David L. Knight, FCA

The Ontario Securities Commission held a hearing to determine whether Rex Diamond Mining Corporation and its officers breached the Securities Act by failing to disclose material changes regarding the cancellation of its mining leases in Sierra Leone.

The Commission found that Rex failed to issue news releases and file material change reports when it received warning letters and notices that its leases were cancelled.

The Commission also found that Rex provided misleading disclosure in its public filings and provided an incomplete chronology to Market Regulation Services Inc. The CEO and CFO were found to have authorized, permitted, or acquiesced in these breaches, acting contrary to the public interest.

The respondent was alleged to have breached a previous Commission order and settlement agreement by trading shares while subject to a cease trade order, failing to provide a copy of the order to registrants, and making false statements to Staff regarding his assets.

The Commission found that the respondent committed the alleged breaches.

In determining sanctions, the Commission considered the respondent's repeated disregard for Commission orders and attempts to conceal his actions as aggravating factors.

The Commission ordered a 10-year cease trade and director/officer ban, and ordered the respondent to pay $15,000 in costs.