Mutual Reliance Review System for ExemptiveRelief Applications - Relief granted from the requirement inNational Instrument 43-101 to have a qualified person inspectthe property that is the subject of a technical report B reportbeing co-authored by person that would be a qualified personbut for not being a member of a professional association B co-authorhas conducted numerous site visits.
Applicable Ontario Provisions
National Instrument 43-101 Standards of Disclosurefor Mineral Projects, ss. 6.2 and 9.1.
IN THE MATTER OF
THE SECURITIES LEGISLATIONOF
BRITISH COLUMBIA, ALBERTAAND
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEWSYSTEM
FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
SOUTHWESTERN RESOURCES CORP.
MRRS DECISION DOCUMENT
WHEREAS the local securities regulatoryauthority or regulatory (the "Decision Maker") ineach of British Columbia, Alberta and Ontario (the "Jurisdictions")has received an application from Southwestern Resources Corp.("Southwestern") for a decision under the securitieslegislation of the Jurisdictions (the "Legislation")that the requirement contained in the Legislation that at leastone qualified person preparing or supervising the preparationof a technical report inspect the property that is the subjectof the technical report (the "Personal Inspection Requirement")will not apply to Southwestern in respect of a technical reportto be prepared in connection with Southwestern's annual informationform;
AND WHEREAS under the Mutual RelianceReview System for Exemptive Relief Applications (the "System")the British Columbia Securities Commission is the principalregulator for this application;
AND WHEREAS Southwestern has representedto the Decision Makers that:
1. Southwestern is incorporated under thelaws of British Columbia, carries on a mineral explorationbusiness and has its head office located in Vancouver, BritishColumbia;
2. Southwestern is a reporting issuer in eachof the Jurisdictions and is not in default of any requirementof the Legislation;
3. Southwestern's common shares are listedon The Toronto Stock Exchange;
4. Southwestern is in a joint venture withInco Limited on the Bambas West Project located in Peru andoperated by Southwestern, with 50% of the Bambas West Projectbeing owned by Southwestern and the remaining 50% owned byInco Limited; the Bambas West Project is a grass roots orgreen fields project and has no currently known mineral resourcesor reserves;
5. Southwestern is currently preparing anannual information form for the year ended December 31, 2001(the "AIF") in which it will disclose informationregarding the Bambas West Project; Southwestern is also preparinga technical report to be filed with the Decision Makers insupport of the information concerning the Bambas West Projectin the AIF (the "Report");
6. Southwestern retained Richard Mazur, B.Sc.,MBA, ("Mazur") a qualified person under NationalInstrument 43-101 Standards of Disclosure for Mineral Projects("43-101"), and Javier Salas ("Salas"),who is not a qualified person under 43-101, to jointly preparethe Report;
7. Salas has been Southwestern's Manager ofExploration for Peru since 1996, has been on site at the BambasWest Project many times, has been engaged in technical workon the Bambas West Project and is therefore familiar withall aspects of the Bambas West Project;
8. but for the fact that Salas is not a memberof a professional association, Salas would be a qualifiedperson, as such terms are defined in 43-101;
9. section 6.2 of 43-101 requires at leastone qualified person preparing or supervising the preparationof the technical report to inspect the property that is thesubject of the technical report; and
10. Mazur has not completed a site visit ofthe Bambas West Project because Salas, who is co-authoringthe Report, has completed numerous site visits;
AND WHEREAS under the System this MRRSDecision Document evidences the decision of each Decision Maker(collectively, the "Decision");
AND WHEREAS each of the Decision Makersis satisfied that the test contained in the Legislation thatprovides the Decision Maker with the jurisdiction to make theDecision has been met;
THE DECISION of the Decision Makers underthe Legislation is that the Personal Inspection Requirementwill not apply to Southwestern in respect of the Report to befiled in connection with the AIF, provided that the Report andthe AIF include a statement that a personal inspection has notbeen conducted by the qualified person, as defined in 43-101,and the reasons why a personal inspection was not conducted.
April 19, 2002.