Changes to National Instrument NI 43-101: standards of disclosure for mineral projects
On June 30, 2011 amendments to National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) will become effective. There will be an updated and more flexible rule (“New NI 43-101”) in place for mining issuers. New NI 43-101 reflects issuer and regulator experience with NI 43-101, and changes in the mining industry that have occurred over the years. Under New NI 43-101, the trigger to file a technical report when filing a preliminary short form prospectus (“Short Form Prospectus”) has been relaxed. It is currently the case that an issuer must file a technical report in connection with a Short Form Prospectus, if the Short Form Prospectus contains new material scientific or technical information not contained in a previously filed technical report. This trigger is easy to hit: either because an issuer clearly has new scientific or technical information; or,an issuer is unsure if the securities regulators will agree that its technical reports on SEDAR are current at the time the Short Form Prospectus is filed. The result being issuers usually have to file at least one technical report in connection with a Short Form Prospectus.