What were the main highlights for Lavery in 2023?

RB: We have been active in the industry for over 50 years, and we represent several firms active in Québec and internationally. Our focus in recent months has been the arrival of international companies that want to find lithium in Québec.

JB: A lot of Australian companies are actively looking for new projects in Québec, and we are assisting exploration companies in that space.

How do you assist foreign companies coming to invest in Québec?

RB: These firms are interested in learning about the tax consequences of their investments. They want to understand the Mining Act. This legislation is similar to what is found in mature any jurisdiction, and it is part of their due diligence before deciding if they will acquire companies in Québec.

JB: Australia is a mature mining jurisdiction, and operators have very developed rules regarding ESG, health, and safety for instance. The other area of interest is regulations regarding privacy and data collection policies.

How does ESG and the road towards net-zero impact the work of law firms like Lavery?

JB: We are deeply involved with exploration firms whose environmental aims are different. There has been a lot of evolution in expectations in Québec for the past decade: if you want to develop a mining project, you need a restoration and closure plan to bring back the site in a way that it does not hurt the environment. Depending on the size of the project, there will be public audiences. For small explorers starting work early on, they will contact us for best practices. Companies operating below the 49th parallel, are faced with a lack of information for the public, who do not understand that the impact on the environment is minimal at the exploration stage.

How is the current lithium “frenzy” impacting Lavery’s work?

RB: We still see significant investment in gold. Take Midland Exploration; they signed a very significant deal with Barrick who will invest millions in Québec in the next years. But the interest in critical minerals is growing.

JB: There is certainly a growing interest in lithium. In Québec, the government has made clear its position that it wants to increase our role in the development of green batteries. The resources are there in Québec, we just need to find them and bring projects into production.

What is your outlook on the current regulatory environment in Québec?

RB: The recent legislation on the French language will be burdensome for foreign companies that will have to draft some of their agreements in French. Litigation and procedures will be in French, so this will be complicated for Australians and other foreigners. I have not yet seen problematic cases, but some provisions turning that started applying on June 1st this year will not help, to say the least.

JB: What we hear in the industry is the difficulty at the permitting level to bring a mine into production. There are lots of steps to provide all the documentation. What could simplify things would be to centralize that process, for entrepreneurs both within and outside of Québec. Québec is not that bad compared with other jurisdictions North America, but there is always room for improvement to streamline the process.

Are you forecasting a consolidation period among juniors?

RB: There will certainly be more consolidation going ahead. There have been talks of consolidation in the battery metals and lithium space particularly before the end of the year and going into 2024. This will facilitate financing, as right now we have 12-15 firms owning claims in the same area. This will lead to a robust M&A environment.

What evolution have you seen in your practice in the past few years as it pertains to mining?

RB: We have seen more and more firms having royalties wanting to secure their rights. They are publishing hypothecs on mining claims, and this has been a significant increase in our mining practice. We have seen a significant increase in 2023 in lenders and investors who want to register and protect their rights immediately.

JB: As the industry got more sophisticated, we have seen a shift towards more title opinions.