Passport Potash Inc. (TSXV:PPI,OTCQX:PPRTF) clarified its disclosure as a result of a review by the British Columbia Securities Commission.
As quoted in the press release:
The Company would like to make the following clarifications:
The Company’s March 13, 2013 news release announcement of a PEA result is not compliant with section 2.3(3) of NI 43-101, and potentially misleading, because it omits cautionary language required by section 2.3(3)(a) of NI 43-101. The Company would like to clarify its statement by adding that the preliminary economic assessment is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
The Company’s July 31, 2013 news release states that on the basis of the PEA, the project “would still be economically viable” with a decrease in prices by over 30%. Due to the preliminary nature of a PEA, it is misleading to disclose or imply economic viability, and at minimum a pre-feasibility study (“PFS”) is necessary to confer economic viability. Therefore, the Company retracts its statement implying economic viability.
The Company’s April 2013 presentation “Cultivating Global Growth”, posted on its website (the “Corporate Presentation”), included disclosure issues similar to those discussed above, and the presentation has been revised accordingly.
Non-compliant disclosure of potential exploration target.
The project section of the company’s website discloses an exploration target from the November 1, 2011 SRK technical report. This disclosure is non-compliant because it omits the grade range required by section 2.3(2) of NI 43-101. The Company retracts this statement and has removed references to the statements from the SRK technical report from its website.
General disclosure and filing issues
The projects section of the Company’s website had become significantly out-of-date, and as a result may have become misleading. The Company has updated the projects section of its website.