Lexata note: changes to this section effective April 14, 2022 are shown in green (additions).
While an acquisition of mining assets may constitute an acquisition of a business for securities legislation purposes even if the acquired assets do not meet the definition of a “business” for accounting purposes, we would not consider an acquisition of mining assets to be a business requiring financial statements under either Item 32 or Item 35 of Form 41-101F1 if all of the following apply:
(a) the acquisition of the mining assets was an arm’s length transaction;
(b) no other assets were transferred and no other liabilities were assumed as part of the acquisition;
(c) there has been no exploration, development or production activity on the mining assets in the 3 years (2 years for an IPO venture issuer or a venture issuer) before the date of the preliminary prospectus.