ngex resources inc....other risks and uncertainties described under the heading “risks factors”...
Post on 25-Sep-2020
1 Views
Preview:
TRANSCRIPT
-
NGEX RESOURCES INC. Secondary Listing on NASDAQ OMX Stockholm
-
NGEx RESOURCES INC. | Summary 1
IMPORTANT INFORMATION This prospectus has been prepared in conjunction with the contemplated secondary listing (the “Listing”) of common shares in NGEx Resources Inc. (the “Shares”) on NASDAQ OMX Stockholm AB (“NASDAQ OMX Stockholm”). Prior to the Listing, there was no public market for the Shares in Sweden. The “Company”, “NGEx” or “NGEx Resources” means NGEx Resources Inc. (corporation number 425318-3) and/or one or more or all of its subsidiaries, as it may apply. In this prospectus, unless otherwise specified or the context otherwise requires, all references to “Canadian dollars” and “CAD” are to Canadian dollars,
all references to “U.S. dollars” and “USD” are to United States dollars and all references to “Swedish krona” and “SEK” are to Swedish krona. Unless otherwise
stated, the financial statements and other financial information as of, and for the years ended, December 31, 2013 and December 31, 2012 and for the three months ended March 31, 2014 are in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board. Certain amounts and percentages stated in this prospectus have been rounded off and may therefore
not add up correctly. Other than what is expressly stated herein, no information in this prospectus has been examined or audited by the Company’s auditors.
This prospectus has been prepared in accordance with the provisions of the Swedish Financial Instruments Trading Act (1991:980) and European Commission
Regulation (EC) No 809/2004 implementing Directive 2003/71/EC of the European Parliament and the Council. The prospectus has been approved and
registered by the Swedish Financial Supervisory Authority in accordance with the provisions of Chapter 2, Sections 25 and 26 of the Swedish Financial
Instruments Trading Act (1991:980). Approval and registration of the prospectus does not imply a guarantee by the Financial Supervisory Authority that the
facts presented in the prospectus are correct or complete.
This prospectus does not comprise any offer to purchase, subscribe for or acquire shares or other financial instruments issued by NGEx Resources. This
prospectus has been prepared only in conjunction with an application for admission to trading of the Company’s Shares on NASDAQ OMX Stockholm. The
prospectus may not be distributed, directly or indirectly, in any other country where such distribution requires additional registration or other measures than those provided for under Swedish law or that contravene applicable regulations in such country. The Company’s Shares have not been and will not be
registered under the United States Securities Act of 1933 (”Securities Act”), as amended, or under any equivalent statute in any individual state or province of the United States of America (the “U.S.”).
No person has been authorized to give any information or to make any representation not contained in this prospectus and, if given or made, such information or representation not contained herein must not be relied upon as having been authorized by the Company. In the event of any material changes to the
prospectus during the period from the date of the announcement to the first day of trading, such changes will be announced pursuant to the rules in the
Swedish Financial Instruments Trading Act (1991:980), which governs the publication of the prospectus supplements.
Any dispute concerning or relating to this prospectus shall be resolved in accordance with Swedish law and exclusively by a Swedish court of law. The
prospectus is available in paper form at NGEx Resources’ head office and in electronic form on NGEx Resources’ website, www.ngexresources.com, as well as
on the website of the Swedish Financial Supervisory Authority, www.fi.se. Pareto Securities AB (“Pareto”) has acted as adviser for the Company in connection with the Company’s application for listing on NASDAQ OMX Stockholm and in connection with the preparation of this listing prospectus. For the meaning of the terms used throughout this prospectus, please see Section “Definitions” on page 121 below.
In addition to any restrictions imposed in their country of residence, holders of Shares issued in conjunction with the Listing will be subject to a statutory hold
period that extends four (4) months plus one (1) day from the closing date in respect of re-sales to residents of Canada and/or over the facilities of the TSX.
During and after this hold period, the Shares are freely transferable on NASDAQ OMX Stockholm.
In this prospectus, the terms “Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” have the meanings ascribed to those terms by
the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as amended. Other than as set out below, technical disclosure for the Company’s projects included in this prospectus, with the exception of the technical disclosure related to ongoing engineering studies, has been reviewed and approved by Bob Carmichael P. Eng. (BC). Mr. Carmichael is NGEx’s Vice-
President of Exploration and a Qualified Person (“QP”) under National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). Technical disclosure related to the engineering studies has been reviewed and approved by Anthony George P. Eng. (BC). Mr. George is the Company’s Project Manager
and a QP under NI 43-101. The QP responsible for the Josemaría Project (as defined herein) and the Los Helados Project (as defined herein) Mineral Resource estimates is G. Zandonai, B.Sc., M.Sc., Registered Member of the Comisiόn Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining
Commission), Senior Associate of Behre Dolbear International Ltd.
FORWARD-LOOKING STATEMENTS This prospectus contains forward-looking statements and forward-looking statements and information. All statements, other than statements of historical
fact, are forward-looking statements. Forward-looking information includes, but is not limited to, statements with respect to the estimation of commodity
prices, Mineral Resources, potential development scenarios, potential production rates, costs and timing of the development of new deposits, the success of
exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining
activities, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might” “potentially” or “will be taken”, “occur” or “be achieved”.
Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry
and markets in which the Company operates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information
including, but not limited to, risks and uncertainties relating to, among other things, changes in commodity prices, currency fluctuation, financing, unanticipated variations in Mineral Resource grades or tonnages, infrastructure, results of exploration activities, cost overruns, availability of materials and
equipment, timeliness of government approvals, taxation, political risk and related economic risk and unanticipated environmental impact on operations and
other risks and uncertainties described under the heading “Risks Factors” in this prospectus and under the heading “Risk Factors” in the Company’s annual
information form and management’s discussion and analysis for the year ended December 31, 2013, which are available under the Company’s profile at
www.sedar.com. These factors are not exhaustive. Although the Company has attempted to identify important factors that would cause actual results to differ
materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended.
There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. A potential investor should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by
this cautionary statement. These forward-looking statements, as well as other information in this prospectus are made as of the date of this prospectus. The
Company expressly disclaims any intent or obligation to update these forward-looking statements or any other information in this prospectus, unless
specifically stated otherwise and except as required by applicable law, regulation or listing agreement.
INDUSTRY DATA AND INFORMATION FROM THIRD PARTIES This prospectus contains historical market data and industry forecasts relating to the market in which the Company operates. The Company has obtained this
information from several sources, including industry publications and market surveys from third parties as well as publicly available information. Although the
industry publications state that they are based on information obtained from several different sources and using various methods that may be deemed
reliable, the information may not be correct and complete. Industry forecasts are by their nature subject to considerable uncertainty, and may prove to be
incorrect. Information from third parties has been correctly reproduced and, as far as the Board is aware and is able to warrant through comparisons with
other information published by the third party concerned, no information has been omitted in a way that would make the reproduced information incorrect or
misleading.
-
NGEx RESOURCES INC. | Summary 2
TABLE OF CONTENTS
Summary ................................................................................................................................................................. 3
Sammanfattning .................................................................................................................................................... 13
Risk factors ............................................................................................................................................................ 23
Background and conditions ................................................................................................................................... 32
Industry overview ................................................................................................................................................. 34
Operations of NGEx Resources ............................................................................................................................. 42
Other information about NGEx Resources ............................................................................................................ 60
Selected financial information .............................................................................................................................. 68
Comments to the financial statements ................................................................................................................. 71
Capital structure, indebtedness and related information .................................................................................... 75
Board of directors, executive officers and auditor ............................................................................................... 79
Corporate governance .......................................................................................................................................... 90
Share capital and related issues ............................................................................................................................ 94
Legal and supplementary information .................................................................................................................. 97
Tax matters ......................................................................................................................................................... 103
Summary of shareholder rights........................................................................................................................... 107
Definitions ........................................................................................................................................................... 120
Documents incorporated by reference ............................................................................................................... 123
Addresses ............................................................................................................................................................ 124
Certificate of continuance and by-laws of NGEx Resources ............................................................................... 125
-
NGEx RESOURCES INC. | Summary 3
SUMMARY Summaries are made up of disclosure requirements (hereinafter referred to as “Elements”). The Elements are
numbered in Sections A – E (A.1 – E.7).
