Seven days after Gault brought his proposal to Ottawa, the Regiment was founded.
"As regards the expense entailed in raising, clothing, equipping, pay, transportation, feeding, maintenance and all other expenditure connected with this Battalion in and out of Canada, the sum of one hundred thousand dollars will be provided by Captain Hamilton Gault of Montreal. The remainder will be defrayed by the Department of Militia and Defence for Canada."
The Paymaster General was authorized to pay personnel at the Canadian Expeditionary Force rate "from the date each Officer is gazetted and each soldier is attested."
The Regiment would have special status, distinct from all other Canadian units. Neither as Militia nor with the Canadian Expeditionary Force, PPCLI would serve as a Canadian Regiment within the British Army. No provisions were made, however, for the supply of reinforcements to maintain the battalion at full strength.
On this same day, Farquhar worked to set-up recruiting stations in Montreal, Toronto, Winnipeg, Calgary and Edmonton. Mobilization of the Regiment was to begin immediately.