Exemption Orders (Discretionary)
CONSOLIDATED JABA INC.
2001 BCSECCOM 903
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
IN THE MATTER OF CONSOLIDATED JABA INC.
Exemption Order Under Section 9.1(1) of National Instrument 43-101
[para 1]
WHEREAS Consolidated JABA Inc. has applied to the Executive Director for an order under section 9.1(1) of National Instrument 43-101 Standards of Disclosure for Mineral Projects exempting the author of a technical report (the “Report”) to be used to support disclosure contained in JABA’s preliminary and final prospectus (collectively, the “Prospectus”) from having to be a member in good standing of a professional association (the “Membership Qualifications”) in order to be considered a “qualified person” as defined in NI 43-101;
[para 2]
AND WHEREAS JABA has represented to the Executive Director that:
1. JABA is incorporated under the laws of Alberta, carries on a mineral exploration business and has its head office located in West Vancouver, British Columbia;
2. JABA is a reporting issuer under the Act and is not in default of any requirements of the Act or of the Securities Rules, B.C. Reg. 194/97;
3. JABA’s securities are listed on the Canadian Venture Exchange;
4. JABA is in a joint venture with Southwestern Resources Inc. on the Tecka Project located near the town of Tecka, Province of Chubut, Patagonia, Argentina and operated by Southwestern, with 55% of the Tecka Project being owned by JABA and the remaining 45% owned by Southwestern; the Tecka Project is a grass roots or green fields project and has no currently known ore reserves;
5. JABA intends to offer up to 1,000,000 units, comprised of one common share and one-half warrant per unit, to the public under the Prospectus and is required under NI 43-101 to file a Report prepared by an independent qualified person in connection with the Prospectus;
6. JABA retained George Sanders, B.Sc., M.Sc. to prepare the Report for the purposes of the Prospectus and JABA intends to file the Report with the Executive Director to support disclosure of the Tecka Project in the Prospectus;
7. Sanders would be a qualified person but for the fact that he is not a member of a “professional association” as defined in NI 43-101, and therefore does not satisfy the Membership Qualifications;
8. Sanders was on site for approximately four months completing technical work on the Tecka Project and is therefore familiar with all aspects of the Tecka Project; the property that the Tecka Project is located on is now inaccessible due to severe weather conditions;
9. Sanders has the necessary experience, expertise and qualifications to complete the Report; and
10. the Prospectus will contain disclosure of a scientific or technical nature that is based on Sanders’ Report;
[para 3]
AND WHEREAS the Executive Director considers that to do so would not be prejudicial to the public interest;
[para 4]
IT IS ORDERED under section 9.1(1) of NI 43-101 that the Membership Qualifications do not apply to Sanders in determining if Sanders is a qualified person in connection with JABA’s use of the Report to support disclosure of the Tecka Project in the Prospectus.
[para 5]
DATED September 6, 2001
Derek E. Patterson
Acting Director