This summary contains all the Elements required to be included in a summary for this type of securities and
issuer. Because some Elements are not required to be addressed, there may be gaps in the numbering
sequence of the Elements.
Even though an Element may be required to be inserted in the summary because of the type of securities and
issuer, it is possible that no relevant information can be given regarding the Element. In this case a short
description of the Element is included in the summary with the mention of not applicable (“N/A”).
Section A – Introduction and warnings A.1 Introduction
and warnings This summary should be read as introduction to the prospectus. Any decision to invest in the securities should be based on consideration of the prospectus as a whole by the investor. Where a claim relating to the information contained in the prospectus is brought before a court, the plaintiff investor might, under the national legislation of the member states of the European Union, have to bear the costs of translating the prospectus before the legal proceedings are initiated. Civil liability attaches only to those persons who have tabled the summary including any translation thereof, but only if the summary is misleading, inaccurate or inconsistent when read together with the other parts of the prospectus or it does not provide, when read together with the other parts of the prospectus, key information in order to aid investors when considering whether to invest in such securities.
A.2 Financial
intermediaries
N/A; the listing does not include any financial intermediaries.
Section B – Issuer B.1 Legal and
commercial
name
The legal and commercial name of the Company is NGEx Resources Inc.
B.2 Legal context The Company is registered and continued under the Canada Business Corporations Act
(“CBCA”) as a public company, with corporation no. 425318-3.
B.3 Operations NGEx is a Canadian mineral exploration company with exploration projects in Chile,
Argentina and Canada. The Company's focus is on advancing its projects which include
several large copper-gold systems including the Josemaría, Los Helados, and Filo del
Sol projects, located on a land package that the Company holds in Chile's Region III and
adjacent San Juan Province, Argentina.
The Company’s strategy is to create value for its shareholders by expanding and
increasing the quality of its resources as well as by advancing the engineering and
other studies that are required to prepare its projects for eventual development by
-
NGEx RESOURCES INC. | Summary 4
the Company and its partners or by third parties. The Company intends to increase
shareholder value through successful exploration and to eventually convert its
exploration successes into tomorrow’s development projects positioning the Company
as a top tier copper industry investment.
B.4a Tendencies The copper mining industry has seen significant changes over the past decade and
many of these trends are expected to continue to constrain the copper supply:
• Declining ore grades are increasing unit costs;
• Increasing depth of mineral deposits necessitating higher cost mining methods;
• Recent massive capital expenditure overruns have limited the appetite for investment;
• Scarcity of water and energy resources is increasing costs;
• Taxation and royalty regimes are taking a larger portion of the economic benefits – increasing risks for producers;
• Labor productivity has been decreasing; and
• Resource nationalism and political risk remain significant issues.
Additionally, future production forecasts are often optimistic as they do not account
for slower than expected ramp up of projects, pit wall failures, mechanical or other
failures, aggressive production estimates, extended equipment lead time, weather and
climate delays, legislative or environmental delays, project capital deferral, validity and
stability of fiscal policies, etc.
B.5 Group NGEx Resources Inc. is the Canadian parent company in a group of companies, which consists of approximately twenty (20) subsidiaries incorporated in Argentina,
Bermuda, British Virgin Islands, Canada, Chile, Uruguay and Peru.
B.6 Largest
shareholders
To the knowledge of the directors and officers of the Company, shareholders carrying
10 per cent or more of the voting rights attached to all outstanding Shares as of
31 March 2014 were:
i. Zebra Holdings and Investments S.à r.l.(1), 17,411,841 Shares and 10.3 per
cent of the votes; and
ii. Lorito Holdings S.à r.l.(1)
, 16,250,000 shares and 9.6 per cent of the votes.
1
Lorito Holdings S.à r.l. and Zebra Holdings and Investments S.à r.l, who report their security
holdings as joint actors, are private corporations owned by a trust whose settler is the Estate of
Adolf H. Lundin. Lorito and Zebra hold a total of 33,661,841 Shares, which represents approximately 19.93 per cent of the total amount of Shares in the Company.
-
NGEx RESOURCES INC. | Summary 5
B.7 Financial
summary
Income statements
Balance sheets
CAD thousands Unaudited Unaudited Audited Audited Audited
Jan-Mar 2014
Jan-Mar 2013
Jan-Dec 2013
Jan-Dec 2012
Jan-Dec 2011
Revenues 0 0 0 0 0
Exploration and project investigation 8,221 15,469 22,698 24,158 9,149
Salaries and benefits 244 192 1,068 941 425
Share-based compensation 116 363 1,038 1,422 1,220
Management fees 135 135 540 540 540
Professional fees 89 77 369 498 346
Travel 29 43 172 202 98
Promotion and public relations 199 198 356 376 287
Donation - 270 340 119 376
Office and general 120 134 321 230 189
General and Administration 932 1,412 4,204 4,328 3,481
Operating loss 9,153 16,881 26,902 28,486 12,630
Interest income (13) (60) (235) (115) (189)
Foreign exchange loss (gain) 570 (65) (148) 46 177
Other expenses - - 93 94 118
Gain on disposition of investments - - (180) - (39)
Gain on disposition of royalty interests - - - (2,782) -
Unrealized loss on investments (352) 286 660 946 -
Write-down of mineral property interests - - 1,196 - -
Other (income) expenses 205 161 1,386 (1,811) 67
Net loss from continuing operations 9,358 17,042 28,288 26,675 12,697
Net loss from discontinued operations 3 49 84 6,875 6,376
Net loss 9,361 17,091 28,372 33,550 19,073
of which is attributable to shareholders of the Company 9,361 17,091 28,372 33,550 19,073
of which is attributable to non-controlling interest - - - - -
CAD thousands Unaudited Unaudited Audited Audited Audited
31 Mar 2014
31 Mar 2013
31 Dec 2013
31 Dec 2012
31 Dec 2011
ASSETS
Cash and cash equivalents 10,762 35,918 21,260 17,297 41,337
Investments 658 550 326 836 -
Receivables and other assets 683 978 1,118 627 759
Current assets 12,103 37,446 22,704 18,760 42,096
Equipment 184 454 247 272 424
Mineral properties 9,797 11,876 10,439 11,566 19,442
Other non-current assets 8 8 8 8 8
Non-current assets 9,989 12,338 10,694 11,846 19,874
TOTAL ASSETS 22,092 49,784 33,398 30,606 61,970
EQUITY & LIABILITIES
Total equity 15,142 38,071 24,622 21,509 52,875
Trade payables and accrued liabilities 6,107 11,105 4,328 6,174 4,841
Due to related parties 117 203 28 45 14
Due to join exploration partners 726 406 4,101 2,878 4,240
Current liabilities 6,950 11,713 8,457 9,097 9,095
Other non-current liabilities - - 319 - -
Non-current liabilities - - 319 - -
TOTAL EQUITY & LIABILITIES 22,092 49,784 33,398 30,606 61,970
equity attributable to shareholders of the Company 15,142 38,071 24,622 21,509 52,875
equity attributable to non-controlling interest - - - - -
-
NGEx RESOURCES INC. | Summary 6
Cash flow statements
Key ratios
B.8 Selected pro
forma financial
information
N/A; the prospectus does not include any pro forma financial information.
B.9 Financial
forecast
N/A; the prospectus does not include any financial forecast or calculation of expected
profit.
B.10 Auditor’s
remarks
N/A; there are no auditor’s remarks.
B.11 Working capital
of the issuer
As of the date of this prospectus and subject to the closing of the private placement
announced on 5 June 2014, the Company’s working capital is, in the opinion of the
Company, sufficient for the Company’s planned business for the next twelve months.
