It was well known in France that Acadia was the richest and most fertile part of the New World. Excellent harbours and good soil were found there. Fish abounded near its coasts; its forests were numerous and dense. An opinion existed that there were numerous mines, rich in copper, coal and gypsum. This country was also the favourite of the Normans, Britons and Basques, who for a hundred years had pursued their callings as fishermen or traders without interruption.

De Monts, however, was unable to bear the expense of this undertaking alone, and he consequently formed a company, composed of merchants of Rouen, La Rochelle and other towns. To further the enterprise Henry IV diminished the duty on merchandises exported from Acadia and Canada, and granted to the company the exclusive privilege of fur trading for a period of ten years, "from Cape de Raze to the 40°, comprising all the Acadian coast, Cape Breton, Baie des Chaleurs, Percé Island, Gaspé, Chisedec, Miramichi, Tadousac and Canada River, from either side, and all the bays and rivers which flow within these shores."

Acadia of that day was not confined to the peninsula of our own time, called Nova Scotia. It included that part of the continent which extends from the river St. John to the Penobscot. These boundaries were the cause of long quarrels and fierce and bloody wars between England and France until they were finally settled by the Treaty of Utrecht. In the early part of April, 1604, the king's proclamation confining the fur trade to de Monts and his associates was published in every harbour of France. Four ships were lying at anchor at Havre de Grâce, ready to sail, and one hundred and twenty passages had been secured in two of the ships. Pont-Gravé commanded one of the vessels of one hundred and twenty tons burthen, and another vessel of one hundred and fifty tons was under the charge of de Monts, who had taken on board Jean de Biencourt, Sieur de Poutrincourt, a gentleman of Picardy, Samuel Champlain, some Catholic priests and some Protestant ministers. Poutrincourt was going to America with the intention of residing there with his family. He was a good Catholic and a loyal subject. Champlain was attached to de Monts' expedition as geographer and historian.

The rendezvous had been fixed at Canseau, but de Monts proceeded directly to Port au Mouton on the Acadian coast, where he decided to await the arrival of Pont-Gravé. In the meantime Champlain explored the country from Port au Mouton to Port Sainte Marguerite, now called St. Mary's Bay. This occupied a whole month. He also named Cape Négré, Cape Fourchu and Long Island. Champlain reported to de Monts that St. Mary's Bay was a suitable place to establish a settlement, and, following this advice, the lieutenant-general proceeded with Champlain to this bay, and further explored the Bay of Fundy, or French Bay. They soon perceived the entrance to another splendid port, which is now known as Annapolis Bay, or Port Royal.

Notwithstanding the authority of Lescarbot, Champlain was the first to give this place the name of Port Royal, for he says himself, "I have named this harbour Port Royal." When de Monts named the place La Baie Française, Champlain did not hesitate to give to his chief the merit which he deserved.

Three rivers flow into this splendid harbour: the Rivière de l'Equille, so called from a little fish of the size of our éperlan or lançon, which is found there in large quantities; the river named St. Antoine by Champlain, and a stream called de la Roche by Champlain, and de l'Orignac by Lescarbot.

After having explored the harbour, Champlain traversed La Baie Française to see whether he could discover the copper mine mentioned by Prévert of St. Malo, and he soon arrived at a place which he named the Cape of Two Bays, or Chignecto, and perceived the High Islands, where a copper mine was found.

On May 20th an expedition started from the Port of Mines, in search of a place suitable for a permanent settlement. Proceeding towards the south-west they stopped at the entrance of a large river, which was named St. John, as it was on St. John's day that they arrived there. The savages called the river Ouigoudi. "This river is dangerous," writes Champlain, "if one does not observe carefully certain points and rocks on the two sides. It is so narrow at its entrance and then becomes broader. A certain point being passed it becomes narrower again, and forms a kind of fall between two large cliffs, where the water runs so rapidly that a piece of wood thrown in is drawn under and not seen again. But by waiting till high tide you can pass this fall very easily. Then it expands again to the extent of about a league in some places where there are three islands."

Champlain did not explore the river further, but he ascertained a few days later that the Indians used the river in their journeys to Tadousac, making but a short portage on the way.

As preparations had shortly to be made for winter quarters, de Monts decided to proceed southwards, and the party at length came to a number of islands at the entrance of the river Ste. Croix, or Des Etchemins. One of these islands was chosen for their establishment, and named Ste. Croix, "because," says Lescarbot, "they perceived two leagues above this island two streams flowing into the channel of the river, presenting the appearance of a cross." De Monts at once commenced to fortify the place by forming a barricade on a little inlet, which served as a station on which he set up a cannon; it was situated halfway between the mainland and the island of Ste. Croix. Some days afterwards all the French who were waiting in St. Mary's Bay disembarked on the island. They were all eager and willing to work, and commenced to render the place habitable. They erected a storehouse and a residence for de Monts, and built an oven and a hand-mill for grinding wheat. Some gardens were also laid out, and various kinds of seeds were sown, which flourished well on the mainland, though not on the island, which was too sandy.