Can you introduce our audience to NQ INVESTISSEMENT MINIER (NQIM)?

NQIM is a new institutional fund created in 2023. In Québec, the last fund was created over 20 years ago, and was SIDEX. Our two sponsors are regional organizations in Northern Québec: La Société de Développement de la Baie James (SDBJ), and l’Administration Régionale Baie-James (ARBJ). They decided to create a fund to develop the mining industry in the north of the province. Currently, we have about CA$17 million to invest. We would like to become a quality stamp of investment in the North: If NQIM is there, it is a good project. We do a lot of due diligence before investing, not only on promotors but also regarding their relationships with communities and how the latter perceive the project.

We are here to invest in exploration projects. One of our sponsors has all the mayors of communities in their organization, so I will present the fund to those elected officials and the First Nations in the next month. What were the catalysts that prompted the creation of NQIM?

The SDBJ previously operated a fund, but the need for a new institution became apparent following the big claim rush in Northern Québec in recent years. The SDBJ realized they did not have enough capital to push projects from exploration to production, so they decided to create a new fund. The lithium and nickel rush, along with major firms coming in historical camps like Chibougamau and Matagami meant it was the perfect timing to create this fund. The Ministry of Natural Resources also made the plan to develop the Critical and Strategic Minerals (CSM) supply chain, so all stars aligned. Regarding the market, a lot of firms are having a hard time finding cash, so this fund arrives at the right time to support the ecosystem. How does NQIM determine whether or not to fund a project?

The first criterion is that the firm needs to operate an asset in Northern Québec. Then, they need to have a strong balance sheet. They need to have an experienced management team and be well supported by contractors. ESG is key, as we will do due diligence on the promotor’s track record, along with the Board of Directors. We then look at the diversity of the Board. We will make sure they understand Québec’s policies when exploring in the North and if they have their permits to drill and do the work, and if they have consulted First Nations ahead of their exploration work. For Québec firms, this approach is normal. But we have seen a lot of renewed activity from foreign firms, particularly from Australia, in the past two years, so we want to make sure they understand our practices well. In a highly cyclical space, what will be NQIM’s diversification strategy?

It is clear that we need a diversified portfolio. We are there to develop Northern Québec, so we are commodity agnostic. First, we need to make sure we are diversified geographically. I also want us to be diversified on company sizes: Not just early stage exploration, but also large market cap companies. Importantly, we can support from early stage exploration until construction. I want to find another sponsor for the fund to grow and for us to be able to invest higher amounts in those mining companies. How do you assess Québec’s role in the success of the green transition?

The government began by securing the third transformation in Bécancour. After that, the next step will be to secure the upstream, the feed. The bottleneck right now is that we do not have enough advanced projects in Northern Québec. The government will therefore support, with Investissement Québec (IQ), NQIM or other funds, to push projects to become more advanced. The more advanced projects, the more infrastructure we can build, as we will have a global reach. There will be a phase of consolidation: Right now, after a claim rush, James Bay for instance looks like a puzzle. What will be NQIM’s key priorities moving forward?

The key priority will be to get the fund up and running.