ASC Finds Flag Resources and Golden Briar Mines Failed to Meet Disclosure

CALGARY, April 1 /CNW/ - The Alberta Securities Commission (ASC) has found that Flag Resources (1985) Limited and Golden Briar Mines Limited, two Alberta-based junior mining exploration companies, contravened continuous disclosure obligations under Alberta securities laws. An ASC panel also found that Murdo Campbell McLeod, an officer and director of these companies, was responsible for those contraventions. The ASC panel made no findings in relation to Sidney Miszczuk, a respondent in the proceeding who passed away in December 2009.

The ASC panel found that Flag Resources' 2003-2005 financial statements were not prepared in accordance with generally accepted accounting principles (GAAP), its 2004 and 2005 management discussion and analysis (MD&A) was deficient, and it failed to file or filed deficient certifications of interim and annual filings for 2005. The ASC panel found that Golden Briar Mines' 2002-2004 financial statements were not prepared in accordance with GAAP and its 2004 MD&A was deficient.

In finding McLeod responsible for the contraventions of Flag Resources and Golden Briar Mines, the ASC panel noted McLeod's failure to cooperate with ASC staff during an ASC continuous disclosure review of these two companies. The ASC panel ruled: "Clearly McLeod, as the senior officer and spokesperson for the Corporate Respondents, did not fulfill his obligations as a participant in the capital market to provide timely, complete responses to Staff's inquiries. This type of conduct is contrary to the public interest - it strikes at the heart of the Commission's oversight responsibility."

The ASC panel has set dates for the parties to provide written submissions on what, if any, sanctions should be ordered in this proceeding.

A copy of the decision is available on the ASC website at

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission

For further information: For further information: For Media Inquiries: Mark Dickey, Senior Communications Advisor, (403) 297-4481; For Investor Inquiries: ASC Public Inquiries, Toll Free, 1-877-355-4488

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