Mexus Gold US (MXSG)

[bylosellhy]

43-101 and SEC proposed new rules. SEC proposes adobting much of the report in its new rules. Me thinks PT is doing the right thing.

https://www.dentons.com/en/~/media/02be0bc9d0734238965c9cf01af4c3a0.ashx

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"The United States Securities and Exchange
Commission (SEC) has proposed a new
rule governing disclosure of mineral
properties by public companies1 to modernize the
existing U.S. mining disclosure policy set out in
the SEC’s Industry Guide 7. In several respects,
the proposed rule would align the U.S. with the
disclosure regime of most jurisdictions, including
Canada’s National Instrument 43-101 (NI 43-101).
Some of the unique aspects of the proposed rule,
however, would result in increased potential liability
for technical report authors and increased costs for
mining companies." This article describes certain
aspects of the proposed rule, and some ways in
which it would impact Canadian-based companieshttps://www.dentons.com/en/~/media/02be0bc9d0734238965c9cf01af4c3a0.ashx

Some features of NI 43-101 are not adopted by the proposed rule. One distinction is that a QP would not have to be independent of the issuer, as required for some technical reports filed under NI 43-101. Other distinctions, such as explicit rules as to what constitutes “materiality,” are intended to remove ambiguity and therefore may be advantageous. Many of the key differences between the proposed rule and NI 43-101, however, will make compliance more expensive and cumbersome for Canadian issuers and their QPs.
Unlike NI 43-101, which provides an exception frequently used for early-stage projects for disclosing inferred resources in a “preliminary economic assessment,” under the proposed rule, there is a prohibition on disclosing the results of economic analysis in respect of inferred resources.
Other aspects of the proposed rule not contemplated by NI 43-101 include mandatedaccuracy levels of capital and operating costs in a pre-feasibility study to within plus or minus 25 per cent, with a maximum contingency of 15 per cent; a feasibility study within a 15 per cent range above or below; and a contingency rate not exceeding 10 per cent.
In addition, mineral prices must be based on a two-year trading average prior to the last fiscal year with provisions for prices based on contracts in place for such minerals.
The required contents for technical reports under the proposed rule include hydrogeology and geotechnical factors. The contents otherwise track the NI 43-101 report requirements.
The use of disclaimers is prohibited, which will result in QPs confirming such matters as political, legal, environmental and tax matters, which is generally outside the QP’s expertise.
Accuracy levels are proposed for each stage of production, such as mining, processing and recovery of minerals.
The rule applies to royalty/streaming entities, however, they may rely on the producer’s disclosure with the QP’s consent. This consent, however, is unlikely to be obtained because of liability and confidentiality concerns.
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