CVM Instruction No. 171 of January 23, 1992

CVM INSTRUCTION NO. 171, OF JANUARY 23, 1992.

Regulates the Sectoral Investment Funds in Mining Sector Stocks

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION OF BRAZIL - CVM makes public that the Collegiate Board, in a meeting held on this date, based on the provisions of Article 19 of Law No. 6,385, of December 7, 1976, and CVM Instruction No. 149, of July 3, 1991,

HAS DECIDED:

Art. 1. Sectoral Investment Funds in Mining Sector Stocks may acquire, through private subscription, securities of mining companies, constituted as closed companies, which demonstrably hold title to areas to be researched or mined.

Sole Paragraph. Such proof shall be provided through a certificate issued by the National Department of Mineral Production - DNPM, which shall include the number of the title representing the mining right, the date of publication of the act in the Official Gazette of the Union, the validity period, the number of the respective administrative process, the name of the holder, indication of the mineral substance(s), description and location of the area, as well as other information deemed relevant.

Art. 2. Funds that acquire securities of closed companies must keep available to their unitholders, at a minimum, the following information concerning these companies:

a. Copy of the certificate issued by the National Department of Mineral Production, of the act authorizing operation, of the research or mineral mining titles held, with indication of their respective validity periods.

b. Quarterly reports on the progress of research and mining work financed by the securities issued by the mining company.

c. Financial statements and explanatory notes provided for in Article 176 of LAW NO. 6,404/76, accompanied by an administrative report and an opinion from independent auditors, relating to the last fiscal year and prepared according to pertinent legal determinations.

d. Balance Sheet and Income Statement on a semi-annual basis, accompanied by a report from the administrators on the company's performance.

Art. 3. Funds must maintain, at a minimum, 75% (seventy-five percent) of their invested assets in securities of the mining companies described in the previous article, acquired through private subscription, and/or in shares and debentures issued by mining companies registered with the Securities and Exchange Commission, acquired on stock exchanges or organized over-the-counter markets.

§1. Of the minimum percentage indicated in the caput of this article, a maximum of 75% (seventy-five percent) may consist of debentures of mining companies.

§2. The balance may be invested in shares of open companies not belonging to the mining sector, acquired on stock exchanges or organized over-the-counter markets. ¹

Art. 4. In the exercise of independent auditing of the financial statements of the mining societies referred to in Art. 1, the provisions of the current regulation issued by the CVM for open companies shall apply.

Art. 5. This Instruction shall enter into force on the date of its publication in the Official Gazette of the Union.

Signed original by
ARY OSWALDO MATTOS FILHO
President