What is the status of flow-through shares under section 6202 of the Minerals and Exploration Regulations?

The status of the flow-through shares under section 6202 of the Regulations was discussed by Bonner, J.T.C.C. in Esplen v. The Queen.[3] He stated, at p. 1276, that: ... The statutory provisions now in question were enacted with a view to encouraging investment in the exploration and development of mineral resources. The statutory scheme permits an investor to subscribe for flow-through shares of a corporation. It was intended that the subscription funds be used by the corporation for exploration, that the corporation's exploration expenses be renounced to the investor and that the exploration expenses be treated for purposes of the Act as the expenses of the investor. Plainly the objective of the scheme would not be attained if the subscription price were diverted from exploration and used to make provision for some sort of arrangement designed to permit the investor to recover some or all of his money in the event that the financial performance of the share was disappointing. ...