Mining Regulation is in Place to Protect Investors and Companies
Mining is a diverse and can be a complex industry for investors to understand. In this article, we discuss the regulations that help provide investors with standard information and transparency. To learn more about general mining processes and investments, read our guide to investing in mining in British Columbia.
All investors looking to invest in mining need access to accurate information. To promote consistent reports and industry transparency the Canadian Securities Administrators worked with mining experts to develop industry standards of disclosure.
National Instrument 43-101 Regulates Mining in Canada
All Canadian mining companies (both public and private) disclosing scientific and technical information must adhere to National Instrument 43-101 (NI 43-101). The instrument ensures that companies disclose exploration information, mineral resources, mineral reserves, mining (engineering) studies and more, in a format that allows investors to compare companies and projects. It provides clear definitions of terms for consistency. Any company discussing their minerals project must follow the rules outlined in the Instrument.
This includes but is not limited to:
- Written statements including new releases, technical reports and required regulatory documents
- Oral statements
- Fact sheets
- Social media
You can find National Instrument 43-101 on the BCSC’s website mining page.
Mining Technical Reports Should Be Simple
Technical reports reveal information about a company’s mineral projects. They fall under NI 43-101 and its technical report format known as “Form 43-101F1” which helps ensure that disclosed information is complete and easy to read and understand.
There are two types of technical mining reports, early stage exploration property reports and advanced property reports. NI 43-101 contains specific requirements for the contents of each type of technical report and instructions on what information must be included.
All mining companies must file their technical report on SEDAR, where they are publically available for free.
Mining Experts Can Assist Investors
Always consult with a registered investment advisor before making investment decisions. Every investment has different risks you need to consider. An independent geologist, lawyer, or accountant may also be able to help you identify the risks of mining investment.
Who Should You Contact if You’re Approached by an Unregistered Company or Individual?
If you’re contacted by someone wanting to raise money for a mining company always:
- Do a background check that it’s a legitimate company and investment
- Check to see if the person selling the investment is registered
- Ensure that the company complies with the rules of NI 43-101.
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymous using BCSC’s online complaint form.
Wikipedia, the free on-line encyclopaedia, says unequivocally that these on-line investment opportunities are a “type of Ponzi scheme.” There are hundreds of them offered on-line, coupled with other websites which rate and analyze their performance, including their ability to pay. When the BC Securities Commission banned Genius Funds, a high yield investment program, from selling securities […]
Investor Alert: Manitoba Securities Commission and BC Securities Commission uncover ‘re-victimization’ scheme
The Manitoba Securities Commission (MSC) and the British Columbia Securities Commission (BCSC) are warning investors who may have lost money in a York-Rio Resources Inc. investment that they could be targets of a ‘re-victimization’ scheme in which investors are being contacted by an organization out of Japan identifying itself as Penn Capital Management Ltd. The […]