T.V. expose of VSE ignores mining

Mining exploration and development companies make up about 70% of listings on the Vancouver Stock Exchange. Despite this, the exchange’s important role in North American mining didn’t rate a mention in a PrimeTime Live report on the VSE aired by ABC television network, Oct. 4. Officials from the exchange expressed disappointment at the “lack of balance” and said the report overlooked the key role played by the VSE in mining. Murray Pezim’s appearance in front of British Columbia securities regulators was given some coverage. But there was no mention of the promoter’s role in financing two of Canada’s most important gold discoveries of the 1980s, Hemlo in Ontario and Eskay Creek in British Columbia.

“All anyone learned is that Murray Pezim can’t sing very well,” said one industry observer.

Using hidden cameras and posing as investors, reporters were able to tape what appear to be obvious securities violations committed by a broker and by several promoters involved in non-resource ventures ranging from baldness cures to “puff-packaging.”

VSE officials said investigations into some of the matters had started before the broadcast, and the investigations would be continued and expanded in conjunction with the British Columbia Securities Commission.

Even before it aired, the report was acknowledged to be one of many factors contributing to the recent downturn on the VSE. In September, the composite index suffered major declines. After reaching a new historical low of 674.2 on Sept. 10, the index fell for the next 14 trading sessions to close the month at 601.55. It fell to even lower levels in the first few days of October.