CJR, you are correct. Exploration co's in QC receive roughly $0.40 on every dollar they spend in the ground. They receive $ back in the form of a cheque directly from the Ministry of Natural Resources on an annual basis provided all the paperwork is satisfactory for the bureaucrats and johnny pencil pushers.
There are 2 uncertainties:
- $qty they will receive is not certain given that co's will likely not know exactly how much they are going to spend in the ground.
- Co's cannot count on the money being sent to them on a specific date. These two uncertainties do not make it easy for the small exploration co
Based on those the above 2 points, co's will account for the refunds but likely will not rely on them as a main financing tool as they do not provide enough stability.
Here are some links for you to read:
http://www.canadianminingjournal.com/issues/story.aspx?aid=1000148544&type=Print%20Archives
http://agoracom.com/ir/GoldenHope/forums/discussion/topics/415051-quebec-mining-enviroment/messages/1366502
