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ARTICLE · 18 SEPTEMBER 2012

Commentary: New Guidance For Disclosing PEAs In Canada

McMillan LLP
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On Aug. 16, 2012, the Canadian Securities Administrators (CSA) published CSA Staff Notice 43-307 Mining Technical Reports – Preliminary Economic Assessments, which sets out staff's position on several issues regarding the use and disclosure of preliminary economic assessments (PEAs) under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

CanadaCorporate/Commercial Law

On Aug. 16, 2012, the Canadian Securities Administrators (CSA) published CSA Staff Notice 43-307 Mining Technical Reports – Preliminary Economic Assessments, which sets out staff's position on several issues regarding the use and disclosure of preliminary economic assessments (PEAs) under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Under NI 43-101, a PEA is defined as a study, other than a pre-feasibility study (PFS) or feasibility study (FS), that includes an economic analysis of the potential viability of mineral resources. The definition of a PEA was broadened last year to allow issuers to disclose results of PEAs that were completed after a PFS or FS was done on the same property. This change was in response to concerns that issuers needed to be able to take a step back and re-scope advanced stage projects based on new information or alterative production scenarios.

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