CAD thousands Unaudited Unaudited Audited Audited Audited
Jan-Mar 2014
Jan-Mar 2013
Jan-Dec 2013
Jan-Dec 2012
Jan-Dec 2011
Cash flow, operating activities before changes in working
capital (9,526) (16,373) (25,270) (30,553) (14,142)
Cash flow from changes in working capital (832) 2,120 (760) 548 4,794
Cash flow, operating activities after changes in working
capital (10,358) (14,253) (26,030) (30,005) (9,348)
Cash flow from financing activities 322 33,313 33,377 508 28,361
Cash flow from investing activities (359) (588) (1,402) 4,590 (871)
Exchange rate effect on cash and cash equivalents (103) 149 (1,982) 867 (70)
Change in cash and cash equivalents (10,498) 18,621 3,963 (24,040) 18,072
Cash and cash equivalents, beginning of year 21,260 17,297 17,297 41,337 23,265
Cash and cash equivalents, end of year 10,762 35,918 21,260 17,297 41,337
Unaudited Unaudited Audited Audited Audited
Jan-Mar
2014 Jan-Mar
2013 Jan-Dec
2013 Jan-Dec
2012 Jan-Dec
2011 Basic and diluted net loss from continuing
operations (per share) 0.05 0.10 0.17 0.17 0.08
Basic and diluted net loss from discontinued operations (per share)
0.00 0.00 0.00 0.04 0.04
Basic and diluted net loss (per share) 0.05 0.10 0.17 0.21 0.12
Equity ratio end of period(1)
69% 76% 74% 70% 85%
Weighted average basic Shares outstanding 168,869,765 165,287,542 167,833,348 158,380,647 149,905,814
Weighted average diluted Shares outstanding 168,869,765 165,287,542 167,833,348 158,380,647 149,905,814
"Income from mining operations" divided by
"weighted average diluted Shares outstanding", USD
0.00 0.00 0.00 0.00 0.00
"Net loss" divided by "weighted average
diluted Shares outstanding", USD 0.05 0.10 0.17 0.21 0.12
Dividend paid per share 0 0 0 0 0
(1) "Total equity of period" divided by "total assets of period"
-
NGEx RESOURCES INC. | Summary 7
Section C – Securities C.1 Securities being
offered
There is no offering to purchase, subscribe for or sell Shares representing NGEx
Resources. It is intended that the Shares are listed on NASDAQ OMX Stockholm Main
Market, with ISIN code CA65339B1004. No physical share certificates shall exist with
respect to any Share in the Company and all Shares traded on the NASDAQ OMX
Stockholm Main Market will be affiliated to Euroclear.
C.2 Denomination The Shares are denominated in CAD.
C.3 Total number
of shares in the
Company
The authorized share capital is an unlimited number of common Shares without par
value. As of 31 March 2014, the issued and outstanding Shares of NGEx Resources
amounted to 168,940,059.
C.4 Rights
pertaining to
the shares
The holders of Shares of the Company are entitled to receive notice of and attend all
meetings of shareholders with each Share held entitling the holder to one vote on any
resolution to be passed at such shareholder meetings. The holders of Shares are
entitled to dividends, if as and when, declared by NGEx Resources’ Board. The Shares are entitled upon liquidation, dissolution or winding up of the Company to receive the
remaining assets of the Company available for distribution to shareholders.
C.5 Limitations to
the free
transferability
N/A; there are no limitations to the free transferability of the Shares other than
holders of Shares issued in conjunction with the Listing will be subject to a statutory
hold period that extends four (4) months plus one (1) day from the closing date in
respect of re-sales to residents of Canada and/or over the facilities of the Toronto
Stock Exchange (“TSX”). During and after this hold period, the Shares are freely transferable on NASDAQ OMX Stockholm.
C.6 Trading in the
shares
The Shares are currently traded on the TSX under the symbol “NGQ”. Upon the
successful completion of the contemplated Listing, the Shares will also be traded on
the NASDAQ OMX Stockholm Main Market.
C.7 Dividend policy There are no restrictions that prevent the Company from paying dividends. The
Company has not paid dividends as of the date of this prospectus on its Shares and has
no plans to pay dividends in the near future. Any decision to pay dividends in the
future will be based on the Company’s earnings and financial requirements and other
factors that its Board may consider appropriate in the circumstances.
Section D – Risks D.1 Risks related to
the issuer
Risks relating to the business
Uncertainty of Funding – The exploration and development of mineral properties requires a substantial amount of capital and may depend on the Company’s ability to
obtain financing through joint ventures, debt financing, equity financing or other
means. The Company may not be successful in obtaining required financing on
acceptable terms when needed. Failure to obtain any necessary additional financing
may result in delaying or indefinite postponement of exploration or development or
even a loss of property interest.
Foreign Operations Risk – The Company conducts exploration activities in foreign countries, including Argentina and Chile. Each of these countries exposes the Company
-
NGEx RESOURCES INC. | Summary 8
to risks that may not otherwise be experienced if all operations were located in
Canada. Changes in policies that alter laws regulating the mining industry could have a
material adverse effect on the Company. The Company’s assets in these countries may
be subject to requisition or confiscation, whether legitimate or not, by an authority or
body. In addition, in the event of a dispute arising from foreign operations, the
Company may be subject to the exclusive jurisdiction of foreign courts or may not be
successful in subjecting foreign persons to the jurisdiction of courts in Canada.
Economic and Political Instability in Argentina – The Josemaría Project and the Filo del Sol Project are located in San Juan Province, Argentina. There are risks relating to
an uncertain or unpredictable political and economic environment in Argentina, especially due to social opposition to mining operations in certain parts of the country
and increasingly protectionist economic measures implemented by the National
Government. The Argentinean government may alter or impose additional
requirements or policies that may adversely affect the Company’s activities in
Argentina or in its ability to attract joint venture partners or obtain financing for its
projects in the future.
Corruption and Bribery – The Company is required to comply with anti-corruption and anti-bribery laws, including the Canadian Corruption of Foreign Public Officials Act and
the U.S. Foreign Corrupt Practices Act, as well as similar laws in the countries in which
the Company conducts its business. If the Company finds itself subject to an
enforcement action or is found to be in violation of such laws, this may result in
significant penalties, fines and/or sanctions imposed on the Company resulting in a
material adverse effect on the Company.
Environmental and Socio-Political Risks – Present or future laws and regulations relating to the environment may negatively affect the Company’s operations, and in
particular, affect the Company’s ability to develop parts of the Company’s properties in
Argentina including the Josemaría Project and the Filo del Sol Project.
Indigenous Peoples – The Company operates in some areas including parts of the Los Helados and Tamberias areas presently or previously inhabited or used by indigenous
peoples. Various international and national laws, codes, resolutions, conventions,
guidelines, and other material relate to the rights of indigenous peoples. Opposition by
indigenous peoples to the Company’s operations may require modification of or
preclude operation or development of the Company’s projects or may require the
Company to enter into agreements with indigenous people with respect to the
Company’s projects.
Title Risk – Any defects in the title to the Company’s properties could have a material and adverse effect on the Company. Further, there is a risk that applicable
governments will revoke or significantly alter the conditions of the applicable
exploration and mining authorizations and that such exploration and mining authorizations may be challenged or impugned by third parties. In addition, the
Company may not always be able to renew its licenses. Inability to renew a license
could result in the loss of any project located within that license.
Dependence on Key Personnel – The Company’s success will largely depend on the efforts and abilities of certain senior officers and key employees. Certain of these
individuals have significant experience in the mining industry and, in particular, the
mining industry in South America. If for any reason these individuals do not remain
with the Company, the Company could be adversely affected. The Company has not
purchased key employee life insurance for any of these individuals.
