British Columbia Securities Commission

British Columbia Securities Commission

June 27, 2012 17:00 ET

BCSC Executive Director's Bulletin: Securities Regulator Issues Notice of Hearing Alleging That Corporate Communications Officer Made Misrepresentations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2012) - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a corporate communications officer made materially misleading statements when engaging in investor relations on behalf of a B.C.-based mining company listed on the TSX Venture Exchange.

The notice alleges that Aaron Ross, a B.C. resident, made statements that he knew or ought to have known were misrepresentations while engaging in investor relations on behalf of Aguila American Gold Limited. Aguila is a B.C. mining company that trades on the TSX-V.

On February 18, 2011, Aguila issued a news release disclosing drill results on a property in Peru. The news release included a disclaimer that "the potential quality and grade was conceptual in nature, there has been insufficient evidence to support a mineral resource and it is uncertain if further exploration would result in a discovery or mineral resource."

Ross, while engaging in investor relations for Aguila, made calls and sent emails to over 130 potential investors identified on a list. A BCSC investigator was listed among the prospective investors, and was contacted by Ross the day before the Aguila news release was issued.

The executive director contends that during the course of this conversation, Ross made materially misleading statements to the investigator. In doing so, Ross breached securities laws and mining disclosure rules.

These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on July 10, 2012 at 9:00am.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website by typing Aaron Ross or 2012 BCSECCOM 246 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).

For media enquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public enquiries, call 604 899 6854 or 1 800 373 6393 (toll free).

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Contact Information

  • British Columbia Securities Commission
    Richard Gilhooley
    604-899-6713 or (Canada) 1-800-373-6393