Investors looking to enter the mining sector should consider companies who operate in the province of Manitoba. Why Manitoba you ask? In 2016 Manitoba moved up 17 spots to be ranked number two in world becoming the second best area for investment in mining, as stated by the Fraser Institute.
The Manitoba government has implemented key government policies that will be a big driver for continued investments within the mining sector for the province. Government policies that could potentially benefit Far Resources (CSE:FAT OTC:FRRSF FSE:FOR) are through several attractive Tax incentives which include a Progressive Mining Tax rate, Tax Holiday for New Mines, Off-Site Exploration Allowance, New Investment Tax Credit and processing Allowance.
- FAR Resources
Other tax reduction policies that the government of Manitoba has implemented are also the reduction of Corporate Taxes, Motive Fuel Tax, Payroll Tax and Sales Tax. Other policies which are factored for the increased ranking for investing in Manitoba included skilled labour, labour relations, environmental regulations, security, infrastructure and political stability.What does this mean for Far Resources?
A company like Far Resources who is extracting high grade lithium results with recent grades totaling 1.42% and 2.71% from their Zoro Property, could benefit greatly through further support by the Manitoba government. This has already been the case when Far Resources announced on December 19th 2016 that the company received a Minerals Exploration Assistance Program (MEAP) Grant.
The MEAP Grant from the Manitoba Government was created to assist and to increase exploration and encourage mining companies to commence the development of new mines and is only distributed to companies with projects with a high probability of a successful project. With the MEAP Grant issued to Far Resources, this Grant provides up to 50% of eligible expenses related to the exploration of the Flin Flon/ Snow lake area where Far Resources Zoro Lithium property is located.Conclusion
Far Resources CSE:FAT OTC:FRRSF FSE:FOR is in a great position to receive future additional support from the Manitoba Government whether it is in the form of grants or tax incentives. These contributions would help ensure the future of the drilling programs in place and to explore future projects. Far Resources may further benefit from the Progressive Mining Tax Rate. This mining tax rate will allow Far Resources to lower their tax rate as the corporate tax rate will be reduced from 18% to 10% when the total of the operators profit is less than $50 Million dollars. With full provincial government support in motion to stimulate economic development within the province, we believe Far Resources has all the essential tools to be a top tier Canadian lithium name.
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