Internal Controls – Internal controls over financial reporting are procedures designed
-
NGEx RESOURCES INC. | Summary 9
to provide reasonable assurance that transactions are properly authorized, assets are
safeguarded against unauthorized or improper use, and transactions are properly
recorded and reported. A control system, no matter how well designed and operated,
can provide only reasonable, not absolute, assurance with respect to the reliability of
financial reporting and financial statement preparation.
Conflicts of Interest – Some of the directors of the Company are also directors of other companies that are similarly engaged in the business of acquiring, exploring and
developing natural resource properties. Such associations may give rise to conflicts of
interest from time to time, which may negatively affect the Company, and in
particular, one of the consequences will be that corporate opportunities presented to a director of the Company may be offered to another Company or companies with
which the director is associated, and may not be presented or made available to the
Company.
Currency Risk – The Company will transact business in a number of currencies including but not limited to the U.S. Dollar, the Argentine Peso and the Chilean Peso.
The Argentine Peso in particular has had significant fluctuations in value relative to the
U.S. and Canadian dollars. Future changes in exchange rates could materially affect the
Company’s results in either a positive or negative direction. The Company does not
currently engage in foreign currency hedging activities.
Derivative Instruments – The Company may, from time to time, manage exposure to foreign exchange rates by entering into derivative instruments approved by the
Company’s Board.
Tax – The Company runs its business in different countries and strives to run its business in as tax efficient a manner as possible. The tax systems in certain of these
countries are however complicated and subject to changes. For this reason, future
negative effects on the result of the Company due to changes in tax regulations cannot
be excluded.
Joint Exploration Properties – Certain of the Company’s properties including the Los Helados Project, the Josemaría Project, and the Filo del Sol Project are subject to joint
exploration agreements. Not all decisions of the operators under the joint exploration
agreements may achieve expected goals. The existence of such circumstances may
have a material adverse impact on the Company.
Surface Access – Surface rights in the area of the Los Helados Project are held by a local community “Comunidad Civil Ex Estancia Pulido”. The Company has signed a four
year access agreement with the community dated 26 September 2011. The agreement
allows for the construction and operation of camps and roads and the development of
exploration activities on the Properties, including drilling. This agreement must be
renewed on or before the anniversary date in 2015 and although there are no
indications that the agreement will not be renewed, there is a risk that the Company will not be able to renew the agreement. The Company does not own any surface
rights at the Los Helados Project.
The Company may not be able to obtain the required surface rights or negotiate
successfully with private landowners to allow it to develop its properties and establish
commercial mining operations on a timely basis. To the extent additional surface rights
are available, they may only be acquired at significantly increased prices, potentially
adversely impacting financial performance of the Company.
Current Global Financial Condition – Market events and conditions have caused significant volatility to commodity prices. Notwithstanding various actions by
-
NGEx RESOURCES INC. | Summary 10
governments, concerns about the general condition of the capital markets, financial
instruments, banks, investment banks, insurers and other financial institutions caused
the broader credit markets to further deteriorate and stock markets to decline
substantially. The Company is dependent on the equity markets as its main source of
operating working capital and the Company’s capital resources are largely determined
by the strength of the resource markets and by the status of the Company’s projects in
relation to these markets, and its ability to compete for the investor support of its
projects.
Access to public financing has been negatively impacted by concerns over global
growth rates and conditions. Consequently, equity financing may not be available to the Company in the amount required at any time or for any period or, if available, it
may not be obtained on terms satisfactory to the Company.
Risks relating to the mining industry
Infrastructure – Development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges and power and water
supplies are important determinants which affect the Company’s costs. Any
interference of such infrastructure could adversely affect the Company’s operations.
Mineral Resource Estimates – The Company’s reported Mineral Resources are only estimates. The estimated Mineral Resources may not be recovered. Market
fluctuations in the price of metals, as well as increases in estimated production costs
or reductions in estimated recovery rates, may render certain Mineral Resources
uneconomic and may ultimately result in a restatement of estimated resources.
Exploration and Development Risk – The Company’s properties are in early exploration stages and are without a known body of commercial ore. Exploration for
Mineral Resources involves a high degree of risk and few properties that are explored
are ultimately developed into producing mines. The commercial viability of a mineral
deposit once discovered is also dependent upon a number of factors and the exact
effect of these factors cannot be accurately predicted, but the combination of any of
these factors may adversely affect the Company’s business.
Metal Price Risk – The Company’s portfolios of properties and investments have exposure to predominantly copper, gold, and silver. Commodity prices fluctuate widely
and are affected by numerous factors beyond the Company’s control. The prices of
these metals greatly affect the value of the Company, the price of the Shares and the
potential value of its properties and investments.
Competition – There is aggressive competition within the mining industry for the discovery and acquisition of properties considered to have commercial potential, as
well as the necessary labor and supplies required to develop such properties. The
Company may not be able to maintain or acquire attractive mining properties on terms
it considers acceptable, or at all. Consequently, its financial condition could be materially adversely affected.
Uninsurable Risk – Exploration, development and production operations on mineral properties involve numerous risks, including unexpected or unusual geological
operating conditions, rock bursts, cave-ins, fires, floods, earthquakes and other
environmental occurrences, as well as political and social instability. It is not always
possible to obtain insurance against all such risks and the Company may decide not to
insure against certain risks because of high premiums or other reasons. Should
liabilities arise, they could reduce or eliminate any further profitability and result in
-
NGEx RESOURCES INC. | Summary 11
increasing costs and a decline in the value of the securities of the Company.
D.3 Risks related to
the shares
Market Price of Shares – Securities of mining companies have experienced substantial volatility in the past, often based on factors unrelated to the financial performance or
prospects of the companies involved. The market price of the Shares at any given point
in time may not accurately reflect the long-term value of the Company. Securities
class-action litigation often has been brought against companies following periods of
volatility in the market price of their securities. The Company may in the future be the
target of similar litigation. Securities litigation could result in substantial costs and
damages and divert management's attention and resources.
Risks related to the stock market – A prospective investor should be aware that an investment in the Company’s Shares is associated with a high degree of risk, and that
the price of the Shares may not develop favorably.
Risks related to illiquid trading and the secondary listing – It is not possible to anticipate the degree to which investors’ interest in NGEx will lead to active trading in
its Shares or how trading in the Shares will function in the future. Should active and
liquid trading not be sustained, holders of Shares may experience difficulties in selling
Shares, either momentarily, or completely. If there is not a sufficient number of
holders of Shares traded on NASDAQ OMX Stockholm, the Company may not be able
to comply with the listing requirements of NASDAQ OMX Stockholm.
Risks related to dividends – The mining and exploration industry is capital intensive and the Company’s profits may need to be accumulated and used to reinvest in the
Company’s operations. Hence, the Company may not pay dividends to its shareholders
in the future.
Exchange rate fluctuations – Should the Company pay dividends in respect of the Shares, such dividends will be paid in CAD. However, holders of Shares registered with
Euroclear will receive dividend distributions in SEK. Any depreciation of CAD in relation
to SEK could reduce the value of the investment or of any dividends.
Future offerings of debt or equity securities – NGEx may require additional funds to finance further exploration, development and production activities, or to take
advantage of unanticipated opportunities. If NGEx raises additional funds by issuing
additional equity securities, such financing would dilute the economic and voting rights
of the Company’s shareholders.
Section E – Offer E.1 Rights issue
amount and
costs
N/A; this prospectus is being issued in conjunction with a secondary listing on NASDAQ
OMX Stockholm Main Market and there is no offer by NGEx to acquire Shares.
E.2a Reasons for the
offer and use of
proceeds
N/A; this prospectus is being issued in conjunction with a secondary listing on NASDAQ
OMX Stockholm Main Market and there is no offer by NGEx to acquire Shares.
E.3 Background
and terms and
conditions
N/A; this prospectus is being issued in conjunction with a secondary listing on NASDAQ
OMX Stockholm Main Market and there is no offer by NGEx to acquire Shares.
