TSX Staff Notice Guidance Impacts IPO Plans

On November 7, 2013, the Toronto Stock Exchange ("TSX") issued a Staff Notice to Applicants, Listed Issuers, Securities Lawyers and Participating Organizations ("Staff Notice") that provides guidance for companies considering a listing on the TSX.  In particular, the Staff Notice addresses listing requirements for mineral exploration and development stage companies as well as clarifies the position of the TSX on financial statement disclosure required for listing and stock options granted prior to an initial public offering.

Qualification of an advanced property for mineral exploration companies

The TSX requires that companies applying to list under the mineral exploration and development-stage category hold or have a right to earn and maintain at least a 50% interest in an advanced mineral property ("advanced property").  The TSX will generally consider a mineral property to be an advanced property if continuity of mineralization is demonstrated in