BCSC panel dismisses allegations against Vancouver mining company, three directors and President and CEO
Vancouver – A British Columbia Securities Commission panel has dismissed allegations that a Vancouver mining company listed on the TSX-Venture Exchange (TSX-V) breached securities laws concerning the disclosure of material changes. The panel also dismissed allegations that the President and Chief Executive Officer and three other directors failed to act in the best interests of the company by voting to approve the issue of stock options before publicly disclosing assay results.
In a notice of hearing issued on April 24, 2012, BCSC staff alleged that Canaco Resources Inc., Andrew Lee Smith, Randy Smallwood, David Parsons, and Brian Lock breached securities laws by failing to disclose drill results immediately as a material change. Staff also alleged that Smith, Smallwood, Parsons and Lock failed to act in the best interests of Canaco when issuing stock options with knowledge of the undisclosed drill results, and in so doing acted contrary to the public interest.
In its decision, the panel dismissed the allegations, stating that, “the evidence does not prove that the drill results would reasonably be expected to significantly affect the market price or value of the Canaco shares.” As such, the panel found that the assay results were not a material change or a material fact relating to Canaco.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website, www.bcsc.bc.ca, by typing Canaco Resources Inc., Andrew Lee Smith, Randy Smallwood, David Parsons, Brian Lock, or 2013 BCSECCOM 310 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
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