WCPD, an acronym for Wealth, Creation, Preservation and Donation, marked a major milestone last year with a $100 million Charity Flow-Through financing for Skeena Resources in Vancouver.
Flow-Through Shares support Canadian junior resource exploration while creating an avenue for donors to make sizable charitable gifts through a tax-efficient structure.
The achievement reflects years of refinement and education in a unique corner of Canada’s mining and philanthropy environment. It also highlights how the firm has helped transform this space since the early days of Flow-Through financing.
Peter Nicholson, president and founder of WCPD, or WEALTH for short, spoke openly about how far the model has come and why Skeena’s record $100 million financing is such a meaningful milestone. He explained that many Canadian investors are already familiar with traditional Flow-Through Shares, which, since the 1950s, have allowed buyers to claim a 100% tax deduction for every dollar invested.
This Canadian tax policy was well known, but it also came with stock market risk since investors had to hold the shares for at least four months prior to selling. Investors in these risky Flow-Through Shares hoped the stock price did not significantly drop in that four-month period, eliminating the tax savings advantage.
The turning point came in 2006, when the federal government removed capital gains taxes from the donation of public stock.
“I knew immediately we had something special with this change in tax policy,” Nicholson explains. “And the rest is history.”
These tax policy changes led to the creation of Charity Flow-Through Shares, otherwise known as Structured Flow-Through.
Rather than holding onto the stock market risk, clients can now purchase the shares and then immediately sell them to a pre-arranged liquidity provider at a discount, often a bank, hedge fund, or high-net-worth mining investor.
This step is crucial, as it eliminates any stock volatility typically associated with junior mining stocks.
Although the client sells the Flow-Through Shares at a small discount, investors receive a predictable, or structured, outcome. When combining the proceeds of sale, plus the 100% tax deduction, and other federal and provincial credits, the investor can achieve a 25% or more return on their investment.
The “charity” element adds another dimension: since 2006, Canadians can donate these shares to charitable organizations, unlocking more tax savings via the charitable tax receipt. The charity then sells the shares to the liquidity provider, creating a “structured” outcome for both their organization and the investor.
Through all the tax savings, clients can bring down the cost to donate from 50 cents to give a dollar, at the highest marginal tax rate, to as low as a penny.
The financing with Skeena, which closed in June 2024, demonstrates how far the approach has spread.
The funds will support Skeena’s advancement of its project in the Golden Triangle of British Columbia. Nicholson noted that it formed part of a larger $1 billion financing package and that this portion set a national record. He mentioned that the previous high was around $70 million, so surpassing that figure shows growing confidence among both donors and institutional liquidity providers.
WCPD has been involved with these structures from the beginning.
The firm completed the first-ever donation of Flow-Through Shares only days after the 2006 rule change. Overall, the firm has closed more than 725 structured Flow-Through transactions. Many are modest in size, while others involve tens of millions of dollars. The consistent activity has allowed the company to maintain strong relationships with mining issuers and institutions that support these deals.
Today, the Structured Flow-Through model remains a trusted government tax policy in Vancouver and throughout Canada. Industry wide, the structure has generated billions in financing for junior mining exploration in Canada, and billions more for charities across Canada.
The continued growth of Structured Flow-Through financing reflects broader interest in critical minerals, energy transition supply chains, and pathways that blend capital market activity with charitable giving. The $100 million record signals a growing willingness among donors and institutions to support large-scale development work in Canada’s mineral-rich regions. It also points to the long-term value of a model that reduces risk for individual investors, provides premium financing for exploration and development companies, and channels significant gifts to charities in the country.
The record-setting Skeena financing deal showcases how Structured Flow-Through continues to evolve. Investors get access to a tax-efficient, low-risk way to support resource development. Mining companies receive premium financing that advances exploration and development work. Charities benefit from substantial donations that flow from these transactions.
As interest in critical minerals grows and Canada remains a target for responsible resource development, this method is likely to keep gaining traction. The $100 million benchmark is a sign of confidence in both the model and the sector, and it sets a foundation for even larger transactions in the years ahead.