-
NGEx RESOURCES INC. | Summary 12
E.4 Conflicts of
interest etc.
N/A; no conflicts of interest or similar exist.
E.5 Lock-up
agreement
N/A; no lock-up agreement is in place.
E.6 Dilution N/A; this prospectus is being issued in conjunction with a secondary listing on NASDAQ
OMX Stockholm Main Market and there is no offer by NGEx to acquire Shares.
E.7 Costs for the
investor
N/A; the Company does not impose any costs on the investors.
-
NGEx RESOURCES INC. | Sammanfattning 13
SAMMANFATTNING Nedanstående text är en översättning av den engelska originaltexten ovan.
Denna sammanfattning omfattar information som måste offentliggöras (s.k. ”Moduler”). Modulerna är
numrerade i avsnitt A.1 till E.7 nedan.
Denna sammanfattning inkluderar alla Moduler som krävs i en sammanfattning för denna typ av värdepapper
och emittent. Eftersom inte samtliga Moduler behöver vara inkluderade kan det vara luckor i numreringen av
Modulerna.
Även om en Modul måste vara inkluderad på grund av typen av värdepapper och emittent, är det möjligt att
ingen relevant information finns att ge rörande Modulen. Vid dessa fall inkluderas en kort beskrivning av
Modulen i sammanfattningen samt en hänvisning till att Modulen inte är tillämplig (”N/A”).
Avsnitt A – Introduktion och varningar
A.1 Introduktion och varningar
Denna sammanfattning bör betraktas som en introduktion till Prospektet. Varje beslut om att investera i värdepapperen ska baseras på en bedömning av prospektet i dess helhet från investerarens sida. Om yrkande avseende uppgifterna i Prospektet anförs vid domstol, kan den investerare som är kärande, i enlighet med medlemsstaterna i den europeiska unionens nationella lagstiftning, bli tvungen att svara för kostnaderna för översättning av prospektet innan de rättsliga förfarandena inleds. Civilrättsligt ansvar kan endast åläggas de personer som sammanställt sammanfattningen, inklusive översättningar därav, men endast om sammanfattningen är vilseledande, felaktig eller oförenlig med de andra delarna av Prospektet eller om den inte, tillsammans med de andra delarna av Prospektet, ger nyckelinformation för att hjälpa investerare när de överväger att investera i sådana värdepapper.
A.2 Finansiella
mellanhänder
N/A; noteringen omfattas inte av finansiella mellanhänder.
Avsnitt B – Emittent
B.1 Registrerad
firma och
handels-
beteckning
Bolagets firma och handelsbeteckning är NGEx Resources Inc. (”Bolaget”).
B.2 Säte, bolags-
form etc.
Bolaget är ett publikt aktiebolag registrerat i British Columbia, Kanada, i enlighet med
Canada Business Corporations Act. Bolagets organisationsnummer är 425318-3.
B.3 Huvudsaklig
verksamhet
NGEx Resources är ett kanadensiskt mineralprospekteringsbolag med
prospekteringsprojekt i Chile, Argentina och Kanada. Bolaget fokuserar på att utveckla
sina omfattande koppar- och guldprojekt Josemaría, Los Helados, och Filo del Sol, vilka
är lokaliserade på en landyta som Bolaget för närvarande håller i Chiles Region III och
-
NGEx RESOURCES INC. | Sammanfattning 14
den närliggande San Juan-provinsen i Argentina.
Bolagets strategi är att skapa värde för sina aktieägare genom att expandera och öka
kvaliteten på sina resurser, samt att utveckla den teknik och de studier som krävs för
att förbereda Bolagets projekt för eventuell utveckling, antingen av Bolagets partners
eller av utomstående tredje parter. Bolaget avser att öka värdet för sina aktieägare
genom framgångsrik prospektering, och genom att i framtiden konvertera fyndigheter
till morgondagens utvecklingsprojekt – vilket sammantaget är tänkt att göra Bolaget
till en förstklassig investering inom kopparindustrin.
B.4a Trender Marknaden för brytning och prospektering av koppar har väsentligen förändrats under
det senaste decenniet och många av dessa trender är förväntade att fortsätta att
begränsa koppartillförseln:
• malmkvaliteten sjunker och detta ökar enhetskostnaderna,
• mineralfyndigheterna hittas längre ner i marken och detta kräver gruvmetoder som är mer kostsamma,
• nya stora kapitalbudgetöverskridanden har begränsat intresset för investeringar,
• brist på vatten- och energiresurser ökar kostnaderna,
• beskattning- och royaltysystem tar en större del av de ekonomiska fördelarna – riskerna ökar då för producenterna,
• arbetsproduktiviteten har minskat, och
• patriotismen rörande resurser och politiska risker kvarstår som viktiga frågor.
Vidare är framtida produktionsprognoser ofta optimistiska då de inte tar höjd för en
långsammare uppstart av projekt än som förväntas, gruvväggar som fallerar,
mekaniska och andra fel, aggressiva produktionsestimat, utökade ledtider för
utrustning, fördröjningar på grund av väder och klimat, fördröjningar på grund av
lagstiftning och miljö, uppskov på projektkapital, validitet och stabilitet i den finansiella
politiken, m.m.
B.5 Koncern NGEx Resources är kanadensiskt moderbolag i en koncern, som består av cirka tjugo
(20) dotterbolag vars säte finns i Argentina, Bermuda, Brittiska Jungfruöarna, Kanada,
Chile, Uruguay och Peru.
B.6 Större aktie-
ägare
Enligt Bolagets styrelseledamöters och lednings kännedom, utgör Bolagets aktieägare
som innehar mer än 10 procent eller mer av rösterna och aktierna:
iii. Zebra Holdings and Investments S.à r.l.(1), 17 411 841 aktier och 10,3 procent
av rösterna; och
iv. Lorito Holdings S.à r.l.(1), 16 250 000 aktier och 9,6 procent av rösterna.
(1) Lorito och Zebra rapporterar deras innehav av värdepapper som en aktör och är privata bolag
som ägs av en ”trust” vars stiftare var Adolf H. Lundin. Tillsammans innehar Lorito och Zebra totalt 33 661 841 aktier, vilket representerar ca 19,93 procent av det totala antalet utestående
aktier.
