A Canadian structure that passes exploration tax deductions to the buyer, so the shares price at a premium but the money is ring-fenced for exploration.
A Canadian tax incentive that allows mining exploration companies to transfer tax deductions for exploration expenses to investors. Flow-through financing is a common method for junior miners to raise capital for exploration programs.
Flow-through money can only be spent on qualifying Canadian exploration. That is good for shareholders — it funds drilling rather than salaries — but it also means a company flush with flow-through cash may still be short of money for anything else.
Flow-through raises often price above market because the tax benefit is worth something to the buyer. A premium raise is not evidence of strong demand for the equity itself.
Flow-through buyers are frequently tax-motivated rather than mining-motivated, and a portion sells as soon as the hold period ends. Year-end flow-through rounds often carry a predictable overhang into the new year.
108 terms have their own page: the definition, why it matters to an investor, where it shows up in practice, and the mistake people make with it.