Flow-through shares (FTS) are an excellent means for an exploration company to raise funds in the Canadian capital markets and provide the investors with a tax incentive, by transferring the related tax deductions to them.
While the basic concept is fairly straightforward to understand, there are many technical complexities for both the issuing company and the investor. One of the best technical documents we have found to date was an update prepared by Ian J. Gamble of Thorsteinssons LLP, Vancouver, BC, for Continuing Legal Education, November 2005. Although it was written a few years ago it is still quite accurate. Here is a link to that document.
The Canada Revenue Agency (CRA) also has some helpful information about FTS for both investors and issuers here.