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Definition of Preliminary Economic Assessments Clarified

The Canadian Securities Administrators (“CSA”) published Staff Notice 43-307 Mining Technical Reports – Preliminary Economic Assessments, which is intended to clarify the definition of “preliminary economic assessment” (“PEA”) in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 defines a PEA as “a study, other than a pre-feasibility study or feasibility study, which includes an economic analysis of the potential viability of mineral resources”. The terms pre-feasibility study (“PFS”) and feasibility study (“FS”) have the meanings ascribed by the CIM Definition Standards for Mineral Resources and Mineral Reserves, as amended. The CSA notes that certain issues have been identified in monitoring PEA disclosure since June 2011 when this definition was included in NI 43-101.

The Notice emphasizes to issuers that a PEA is to be kept separate and distinct from both PFS and FS, which indicate more comprehensive studies, and provides further guidance to issuers on other aspects of PEA preparation and disclosure to address the issues that have arisen. The CSA notes that the definition of PEA has two elements that distinguish it from other studies, namely that, by definition it cannot be a PFS or FS and it can only demonstrate the potential viability of mineral resources, not the technical or economic viability of a project. The Notice provides guidance to issuers regarding how to properly identify and disclose a PEA and avoid the staff challenging the study or taking the position that the issuer is treating the PEA as a PFS.

Definition of Preliminary Economic Assessments Clarified

Canadian Securities Regulators Proceed with Regulatory Framework to Manage Electronic Trading Risks

The Canadian Securities Administrators (“CSA”) recently announced that following consultations with marketplaces, marketplace participants and service vendors, it is proceeding with the implementation of National Instrument 23-103 Electronic Trading and Direct Electronic Access to Market Places (the “Proposed Rule” or “NI 23-103”). The Proposed Rule establishes a regulatory framework for the oversight and management of potential risks associated with electronic trading in Canadian Market places, which, the CSA notes, is consistent with international approaches to regulating electronic trading.

NI 23-103 is designed to address the risks introduced by the speed and automation of electronic trading, and ensure that marketplaces and their participants are actively monitoring and addressing these risks. It will require, among other things, that participants in electronic trading implement and maintain certain controls, policies and procedures.

Subject to ministerial approval the policy will come into effect on March 1, 2013. Further information regarding the Proposed Rule can be found here on the OSC website.

Canadian Securities Regulators Proceed with Regulatory Framework to Manage Electronic Trading Risks