By signing exempt distribution reports when no exemption was available a mining company director breached securities laws, a British Columbia Securities Commission (BCSC) panel has ruled.
The BCSC said Wednesday that a hearing panel ruled that former director of B.C. miner, Cinnabar Explorations Ltd., breached the prospectus requirements. It found that Daniel Grant McGee allowed illegal distributions to occur by signing exempt distribution reports when no prospectus exemption was available. “Ignorance of his obligations does not relieve McGee of liability,” the panel said.
Back in 2013, the BCSC found that two other directors illegally sold shares of the company to seven investors between April and July 2011. It says that the company claimed that the seven investors fell under the family, friends and business associates and accredited investor exemptions, but the panel found they did not.
The panel did not hand down any sanctions in the case yet. It directed the two sides to make submissions on sanctions on a schedule set out in the ruling.