BCSC reaches settlement with B.C. man for inadequate disclosure
Vancouver – The former vice president of a B.C.-based mining exploration company has agreed to pay $20,000 to the British Columbia Securities Commission (BCSC) as part of a settlement agreement connected to inadequate disclosure of information.
Akash Patel was responsible for disclosure of mineral project information for the company, which had interests in properties in southeastern B.C. and Mexico and traded on the TSX Venture Exchange.
Patel has admitted that he authorized MX Gold to disclose information through a corporate fact sheet, presentations and news releases that:
- was not supported by appropriate scientific or technical evidence
- did not properly categorize mineral resources and mineral reserves
- did not include necessary information for data verification.
In addition, MX Gold did not file technical reports as required.
By doing so, Patel caused MX Gold to breach several sections of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
In addition to the financial penalty, Patel must take a course on the requirements of that national instrument. He is also prohibited for one year from being a director or officer of any reporting issuer and from engaging in investor relations activities.
A cease trade order that was issued in January 2018 after MX Gold failed to file required records remains in effect.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
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