Mining and mineral exploration companies in Canada must follow specific guidelines for disclosure, designed to improve the accuracy and integrity of the information they provide. National Instrument 43-101 Standards of Disclosure for Mineral Projects governs a company's public disclosure of scientific and technical information about its mineral projects.
National Instrument 43-101 Standards of Disclosure for Mineral Projects
This instrument governs disclosure, including oral statements, written documents and websites. The disclosure must be based on information provided by a "qualified person" (as defined in NI 43-101). NI 43-101 requires a company to file a technical report at certain times, prepared in a prescribed format. In some circumstances, the qualified person is to be independent of the company and the property. A company is required to use specified terminology when disclosing resources and reserves.
In 2012, the BCSC published its first Mining Report. The purpose of this report is to summarize the findings of our mining technical disclosure reviews and to provide guidance and discussion on topical NI 43-101 issues that may be of interest to mining issuers.
Canadian Institute of Mining and Metallurgy (CIM) Resources
These documents are available on the CIM website. For your convenience, we have provided links:
Geological Survey of Canada
A qualified person estimating mineral resources or mineral reserves for coal may follow these guidelines:
However, for all disclosure of mineral resources or mineral reserves for coal, issuers are required by section 2.2 of the Instrument to use the equivalent mineral resource or mineral reserve categories set out in the CIM Definition Standards and not the categories set out in Paper 88-21. The CSA believes it is not reasonable to apply Paper 88-21 to foreign coal properties.
To help facilitate the transition to the new mining disclosure rules, staff have conducted several public presentations on the changes from the previous rules, which we made effective June 30, 2011.
Prospectus Pre-filing Reviews for Mining Issuers
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Beginning September 1, 2009, mining companies will have ability to apply for an advance review of their technical disclosure in order to facilitate the timely receipt of a short-form prospectus.
Are you the manager of a junior mining company? You should be prepared to answer these questions from your investors. Investing in mining: Questions to Ask
If section 4.1 or 4.2 of NI 43-101 triggers a technical report, you are required to file the following documents in SEDAR:
- Technical reports(s)
- Certificates of Qualified Persons (see s.8.1 of NI 43-101)
- Consents of Qualified Persons (see s.8.3 of NI 43-101)
We remind filers that offering memorandums are not mandated SEDAR filings. We recommend that you file your offering memorandums and reports of exempt distribution using BCSC eServices. Technical reports, along with the certificates and consents of qualified persons, can be filed electronically by including them in one electronic document along with the offering memorandum.
Inquiries About Scientific & Technical Issues
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Contact Corporate Finance staff with expertise in scientific and technical issues related to mining and mineral exploration companies.
Christopher Collins, Chief Mining Adviser
Darin Wasylik, Senior Geologist
Areas of Expertise
- Provide scientific and technical advice to other professional staff and management in Corporate Finance division on issues related to mineral exploration, development and mining companies
- Review continuous disclosure, prospectus, technical reports and other filings for compliance with NI 43-101. Proactively work with and make presentations to issuers and mining professionals to ensure they are aware of and to assist them in understanding and complying with the requirements of NI 43-101
- Work cooperatively with Canadian stock exchanges on the application, interpretation and enforcement of NI 43-101
- Participate in the CSA Mining Technical Advisory and Monitoring Committee which is a forum for continuing communication between the mineral industry and the CSA
- Through the CSA Committee on NI 43-101, Corporate Finance staff liaise with the other securities commissions to ensure consistent and uniform application of the rules for scientific and technical disclosure on mineral projects
See also our Frequently Asked Questions on Mining.