BCSC

Exemption Orders (Discretionary)

PETRA RESOURCE CORP.

2001 BCSECCOM 750

Headnote

Mutual Reliance Review System for Exemptive Relief Applications – Relief granted from the requirement in National Instrument 43-101 to have a qualified person inspect the property that is the subject of a technical report – property inspection would not be useful given weather conditions and technical report prepared on the basis of previous reports where site inspection was completed.

Applicable British Columbia Provisions

National Instrument 43-101 Standards of Disclosure for Mineral Projects, ss. 6.2 and 9.1

IN THE MATTER OF THE SECURITIES LEGISLATION OF BRITISH COLUMBIA AND ALBERTA

AND

IN THE MATTER OF THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF PETRA RESOURCE CORP.

MRRS DECISION DOCUMENT

[para 1]
WHEREAS the local securities regulatory authority or regulator (the “Decision Maker”) in each of British Columbia and Alberta (the “Jurisdictions”) has received an application (the “Application”) from Petra Resource Corp. (the “Filer”) for a decision under the securities legislation of the Jurisdictions (the “Legislation”) that the requirement contained in the Legislation that at least one qualified person preparing or supervising the preparation of a technical report inspect the property that is the subject of the technical report (the “Personal Inspection Requirement”) will not apply to the Filer;

[para 2]
AND WHEREAS under the Mutual Reliance Review System for Exemptive Relief Applications (the “System”), the British Columbia Securities Commission is the principal regulator for this application;

[para 3]
AND WHEREAS the Filer has represented to the Decision Makers that:

1. the Filer is incorporated under the Company Act (British Columbia) with its head office in British Columbia;

2. the Filer is a reporting issuer under the Legislation of each Jurisdiction and is not in default of any requirements of the Legislation;

3. the authorized capital of the Filer consists of 100,000,000 common shares without par value, of which 16,180,140 common shares were issued and outstanding as at June 15, 2001;

4. the Filer’s common shares are listed on the Canadian Venture Exchange, but the Filer is currently classified as an inactive company;

5. the Filer has signed an option agreement dated May 14, 2001 with Nordac Resources Ltd. to acquire up to a total 70% interest in the Burwash property (the “Property”) located 300 kilometres northwest of Whitehorse, Yukon Territory;

6. the Property is a material property to the Filer;

7. the Property has had limited exploration work on it and no resource has been defined to date;

8. a technical report dated June 11, 2001 (the “Report”) relating to the Property has been prepared by Peter LeCouteur, a qualified person, in the form prescribed by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) based on previous assessment reports dated November 1999 and December 2000 prepared by Archer, Cathro & Associates (the “Prior Assessments”); Archer, Cathro & Associates completed personal site inspections in respect of the Prior Assessments, but were not available to prepare the Report;

9. the Filer intends to complete a private placement of up to 3,500,000 units, comprised of one share and one warrant per unit, at a price of $0.10 per unit and is preparing an offering memorandum (the “Offering Memorandum”) in connection with the private placement;

10. the Offering Memorandum will describe the mineral projects on the Property based on the information contained in the Report; the Filer is required under NI 43-101 to file the Report in the Jurisdictions in support of the information contained in the Offering Memorandum; and

11. the qualified person is unable to complete a personal inspection of the Property, as the property is obscured by snow and a site visit would be unsafe;

[para 4]
AND WHEREAS under the System, this MRRS Decision Document evidences the decision of each Decision Maker (collectively, the “Decision”);

[para 5]
AND WHEREAS each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met;

[para 6]
THE DECISION of the Decision Makers under the Legislation is that the Filer is exempt from the Personal Inspection Requirement in respect of the Report to be filed in support of the Offering Memorandum, provided that the Report and the Offering Memorandum include:

(a) a statement that a personal inspection has not been conducted by the qualified person, as defined in NI 43-101, and the reasons why a personal inspection was not conducted; and

(b) references to the Prior Assessments.

[para 7]
DATED July 16, 2001.

Derek E. Patterson
Acting Director