-
NGEx RESOURCES INC. | Sammanfattning 15
B.7 Utvald historisk
information
Resultaträkning i sammandrag
Balansräkning i sammandrag
CAD tusental Oreviderat Oreviderat Reviderat Reviderat Reviderat
jan-mar 2014
jan-mar 2013
jan-dec 2013
jan-dec 2012
jan-dec 2011
Intäkter 0 0 0 0 0
Kostnader relaterade till prospektering 8 221 15 469 22 698 24 158 9 149
Löner och förmåner 244 192 1 068 941 425
Aktiebaserad kompensation 116 363 1 038 1 422 1 220
Ersättningar till ledningen 135 135 540 540 540
Ersättningar till övriga nyckelpersoner 89 77 369 498 346
Resekostnader 29 43 172 202 98
Marknadsföring och PR 199 198 356 376 287
Donationer - 270 340 119 376
Kontor och övrigt 120 134 321 230 189
Övrigt och administration 932 1 412 4 204 4 328 3 481
Rörelseförlust 9 153 16 881 26 902 28 486 12 630
Ränteintäkter (13) (60) (235) (115) (189)
Valutakursförluster (vinster) 570 (65) (148) 46 177
Övriga utgifter - - 93 94 118
Vinst från disposition av investeringar - - (180) - (39)
Vinst från disposition av royaltyintäkter - - - (2 782) -
Orealiserade förluster av investeringar (352) 286 660 946 -
Nedskrivningar av mineraltillgångar - - 1 196 - -
Övriga (inkomster) utgifter 205 161 1 386 (1 811) 67
Nettoförlust från kvarvarande verksamhet 9 358 17 042 28 288 26 675 12 697
Nettoförlust från avyttrad verksamhet 3 49 84 6 875 6 376
Nettoförlust 9 361 17 091 28 372 33 550 19 073
av vilket är hänförligt till aktieägarna i Bolaget 9 361 17 091 28 372 33 550 19 073
av vilket är hänförligt till innehav utan bestämmande
inflytande - - - - -
CAD tusental Oreviderat Oreviderat Reviderat Reviderat Reviderat
31 mar 2014
31 mar 2013
31 dec 2013
31 dec 2012
31 dec 2011
Tillgångar
Likvida medel 10 762 35 918 21 260 17 297 41 337
Investeringar 658 550 326 836 -
Kundfordringar och övrigt 683 978 1 118 627 759
Omsättningstillgångar 12 103 5 120 22 704 18 760 42 096
Inventarier 184 454 247 272 424
Mineraltillgångar 9 797 11 876 10 439 11 566 19 442
Övriga anläggningstillgångar 8 8 8 8 8
Anläggningstillgångar 9 989 12 338 10 694 11 846 19 874
TOTALA TILLGÅNGAR 22 092 49 784 33 398 30 606 61 970
EGET KAPITAL OCH SKULDER
Totalt eget kapital 15 142 38 071 24 622 21 509 52 875
Leverantörsskulder och upplupna kostnader 6 107 11 105 4 328 6 174 4 841
Hänförligt till relaterade parter 117 203 28 45 14
Hänförligt till partners i samriskprojekt 726 406 4 101 2 878 4 240
Kortfristiga skulder 6 950 11 713 8 457 9 097 9 095
Övriga långfristiga skulder - - 319 - -
Långfristiga skulder - - 319 - -
TOTALT EGET KAPITAL OCH SKULDER 22 092 49 784 33 398 30 606 61 970
eget kapital hänförligt till aktieägarna i Bolaget 15 142 38 071 24 622 21 509 52 875
eget kapital hänförligt till innehav utan
bestämmande inflytande
- - - - -
-
NGEx RESOURCES INC. | Sammanfattning 16
Kassaflödesanalyser
Nyckeltal
B.8 Utvald
proforma-
redovisning
N/A; prospektet innehåller ingen proformaredovisning.
B.9 Resultat-
prognos
N;A; prospektet innehåller ingen resultatprognos eller beräkning av förväntad vinst.
B.10 Revisors
anmärkningar
N/A; det finns inga revisorsanmärkningar.
CAD tusental Oreviderat Oreviderat Reviderat Reviderat Reviderat
31 mar 2014
31 mar 2013
31 dec 2013
31 dec 2012
31 dec 2011
Tillgångar
Likvida medel 10 762 35 918 21 260 17 297 41 337
Investeringar 658 550 326 836 -
Kundfordringar och övrigt 683 978 1 118 627 759
Omsättningstillgångar 12 103 5 120 22 704 18 760 42 096
Inventarier 184 454 247 272 424
Mineraltillgångar 9 797 11 876 10 439 11 566 19 442
Övriga anläggningstillgångar 8 8 8 8 8
Anläggningstillgångar 9 989 12 338 10 694 11 846 19 874
TOTALA TILLGÅNGAR 22 092 49 784 33 398 30 606 61 970
EGET KAPITAL OCH SKULDER
Totalt eget kapital 15 142 38 071 24 622 21 509 52 875
Leverantörsskulder och upplupna kostnader 6 107 11 105 4 328 6 174 4 841
Hänförligt till relaterade parter 117 203 28 45 14
Hänförligt till partners i samriskprojekt 726 406 4 101 2 878 4 240
Kortfristiga skulder 6 950 11 713 8 457 9 097 9 095
Övriga långfristiga skulder - - 319 - -
Långfristiga skulder - - 319 - -
TOTALT EGET KAPITAL OCH SKULDER 22 092 49 784 33 398 30 606 61 970
eget kapital hänförligt till aktieägarna i Bolaget 15 142 38 071 24 622 21 509 52 875
eget kapital hänförligt till innehav utan
bestämmande inflytande
- - - - -
CAD tusental om ej annat uttrycks Oreviderat Oreviderat Reviderat Reviderat Reviderat
jan-mar 2014
jan-mar 2013
jan-dec 2013
jan-dec 2012
jan-dec 2011
Nettoförlust från kvarvarande verksamhet,
efter utspädning (per aktie) 0.05 0.10 0.17 0.17 (0.08
Nettoförlust från avyttrad verksamhet, efter
utspädning (per aktie) 0.00 0.00 0.00 0.04 0.04
Nettoförlust efter utspädning (per aktie) 0.05 0.10 0.17 0.21 0.12
Soliditet1 69% 76% 74% 70% 85%
Viktat genomsnittligt antal aktier, före
utspädning 168 869 765 165 287 542 167 833 348 158 380 647 149 905 814
Viktat genomsnittligt antal aktier, efter
utspädning 168 869 765 165 287 542 167 833 348 158 380 647 149 905 814
"Resultat från gruvverksamhet" dividerat med
"viktat genomsnittligt antal aktier efter
utspädning" USD
0.00 0.00 0.00 0.00 0.00
"Nettoförlust" dividerat med "viktat genom-
snittligt antal aktier efter utspädning" USD 0.05 0.10 0.17 0.21 0.12
Vinstutdelning per aktie 0 0 0 0 0
1 "Eget kapital" dividerat med "Totala tillgångar"
-
NGEx RESOURCES INC. | Sammanfattning 17
B.11 Rörelsekapital Per dagen för detta prospekt, och med förbehåll för bokslut av den privata placeringen
meddelat den 5 juni 2014, är Bolagets rörelsekapital, enligt Bolagets bedömning,
tillräckligt för Bolagets planerade verksamhet under de kommande tolv månaderna.
Avsnitt C – Värdepapper
C.1 De
värdepapper
som erbjuds
Det finns inget erbjudande att köpa, teckna, eller sälja NGEx:s aktier. Avsikten är att
aktierna ska noteras på NASDAQ OMX:s huvudlista med ISIN-nummer CA65339B1004.
Alla aktier som handlas på NASDAQ OMX:s huvudlista kommer att vara anslutna till
Euroclear och inga aktiebrev kommer att ges ut.
C.2 Denominering Aktierna är denominerade i CAD.
C.3 Antal aktier Bolagets auktoriserade aktiekapital består av ett obegränsat antal stamaktier utan
nominellt värde. Per 31 mars 2014 var 168 940 059 aktier emitterade och utestående.
C.4 Rättigheter
som
sammanhänger
med aktierna
Varje aktie ger innehavaren rätt att erhålla kallelse till, samt att delta i, samtliga
Bolagets bolagsstämmor, och att avge en röst vid sådana möten. Aktieägarna är
berättigade att erhålla vinstutdelning som beslutas av Bolagets styrelse. Aktieägarna är
berättigade till att erhålla den del pro rata som aktieägarens innehav ger upphov till i
en fördelning av tillgångar på grund av likvidation, upplösning, konkurs eller
likvidation, eller genom annan distribution av Bolagets tillgångar i syfte att avsluta
Bolagets verksamhet.
C.5 Inskränkningar
i rätten att fritt
överlåta
aktierna
N/A; det finns inga inskränkningar i rätten att fritt överlåta aktierna förutom att
innehavare av aktier i samband med noteringen kommer att omfattas av en lagstadgad
s.k hold period som sträcker sig (4) månader plus en (1) dag från balansdagen
avseende återförsäljning till invånare i Kanada och/eller över anläggningarna på
Toronto Stock Exchange (”TSX”). Under och efter denna hold period kan aktierna fritt
överlåtas på NASDAQ OMX Stockholm.
C.6 Notering av
aktierna
Aktierna handlas för närvarande under symbolen ”NGQ” på ”TSX”. Aktierna kommer hädanefter att handlas på TSX samt NASDAQ OMX Stockholms huvudlista förutsatt att
sekundärnoteringen genomförs.
