Wednesday, April 21, 2010

The Quebec exploration rebate program

I wonder if we finally get to participate, now that we are putting new holes in the ground.

Quebec offers cash rebate incentives of 47% on exploration expenditures made on Quebec mineral properties.

I wasn`t able to find the official rules online. However, I don`t get the sense that producing companies are excluded from participating in the program. After all, Richmont Mines is a producer and they booked $1.3M in exploration tax rebates in 2009 (likely pertaining to exploration from 2008 and likely relating to their producing Beaufor Mine - nearly 100% of their 2008 Quebec exploration expenditures incurred at Beaufor).

Back to Century, it would be a nice bonus if we are allowed to participate. For example, (for simplicity sake) let`s just say we spent $1M on Bedard Dyke exploration, it would then mean (following the logic) we get back $470K in rebates. It seems like the rebate cheques are not issued until a year later so we may have to wait until 2011 for our cheque (assuming we get one of course).

Taking it a step further, if we eventually incur say $4M on our new Lamaque exploration program I wonder if we will eventually receive a $1.88M rebate cheque. That would a nice bonus. You know, serious cash flow from our production ounces that can be directed towards growing the business both organically and through acquisitions, while we use the rebate cheques to move more ounces into P&P in order to replenish ounces used up in production.

That`s a good business model. No wonder Quebec is ranked the number one mining jurisdiction in the entire world.

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