resource and mineral exploration sector that has facilitated more charitable flow-through deals than any firm in Canada, Mr. Nicholson guides investors through the unique opportunities this financial model presents to investors. With a change in tax laws in 2006, Peter understood that donations could be maximized and capital gains avoided on flow through shares “if you donate public shares to your favorite charity.” In addition to the 100% tax deduction for buying flow through shares, Peter explains, if the buyer then donates these shares to charity, the shares are then instantly sold to a pre-arranged buyer at a pre-arranged contractual price – the charity receives the cash proceeds and issues donation tax receipt to the donor, generating a second 100% tax deduction. WCPD was created to help investors with the process and identify and assist recipient charities navigate through the charitable flow through regime. “That was the impetus behind starting our own donor advised fund, which is The Foundation WCPD.”

Peter Clausi and Peter Nicholson also discuss the possibility of additional benefits from the new federal critical minerals tax credit, which still has not published details of how it will work. They will both be speakers at the Critical Minerals Summit being held in Toronto on Wednesday, November 9th at the National Club. Peter Nicholson will be on a panel titled “Critical Minerals and the Capital Markets” being hosted by Tracy Weslosky, the Critical Minerals Institute co-founder.

To access the full InvestorIntel interview, click here.

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About The Foundation WCPD

The Foundation WCPD is a public donor advised fund that specializes in boosting the donations of Canadians using its public flow through share structure with a liquidity provider. Since 2006, they have closed more than 325 offerings, which is significantly more than any other firm in Canada. The Foundation has been directed by its clients to donate over 4,500 cheques to well over 600 charities across the country.

Their clients include a large number of major philanthropists, entrepreneurs, business executives and health, accounting and legal professionals.

Drawing on the expertise of accountants and tax lawyers, The Foundation analyzes strategies to dramatically reduce your tax burden, which allows you to give more. Their efficient flow through model is further assisted by an esteemed Philanthropic Advisory Council, featuring some of the top financial professionals in Canada with specializations in tax, government policy and philanthropy. This founding board is assisted by their exclusive advisory councils representing culture, mining and the National Hockey League (NHL).

The Foundation’s Philanthropic Tax Structure has led to charitable donations north of $100 million by their clients.

To learn more about The Foundation WCPD, click here.