43-101 requirements from bcsc
Source: this is from PDF so it might not be cutting and pasting right.
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Introduction
The BC Securities Commission (BCSC) is responsible for regulating securities activities in British Colum- bia, including public disclosure by mining companies. National Instru- ment 43-101, Standards of Disclosure for Mineral Projects (NI 43-101), sets out the rules that companies must follow when disclosing scientific and technical information about min- eral projects. NI 43-101 applies in all Canadian jurisdictions.
One of the core principles of NI 43-101 is the involvement of “quali- fied persons” (QPs) in the prepara- tion of scientific and technical infor- mation that companies disclose to the public. A second core principle is the requirement for companies to file technical reports, prepared by
QPs, to support certain types of dis- closure. It is important that profes- sional engineers and geoscientists, who prepare technical reports, fully understand NI 43-101.
Mining Disclosure Study
Staff at the BCSC recently completed an internal study of mining techni- cal disclosure in BC prime prospec- tus filings and supporting techni- cal reports. The study focused on NI 43-101 compliance rather than the technical merits and content of technical reports. It considered 195 technical reports filed to support prospectus offerings during a 19- month period ending October 2007. These prospectuses collectively sought to raise or qualify up to $8.5 billion for mining exploration and
Robert Holland PGeo
BC Securities Commission
development worldwide. We did not restrict the study to technical reports prepared by APEGBC members, and we do not consider the results to be a reflection of the qualifications and competency of members of any par- ticular professional association.
In general, the results were mostly good in many areas relating to the preparation of technical reports and the disclosure they support. However, there appears to be room for improve- ment in other areas. It also appears some QPs and consulting firms are doing a much better job than others are. The following is a discussion of some of the more common deficien- cies that QPs should be aware of and take into consideration when prepar- ing technical reports.
Consents of
Qualified Persons Thirty-one percent of technical reports in the study had one or more missing or deficient consents of qualified person. Consents are important because they allow issuers to use the technical report to sup- port their disclosure. QPs must sign and date the consents, and include all the statements required by NI 43- 101. In particular, the QPs confirm that they have read the disclosure that the report supports, and that it fairly and accurately represents the information in the technical report. Companies file consents for each QP when they file a new technical report or use an existing technical report for a new purpose.
Certificates of
Qualified Persons Twenty-six percent of technical reports had one or more missing or deficient Certificates of Qualified Person. Cer- tificates are also important because,