Regulation S-K 1300
Many have been awaiting the Federal Register publication of the U.S. Securities and Exchange Commission (SEC) final mining disclosure rule, commonly known as Regulation S-K 1300. Appearance in the Federal Register effectively turns the rule into law. The wait is now over, the rule was published on December 26th, 2018, and can be found here.
So, now what? As stated in the Federal Register, the rule is effective February 25th, 2019. Registrants have the option to file property disclosure under the new rule until January 1, 2021, after which time it will be required that registrants file per the instructions in the new rule. Think about that for a moment … this is a two-year transition period; very long, by SEC standards. And, if a registrant’s fiscal year ends after January 1, 2021, the transition period is a bit longer. What does this mean? Well, it’s only speculative at this point, but the long transition period may be a sign that the SEC intends to test drive the new rule with anticipation that there will be Compliance and Disclosure Interpretations (C&DI’s) issued as necessary. In fact, it’s stated in the Federal Register that registrants may take advantage of the final rules prior to completion of the transition period but following reprogramming of EDGAR.
Upcoming Educational Opportunity
The Society for Mining, Metallurgy, and Exploration, Inc., is presently coordinating a panel discussion at its annual meeting on February 26th, 2019, at the Colorado Convention Center in Denver. The session will present a history of advocacy for change by the SME and the National Mining Association; a three decade long process of working with the SEC to update its disclosure rules. This opportunity will educate attendees on the debates and discussions that have taken place over the three decades leading up to today, and allow attendees to ask questions about the new rule. Panel speakers will include representatives from mineral finance law, SME, mining industry, and the SEC, and of course, me!