The Canadian Securities Administrators has published a new rule establishing standards of disclosure for mining projects.
The amended mining rule is out for comment until Dec. 10. It would replace the current rule that took effect in February 2001. Each member of the CSA is expected to repeal the current rule and replace it with the new rule.
The CSA says it believes that the new rule will enhance efficiency for market participants by:
- simplifying and providing greater clarity as to how it applies in certain circumstances;
- removing the requirement to pre-file a preliminary assessment in Ontario;
- permitting more cross-referencing to previously filed disclosure;
- removing the requirement to file a technical report with an offering memorandum if the issuer is using one in conjunction with a trade using the accredited investor exemption, and;
- providing new exemptions from some of the current rule’s requirements.
Mining issuers should see a decrease in their costs of compliance as a result of these changes, the CSA says, while venture issuers should encounter no change in their costs of compliance.
The CSA says that it has been monitoring the current rule since it was adopted. It has also identified a number of areas in which the current rule is not operating as intended, so the proposed changes are expected to correct that.