Please read this risk Warning carefully before using the Website operated by MINEXIA Limited.
This notice cannot disclose all the risks associated with the products we make available to you. You should not invest in or deal in any financial product unless you understand its nature and the extent of your exposure to risk. Different investment products have varied levels of exposure to risks and to different combinations of risks.
MINEXIA Limited does not provide advice to investors. We simply provide a marketplace, which offers opportunities for investment. Any decision to invest will purely be at the discretion of the individual investor.
Investors who choose to invest should regularly review their portfolio, or seek professional advice, to ensure that the underlying assets remain in line with their investment objectives. This can be particularly important for those investing towards the end of a defined time horizon – for example, those investing for retirement.
Investing via the NR Private Market platform does not insulate you from any of the risks associated with traditional mining and exploration investments. There are additional risks associated with passive investments as you are not responsible for day to day management decisions and do not control the timing of any disposal.
We would strongly encourage you to ensure that you have read all relevant documentation, and that you are comfortable that you understand all the associated risks relating to an investment, before you decide whether to invest. Should you be in any doubt as to the risks involved, or to the suitability of an investment, you should seek professional financial advice.
1) Loss of Capital
The value of your investment can go down as well as up and past performance is not a guide to future capital growth or rates of returns.
Issuers, like all businesses, are vulnerable to financial difficultly. You should only invest an amount that you are willing to lose and should build a diversified portfolio to spread risk. Investments via NR Private Market are not insured by a third party nor are they protected by any governmental authority such as the Financial Services Compensation Scheme. This means that if the Issuer becomes insolvent, investors could lose some or all of their money.
You should be aware that certain types of mining and exploration investments or geographical locations may be more or less susceptible to reduced or negative growth. You should also remember that when your investment is sold, you may get back less than you invested. You should only invest as much as you can afford to lose and as part of a diversified portfolio. Your capital is at risk.
Unlike a bank or building society account, where capital is guaranteed, the value of an investment can fall as well as rise and investors may not get back the amount invested.
The natural resources sector can be illiquid; consequently, there can be times when investors in private mining and exploration companies will be unable to sell their investments. Liquidity is the ease with which you can sell your shares after you have purchased them. Buying shares in businesses offering shares via NR Private Market may not be able to be sold easily or be listed on a secondary trading market, such as Alternative Investment Market (AIM) or the London Stock Exchange.
Diversification, by spreading your money across multiple investments, may reduce risk. Investing in the natural resources sector should only be done as part of a diversified portfolio. Diversification involves spreading your money across different types of investments with different risks to reduce your overall risk. However, it will not lessen all types of risk. Investors should diversify across products, providers and asset classes and not rely on any one company/asset class. Investments via NR Private Market should be balanced with safer, more liquid investments and investors should only invest a proportion of their available investment funds via NR Private Market.
Any investment in shares made through NR Private Market may be subject to dilution in the future. Dilution occurs when a company issues more shares. Dilution affects every existing shareholder who does not buy any of the new shares being issued. As a result an existing shareholder’s proportionate shareholding of the company is reduced, or ‘diluted’ – this has an effect on a number of things, including voting, dividends and value.
5) Frequency of Dividends
Dividends are payments made by a business to its shareholders from the company’s profits. Most of the companies raising capital via NR Private Market are early stage or development stage companies, and companies such as these will rarely pay dividends to their investors. This means that you are unlikely to see a return on your investment until you are able to sell your shares. Any profits are typically re-invested into the business to fuel growth and build shareholder value. The businesses have no obligation to pay shareholder dividends.
6) International Investors
This Site is not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation or which would subject us to any registration or licensing requirement within such jurisdiction. Neither this website as a whole nor any part hereof shall constitute an offer of or the solicitation of an offer to invest, nor shall there be any sale of any investments or commitments in connection with this website in any jurisdiction in which such offer, solicitation or sale would be unlawful, including the United Kingdom. It is expressly stated that this site is not directed at US Persons, or persons located in Canada. Please seek independent financial or legal advice to determine whether the use of this website is permitted in view of your citizenship and residency status.
7) Past Performance
Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance.
8) Future performance
Forecasts are not a reliable indicator of future results and should not be relied on.
9) FSCS (Financial Services Compensation Scheme)
PLEASE NOTE THAT INVESTMENTS MADE USING THE NR PRIVATE MARKET PLATFORM ARE NOT PROTECTED BY THE FSCS.
The FSCS is a non-profit-making independent body, created under the Financial Services and Markets Act 2000 (FSMA). The FSCS’s mission is to provide a trusted compensation service for customers, which raises public confidence in the financial services industry.
The FSCS is the UK’s statutory fund of last resort for customers of authorised financial services firms. This means it can pay compensation if a firm is unable, or likely to be unable, to pay claims against it. It is funded by levies on authorised financial services firms. FSCS does not charge individual consumers.
Further details on the FSCS can be found here – LINK