On 23 April 2010 the Committee of European Securities Regulators (CESR) published a consultation paper on its proposed amendments to its recommendations (CESR/05-054b) (CESR Recommendations) for the consistent implementation of the European Commission’s Regulation on Prospectuses (No. 809/2004) (PD Regulation) regarding mineral companies. Article 23 of the PD Regulation gives competent authorities powers to require additional information from certain specialist issuers, including mineral companies. Sections 131-133 of the CESR Recommendations set out how the PD Regulation should be implemented in the case of mineral companies raising capital on EU regulated markets.
CESR comments that it is seeking to harmonise mineral company disclosures in prospectuses by:
- Establishing clear minimum disclosure standards for mineral company prospectuses.
- Changing the rules on when a competent persons report (CPR) should be included in a prospectus.
- Clarifying which international reporting and valuation standards may be used.
- Establishing CPR content requirements and competence and independence criteria.
- Replacing the existing requirement for a cash flow forecast for certain companies.
Responses to the consultation should reach CESR by 15 July 2010.