The TSX Company Manual describes the role of the Toronto Stock
Exchange in capital markets:
The Exchange plays an important role in assisting in the
recruitment of capital and in the maintenance of an effective
secondary market for relatively new enterprises, as well as for
established companies. Exchange listings range from junior mining,
oil, gas and industrial issues to mature international companies.
To accommodate companies with such a diversity of activity and
size, while at the same time ensuring that certain basic standards
are met, the Exchange maintains listing requirements for the
various types of companies which list on the Exchange.
The requirements to list an exploration or development stage
mining company are straightforward and relatively modest:
an Advanced Property, detailed in a report prepared by an
independent qualified person. The Exchange will generally consider
a property to be sufficiently advanced if continuity of
mineralization is demonstrated in three dimensions at economically
a planned work programme of exploration and/or development,
of at least $750,000 that is satisfactory to the Exchange, will
sufficiently advance the property and is recommended by an
independent qualified person;
sufficient funds to complete the planned programme of
exploration and/or development on the company's properties, to
meet estimated general and administrative costs, anticipated
property payments and capital expenditures for at least 18 months.
A management-prepared 18 month projection (by quarter) of sources
and uses of funds detailing all planned and required expenditures
signed by the Chief Financial Officer must be submitted;
working capital of at least $2,000,000 and an appropriate
net tangible assets of $3,000,000; and
an interest or the right to earn and maintain at least a
50% interest in the qualifying property.
Unlike the balance of the requirements, the first requirement
i.e. that the Advanced Property have "economically interesting
grades", is subjective in nature.
Historically, this has meant that a National Instrument 43-101
technical report which established mineral resources on a property
in three dimensions at economically interesting grades would
generally satisfy these criteria.
Recently, the TSX has taken the position that no company which
has to ship its products in bulk (as opposed to a product such a
diamonds or dore) would be eligible for listing, unless there was a
clear indication of how those products would be shipped to market
and some assurance that the necessary roads, rail links or port
facilities would be constructed.
As a result, it appears that the TSX will not list companies
whose principal projects are located in regions of the world which
lack infrastructure and which plan to produce a bulk concentrate,
in circumstances where plans about how the infrastructure will be
built to service projects in those regions have not been
determined. We understand that the TSX has recently turned
down the listing application of several companies in the Ring of
Fire and in Quebec, because of concerns about the availability of
In our view, the creation of infrastructure is just one of many
issues and risks facing mining companies which have an impact on
project economics, including, for example, commodity price risk,
metallurgical issues, native claim and title issues, environmental
permitting, and changes in taxes and other government policies.
Provided such risks are adequately described in appropriate
disclosure documents, we see no valid reason to apply a blanket
prohibition on listing such companies solely on the basis of lack
We believe it would be helpful for the TSX to solicit comments
from the mining industry on this issue.
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The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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