CALGARY, Feb. 6, 2012 /CNW/ - The Alberta Securities Commission (ASC)
has found that Matthew Russell, Azteca Gold Corp.'s president and CEO
breached Alberta securities laws by making, and causing Azteca Gold to
make certain statements in eight Azteca Gold news releases "when he
knew or reasonably ought to have known them to be materially
misleading, or misleading and untrue." These statements, made from
January through June 2009, concerned drilling results for the company's
Two Mile project in Idaho, U.S.
An ASC panel also found that Russell breached Alberta securities laws by
acting as Azteca Gold's "qualified person" in respect of the Two Mile
project when he lacked certain required experience relevant to the
project as it stood in the first half of 2009. Under Alberta
securities laws, all disclosure of scientific or technical information
made by an issuer concerning a mineral project must be based upon
information prepared by or under the supervision of a qualified person.
The ASC panel ruled that Russell's conduct "impaired the ability of
investors to make properly informed investment decisions. The potential
harm is broad and foreseeable. Investors who bought Azteca securities
in the first half of 2009, in the face of the improper disclosure,
appear to have been directly and quantifiably harmed."
The ASC panel has set dates for ASC staff and Russell to provide
submissions on what, if any, orders for sanctions and costs the panel
ought to make.
A copy of the decision has been posted to the ASC website at www.albertasecurities.com.
The ASC is the regulatory agency responsible for administering the
province's securities laws. It is entrusted to foster a fair and
efficient capital market in Alberta and to protect investors. As a
member of the Canadian Securities Administrators, the ASC works to
improve, coordinate and harmonize the regulation of Canada's capital
SOURCE Alberta Securities Commission
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