The SEC offered rules to reform Regulation S-K in regard to the property disclosure requirements for mining companies.
On June 16, 2016, the SEC announced the proposed rules will support global mining disclosure standards and “give investors more comprehensive information of a registrant’s mining properties that they can use to make informed investment decisions.”
PER THE SEC, the new ruling will:
- Provide one standard that requires registrants to disclose mining operations that are material to the company’s business or financial condition
- Require a registrant to disclose mineral resources and material exploration results in addition to its mineral reserves
- Permit disclosure of mineral reserves to be based on a preliminary feasibility study or a final feasibility study
- Provide updated definitions of mineral reserves and mineral resources
- Require, in tabular format, summary disclosure for a registrant’s mining operations as a whole as well as more detailed disclosure for material individual properties
- Require that every disclosure of mineral resources, mineral reserves and material exploration results reported in a registrant’s filed registration statements and reports be based on, and accurately reflect information and supporting documentation prepared by, a “qualified person”
- Require a registrant to obtain a technical report summary from the qualified person, which identifies and summarizes for each material property the information reviewed and conclusions reached by the qualified person about the registrant’s exploration results, mineral resources or mineral reserves
The complete text of the Proposed Rules is available here.