BCSC Releases 2012 Mining Report
The British Columbia Securities Commission (“BCSC”) released its 2012 Mining Report (the “Report”) setting out the current views and interpretations of BCSC staff. The report is the first of its kind for BCSC and provides an overview of the types of mining disclosure reviews undertaken by the BCSC. The Report provides market participants with information on how to improve disclosure and on interpretative issues that have arisen during the 2012 year and summarizes the main findings from those reviews over the past several years.
The BCSC conducted continuous disclosure reviews, annual compliance reviews, targeted reviews and prospectus reviews of mining technical disclosure.
– Failure to file current or fully compliant technical reports;
– Failure to include the required cautionary statements for preliminary economic assessments (PEA), historical estimates, and exploration targets;
– Disclosure of mineral resources and mineral reserves (MRMR) that does not fully comply with NI 43‐101;
– Restricted or misleading references to mining studies; and
– Failure to name the qualified person (QP).
Issues with technical reports:
– Missing or altered statements in certificate and consents of QP;
– Prohibited disclaimers or statements of reliance on other experts; and
– Non‐compliant disclosure of MRMR, historical estimates, and exploration targets.
Snapshot of the BCSC and Mining in BC
The BCSC is Canada’s leading junior mining regulator. The BCSC and other Canadian regulators introduced National Instrument 43-101 Standards of Disclosure for Mineral Projects (the Mining Rule) in 2001 to provide a transparent and credible reporting regime. Today, B.C. is considered the junior mining capital of the world. The Report cites that as of December 31, 2011 there are 962 BC mining companies listed on the Toronto Stock Exchange (“TSX”) and TSX Venture Exchange. This represents about 70% of all BC companies and 58% of all Canadian mining companies listed on these exchanges.
“High quality mining disclosure is critical to maintaining British Columbia’s position as an international leader in mineral exploration,” said Peter Brady, Director of Corporate Finance for the BCSC. “By avoiding common pitfalls identified in the report, issuers may be able to avoid costly and time-consuming mining disclosure reviews, which is critical at a time when mining company resources are under strain.”
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