GobiMin Inc intends to change its business from mineral exploration to an investment company under the rules of the TSX Venture Exchange. The company proposes to utilise its strong working capital position, its extensive industry contacts and internal expertise to build a portfolio of high-quality investments.
Upon completion of the proposed change of business, the company’s primary focus will be to seek superior returns by making investments in equity, debt or other securities of publicly traded or private companies or other entities as well as direct ownership stakes in projects.
Types of investments include common shares, preferred shares, warrants, royalties, convertible debentures, bridge loans, and other investment vehicles selected to create the best value and return for the shareholders while limiting downside risk.
The company’s major interest as an exploration company has been in the Sawayaerdun Gold Project in China’s Xinjiang province.
GobiMin’s president and CEO Felipe Tan said, “We have been analysing this scenario extensively for a few years already. In the light of the successful monetisation of our investment in Loco Hong Kong Holdings Limited and our outlook on the market, we have determined that a diversified investment portfolio approach has the potential to generate more opportunities for the company and create better long-term growth for shareholders.”
After extensive review and discussion, the company determined that the best way to implement this strategy and to provide the greatest degree of flexibility was to undertake the proposed change of business.
As an Investment Issuer on the TSXV, the company is no longer required and limited to own mineral exploration properties or hold direct interests in mining assets.
As at March 31, 2017, the company had total assets of approximately $84.4 million, total liabilities of $34.9 million and working capital of approximately $29.9 million, including $23.9 million in cash, a significant portion of which will be allocated to new investments that will be directed by an investment committee and guided by the company’s investment policy.