Disclosure Of Material Changes In The Context Of Mining Rights Held By An Issuer

Public companies are required to inform the market of material changes in their affairs. Issuers listed on the Toronto Stock Exchange (TSX) or the TSX Venture Exchange must also disclose material facts that have a bearing on their business. Determining when a material change has occurred or when the time has come to disclose a material fact can involve difficult judgments by management.

Earlier in 2008, the Ontario Securities Commission (OSC) provided guidance on when the fact of contractual negotiations becomes a material change, in the matter of AiT Advanced Information Technologies Corporation. Recently, the OSC considered whether a mining company should have publicly disclosed that it was experiencing difficulties with a government authority in relation to its mineral tenure.