The British Columbia Securities Commission (BCSC) alleges that junior mining company First Mexican Gold Corp., its then-chief executive officer and an external consultant broke securities laws by knowingly publishing a shoddy estimate of resources on a minerals property.
The allegations centre around the conduct of the Vancouver-based, TSX Venture-listed gold and silver exploration company from 2014 to 2017. This past July, First Mexican changed its name to QcX Gold Corp.
According to a BCSC news release, in 2014 First Mexican hired an external mining engineer who came up with a rough estimate on how much gold and silver might be on the ground at its Sonora property in Mexico.
The engineer made it clear that the resource estimate wasn’t solid enough to be published in a technical report that investors would typically rely upon to make buy and sell decisions.
First Mexican’s chief executive officer at the time, James Voisin, assured the engineer the estimate would not end up “anywhere near to a public document,” said the BCSC.
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