HALIFAX - Resource company Royal Roads Corp. (TSXV:RRO) announced Tuesday it has reached a settlement with Nova Scotia Securities Commission staff concerning a loan disclosure.
Under terms of the settlement, Royal Roads acknowledges acting contrary to the public interest in failing to report a material change in a timely manner.
It also agreed to an administrative penalty of $20,000 as well as $1,500 towards the cost of the investigation.
The company said in a news release that the issue involved a number of advances to a related company by an officer of Royal Roads without the knowledge or consent of any director or other officer of the company.
When the issue became known around Nov. 18, 2008, the sum amounted to about 35 per cent of the company's market capitalization.
On Dec. 1, 2008, the company disclosed terms of the loan and security arrangements that had been subsequently negotiated and ratified by independent directors and issued a news release.
Shareholders approved the loan at an annual and special meeting held in June 2009. The loan, plus interest at 10 per cent, has since been repaid in full.
Royal Roads said the settlement agreement acknowledges that Royal Roads immediately took steps to make disclosure of the material change once it became known to the directors and other officers.
It also immediately took steps to identify and correct weaknesses in the company's internal controls and requested the company's auditor to test the controls in conjunction with its 2008 year end audit procedures.
Halifax-based Royal Roads, 29 per cent owned by Acadian Mining Corp. (TSX:ADA), is focused primarily on exploring and developing mineral properties in the Buchans mining camp in Central Newfoundland and Labrador.
The company's shares were up two cents or over 21 per cent at 11.5 cents Tuesday on the TSX Venture Exchange. Acadia shares were up half a cent or 6.7 per cent at eight cents on the Toronto Stock Exchange.
Royal Roads reaches settlement with regulators over handling of loan disclosure
-
Published on
December 30, 2009
- Published on February 25, 2010
-
The Canadian Press ~ The News
- Rate
- Top of the page