C.7 Utdelnings-
politik
Det finns inte några begränsningar som hindrar Bolaget från att betala vinstutdelning.
Per dagen för detta prospekt har Bolaget inte betalat någon utdelning på sina aktier
och har inga planer på att betala vinstutdelning inom en snar framtid. Beslut om att
betala vinstutdelning i framtiden kommer att baseras på Bolagets resultat och
finansiella krav och andra faktorer som Bolagets styrelse anser vara lämpliga med
hänsyn till omständigheterna.
Avsnitt D – Risker
D.1 Risker
relaterade till
emittenten
Risker relaterade till verksamheten
Osäkerhet relaterad till finansiering – Prospektering och utveckling av
mineralfyndigheter kräver betydande kapitaltillgångar. Bolagets prospektering och
utveckling påverkas således av Bolagets möjligheter att finansiera sin verksamhet
genom samriskprojekt, anskaffning av kapital på skuld- eller aktiemarknaden eller
andra sätt. Bolaget kanske inte lyckas anskaffa nödvändigt kapital på godtagbara villkor
när det är nödvändigt. Misslyckanden att anskaffa nödvändigt kapital kan leda till
-
NGEx RESOURCES INC. | Sammanfattning 18
temporära eller ovissa fördröjningar av prospekterings- eller utvecklingsmöjligheter,
eller till och med en förlust av Bolagets tillgångar.
Risker relaterade till att verksamheten bedrivs utrikes – Bolaget bedriver
prospekteringsverksamhet utrikes, innefattandes Argentina och Chile. Verksamhet i
båda dessa länder utsätter Bolaget för risker som inte hade aktualiserats om all
verksamhet hade bedrivits i Kanada. Förändringar i policies kring lagändringar inom
gruvområdet kan påverka Bolaget negativt. Bolagets tillgångar i dessa länder kan bli
föremål för konfiskering eller rekvirering, lagenlig eller ej, av en myndighet eller
organisation. Vidare, om en tvist skulle uppstå som en följd av verksamhet bedriven utomlands, så skulle Bolaget kunna bli föremål för främmande domstolars jurisdiktion
och inte nå framgång att ställa utländska medborgare framför kanadensisk domstol.
Ekonomisk och politisk instabilitet i Argentina – Projekten Josemaría och Filo del Sol
är lokaliserade i San Juan-provinsen i Argentina. Det finns risker som relaterar till
osäkerheten och oförutsebarheten i den politiska och ekonomiska situationen i
Argentina, särskilt i fråga om motstånd till gruvverksamhet i vissa delar av landet samt
ökande ekonomiska protektionistiska åtgärder som implementeras av landets
regering. Den argentinska regeringen kan ändra på, eller införa ytterligare, krav och
riktlinjer som kan komma att påverka Bolagets verksamhet i Argentina negativt eller
påverka Bolagets möjligheter att attrahera partners i samriskprojekt eller anskaffa
kapital för framtida projekt.
Korruption och mutor – Det uppställs krav på Bolaget att verka i enlighet med anti-
korruption- och anti-mutlagstiftning, vilket inkluderar Canadian Corruption of Foreign
Officials Act och U.S. Foreign Corrupt Practices Act, samt liknande lagstiftning i de
länder där Bolaget bedriver verksamhet. Om Bolaget skulle bli föremål för
verkställighetsåtgärd, eller skulle anses ha brutit mot en sådan lag, så skulle detta
kunna resultera i kraftiga böter, straffavgifter eller sanktioner vilket skulle kunna
medföra väsentliga negativa effekter på Bolaget.
Miljö- och sociopolitiska risker – Nuvarande eller framtida lagar och regler relaterade
till miljö kan komma att påverka Bolagets verksamhet negativt, särskilt i fråga om
Bolagets möjligheter att utveckla delar av Bolagets tillgångar i Argentina,
inkluderandes Josemaría-projektet och Filo del Sol-projektet.
Ursprungsbefolkning – Bolaget bedriver verksamhet i områden, vilka innefattar delar
av Los Helados- och Tamberias-området, som bebos av, används av, eller tidigare har
bebotts av, ursprungsbefolkning. Det finns ett flertal internationella och nationella bestämmelser och liknande material som relaterar till rättigheter för sådan
ursprungsbefolkning. Motstånd från ursprungsbefolkning gentemot Bolagets
verksamhet kan medföra att Bolagets verksamhet måste förändras eller att den
hindras, eller att den fortsatta utvecklingen av Bolagets projekt påverkas, eller att det
krävs att Bolaget ingår avtal med ursprungsbefolkning relaterat till Bolagets projekt.
Titelrisk – Problem relaterade till Bolagets rättigheter till sina fyndigheter kan medföra
väsentliga negativa effekter på Bolagets verksamhet. Vidare finns det en risk att
regeringar drar tillbaka eller väsentligen ändrar villkoren för Bolagets tillstånd
relaterade till prospektering eller gruvdrift eller att utomstående parter bestrider
sådana tillstånd. Det finns även en risk att Bolaget inte kan förnya sina licenser, vilket
skulle kunna föranleda en förlust av det projekt som lyder under den licensen.
Beroende av nyckelpersonal – Bolagets framgång beror till stor del på den
ansträngning som görs av, och kunnande som finns i, Bolagets ledning och
nyckelanställda. Vissa av dessa individer har omfattande erfarenhet av gruvindustrin,
och särskilt av gruvindustrin i Sydamerika. Om dessa personer av någon anledning inte
-
NGEx RESOURCES INC. | Sammanfattning 19
skulle stanna hos Bolaget, så skulle det kunna medföra att Bolagets verksamhet skulle
påverkas negativt. Bolaget har inte någon livförsäkring för sina nyckelpersoner.
Interna kontroller – Interna kontroller inom ramen för Bolagets finansiella
rapportering är processer som syftar till att ge en skälig försäkran att transaktioner är
behörigen auktoriserade, att tillgångar är säkrade mot oberättigat eller inkorrekt
användande samt att transaktioner är registrerade och rapporterade på ett
tillfredsställande sätt. Ett system för interna kontroller, oavsett hur väl designat eller
använt det är, kan bara ge skäligt, och inte absolut, försäkran om tillförlitligheten av
finansiell rapportering samt förberedelse av därtill hörande material.
Intressekonflikter – Vissa av Bolagets styrelseledamöter är även styrelseledamöter i
andra företag, som liksom Bolaget är engagerade i verksamhet innefattandes förvärv,
prospektering och utveckling av naturtillgångsfyndigheter. Detta kan föranleda att
intressekonflikter uppstår, vilket kan påverka Bolagets verksamhet negativt. En
konsekvens som särskilt utmärker sig härav, är risken att möjligheter som presenteras
för en av Bolagets styrelseledamöter erbjuds till ett annat bolag eller andra bolag som
denna styrelseledamot associeras med, istället för ett erbjudas till Bolaget.
Valutarisk – Bolaget bedriver affärsverksamhet i ett flertal valutor, inklusive, men inte
enbart, amerikanska dollar, argentinska pesos samt chilenska pesos. Den argentinska
pesons värde har fluktuerat kraftigt gentemot amerikanska och kanadensiska dollar.
Framtida förändringar i valutakurser kan väsentligen påverka Bolagets resultat, i såväl
positiv som negativ riktning. Bolaget ägnar sig för närvarande inte åt några
valutasäkringsåtgärder.
Derivatinstrument – Bolaget kan, från tid till annan och föremål för styrelsens
godkännande, begränsa sina valutarisker genom att köpa derivatinstrument.
Skatter – Bolaget bedriver verksamhet i flera länder och strävar efter att göra detta så
skatteeffektivt som möjligt. Skattesystemet i vissa länder är dock komplicerat och är i
vissa fall föremål för förändringar. På grund av denna anledning så kan det inte
uteslutas att sådana förändringar inte i någon mån kommer att negativt påverka
Bolaget.
