Please read this risk Warning carefully before using the Website operated by MINEXIA Limited.
Don’t invest unless you’re prepared to lose all the money you invest.
These may be high-risk investments and you are unlikely to be protected if something goes wrong.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest:
- If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
2. You are unlikely to be protected if something goes wrong:
- Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
- Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You won’t get your money back quickly:
- Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
- The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
- If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
4. Don’t put all your eggs in one basket:
- Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
5. The value of your investment can be reduced:
- The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
- These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.
If you are interested in learning more about how to protect yourself, visit the FCA’s website here – LINK
This notice cannot disclose all the risks associated with the Promotional material 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. As a Corporate finance contact of Minexia’s your subscription to the platform provides you access to promotional material only. Minexia does not provide any services to you and you are not a client of Minexia.
MINEXIA Limited does not provide advice to investors and does not have any contractual relationship with investors. We simply provide a marketplace, which offers the communication of opportunities for investment. Any decision to invest will purely be at the discretion of the individual investor.
Subscribers 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.
In general, we remind you that it is your personal responsibility to inform yourself of any of the risks associated with traditional mining and exploration investments and 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.
In general, 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.
The only advice and recommendation we give subscribers is to seek professional independent financial, legal and tax advice to ensure that your personal investment decisions are suitable to meet your objectives.
1) Loss of Capital
The value of investments can go down as well as up and past performance is not a guide to future capital growth or rates of returns, investors can lose some, part or all of their original capital invested.
Issuers, like all businesses, are vulnerable to financial difficultly. Subscribers of NR Private Market are not clients of Minexia and are not protected by the Financial Services Compensation Scheme.
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.
Unlike a bank or building society account, where capital is guaranteed, investments are not guaranteed and the value of an investment can fall as well as rise and investors may lose some, part or all of their original investment.
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 promoting their offering 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.
In general, 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. Subscribers taking up investment opportunities should seek independent financial, tax and legal advice.
Any investment in shares introduced to the subscriber via 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 INTRODUCED TO YOU VIA 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
Changes to this Notice
We may change this Notice from time to time. You should check this Notice occasionally to ensure you are aware of the most recent version.
This Notice was last updated on 6th August 2021.