Frequently asked question
01. Can SIDEX finance exploration for any commodity?
SIDEX was established to encourage exploration in Québec for any commodity with an attractive market outlook. Iron ore is however excluded.
02. What kind of exploration projects are most in line with SIDEX’s mission?
Projects that show innovation, either with regard to commodity, geographical area, metallogenic model or exploration techniques, are most in line with SIDEX’s mission.
03. The focus seems to be on new exploration regions (James Bay, Northern Québec, Labrador Trough, etc.). What about projects located in the Abitibi region?
SIDEX also actively funds exploration projects located in the Abitibi region of Quebec.
04. 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 stages.
05. What criteria are considered when analyzing a request for financing?
To gain a better understanding of all the assessment criteria, please consult the “Request for Financing” page.
06. Was SIDEX established to replace flow-through shares?
SIDEX’s role should be looked at as complementary to public financings of junior companies.
07. Does SIDEX invest in flow-through shares?
SIDEX only makes non-flow-through investments.
08. Can SIDEX make loans or debentures?
SIDEX occasionally makes loans or debentures. The preferred mode of financing however remains investments in the shares of publicly listed companies.
09. Are transaction fees charged for private placements?
Fees on the order of 4% are charged for all investments. These are used to cover part of SIDEX’s legal and operating costs.
10. 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.
11. 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 when the funds are used for exploration.
12. Can an investment from SIDEX be used to fund a company’s working capital?
SIDEX typically only finances exploration work. However, exceptions can be made where working capital may be funded to encourage new entrepreneurs, companies that have a project generation model or special situations at the discretion of SIDEX management.
13. What is SIDEX’S investment horizon?
It varies according to market conditions.
14. Is SIDEX active on the secondary market?
Yes, SIDEX has an active portfolio management strategy which involves activity on the secondary market.
15. 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.
16. How are the terms of a private placement with SIDEX determined?
The terms of a placement reflect the share price at the time of investment and prevailing market conditions.
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