The former CEO of a junior mining company must pay $10,000 in a settlement with the B.C. Securities Commission (BCSC) for releasing technical information that was not prepared or approved by a qualified person.
Ellen Clements was president, CEO and a director of New Nadina Explorations Limited, a junior mineral exploration company whose shares trade on the TSX Venture Exchange. Its principal asset was a property known as the Silver Queen, located near Houston. B.C.
In November 2017, New Nadina issued a news release about this property. It included links to presentations on the company’s website that contained scientific and technical information about the Silver Queen, including photos comparing old and new core specimens, data tables and maps.
This disclosure was not prepared by or under the supervision of a qualified person and did not include a statement on whether the data had been verified by a “qualified person” – an engineer or geoscientist with relevant experience and in good standing with a professional association. Nor did the disclosure describe how the information was verified, or explain why the information was not verified. This information, required by National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), helps ensure that the investing public and their advisors receive accurate information about mining projects.
Because Clements drafted and approved the news release, she authorized, permitted or acquiesced in New Nadina’s contraventions and violated the same provisions of NI 43-101.
Clements, who lives in Greenwood, B.C., corrected the information after she was contacted by BCSC staff and resigned from all positions with New Nadina in 2018. New Nadina changed its name to Equity Metals Corporation in 2019.
As part of the settlement agreement, Clements is prohibited from acting as director or officer of any reporting issuer and must not engage in any promotional activities for two years, or until she completes a course on disclosure requirements for mineral projects, if she has not done so within two years.
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