Kobex Proposes Change of Business to an Investment Issuer and Sale of Mineral Exploration Properties
14 June 2014 - 5:20AM
Marketwired
Kobex Proposes Change of Business to an Investment Issuer and Sale
of Mineral Exploration Properties
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 13, 2014) -
Kobex Minerals Inc. (the "Company" or "Kobex")
(TSX-VENTURE:KXM)(OTCQB:KBXMF) is pleased to announce that it is
proposing a change of business from a Mining Issuer to an
Investment Issuer (the "Proposed COB").
Summary of the Proposed COB
In light of the current state of the mineral exploration and
mining sector and given the expertise and skill sets of the Board,
the Management and Board believe that the optimal allocation of the
Company's working capital would be within the framework of an
investment company, or resources focused merchant bank, rather than
as a mineral exploration or mining corporation where its working
capital would be spent on a limited number of mineral projects. For
those reasons, the Management and Board have proposed that the
Company undergo the Proposed COB. The Proposed COB is an "arm's
length transaction" for the purposes of the TSX Venture Exchange
("TSX-V") and remains subject to TSX-V approval.
Proposed Investment Policy
As required by the TSX-V's listing requirements for an
Investment Issuer, the Company will adopt an investment policy to
govern its investment activities. The investment policy will
provide, among other things, the investment objectives and strategy
based on the fundamental principles set out below. The final
investment policy will be posted on the Company's website
(www.kobexminerals.com) and filed on SEDAR (www.sedar.com) prior to
the completion of the Proposed COB.
Investment Objectives
The Company's investment objectives are to seek:
- a high return on investment opportunities, primarily in the
natural resources sector; and
- to preserve capital and limit downside risk while achieving a
reasonable rate of return by focusing on opportunities with
attractive risk to reward profiles.
The Company does not anticipate the declaration of dividends to
shareholders during its initial stages and plans to reinvest the
profits of its investments to further the growth and development of
the Company's investment portfolio.
Investment Strategy
In light of the numerous investment opportunities across the
entire natural resources sector, the Company aims to adopt a
flexible approach to investment targets without placing unnecessary
limits on potential returns on its investment. This approach is
demonstrated in the Company's proposed investment strategy set out
below.
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Investment Sector: |
Natural resources industry. All commodities that can be classified
as natural resources may be considered for investment purposes,
including, but not limited to, minerals, metals, petroleum,
forestry and industries that derive their value from natural
resources, such as run-of-river power generation and wind power
generation, and technologies that are used in the natural resources
sector such as drilling and surveillance. |
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Investment Types: |
Equity, debt, royalties, income and commodity streams, derivatives
and any other investment structures or instruments that could be
acquired or created. |
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Commodities: |
All
commodities that comprise natural resources. Such commodities may
include, but are not limited to, precious metals, base metals,
ferrous metals, non-ferrous metals, industrial metals,
non-industrial metals, agricultural minerals, industrial minerals,
other minerals, oil, gas, water and forestry products. |
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Jurisdictions: |
Preference will be given to first world countries but all countries
are permissible depending on the risk assessment of the Board and
Management at the time the investment is made and the risk-reward
relationship associated with each investment in a particular
jurisdiction. |
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Investment Size: |
Unlimited, which may result in the Company holding a control
position in a target corporation or possibly requiring future
equity or debt financings to raise money for specific
investments. |
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Investment Timeline: |
Not
limited. |
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Investment Targets: |
Direct project investments either through direct equity in a
project, or through a derivative interest such as a royalty, stream
or other derivative facility. Investments in public or private
corporations, partnership or other legal entities that own, or
propose to own, natural resource assets or derivatives of natural
resource assets. Distressed situations where a change of management
or other re-structuring is required to realize the value of the
asset. Activist investing where shareholder value is being
adversely affected by a corporation's current board and
management. |
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Investment Review: |
Will
seek to maintain the ability to actively review and revisit all of
investments on an ongoing basis. |
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Liquidity: |
Will
evaluate the liquidity of investments and seek to realize value
from same in a prudent and orderly fashion. |
Composition of Investment Portfolio
The nature and timing of the Company's investments will depend,
in part, on available capital at any particular time and the
investment opportunities identified and available to the
Company.
Subject to the availability of capital, the Company intends to
create a diversified portfolio of investments. The composition of
its investment portfolio will vary over time depending on its
assessment of a number of factors including the performance of
financial markets and credit risk.
Investment
Kobex has completed a $5 million private placement purchase of
1,000,000 shares of Mountain Province Diamonds Inc. This investment
was not, and future investments by Kobex will not be, subject to
TSX-V approval unless it is a non-arm's length transaction,
involves the issuance of securities by Kobex or more than 50% of
its working capital or management time. Kobex has approximately $28
million in working capital available for future investments.
Shareholder Approval
The Proposed COB requires the approval of the shareholders of
the Company. The Company has scheduled a meeting of its
shareholders on July 21, 2014 (the "Meeting") to obtain this
approval. A majority of shareholders present at the Meeting must
approve the Proposed COB for it to proceed.
Further information regarding the Meeting and the Proposed COB
will be contained in the management information circular (the
"Circular") to be prepared and mailed to the Company's shareholders
in respect of the Meeting. A copy of the Circular will also be
posted on the Company's website and filed on SEDAR.
Name Change
In connection with the Proposed COB, the Company anticipates
changing its name to "Kobex Capital Corp." or such other name as
the Board may determine is appropriate. Approval of any change of
name of the Company is subject to approval of the Company's
shareholders at the Meeting.
Sale of Mineral Exploration Properties
The Board of Directors of the Company has approved the sale,
subject to the execution of a definitive agreement, of the
Company's two mineral exploration properties (Mel property and Barb
property in the Yukon Territory) for $200,000 cash, 1% net smelter
return ("NSR") royalty and the right of the purchaser to repurchase
the NSR royalty for $1 million. It is anticipated that the sale
will be completed prior to the end of June, 2014.
Other Information
Completion of the Proposed COB is subject to a number of
conditions, including TSX-V acceptance and shareholder approval.
The transaction cannot close until the required shareholder
approval is obtained.
There can be no assurance that the Proposed COB will be
completed as proposed or at all.
Investors are cautioned that, except as disclosed in the
Circular to be prepared in connection with the Proposed COB any
information released or received with respect to the Proposed COB
may not be accurate or complete and should not be relied upon.
Trading in the securities of the Company should be considered
highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the Proposed COB and has neither approved nor disapproved
the contents of this press release.
On behalf of
KOBEX MINERALS INC.
Philip du Toit, President & CEO
NEITHER
TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN POLICIES OF THE TSX-VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Caution Regarding
Forward-Looking Statements - This news release
contains certain forward-looking statements, including statements
regarding the Proposed COB. These statements are subject to a
number of risks and uncertainties. Actual results may differ
materially from results contemplated by the forward-looking
statements. When relying on forward-looking statements to make
decisions, investors and others should carefully consider the
foregoing factors and other uncertainties and should not place
undue reliance on such forward-looking statements. The Company does
not undertake to update any forward looking statements, oral or
written, made by itself or on its behalf, except as required by
applicable law.
Kobex Minerals Inc.Phil du ToitPresident and CEO647-818-2920
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