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Feb 4, 2025

Why is NI 43-101 Becoming More Popular?

PierreJean Lafleur explores why NI 43-101 has gained popularity among mining investors. With stricter SEC regulations in the US, Canada’s flexible framework has become the preferred choice for junior mining companies. Learn how stock market regulations in Canada, Australia, London, and New York impact mining finance.

Watch the full webinar session.

Video transcription

Why is NI 43-101 Becoming More Popular?

The reason NI 43-101 is gaining popularity is simple: the US Securities and Exchange Commission (SEC) has very strict rules regarding mineral resource reporting. For example, inferred resources cannot be included in reports, which limits speculative investment opportunities. As a result, many investors turned to Canada, where the NI 43-101 framework offers more flexibility in reporting mineral resources.

Comparing stock market regulations across different regions:

  • United States (SEC): Strict rules, restricting speculative statements in reports.
  • Canada (NI 43-101): More flexibility, allowing for inferred resources, making it attractive for junior mining investors.
  • Australia: Similar to Canada, providing more room for speculative investments.
  • London & New York: Primarily cater to large mining companies with strict regulations on technical statements.

Historically, Canada has played a key role in financing junior mining companies. At one point, 60–70% of global mining capital reportedly came from the Canadian stock market. This is why NI 43-101 became a crucial standard, influencing how mining projects are financed today.