The former CEO of a Toronto-based junior miner, Red Pine Exploration Inc., is facing fraud and forgery charges from the RCMP’s Integrated Market Enforcement Team (IMET) amid allegations that the company’s mining assay results were altered between 2015 and 2024.
In May 2024, the company — which has since changed its name to RPX Gold Inc. — announced that it had “discovered inconsistencies in certain assay results” from its Wawa gold project, which led the company to restate its resource estimates and related disclosure, after an independent review.
The company reported its discovery to the Ontario Securities Commission (OSC) and alleged that its former CEO, Quentin Yarie, had altered its assay results before they were distributed to the rest of the company.
In a conference call with investors, the company’s management reported that the alleged assay manipulation was discovered by accident, when someone at the company noticed that a single data point was missing from an assay report and requested an updated report directly from the lab — which revealed the discrepancy between the reports being produced by the lab and the company’s records.
The RCMP said that it launched an investigation in 2024, which entailed reviewing corporate records and laboratory data, engaging in digital forensic analysis and collecting witness statements.
Now, the IMET has charged Yarie with fraud against the company, fraud against the public markets and forgery.
The charges stem from allegations that Yarie “altered mining assay results over multiple years,” which resulted in RPX overstating the project’s resources by between 62,000 and 87,000 gold ounces.
“Canada’s capital markets rely on accurate and truthful disclosure to maintain investor confidence. Allegations of this nature undermine the integrity of the marketplace, and the RCMP remains committed to investigating and holding accountable those who are suspected of manipulating or misrepresenting material information,” said staff sergeant Tony Gollob, acting officer-in-charge, Toronto IMET.
The allegations have not been proven.
Yarie is scheduled to appear at the Ontario Court of Justice in Toronto on June 5.