NIN 95/60 - Hold Period for Securities of Exchange Issuer Issued Under Section 55(2)(18) of the Securities Act [NIN - Rescinded]

Effective January 1, 1996 the Securities Regulation, B.C. Reg. 279/86 is repealed and the Securities Rules come into force. Section 142(2)(c) of the SecuritiesRulesprovides that securities issued by an exchange issuer for a resource property or resource property interest under section 55(2)(18) of the Securities Act have a 12 month hold period commencing from the later of the date the Vancouver Stock Exchange (the "Exchange") approves the acquisition of the property or the date the property for which the security is being issued was transferred to the issuer.

Section 142(2)(c) of the Securities Rules has the unintended result that, in the case of an issuance of securities under section 55(2)(18) of the Securities Actfor the acquisition of an option to acquire a resource property pursuant to a resource property option agreement, which typically requires periodic payments and/or expenditures to be made as a pre-condition to acquiring title, the 12 month hold period does not commence for several years, if at all. Accordingly, the Commission, concurrently with the issuance of this Notice, is issuing BOR#95/19, which effectively replaces section 142(2)(c) of the Securities Rules.

Under BOR#95/19, the 12 month hold period for securities of an exchange issuer issued under section 55(2)(18) of the Securities Act commences from the earlier of the date that

(i) the issuer has issued a news release disclosing that the issuer has a binding agreement to acquire title to the property for which the security was issued, subject only to acceptance by the Exchange, or

(ii) the Exchange has accepted the issuers signed agreement to acquire the property interest for which the security was issued.

It is intended that the commencement of the 12 month hold period attaching to securities issued under section 55(2)(18) of the Securities Act for the acquisition of an option to acquire a resource property will fall under paragraph (ii) above; that is, the hold period will commence with the date of Exchange acceptance of the issuers signed option agreement. The commencement of the 12 month hold period will not fall under paragraph (i) because acquisition to title to the property is not subject only to acceptance by the Exchange, but also to the periodic payments and/or expenditures of funds by the issuer required under the resource property option agreement.

DATED at Vancouver, British Columbia, on December 21, 1995

Douglas M. Hyndman
Chair

REF: BOR#95/19