Mineral & Financial Investments is an investment company whose purpose is to create value for its shareholders by investing in, financing of, and advising junior mining companies. See Overview.
Investing Policy
The below was adopted at a General Meeting held 28th November 2013.
The Company’s Investing Policy is to invest in the natural resources sector through investments in companies or other assets, which it considers to represent good value and offer scope for significant returns to Shareholders over the long term. In particular, the Company will focus on providing new capital for mining companies that require finance for their projects.
Investments will be made in the securities of quoted and un-quoted companies and their assets, units in open-ended investment companies, exchange traded funds, physical commodities, derivatives, and other hybrid securities.
As the Company’s assets grow the intention is to diversify company, geographic, and commodity risks. The Company will have a blend of passive and active investments and, if and when appropriate, it may seek to gain control of an investee company.
Returns to Shareholders are expected to be by way of growth in the value of the Company’s Ordinary Shares. The Company may also from time to time make market purchases to buy in the Company’s Ordinary Shares if the Directors consider this to be in the interests of Shareholders as a whole. The Company will publish a quarterly update on its NAV.
Mineral & Financial Investments Ltd.’s investment policy is focused on the metals and mining industry.
M&FI’s strategy is to invest, finance, advise metals and mining companies through “Strategic” investments. M&FI’s capital, when not deployed in strategic investments, will be captured and deployed in our “Tactical” portfolio.
Advisory Services
When we make a strategic investment M&FI’s objective is to help in all reasonable and correct ways possible to increase the value of the investee company. At times M&FI will provide advisory services to our investee companies. These advisory services can cover the following:
- Strategy;
- Financings;
- Acquisitions;
- Dispositions;
- Mergers;
- Geological services;
- Investor Relations;
- Public Relations.
Co-Investment
Once our track record has been established we will seek to create either a Private Equity Fund and/or a Special Purpose Vehicle (SPV) which will be able to capture and deploy capital along side M&FI.
This is consistent with our belief that significant value can be created by providing capital intelligently to the metal and mining sector when others cannot, or will not, invest.
Tactical Portfolio
The Tactical Portfolio is M&FI’s treasury. It is through the Tactical Portfolio that we will ensure that we have capital at our disposal to invest when others cannot, or will not, invest in the metals and mining sector.
- The overriding investment objective for the Tactical Portfolio is preservation of capital while providing a reasonable return on capital.
- Investments must be in high quality, revenue generating and liquid.
- No equity investment should represent in excess of 10% of the invested funds at the time the investment is made.
- Investments will be predominantly equities, but other types of investments are possible such as ETF’s, metal commodities, convertible and straight debt and, on occasions, options and futures.
- Equity Investments can be made in any sectors in any market.
- Investments can be made to hedge the gains made in the Strategic Investment Portfolio.
- Board must be informed of all changes in portfolio within 24 hrs. Board must approve (by email and simple majority) any new investment exceeding 5% of tactical total portfolio.
Strategic Portfolio
The purpose of this portfolio is to generate significant capital returns by providing financial capital to attractive metal mining companies that we believe can go to production. We like to describe it as “Patient but Demanding Capital”.
- All Strategic investments will require a full and thorough evaluation (technical, legal, financial, etc.), including site visits by technical experts before investments are approved and made.
- Investments will be meaningful in size. We will usually seek and investment of 5% to 20% of the investee company.
- Investments will usually be privately negotiated and expected to be longer term in duration.
- Board representation is necessary
- A right of first refusal on all Advisory services activity is to be sought.
- Follow-on investments / Financing in various forms are possible. These can include the following: Debt; Convertible Debt; Project debt; royalties; Off-take agreements; Metal Stream agreements, and; Any form of financing that is both prudent for M&FI shareholders and suitable for the Investee company.
- Investments are normally expected to exited after commercial production is achieved.
- Board must be informed of all new investments, and must approve all new investments exceeding 10% of NAV.
Mineral & Financial Investments AG: Portugese Investment
- Lagoa Salgada Project, Portugal