and other Latin American Companies Darrell Podowski Partner, McMillan LLP Chair, National Mining Group

Transcripción

1 Listing on the TSX and TSXV for Chilean and other Latin American Companies Darrell Podowski Partner, McMillan LLP Chair, National Mining Group

2 McMillan Firm Profile McMillan is a leading international business law firm committed to client service and professional excellence for over 100 years Offices in Vancouver, Calgary, Toronto, Ottawa, Montréal and Hong Kong, and nearly 350 lawyers Particular expertise in corporate commercial law, Canadian and US securities law and mining 2

3 McMillan Perfil de la Empresa McMillan es una firma internacional líder con más de 100 años de experiencia, y con un fuerte compromiso por el servicio profesional de excelencia. Con oficinas en Vancouver, Calgary, Toronto, Ottawa, Montreal y Hong Kong, con cerca de 350 abogados Con una vasta experiencia en derecho corporativo, comercial y mercados de valores (Canadá y EE.UU). 3

4 Differences Between TSX and TSXV Toronto Stock Exchange (TSX) TSX Venture Exchange (TSXV) 4

5 Why Canada? Economically stable Ranked #1 in Forbes annual review The Best Countries for Business Canada is the fourth largest equity market by float capitalization in the MSCI World Index World s soundest banking system* Lowest debt-to-gdp among G7 Strong equity culture * World Economic Forum, , fourth year in a row 5

6 Por qué Canada? Económicamente estable Clasificado como No.1 en la revista anual de Forbes Los mejores países para hacer negocios (The Best Countries for Business) Canadá es el cuarto mercado de valores más grande del mundo por capital circulante en el Índice Mundial de MSCI El sistema bancario más sólido del mundo* Tiene la menor proporción deuda-pib entre los países del G7 Sólida cultura accionaria * Fuente: Foro Económico Mundial, , por cuarto años consecutivos 6

7 The World Lists on TSX and TSXV Total International Listings as at June 30, 2012 = 354 TSX = 194 listings QMV = $157.6 B TSXV = 158 listings QMV = $3.0 B 7

8 El Mundo Cotiza en el TSX y TSXV Total de empresas internacionales que cotizan al 30 de junio de 2012 = 354 TSX = 194 empresas que cotizan Precio de cotización (QMV)=$157,600 millones TSXV = 160 empresas que cotizan QMV= $3,000 millones 8

9 Why the World Lists on TSX and TSXV Access to capital Liquidity Diverse issuer base Service at all stages of growth Partner with a global leader 9

10 Por qué el Mundo Cotiza en el TSX y TSXV? Acceso a capital Liquidez Base diversificada de emisores Servicio en todas las etapas del desarrollo Asociación con un líder mundial 10

11 Access to Capital Source: Gamah International, 2011, compiled by Toronto Stock Exchange 11

12 Acceso a capital Fuente: Gamah International, 2011, compilado por Toronto Stock Exchange 12

13 Strong Liquidity Source: TSX/TSXV and LSE/AIM Info. Amounts are in C$Billions 13

14 Liquidez Sólida Fuente: Información de TSX/TSXV y LSE/AIM. Los montos se expresan en C$Billónes 14

15 Diverse Issuer Base Source: Infomine 15

16 Diversidad de la base de emisores Fuente: Infomine 16

17 Service at All Stages of Growth Market Capitalization, December 31,

18 Servicio en todas las etapas del desarrollo 552 emisores 151 Capitalización bursátil,,31 de December de 2011 *Del 1 de enero de 2000 al 30 de junio de

19 Partner with a Global Leader 19

20 Asociación con un líder mundial 20

21 TSX and TSXV Companies are Mining in Chile and South America Number of TSX/TSXV Mining Companies in Chile Colombia 39 8 Ecuador 17 Peru 89 Venezuela Guyana Brazil 50 Suriname French Guyana Number of Chilean Mining Properties Bolivia $218M Amount of Equity Capital Raised in 2012 on TSX and TSXV for Chilean Mining Projects Chile Argentina Paraguay 3 4 Uruguay 4 Number of New Listings in 2012 with Projects in Chile Date: As of June 30,

22 Empresas del TSX y TSXV con Operaciones Mineras en Chile y América del Sur Número de empresas de minería de TSX/TSXV en Chile Colombia Ecuador Perú 89 Venezuela 8 Bolivia 17 Brasil Guyana Surinam Guyana Francesa Número de propiedades de minería en Chile $218M Monto del capital accionario recaudado en 2011 en TSX y TSXV para proyectos de minería Chile Chile Argentina Paraguay Uruguay 4 Número de nuevas empresas que cotizaron en 2012 con proyectos en Chile Número de empresas de minería que están explorando en Sudamérica 12 Nuevas en el primer semestre de 2012 Fecha: A partir del 30 de Junio de

23 23 Cómo cotizar en TSX y TSXV

24 How to List on the TSX and TSXV Technical Listing Requirements (applied to all listing methods): Management Track Record and Experience Minimum Property Ownership Work Program Sufficient Working Capital and/or Mine Life National Instrument Technical Report 24

25 Criterios específicos para cotizar Requisitos para cotizar en bolsa Trayectoria y experiencia en la administración de compañías mineras listadas. Requerimiento mínimo de posesión de propiedades Programas de trabajo Capital de trabajo suficiente/vida útil de la mina Informe Técnico NI

26 Listing Requirements for Mining Companies Property Requirements Recommended Work Program TSX: exploration stage Advanced Exploration Property Minimum 50% ownership in the property $750,00 on advanced exploration property as recommended in independent technical report TSX: producer Three years proven and probable reserves as estimated by an independent qualified person (if not in production, a production decision made) TSXV Tier 1 TSXV Tier 2 Material interest in a Tier 1 property Significant interest in a qualifying property or, at discretion of the Exchange, hold rights to earn a qualifying property with sufficient evidence of now less decision made) than $100,000 Bringing the mine into commercial production $500,000 on the Tier 1 property as recommended by geological report expenditures in the past three years prior to Application for Listing $200,000 on the qualifying property as recommended by geological report 26

27 Listing Requirements for Mining Companies Working Capital and Financial Resources Net Tangible Assets, Earnings or Revenue Other criteria TSX: exploration stage Minimum $2.0 million working capital, but sufficient to complete recommended programs, plus 18 months G&A, anticipated property payments and capital expenditures. Appropriate capital structure $3,000,000 net tangible assets TSX: producer Adequate funds to bring the property into commercial production; plus adequate working capital for all budgeted capital expenditures and to carry on the business. Appropriate capital structure $4,000,000 net tangible assets; evidence indicating a reasonable likelihood of future profitability supported by a feasibility study or historical production and financial performance Up-to-date, comprehensive technical report prepared by independent qualified person and 18 month projection (by quarter) of sources and uses of funds, signed by CFO TSXV Tier 1 TSXV Tier 2 Adequate working capital and financial resources to carry out stated work program or execute business plan for 18 months following listing; $200,000 unallocated funds $2,000,000 net tangible assets Geological report recommending completion of work order Adequate working capital and financial resources to carry out stated work program or execute business plan for 12 months following listing; $100,000 unallocated funds No requirement 27

28 Listing Requirements for Mining Companies TSX: exploration stage TSX: producer TSXV Tier 1 TSXV Tier 2 Management and Board of Directors Management, including board of directors should have adequate experience and technical expertise relevant to the company s business and industry as well as adequate public company experience. Companies are required to have at least two independent directors. Distribution, Market Capitalization and Public Float Sponsorship $4,000,000 publicly held 1,000,000 free trading public shares; 300 public holders with board lots Required (may be waived if sufficient previous 3 rd party due diligence) Public float of 1,000,000 shares; 250 Public Shareholders each holding a Board Lot and having no Resale Restrictions on their shares; 20% of issued and outstanding shares in the hands of Public Shareholders Public float of 500,000 shares; 200 Public Shareholders each holding a Board Lot and having no Resale Restrictions on their shares; 20% of issued and outstanding shares in the hands of Public Shareholders Sponsor report may be required 28

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31 National Instrument Establishes standards for disclosure of scientific and technical information in Canada regarding mineral projects Requires that disclosure be based on a technical report or other information prepared by or under the supervision of a qualified person 31

32 Instrumento Nacional Establece normas para la divulgación en Canadá de información científica y técnica, con respecto a determinados proyectos mineros. Requiere que la divulgación de información se haga sobre la base de un informe técnico u otro tipo de información preparada, por o bajo la supervisión de una persona calificada. 32

33 How Can International Mining Companies Access the TSX and TSXV? Dual Listing Initial Public Offering Reverse Take Over Listing Application Capital Pool Company (TSXV only) 33

34 Como hacen las compañías mineras internacionales para acceder al TSX Y TSXV? Las compañías mineras tienen una cotización dual, tanto en una de las bolsa de valores TMX y otra en una bolsa de valores local. IPO. RTO Listarse directamente en la bolsa. CPC (Empresa Capital Conjunto-TSXV) 34

35 Canada wants you! TSX and TSXV are mining friendly exchanges Lots of opportunities for Chilean mining companies 35

36 Canadá require a Chile! TSX y TSXV son bolsas de valores amistosas a la industria minera Muchas oportunidades para compañías mineras Chilenas 36

37 Muchas Gracias Darrell Podowski Darrell Podowski Partner, McMillan LLP Chair, National Mining Group Vancouver, British Columbia, Canada