OSC finds “unacceptable” level of compliance with mining disclosure

June 27, 2013

The Ontario Securities Commission today published a report setting out Staff’s findings in respect of a recent compliance review of technical reports filed by mining issuers. The notice provides a summary of the review’s results and guidance on complying with disclosure requirements.

Based on a sample of 50 technical reports selected to comprise a representative sample of issuers, the OSC found that 80% had some form of non-compliance with the requirements with Form 43-101F1 and 40% had at least one major non-compliance concern. Identified concerns included disclosure deficiencies with respect to (i) mineral resource estimates; (ii) environmental studies, permitting and social or community impact; (iii) capital and operating costs; (iv) economic analysis; and (v) interpretation and conclusions.

The OSC is continuing to actively review technical reports by Ontario mining issuers as part of its overall continuous disclosure review program. In circumstances where issuers have not fully met the requirements of Form 43-101F1, the OSC may request refilings, additional disclosure or other staff action where appropriate. Receipts for prospectus filings may be delayed as a result, particularly for short form prospectus offerings. For more information, see OSC Staff Notice 43-705.

As we previously posted, the BCSC also released a report earlier this year identifying deficiencies in mineral disclosure.

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