1. What is the difference between Limited Partnership Units vs. Flow-through shares?


2. How is the CEE passed through to Limited Partnership Unit holders?


3. Winding up or rolling over? What happens to resource flow-through limited partnerships?


4. Can I purchase flow-through shares inside my RRSP?


5. Is there a limit on the amount of flow-though I can purchase?

A limited partnership is a vehicle that pools assets together allowing individual investors to own a diversified portfolio of resource companies.  Flow-though shares are a type of share purchased by the limited partnership which provides certain tax advantages to investors.

A limited partnership flows through all tax assets or liabilities to individual investors, in the case of Canadian Exploration Expense it would be divided prorate amongst the unit holders.

The roll-over of 49 North, subject to unit holder approval, will be rolled over on a tax deferred basis.  Generally the limited partnership rolls over into another investment vehicle on a tax deferred basis.

No, flow-through shares must be purchased outside of your RRSP, although if they are in a company that is listed on a stock exchange, the shares become RRSP eligible and can be contributed for further deductions.

No, there is no limit on the amount of flow-through shares you can purchase.  Flow-through shares produce a deduction called Canadian Exploration Expense.  While there is no limit, the tax efficiency of flow-through is reduced when a tax payer is in a lower tax bracket.