Andrew Disipio Partner and Head of Mining BENNETT JONES
What were Bennett Jones' Mining Group's highlights in Québec in 2024?
In 2024, we led a number of notable transactions, including the sale of Osisko Mining's Windfall project to Gold Fields for C$2.2 billion, a premium deal that highlights the global potential of Québec as a top-tier mining jurisdiction.
We also led the C$204 million acquisition of O3 Mining by Agnico Eagle Mines. Other transaction highlights in Québec included the C$1 billion merger of Piedmont Lithium and Sayona Mining, forming North America's largest hard rock lithium producer; key mandates for Kinterra Capital's investment in the Dumont Nickel project; and Doré Copper's merger with Cygnus Metals.
Elsewhere in Canada, we also led First Majestic's C$1.3 billion acquisition of Gatos Silver, which was among the top 10 global mining deals of 2024.
What has driven mining M&A activity over the last year?
The continued disconnect between record commodity prices and public market valuations for exploration and development companies has created opportunities for strategic buyers to unlock value through acquisitions. We are also seeing an increase in joint venture structures as a way to de-risk mining projects.
Mining M&A in Canada totaled US$20.5 billion across 574 announced deals in 2024, reflecting robust market activity.
How might changes introduced in Québec's 2025-26 budget affect the mining sector?
The 2025-26 Québec budget introduced significant changes to the flow-through share regime, removing several provincial tax advantages that had made Québec offerings more attractive. As a result, subscription premiums are expected to decline and align more closely with national levels.
At the same time, the budget expanded the refundable tax credit regime. Development expenditures now qualify for tax credits, and projects targeting critical and strategic minerals benefit from enhanced credit rates, while credits for other exploration activities have been reduced. This shift favors companies advancing beyond early-stage exploration and signals a move toward more targeted, mineral-specific support.
Maxime Guilbault Québec Mining and Metals Leader PWC CANADA
What has been driving increased M&A activity?
We have observed significant movement in M&A across Québec. The depressed lithium prices, along with the resulting difficulty in securing market-based financing, have placed considerable pressure on developers and explorers within the sector. This has, in turn, driven increased M&A activity as the price to be paid has deflated compared to previous years, as demonstrated by Rio Tinto’s recent acquisition of Arcadium, among others.
In contrast, the gold sector has performed strongly, supported by continued high gold prices. While few projects have progressed to more advanced development stages in the past year and new discoveries have been limited, there has nonetheless been substantial investment and M&A activity. How is Québec’s ESG environment evolving?
Recent shifts toward loosening regulatory frameworks in the US mean that we have seen sustainability advisory begin to move down clients’ priority lists. How are changes to the US-Canada trading relationship impacting Québec’s mining sector?
Right now, the situation remains highly fluid. Companies are seeking advice on everything from tax impact projections to logistical diversification, affecting both commodity sales and equipment purchases. All these areas are potentially impacted by tariffs, which in turn influence capital and operating expenditures. We are working with clients to model their outlooks and develop contingency plans. Could Québec stand to benefit from this evolving situation?
It is a great opportunity. Ultimately, while regulations and incentives can be adjusted, the location of a mine cannot be changed. The resources remain in the ground, and the projects continue to hold strong appeal. We have seen projects brought back to life after decades, thanks to advances in technology and new approaches. In Québec, we can leverage those tools – alongside provincial and federal incentives – to move projects forward.
The tariff situation could serve as the catalyst for broader transformation, encouraging the sector to become more integrated across Canada.