Proposed National Instrument 51-103: Venturing Into A Simplified Disclosure Regime

On July 29, 2011, the Canadian Securities Administrators (the "CSA") published for comment proposed National Instrument 51-103 Ongoing Governance and Disclosure Requirements for Venture Issuers (the "Draft Rule"). The Draft Rule proposes a new regulatory regime for issuers other than those with securities listed on the Toronto Stock Exchange, an exchange registered as a "national securities exchange" under section 6 of the U.S. Securities Exchange Act of 1934 or a marketplace outside of Canada or the United States that is not a designated venture market ("Venture Issuers"). The Draft Rule would apply to issuers listed on the TSX Venture Exchange and the Canadian National Stock Exchange. It also modifies the long-form prospectus rules and other instruments to harmonize the regime for Venture Issuers. The Draft Rule seeks to simplify the regulatory regime for Venture Issuers, as well as to provide investors with both targeted and enhanced information designed