SEC Proposes To Update Mining Disclosure Rules

On June 16, 2016, the U.S. Securities and Exchange Commission (the "SEC") announced proposed rules to modernize the U.S. disclosure requirements for mining properties (the "Proposed U.S. Rules"). The Proposed U.S. Rules would generally align U.S. requirements with current industry and global regulatory practices and standards, including the Committee for Mineral Reserves International Reporting Standards ("CRIRSCO") and Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101"). The SEC is proposing to rescind Industry Guide 7 and codify the new mining property disclosure requirements in a new subpart of Regulation S-K.

The Proposed U.S. Rules would apply to U.S. domestic and foreign issuers (including foreign private issuers who file Form 20-F). However, Canadian issuers that are subject to the Canada-U.S. Multijurisdictional Disclosure System (MJDS) and file a Form 40-F would not be subject to the new U.S. disclosure rules, and could continue to