TORONTO (miningweekly.com) – Despite the current challenges the mining industry faces, Canadian junior mining executives appear to have a renewed sense of optimism, particularly those in Quebec, where Bill 70 – adopted last December to reform the Mining Act – had provided the industry with a stable and predictable regulatory framework.

"This framework will help Quebec-based miners prepare for the next mining and metals market upswing,” professional services firm Grant Thornton International's 2014 mining industry study, revealed at the Prospectors and Developers Association of Canada convention, in Toronto, had found.

The Quebec government's recent announcement of support to oil exploration on Anticosti Island was also perceived as decidedly positive in the natural resources sector.

Nevertheless, financing, access to infrastructure and government aid remained high stakes for the executives.

The reports found that nearly 27% of junior Canadian mining companies had stated that they would require additional financing over the next six months.

"The figure from our investigation last year at the same time was 38% for all companies, which goes to show that the situation has hardly changed and financing still remains a challenge for junior miners.

“The consolidation of exploratory mining companies, combined with the disappearance of companies that were in an unstable financial situation and the stock market decline in the mining industry, means that there are fewer companies looking for financing. However, the needs remain high," explains Raymond Chabot Grant Thornton partner and mining sector leader Anand Beejan said.

The investigation also revealed that at 41% of the respondents considered financing as their main growth factor.

"The research demonstrates concretely why companies need to find alternative financing methods, such as agreements between juniors and big companies in exchange for stock options in an important project phase, convertible debt, sale of a portion of the company's shares in exchange for financing secured with future output, and even private financing," Beejan added.

Further, only 26% of Canadian junior miners said that they had received assistance from the provincial government. This percentage dropped to 3% for federal assistance.

However, this was a critical matter for junior mining companies - 55% of which claimed that government regulations were the main obstacle to their growth.

"By adopting Bill 70, with opposition party support, the Quebec government has made a solid step to support the development of the mining industry. Such government efforts must continue, especially from Ottawa, whose current level of support is very marginal, as demonstrated by the results of our survey," Beejan said.

Improving infrastructures is also essential for Canadian junior miners, as confirmed by 29% of respondents, who stated that they would not be able to pursue their project without additional, significant infrastructure development. About half of respondents (47%) said that their project would not reach its full potential within reasonable timeframes without such investment.

"There is heavy global competition in the mining sector. Mining projects require major capital injections to explore, develop and build mining sites. However, to be productive, this investment hinges on infrastructures, such as roadways, railway lines, port facilities being set up by the government.

“To ensure that Canada remains attractive, we need to support mining companies and find viable solutions and new infrastructure financing models to advance projects,” Beejan noted.