The Alberta Securities Commission has sanctioned Azteca Gold’s president and CEO, Matthew Russell.
The ASC found Russell had allowed the company to make misleading and untrue statements in several 2009 news releases. He also acted as its qualified person in the first half of 2009, despite his lack of qualifications.
The news releases “presented a highly optimistic picture of Two Mile—an Idaho mineral property the company had an interest in—and reflected Russell’s hopes and theories, rather than accurate data,” said the panel. It found Russell’s misconduct caused Azteca Gold investors direct financial harm and put them at risk.
Russell is banned from acting as a director or officer of any issuer until June 13, 2017, and was ordered to pay an administrative penalty of $150,000, as well as costs of $40,000.
The panel also found Russell’s misconduct caused broader harm to the Alberta capital market, commenting: “To the extent that NI 43-101 (National Instrument 43-101 Standards of Disclosure for Mineral Projects) has had the intended effect of elevating the quality and reliability of mining-sector disclosure, its breach risks a reversal.”
If the reliability of public disclosures is questioned and qualified persons are deemed untrustworthy, investor confidence in our securities regulatory regime and capital market will be at risk. And with it, the ability of law-abiding mineral exploration companies to economically raise capital.”
Read the decision.