Bruce, in the past i have owned two different flow throughs. The shares are bought by a Limited Partnership ie Pathway/Minerial Fields.

Because it's a LP the exploration expense can be deducted from employement income or business income NOT just capital gains. A few issues back, Pathway, rolded over to the mutual fund in less than 6 months so I don't believe the minimum is 1 year, I believe it's 4 months. It's very unusual to have a roll over happen in less than a year.

Everyone seems to mention dilition when flow though shares or new common shares are issued, but lets not forget real cash is paid by the investor, basically, debit cash, credit shareholders equity. I only see it as dilition if its done less than FMV. Flow through shares are also sold typically at a 20-25% premuim over FMV.

cheers