New TSE rules shut out juniors

The Toronto Stock Exchange may have shut the door on junior mining companies by tightening its listing requirements.

Under the revised rules, all new companies must have a public float of $2 million, up from $1 million. Mineral exploration firms must have net tangible assets of $2 million, while industrials with profits of less than $100,000 must have net tangible assets of $5 million, up from $1 million. “The mining industry is already in a very tough environment,” said John McBride, chairman of Great Lakes Minerals (TSE), one of the few junior mining companies to receive a listing in recent years. “Why the TSE would come out with regulations that make it even tougher in a tough environment, I’ve got to wonder.”

But the TSE says the revisions will improve the market for investors by listing only well-capitalized companies.

Trying to make the TSE list for several months now is diamond explorer Dia Met Minerals (VSE), which recently traded at $21 on the Vancouver Stock Exchange.