VANCOUVER, Nov. 28, 2013 /CNW/ - The Executive Director of the British
Columbia Securities Commission has issued a notice of hearing alleging
that a mining cost analyst engaged in insider trading.
The notice alleges that Robert Launder sold shares of Baja Mining Corp.
while in a special relationship with the company and while in
possession of material facts concerning a cost review that had not been
generally disclosed. Launder lives in Princeton, B.C.
Launder, a mining cost analyst, was the Manager of Project Controls for
Minera Y Metalurgica Del Boleo S.A. de C.V. (MMB), a subsidiary of
Baja. BCSC staff maintains that Launder was integrally involved in the
preparation of a cost review for Baja's sole asset, a joint venture
interest in the Boleo copper mine project. The cost review ultimately
identified a projected cost overrun of approximately $246 million for
the Boleo project.
The notice states that in light of the pending release of the cost
review, Baja implemented trading blackout periods with respect to Baja
shares, including a blackout from April 10 to April 25, 2012. During
the blackout, insiders and employees of MMB, among others, were
prohibited from trading in Baja shares.
The notice alleges that Launder was aware of the trading blackout, and
that as a member of the team that developed the cost review, he knew
about the cost overruns long before it was disclosed to the public.
BCSC staff contends that Launder engaged in insider trading when he sold
5,000 Baja shares on April 20, 2012, the last trading day before the
news release pertaining to the cost review was issued. Launder sold his
shares while in a special relationship with Baja, and with knowledge of
the cost review before such information was generally disclosed.
These allegations have not been proven. Counsel for the Executive
Director will apply to set dates for a hearing into the allegations
before a panel of commissioners on January 7, 2013 at 9:00am.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Robert Launder or 2013 BCSECCOM 269 in the search box.
Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website. Please visit the Canadian Securities
Administrators' Disciplined Persons List for information relating to persons disciplined by provincial
securities regulators, the Investment Industry Regulatory Organization
of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE: British Columbia Securities Commission
For further information:
For media inquiries, please contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, please call 604 899 6854 or 1 800 373 6393 (toll free).