New Age Metals Inc. (TSXV:NAM; OTCQB:NMTLF; FSE:P7J.F) is retracting the updated analyst report (“Analyst Report”) completed by Fundamental Research Corp. (“Fundamental”) previously disclosed in news release dated April 25, 2018.
New Age Metals Inc. (TSXV:NAM; OTCQB:NMTLF; FSE:P7J.F) is retracting the updated analyst report (“Analyst Report”) completed by Fundamental Research Corp. (“Fundamental”) previously disclosed in news release dated April 25, 2018. The Company paid a fee in the amount of $18,000 to Fundamental to provide four (4) Analyst Reports consisting of one (1) initiating report and three (3) updated reports.
On April 25 2018, Investment Institute Regulatory Organization of Canada (“IIROC”) alerted NAM that the Analyst Report and disclosure contained in the press release did not comply with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects or National instrument 51-102 – Continuous Disclosure Obligations. Specifically, the Fundamental Research Report included the following “Disclaimer”:
“Any “forward looking statements” are FRC’s best estimates and opinions based upon information that is publicly available and that analysts believe to be correct, but have not independently verified with respect to truth or correctness. Although the Company has paid a fee to FRC to subsidize the high costs of research and monitoring, the Company is not responsible for the content, accuracy or timelines contained in an analyst’s report and the fee was not dependent on the opinion provided. In addition, readers should be aware, and are cautioned, that opinions, estimates, or forecasts contained in research analyst reports are not subject to the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101″) and have not received any endorsement or approval by New Age Metals. As such, New Age Metals does not imply or in any way represent that any of the reports, opinions, estimates, or forecasts regarding New Age Metals made by research analysts complies with NI 43-101 or represent the opinions or beliefs of New Age Metals or its management or representatives.”
The above statements are materially misleading as Fundamental Research was contracted by and compensated for “coverage” of the Company and disclosure contained within Fundamental Research Report is required to comply with NI 43-101. Specifically (i) NI 43-101, 3.1 requires all written disclosure of scientific or technical information to prepared by or the preparation supervised by or approved by a qualified person; (ii) NI 43-101, 3.2 requires all written disclosure to include data verification; (iii) NI 51-102, Part 4B requires all disclosure of FOFI or financial outlooks for Company’s subject to requirements of NI 43-101, to comply with those requirements, including requiring all FOFI or financial outlooks be supported by a preliminary economic assessment, pre-feasibility study or feasibility study. The above requirements were not met and the Company is retracting all disclosure relating to Fundamental Research Report including but not limited to the “Fair Value” price forecast; “BUY” recommendation; and “Disclaimer” content.
On behalf of the Board of Directors
Harry G. Barr
Chairman and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as “continue”, “efforts”, “expect”, “believe”, “anticipate”, “confident”, “intend”, “strategy”, “plan”, “will”, “estimate”, “project”, “goal”, “target”, “prospects”, “optimistic” or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company’s ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.