SIDEX and the SDBJ Mining Fund Join Forces again
A financing initiative for drilling on Québec’s James Bay territory for junior mining companies
Montréal, December 16, 2019 – SIDEX and Mining Investment Fund SDBJ (“SDBJ”) have joined forces to launch DRILLING JAMES BAY 2020, an initiative designed to encourage junior mining companies to test new drilling targets on Québec’s James Bay territory during winter 2020.
The $1.5 million initiative is available for a limited time and is open to all companies with a drilling project on Québec’s James Bay territory, provided it is consistent with the missions of SIDEX and SDBJ.
Designed to finance drilling programs, DRILLING JAMES BAY 2020 offers financing of $200,000 per company in equity based on market conditions. To qualify the company will need to conduct a drilling program of a minimum of $300,000.
Michel Champagne, President and CEO of SIDEX, commented: “We are pleased to pursue this initiative with SDBJ to accelerate the emergence of new mineral discoveries on the James Bay territory of Québec”.
Alain Coulombe, MBA, CEO of SDBJ, added: “This collaboration allow us to renew our commitment to increasing the mineral resources of the James Bay region”.
In order to qualify for financing, companies must meet certain criteria, among others:
- Be listed on the TSX or TSX-V;
- Have respected the Québec Securities Act for at least 3 years;
- Have no working capital deficiency at the time of application;
- Have a sustainable development policy in place;
- Have an independent board of directors (as per Regulation 52-110 of the Securities Act);
- Have administrative expenses that are in line with the company’s size;
- Work will need to be performed by a member in good standing with the Ordre des géologues du Québec or the Ordre des ingénieurs du Québec; and
Eligible companies are invited to submit an application containing the required information. Complete files will be processed in order of date of receipt and accepted until March 15, 2020 or until the $1.5 million budget is exhausted. SIDEX and SDBJ will base their decision on the technical quality of the projects and the strategy of the management team. Testing of new targets will be favored. A due diligence and approval process has been put in place to speed up the investments.
The proposed exploration program must be completed before the end of April, 2020 and a summary of the work performed and a statement of expenses sent to SIDEX by June 30, 2020.
Applicants will be charged a 4% application fee, which includes preparation of the legal documentation by SIDEX and SDBJ.
HOW TO OBTAIN FINANCING
“DRILLING JAMES BAY”
The following documents must be submitted along with the application.
- A copy of the company’s sustainable development policy
- Documents on the company’s current financial situation:
- Last quarter
- Confirmation of positive working capital on the date of application and description of any type of obligation in respect of exploration expenses and payments to maintain an interest in the company’s properties in 2020
- Evaluation of the board of director’s independence in the information circular
- Summary report on the project, including:
- Brief background
- Property rights
- Exploration drilling program (excluding definition drilling) and objectives
Post-investment, due by June 30, 2020
The work contemplated by the financing must be completed by April 30, 2020 and a summary report submitted by June 30, 2020 containing:
- A description of the work performed
- A statement of expenses (at least $300,000 for a drilling campaign)
SIDEX is an initiative of the Québec government and the Fonds de solidarité des travailleurs du Québec (F.T.Q.) whose mission is to invest in companies engaged in mineral exploration in Québec in order to diversify the province’s mineral base, promote innovation and support new entrepreneurs.
About the SDBJ Mining Investment Fund
Established in 1971 under the James Bay Region Development Act, SDBJ’s mission is to promote economic development and the development and exploitation of natural resources in the James Bay territory, other than hydro-electric resources falling within Hydro-Québec’s mandate, with a view to sustainable development. The SDBJ may generate, support and carry out projects in the pursuit of those objectives.
Information for media representatives only:
President and CEO
Telephone: 514 383-2612