The British Columbia Securities Commission (BCSC) 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 Ltd. (TSX-V:AGL).
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 more than 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. Hearing dates are to be set on July 10.