Samriskprojekt – Vissa av Bolagets projekt, inkluderandes Los Helados, Josemaría och
Filo del Sol, drivs som samriskprojekt (Eng. joint exloration agreements). Det finns en
risk att inte alla beslut som tas av partners i samriskprojekt leder till att uppsatta mål
nås, vilket kan medföra väsentliga negativa effekter på Bolagets verksamhet.
Rättigheter till ytområden – Rättigheter till ytområden vid Los Helados innehas av ett
lokalt samhälle; “Comunidad Civil Ex Estancia Pulido”. Bolaget har ingått ett fyraårigt
avtal med det lokala samhället om tillträde till detta område, daterat 26 september
2011. I enlighet med villkoren i detta avtal tillåts Bolaget att bygga och driva
gruvanläggningar och vägar och att bedriva prospekteringsaktiviteter, inklusive
borrning. Avtalet måste förnyas under, eller innan, 26 september 2015. Om Bolaget av
någon anledning inte skulle kunna förnya avtalet, trots att inga sådana indikationer
föreligger, skulle Bolaget påverkas negativt. Bolaget äger inga rättigheter till ytområdet
vid Los Helados.
Bolaget kanske inte kommer att kunna erhålla nödvändiga yträttigheter eller förhandla
framgångsrikt med privata markägare för att därigenom kunna utveckla sina
fyndigheter eller etablera kommersiell gruvdrift enligt tidplan. I den utsträckning
ytterligare yträttigheter är tillgängliga så kan det tänkas att dessa blir dyrare att
förvärva, vilket väsentligen kan påverka Bolagets resultat.
-
NGEx RESOURCES INC. | Sammanfattning 20
Nuvarande global finansiell situation – Marknadshändelser- och förhållanden har orsakat omfattande volatilitet i råvarupriser. Oaktat diverse regeringars
ansträngningar, har bekymmer relaterat till det generella tillståndet på
kapitalmarknader, finansiella instrument, banker, investmentbanker, försäkringsbolag
och andra finansiella institutioner medfört att kreditmarknader och aktiemarknader
har försämras kraftigt. Bolaget är beroende av aktiemarknaden som sin primära källa
till rörelsekapital, och Bolagets kapitalresurser styrs till stor del av styrkan på dessa
marknader och statusen av Bolagets projekt i relation till dessa marknader.
Tillgången till offentlig finansiering har påverkats negativt av oron över den globala tillväxttakten. Därmed kanske inte finansiering genom aktiemarknaden är möjlig för de
belopp som behövs vid en given tidpunkt eller för en given period, eller om sådan
finansiering är tillgänglig så kanske den inte är det på villkor som är acceptabla för
Bolaget.
Risker relaterade till gruvindustrin Infrastruktur – Utvecklings- och prospekteringsaktiviteters framgång är till stor del
beroende av tillgång till adekvat infrastruktur. Tillförlitliga vägar, broar samt el- och
vattennät är viktiga och kostnadspåverkande aspekter i detta avseende. Störningar
eller brister i infrastruktur kan komma att påverka Bolagets verksamhet negativt.
Uppskattade mineralresurser – Bolagets rapporterade mineralresurser är endast
estimat. Det finns en risk att de uppskattade mineralresurserna aldrig kan utvinnas.
Fluktuationer på marknaden i priset på metaller, liksom ökningar av uppskattade
produktionskostnader eller minskningar i uppskattade återvinningsnivåer, kan göra
vissa mineraltillgångar oekonomiska och kan i slutändan leda till en omräkning av
uppskattade resurser.
Risker relaterade till prospektering och utveckling – Bolagets tillgångar är i ett tidigt
prospekteringsskede och utgör inte i detta stadium en bekräftad sammansättning av
kommersiell malm. Prospektering av mineralresurser innefattar en hög risk och få
fyndigheter utvecklas slutligen till producerande gruvor. Den kommersiella bärkraften
av en upptäckt mineralfyndighet är också beroende av ett antal faktorer och den
exakta effekten av dessa faktorer kan inte exakt förutspås, men kombinationen av
någon av dessa faktorer kan inverka negativt på Bolagets verksamhet.
Risker relaterade till metallpriser – Värdet på Bolagets tillgångar och investeringar är i
hög utsträckning beroende av priset på metaller såsom koppar, guld och silver.
Råvarupriser fluktuerar kraftigt och är beroende av otaliga faktorer utanför Bolagets
kontroll. Priset på dessa metaller påverkar Bolagets värde i hög utsträckning, priset av
Bolagets aktier, det potentiella värdet på dess tillgångar och investeringar.
Konkurrens – Det råder en aggressiv konkurrenssituation i gruvindustrin, både i fråga
om lokaliserande och förvärv av fyndigheter med kommersiell potential, såväl som
rekrytering av arbetskraft och anskaffning av material för att kunna utveckla sådana
fyndigheter. Bolaget kanske inte kan behålla eller förvärva attraktiva fyndigheter på
villkor som anses acceptabla, eller överhuvudtaget. Följaktligen, så kan Bolagets
finansiella ställning väsentligt kunna påverkas negativt.
Risker som det inte kan tecknas försäkring för – Prospektering, utveckling och
produktion av mineralfyndigheter innefattar otaliga risker, såsom ovanliga och ej
förväntande geologiska driftsförhållanden, bergssprickor, ras, bränder, över-
svämningar, jordbävningar och andra naturkatastrofer, såväl som politisk och
samhällelig instabilitet. Det är inte alltid möjligt att teckna försäkring för alla sådana
risker och det finns en risk att Bolaget väljer att inte teckna försäkring gentemot
-
NGEx RESOURCES INC. | Sammanfattning 21
sådana risker på grund av höga premier eller andra anledningar. Skulle förpliktelser
uppstå, så kan de minska eller eliminera ytterligare lönsamhet i Bolaget och leda till
ökade kostnader och en minskning av Bolagets värde.
D.3 Risker
relaterade till
aktierna
Marknadspris på Bolagets aktier – Värdepapper i gruvbolag har tidigare varit föremål
för omfattande volatilitet, ofta på grund av faktorer som inte är relaterade till
resultatet eller möjligheterna förknippade med bolagen ifråga. Marknadspriset på
Bolagets aktier vid en given tidpunkt kanske inte reflekterar det korrekta långsiktiga
värdet på Bolaget. Grupptalan har ofta förts mot bolag efter långa perioder av
volatilitet i marknadspriset på dessas aktier. Bolaget kan i framtiden bli föremål för en
liknande rättsprocess. Processer rörande värdepapperna kan medföra betydande
kostnader för Bolaget och avleda ledningens uppmärksamhet och resurser från annat.
Risker relaterade till aktiemarknaden – En person som vid något tillfälle vill förvärva
aktier i Bolaget bör vara medveten om att detta är förenat med hög risk, och att värdet
på aktierna kan komma att utvecklas negativt.
Risker relaterade till illikvid handel och sekundärnoteringen – Det är inte möjligt att
förutse huruvida investerares intresse i NGEx kommer att leda till en aktiv handel i
aktierna eller hur handeln i aktierna kommer att fungera i framtiden. För det fall att
aktiv och likvid handel inte åstadkoms, kan innehavare av Bolagets aktier få problem
att sälja sina aktier, tillfälligt eller permanent. Om det inte finns ett tillräckligt antal
aktier som handlas på NASDAQ OMX Stockholm så finns risken att Bolaget inte
uppfyller kraven som NASDAQ OMX Stockholm ställer för värdepappers upptagande
till handel.
Risker relaterade till utdelning – Gruv- och prospekteringsindustrin är kapitalintensiv
och Bolagets intäkter kan komma att behövas ackumuleras och återinvesteras i
Bolagets verksamhet. Således finns det en risk att Bolaget inte kommer att betala
utdelning på sina aktier i framtiden.
Fluktuationer i valutakurs – Om Bolaget skulle betala utdelning på sina aktier så skulle
sådan utdelning betalas i CAD. