Save Canadian Mining Encouraged by the Consultation Report Released by Ontario’s Capital Markets Modernization Taskforce

TORONTO (July 10, 2020) – Save Canadian Mining (SCM) today responded to the 47 policy proposals contained within the consultation report released by Ontario’s Capital Markets Modernization taskforce last week. The advocacy group, which includes many junior mining companies as well as mining associations and TSX Venture Exchange was pleased with the attention paid to  predatory short selling, which they claim has disproportionately impacted the junior mining sector for years.

“We commend the work of the taskforce and are encouraged that our message on the need for more regulatory oversight of predatory short selling has been heard. We remain hopeful that the final recommendations will include an endorsement of the “tick test” and that the government decides to reinstate this critical safeguard,” said Terry Lynch, Executive Director of SCM.

SCM has been raising awareness for the importance of the tick test (among other regulatory and structural issues within Canada’s capital markets) since the advocacy group launched in November of last year. In March 2020 the group published research that revealed a link between the removal of the tick test by IIROC in 2012 and the decrease in valuations of junior mining companies. SCM has also drawn attention to the challenges of multiple marketplaces, of which there are 14 in Canada, and the negative effect that this continues to have on both small cap companies and investors.

“It’s not an accident that mining companies have suffered disproportionately since IIROC removed the highly successful 142-year-old tick test in 2012. While commodity values have remained steady, mining company valuations have plummeted. It has been very discouraging for mining juniors and their investors,” added Lynch. 

Joining SCM in its response to the initial report was Eric Sprott of Eric Sprott Mining Inc., Garry Clark, Executive Director of the Ontario Prospectors Association (OPA) and Brady Fletcher, Managing Director & Head of TSX Venture Exchange (TSXV).

“The tick test is a proven safeguard for the junior mining sector. The research is there. I encourage the taskforce to continue its work on SCM’s proposal and to ultimately recommend reinstatement of this proven market regulation,” said Eric Sprott, CEO, Sprott Mining Inc. 

“Junior miners in Northern Ontario and elsewhere are pleased with the work of the taskforce and the report issued yesterday. My members have raised predatory short selling as an issue for many years. The research done by Save Canadian Mining suggests that the tick test should be reinstated and we hope the taskforce goes further in their final report,” said Garry Clark, Executive Director of the Ontario Prospectors Association.

“TSXV supports Save Canadian Mining, a group who has given voice to the interests and concerns of an important segment of this country’s economy,” said Brady Fletcher, Managing Director & Head of the TSX Venture Exchange. “While short selling can play a positive role in maintaining efficient markets, predatory short selling unfairly disadvantages junior companies in all sectors. We applaud the efforts of the taskforce in identifying key structural issues with Canadian capital markets. We look forward to working with the taskforce and our broader stakeholder community as they refine their recommendations, including a thorough review of predatory short selling and an ongoing evaluation regarding the reinstatement of the tick test.” 

SCM plans to continue to work with government, financial market regulators and the taskforce in the coming weeks.


About Save Canadian Mining


Save Canadian Mining is a not-for-profit, issue-based advocacy group representing the interests of Canada’s junior mining industry and the investment community. Founded in September 2019 by Terry Lynch, CEO of Chilean Metals Inc, Save Canadian Mining is committed to working with governments and agencies to amend regulations in capital markets to help generate investment in Canada’s junior mining industry. For more information visit


About the tick test

The tick test or “uptick rule” refers to a regulatory restriction within capital markets that prevented investors from shorting a stock as it was on a downward trajectory. The regulation was in place in Canada’s capital markets for 142 years prior to its removal by IIROC in 2012. The regulation’s purpose was to prevent the artificial depreciation of a company’s stock. 



Terry Lynch, CEO and Founder, Save Canadian Mining

T: 647-448-8044

Junior Mining Sector Responds to Predatory Short Selling; Launches “Save Canadian Mining”

Toronto, Ontario–(Newsfile Corp. – November 18, 2019) – Today Terry Lynch, CEO of ChileanMetals Inc. launched Save Canadian Mining (“SCM”) – an advocacy group created to give voice to the specific interests of Canada’s junior mining sector. SCM will work to raise awareness for this important segment of the country’s economy and advocate for positive change on their behalf with government and regulatory agencies. Specifically, the campaign will be lobbying for revisions to existing marketplace rules and regulations that have created severe challenges for junior public companies in the sector.

“The current rules in our equity markets have created an environment for predatory short selling practices to thrive, particularly on our vulnerable junior markets,” said Mr. Lynch. “For smaller cap mining companies, short selling activity spooks true investors into selling prematurely,effectively stunting the growth of these businesses at critical early stages. Save Canadian Mining is dedicated to helping ensure Canada’s capital markets remain viable for junior miners now and into the future.

In 2012, the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Securities Administrators (CSA) removed a 142-year securities trading rule known as the “ticktest.” The tick test restricted short selling to positive price changes at the time of the sale (i.e., an investor could only short a stock if it was on an upward trajectory). This change was applied not only to the main listing venue of the TSX Venture Exchange, but was equally applied across all Canadian trading venues of which there are 14 today. Since the removal of the tick test,Canadian markets have evolved, and there now exists a dynamic where Canada’s junior market sare finding it increasingly difficult to raise capital.

“Short selling activities have increased in the junior mining market since 2012,” said Lynch.”The advent of high frequency trading and algorithmic trading are exploiting the combination ofa lack of a tick test, with 14 different trading markets to the detriment of one of Canada’s most important industries.”

SCM plans to meet with government in the coming weeks to share the stories of many small businesses in the mining sector. The organization will also be sharing its desired regulatory amendments with government and the OSC for consideration shortly.

SCM has already attracted the support of many prominent voices in the mining and investment community, including: Brady Fletcher, Managing Director, and Head of the TSX Venture Exchange; Eric Sprott of Sprott Mining; Garry Clark, Executive Director of the Ontario Prospectors Association (OPA); and Chris Hodgson, President, Ontario Mining Association.

“The practice of short-selling plays a role in maintaining a healthy, efficient market. However,TSX Venture Exchange understands that certain changes to market operations in Canada,specifically related to the removal of the tick test, may have had unintended negative consequences for our junior, or more illiquid issuers,” said Brady Fletcher Managing Director,Head of TSX Venture Exchange. “We look forward to working with Save Canadian Mining and industry stakeholders to engage Canada’s regulators in evaluating the reinstatement of a tick test,and in pursuit of continued improvements to our globally unique venture market, many of which were tabled for discussion in our 2019 Trading Roundtable report available at​.”

“As an active investor in the mining sector, I recognize the need to reinstate the tick test rule.Save Canadian Mining is providing leadership for the junior mining community during an important time. Regulations need to change and this campaign is going to help achieve those changes.” – Eric Sprott, CEO, Sprott Mining Ltd.

“The Ontario Prospectors Association (OPA) is supporting Save Canadian Mining in its mission to work with regulators to make some very specific changes to the investment landscape for junior miners in Ontario and Canada.” – Garry Clark, Executive Director of the Ontario Prospectors Association.

Broad support for the initiative is reflected in the following quotes from prominent industry representatives:

“The Ontario Mining Association (OMA) supports Save Canadian Mining. We understand that as trong mining sector depends on the ability of junior miners to attract investment and grow into larger Canadian companies. We are pleased to see campaigns like this emerge to ensure the health of the sector.” – Chris Hodgson, President of the Ontario Mining Association

“As the CEO of a junior mining and exploration company, I am very encouraged by this announcement. It is becoming increasing difficult for companies like ours to raise the capital required to become successful in Canada and we fully support Save Canadian Mining.” – Wayne Tisdale, CEO, 21c Metals Inc.

“Capital formation is an integral part of company building. It provides the resources necessary to hire labour, purchase equipment, and de-risk projects,” said Daniel Barankin, CEO of 6ix and afounder of Save Canadian Mining. “The restoration of the tick test rule will make Canadian companies more competitive.”

Terry Lynch

Save Canadian Mining Inc.

Cell (647) 448 8044

Office (647) 649-7283

Web ​