Long regarded as one of the most attractive mining investment jurisdictions globally, Saskatchewan just improved its position again! On September 27, 2018, the Government of Saskatchewan introduced the new Targeted Mineral Exploration Incentive by enacting The Targeted Mineral Exploration Incentive Regulations and repealing The Mineral Exploration Incentive Regulations. The new Targeted Mineral Exploration Incentive focuses on base metals (copper, lead, nickel and zinc), precious metals (gold, silver, platinum, palladium, osmium, iridium, ruthenium and rhodium) as well as diamonds in the Creighton-Flin Flon region and other areas (see Eligible Area Map here). The Targeted Mineral Exploration Incentive is designed to cover a portion of expenditures associated with ground-based exploration activities specifically surface drilling, including but not limited to the following:

• drilling, including but not limited to casing, cementing, testing, reaming, wedging and orientation;
• labour, including but not limited to site preparation, skid work, cat work, sump maintenance and foreman;
• travel and transportation costs of personnel, equipment and supplies used in the work with respect to the approved application to a maximum of 40%;
• equipment and consumables, including but not limited to rentals, drill steel, muds, lubricants, fuel and helicopters;
• other items, such as moves between drill sites and standby; and
• any other approved direct drilling expenditures.

Applicants may receive a rebate of 25 per cent of eligible direct drilling costs, up to an annual maximum of $50,000 per company on a pro-rated basis. Proration will occur if the uptake and work expenditures exceeds the amount of funding available for a given fiscal year. The approved funding level for 2018-2019 is $750,000. Funding for subsequent years will be determined on an annual basis. Eligibility for the Targeted Mineral Exploration Incentive is limited to holders of mineral dispositions that is registered in accordance with section 12 of The Mineral Tenure Registry Regulations and that are lawfully carrying on business in Saskatchewan with a principal objective is to explore for or mine minerals.  Applicants are required to complete the Application Form and Verification of Work Form providing the following information:

• the proposed dates for the work to be carried out;
• the mineral disposition number for each mineral disposition that is included in the application;
• the drilling method;
• the collar locations of planned drill holes;
• the planned end of hole depths;
• the planned drill hole orientation;
• the proposed expenditures directly related to drilling; and
• evidence applicants are eligible holders.

Importantly, all technical information submitted by an applicant in connection with the Targeted Mineral Exploration Incentive is confidential and minister and officers or employees of the ministry are required to preserve confidentiality for 3 years. For expenses incurred between April 2018 and March 31, 2019, the application deadline is December 31, 2018 with verification of work on or before April 30, 2019. More information and resources are available online at:

• Targeted Mineral Exploration Incentive
• Targeted Mineral Exploration Incentive Information and Q&A,
• Targeted Mineral Exploration Incentive Fact Sheet,
• Eligibility Area Map
• The Targeted Mineral Exploration Incentive Regulations

About the Author: Chris Masich is a Partner practicing in the Firm’s Saskatoon office where he maintains a commercial transactions and project development practice focusing on Saskatchewan key economic sectors – energy, natural resources and agricultural. Additionally, Chris provides special counsel on environmental risk management and environmental regulation across all industry sectors.

About McKercher LLP: McKercher LLP is one of Saskatchewan’s oldest and largest law firms with offices in Saskatoon and Regina. Our deep roots and client-first philosophy have made our firm rank in the top 5 in Saskatchewan by Canadian Lawyer magazine (2017). Integrity, experience and capacity provide innovative solutions for our clients’ diverse legal issues and complex business transactions. This post is for information purposes only and should not be taken as legal opinions on any specific facts or circumstances.  Counsel should be consulted concerning your own situation and any specific legal questions you may have.