Minco Gold Corporation (the "Company") has adopted an investment policy to govern its investment activities. The investment policy sets out, among other things, the investment objectives and strategy based on the fundamental principles set out below.
The investment objectives for the Company as an investment issuer are:
Subject to the availability of capital, the Company intends to create a diversified portfolio of investments. A disciplined approach will be applied to the identification, review and assessment of primarily advanced exploration stage and pre-production projects.
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.
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.
|Investment Sector:||Natural resources industry, primarily mining but all businesses classified as natural resources may be considered for investment purposes.|
|Investment Types:||Equity, debt, royalties, income and commodity streams, derivatives and any other investment structures or instruments that could be acquired or created.|
|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.|
|Jurisdictions:||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.|
|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.|
|Investment Timeline:||Not limited.|
|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 which own, or propose to own, natural resource assets or derivatives of natural resource assets.
Distressed situations where a change of management or other restructuring is required to realize the value of the asset.
|Investment Review:||Will seek to maintain the ability to actively review and revisit all of investments on an ongoing basis.|
|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.
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.
The Company's investments are listed in Schedule "A" attached hereto. The list of investments will be updated from time to time and appended to this investment policy from time to time to reflect changes in the Company's investment portfolio.
Future investments by the Company will not be subject to TSX Venture Exchange approval unless they consist of non-arm's length transaction, involve the issuance of securities by the Company, or involve more than 50% of the Company's working capital or management time.
(Minco Gold Corporation - Investment Policy)
As at November 11, 2016, the Company's investments consist: