Tuesday 27th September 2016

Resource Clips



Cow Mountain cock-ups cost former Barkerville boss Frank Callaghan $30,000

by Greg Klein | October 27, 2015

One of the industry’s more outrageous resource estimates of recent years has once again caught up with one of Howe Street’s more colourful characters. Frank Callaghan, former president/CEO/director of Barkerville Gold Mines TSXV:BGM, has agreed to pay the British Columbia Securities Commission $30,000 for breaching NI 43-101 disclosure rules. He also got a one-year ban from acting as an officer or director of any reporting issuer and from engaging in investor relations activities. Additionally, he’s required to complete a course on 43-101 requirements.

Under his leadership in June 2012, Barkerville released a resource update for its central B.C. Cariboo gold project that provoked a combination of investor excitement and derision. Once Barkerville filed the technical report to SEDAR, the BCSC hit the company with a cease trade order and demanded a new report by a different qualified person.

A radical revision appeared in May 2013. But that failed to cool Callaghan’s enthusiasm for the more sensational version.

“Two and a half months after Barkerville adopted the revised estimates and retracted the initial estimates, Callaghan publicly repeated, and attempted to justify, the initial estimates in an online article and at an investor presentation. Callaghan acknowledges that his statements in the article and at the presentation contravened provisions of NI 43-101.”

He talked up the original effort even though “BCSC staff cautioned him that attempting [to] justify, validate or compare the initial estimates to the revised estimates is misleading and likely contrary to NI 43-101, his disclosure contradicted Barkerville’s previous disclosure adopting the revised estimates as the only current estimate and he understood disclosing combined inferred and indicated resource estimates was prohibited.”

An apparently contrite Callaghan agreed to the BCSC’s portrayal of events and the penalties imposed.

Callaghan resigned from Barkerville management in July 2014 but initially retained his board position. The company, which emphasizes its “new leadership,” no longer lists him as a director.

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