VANCOUVER, Dec. 20, 2013 /CNW/ - In a settlement agreement with the British Columbia Securities Commission, Wilhelmus (William) Kocken, Matthew Ball, and Bralorne Gold Mines Ltd. admitted to breaching Canadian mining rules by disclosing the results of an economic analysis that included, or was based on, a target for further exploration of the company's gold mining operation.
Bralorne is a B.C. mining company with shares trading on the TSX-Venture exchange. In addition to being a director of Bralorne, Kocken is also the company's Chief Executive Officer. Ball is also a director of Bralorne, as well as the company's President, Chief Operating Officer, and qualified person for the purposes of its technical disclosure. Both men are B.C. residents.
The agreement states that in a news release dated October 17, 2012, Bralorne announced the results of a Preliminary Economic Assessment it had commissioned the previous June and presented the results of an economic analysis that included or was based on a target for further exploration (the Speculative Economic Analysis). Kocken signed the news release on behalf of the company's board of directors, and Ball reviewed and approved the technical data contained in the news release.
On October 17, 2012, Bralorne was instructed by the Investment Industry Regulatory Organization of Canada to issue a news release retracting the Speculative Economic Analysis because "the analysis was not based on a current resource estimate." Kocken, on behalf of the board, signed the news release containing the retraction.
On October 18, 2012 Bralorne filed a technical report on SEDAR that included the Speculative Economic Analysis. Additionally, on or before November 1, 2012, Bralorne posted on its website a copy of the technical report, as well as a corporate presentation and fact sheet that referenced the Speculative Economic Analysis.
In the settlement agreement, Bralorne, Kocken, and Ball admitted to breaching Canadian mining rules by disclosing the results of an economic analysis that included, or was based on, a target for further exploration. Kocken and Ball also admitted that as directors of Bralorne, they authorized, permitted, or acquiesced in Bralorne's contraventions, thereby also breaching securities laws.
For this misconduct, Kocken and Ball have agreed to each pay to the commission $20,000. They have also agreed to complete a course of study on the requirements of Canadian mining rules (specifically National Instrument 43-101), acceptable to the Executive Director, within one year from the date of the settlement agreement. Proof of the successful attendance and completion of the course must be provided, in writing, to the Executive Director within the prescribed time period.
The agreement notes that on November 5, 2013, Kocken and Ball attended a course put on by the TSX-Venture exchange on Mining Company Disclosure Fundamentals.
You may view the settlement agreement on our website www.bcsc.bc.ca by typing Bralorne Gold Mines Ltd., Wilhemus Kocken, Matthew Ball, or 2013 BCSECCOM 561 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
SOURCE British Columbia Securities Commission