The Quebec Advantage

Hinterland’s properties are in Quebec which is one of the most mining friendly jurisdictions in the world. Quebec is on the forefront of online digital data and mineral title acquisition, mine-site reclamation, and First Nations and other stakeholder consultation. Quebec’s benefits include a streamlined permitting process, exploration incentives that provide up to 37% as refundable tax credits on qualifying mineral exploration expenditures, and access to low-cost hydroelectric power. Moreover the Quebec Abitibi is marked by perhaps the cheapest per metre drill costs in the world. Hinterland maintains an exploration office in Val-d’Or, Quebec where a full range of exploration services and supplies are available.

The following chart shows the advantage to shareholders investing in Hinterland’s Quebec exploration companies assuming that the refunded tax credits are reinvested in exploration in subsequent years. If the initial investment is $1.5 million in 2018, the tax credits will generate $760,000 of refunds over the next four years resulting in cumulative exploration expenditures of $2.26 million. This “auto-financing” translates into less dilution for shareholders. Note that the refundable tax credits are not available to exploration work funded by flow-through. The advantage is created by hard dollar investment only