Canadian securities laws impose a variety of disclosure obligations on companies in the mining industry that issue securities in Canada, both public and private. The key piece of legislation, National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101), is wide ranging in application and captures companies who explore for, develop or produce minerals (including industrial minerals and mineral brines), as well as companies with a royalty interest or an interest in the revenue or commodity stream from a proposed or current mining operation.
Such public or private companies are required to ensure that any scientific or technical information that is disclosed to the public, including investors or prospective investors, whether oral or written, is based upon information prepared by or under the supervision of a “qualified person” (QP) or is approved by a QP, as defined in NI 43-101. There are also restrictions on how resources and reserves (whether current or historical) can be presented, and any written exploration information disclosed on a mineral project that is material to the company must be accompanied by detailed supporting information, including: sample types, locations and intervals; as well as sample recovery, quality control and analytical methods.
If you have an interest in a mineral project anywhere in the world, and have issued or will be issuing securities in Canada, you are required to comply with the obligations set forth in NI 43-101. These obligations include: ensuring that any scientific or technical disclosure you make to investors is compliant with the instrument, engaging one or more persons meeting the definition of QP under NI 43-101 to review or supervise the preparation of such information, and, in certain circumstances, preparing and filing a “technical report” in respect of properties that are considered material.
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