Ecuador court gives green light for Silvercorp, Salazar’s El Domo project
The ruling removes the last major obstacle for the $250 million project, located 150 km northeast of Guayaquil.
The CEO of Chilean Metals (TSX.V:CMX), Terry Lynch, launched this week Save Canadian Mining – an advocacy group with the goal to give voice to the specific interests of Canada’s junior mining sector.
In a press release, Lynch said that Save Canadian Mining will work to raise awareness of the importance of the junior mining segment for the country’s economy. It will also advocate for positive change on their behalf with government and regulatory agencies.
The campaign will be lobbying for revisions to existing marketplace rules and regulations that have created severe challenges for junior public companies in the sector
“The current rules in our equity markets have created an environment for predatory short-selling practices to thrive, particularly on our vulnerable junior markets,” the executive said in the media brief. “For smaller cap mining companies, short-selling activity spooks true investors into selling prematurely, effectively stunting the growth of these businesses at critical early stages. Save Canadian Mining is dedicated to helping ensure Canada’s capital markets remain viable for junior miners now and into the future.”
In 2012, the Investment Industry Regulatory Organization of Canada and the Canadian Securities Administrators removed a 142-year old securities trading rule known as the “tick test.” The test restricted short selling to positive price changes at the time of the sale. This change was applied not only to the main listing venue of the TSX Venture Exchange but was equally applied across all Canadian trading venues, of which there are 14 today.
According to Lynch, since the removal of the tick test, Canadian markets have evolved, and there now exists a dynamic where Canada’s junior markets are finding it increasingly difficult to raise capital.
“Short selling activities have increased in the junior mining market since 2012,” Lynch said. “The advent of high-frequency trading and algorithmic trading are exploiting the combination of a lack of a tick test, with 14 different trading markets to the detriment of one of Canada’s most important industries.”
Through Save Canadian Mining, the head of Chilean Metals plans to meet with the government to share the stories of many small businesses in the mining sector. The organization will also be sharing its desired regulatory amendments.
