Juniors can’t afford red tape for speculators

The following is excerpted from two letters sent to The Northern Miner, written by Jean-Jacques Martel of Amos, Que. Martel is vice-president of Explorations Minieres du Nord, a Quebec-based junior mining company.

I have read with some surprise about the Toronto Stock Exchange’s new shareholder communication rules.

As a long-standing member, former director and regional vice-president (Quebec) of the Prospectors and Developers Association of Canada for a number of years, I want to oppose and protest against the application of these so-called new rules.

As a matter of principle, I don’t see why junior mining companies should be asked to pay for those speculators who contribute very little to financing mining exploration, other than speculate for themselves with no benefit to the companies’ treasuries.

There are enough burdens now imposed on junior mining exploration companies without adding one more. Those who want to speculate and remain hidden behind the curtain should pay for the service if they want it, without imposing on the companies in providing them the information they can get as registered shareholders.

Those who have unregistered shares in street form (or street certificates), or registered in a broker’s name to be held in safekeeping for a client, should themselves pay for that service and the extra work or costs to junior companies struggling to survive among the new rules, regulations and so on.

Why should we be obliged to pay for speculators? They don’t get their shares registered, so they can sell their shares more quickly. Most of these speculators are only playing the markets in and out for a killing or to rake the markets whenever they get the chance. They keep their shares hidden in street form, so that their transactions are that much harder to trace or control. We would be paying to give them advance and privileged information before those regular shareholders truly supporting us. No way. We know very well that those speculators in the general markets don’t bring a nickel into the treasuries of the junior companies in particular.

The authorities should also know that the professionals of the marketplace often sell short or just rake the markets to their own personal and selfish benefit, and that these transactions don’t bring a penny in our companies’ treasuries, where we have to fight continually to raise risk capital, let alone survive to meet all old or new regulations.

As a matter of principle, I strongly oppose the measure and will be asking support from the Prospectors and Developers Association, the Quebec Prospectors Association, and also from all mining people and any association directly concerned with this matter, an extra and unjustified burden besetting the junior companies and the exploration world.