In April 2010, the Canadian Securities Administrators (the CSA)
issued for comment an amended draft (Proposed NI 43-101) of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects (Current NI 43-101). Following a comment period, the
CSA made few minor changes to finalize the revised versions of NI
43-101 (New NI-43-101), Form 43-101F1 (the New Form) and Companion
Policy 43-101CP (the New Companion Policy). This Update is a
reminder that New 43-101, the New Form and the New Companion Policy
come into force on June 30, 2011.
In particular there are a few items to highlight in connection
with the coming into force of New NI 43-101.
All technical reports must be prepared in accordance with the
New Form. However, the CSA will continue to accept those
technical reports prepared in accordance with the current Form
43-101F1 and filed prior to June 30 as "current"
technical reports. Whenever in the future an issuer is
required to file an updated technical report, it will at that time
be required to file in accordance with the New Form.
Management's Discussion &
A minor change related to the coming into force of New NI 43-101
relates to MD&A, requiring issuers with producing mines or
mines under development to not only identify milestones such as
mine expansion plans, productivity improvements, plans to develop a
new deposit, or production decisions, but also to state whether the
milestones are based on a technical report filed under NI
Short-Form Prospectus Trigger
Proposed NI 43-101 had left open for comment the possibility of
changes to the technical report filing requirement in connection
with the filing of a preliminary short form prospectus. New
NI 43-101 introduces a change to relax the technical report trigger
for short form prospectus transactions. Under New 43-101, a
technical report will be required to be filed in connection with a
preliminary short form prospectus where the preliminary prospectus
discloses for the first time mineral resources, mineral reserves or
the results of a preliminary economic assessment that constitute a
material change in relation to the issuer or a change in the
foregoing if such change itself constitutes a material change.
Foreign Code Reporting
We had highlighted that under Proposed 43-101 it had been
proposed that issuers would be able to report in accordance with
acceptable foreign codes without reconciliation. However,
this proposal was not ultimately adopted in New 43-101, which was
amended to include a minor change to Current NI 43-101, by
requiring a reconciliation "of any material differences"
between the mineral resource and mineral reserve categories used
and the categories under the CIM Definition Standards.
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
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