Here's the BCSC news release. More hoops to go through?
April 30, 2013
Securities Commission alleges misconduct against B.C. mining company and two executives
Vancouver – The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that two B.C. men and a B.C. mining company that trades on the TSX-Venture exchange breached mining rules.
The notice alleges that Wilhelmus (William) Kocken, Matthew Ball and Bralorne Gold Mines Ltd. breached 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 (the Speculative Economic Analysis). This analysis was disclosed in a news release, in a technical report filed on SEDAR, and on the company’s website. In addition to being a director, Kocken is also Bralorne’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.
The notice states that on October 17, 2012, Bralorne announced the results of a Preliminary Economic Assessment it had commissioned the previous June. In the news release, Bralorne presented the results of 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.
Also on October 17, 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.
However, the next day, Bralorne filed a technical report on SEDAR that included the Speculative Economic Analysis, despite the retraction on the previous day. 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.
BCSC staff contend that by disclosing the results of an economic analysis that included or was based on a target for further exploration, Kocken, Ball and Bralorne breached Canadian mining rules.
These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on May 28, 2013 at 9:00am.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Wilhelmus (William) Kocken, Matthew Ball, Bralorne Gold Mines Ltd. or 2013 BCSECCOM 53 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).
For media inquiries, please contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, please call 604 899 6854 or 1 800 373 6393 (toll free).