The British Columbia Securities Commission has halted trading in Valorem Resources Inc., one of four small Canadian mining companies targeted this year by an apparent international “pump and dump” ring that has caused stock market chaos.
The provincial securities regulator said it made the decision to halt trading in the Canadian Securities Exchange-listed exploration company after its share price ran up by 62 per cent and its volume jumped by 238 per cent.
The increases followed “unsubstantiated statements” about Valorem on a website called The Financial News.
The three-week trading halt in Valorem comes after The Globe and Mail reported last month on the problematic promotions in Valorem, and after Canadian regulators were criticized by burned investors for being too slow to respond.
On April 12, The Financial News falsely claimed that Vancouver-based Valorem, which trades for pennies, was sitting on $500-million in gold reserves, and that its shares were poised to explode by 800 per cent.