Frequently asked question (FAQ)

  1. Can SIDEX finance exploration for any commodity?
  2. Have there been any changes to this approach over the years?
  3. What kind of exploration projects are most in line with SIDEX’s mission?
  4. The focus seems to be on new exploration regions (James Bay, Northern Québec, Labrador Trough, etc.). What about projects located in the Abitibi region?
  5. Can SIDEX fund advanced exploration and development projects?
  6. What criteria are taken into account when analyzing a request for financing?
  7. Was SIDEX established to replace flow-through shares? 
  8. Does SIDEX invest in flow-through shares?
  9. Can SIDEX make loans or debentures? 
  10. Are transaction fees charged for private placements?
  11. What is the limit of SIDEX’s participation in the share capital of a company?
  12. Can a company claim the refundable tax credit from Québec following an investment from SIDEX?
  13. Can an investment from SIDEX be used to fund a company’s working capital?
  14. What is SIDEX’S investment horizon?
  15. Is SIDEX active in secondary markets?
  16. Can companies based outside Québec be financed by SIDEX?
  17. How are the terms of a private placement with SIDEX determined?

 

1. Can SIDEX finance exploration for any commodity?

SIDEX was established in an effort to encourage exploration in Québec for any commodity with an attractive market outlook. Iron, asbestos, as well as gold in established mining camps were initially excluded.

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2. Have there been any changes to this approach over the years?

Gold projects may now be considered, depending on their innovative character, but iron and asbestos remain excluded.

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3. What kind of exploration projects are most in line with SIDEX’s mission?

Projects that show innovation, either with regard to commodity, area, metallogenic model or exploration techniques, are most in line with SIDEX’s mission.

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4. The focus seems to be on new exploration regions (James Bay, Northern Québec, Labrador Trough, etc.). What about projects located in the Abitibi region?

From the beginning, SIDEX has financed exploration projects for base metals in the Abitibi region. As for gold, if the project is innovative, it will be considered. The same can be said for projects that help diversify the region’s mineral base.

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5. Can SIDEX fund advanced exploration and development projects?

SIDEX’s mission is to finance grassroots exploration projects. Subsequent phases of a project may be funded if SIDEX was already involved in the early phases.

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6. What criteria are taken into account when analyzing a request for financing?

To gain a better understanding of all the assessment criteria, please consult the “Request for Financing” page.

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7. Was SIDEX established to replace flow-through shares?

SIDEX’s role is to complement the public financing of junior companies.

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8. Does SIDEX invest in flow-through shares?

SIDEX only makes non-flow-through investments that specifically fund exploration work but provide the refundable tax credit from Québec.

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9. Can SIDEX make loans or debentures?

SIDEX occasionally makes loans or debentures. The preferred mode of financing remains investments in the share capital of companies.

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10. Are transaction fees charged for private placements?

Fees on the order of 4% are charged for all placements. These are used to cover part of SIDEX’s legal and operating costs.

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11. What is the limit of SIDEX’s participation in the share capital of a company?

The limit is 10% but SIDEX may exceed this level if warranted.

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12. Can a company claim the refundable tax credit from Québec following an investment from SIDEX?

Yes, an investment from SIDEX is eligible for the tax credit.

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13. Can an investment from SIDEX be used to fund a company’s working capital?

SIDEX only finances exploration work. However, the provincial tax credit that stems from the investment may be used as working capital.

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14. What is SIDEX’S investment horizon?

It varies according to market conditions.

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15. SIDEX occasionally participates in secondary markets, but its main objective is to finance exploration projects in the primary market.

SIDEX occasionally participates in secondary markets, but its main objective is to finance exploration projects in the primary market.

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16. Can companies based outside Québec be financed by SIDEX?

SIDEX may finance such companies, provided the entire amount of the financing is invested in projects located in Québec.

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17. How are the terms of a private placement with SIDEX determined?

The terms of a placement reflect the share price and market conditions.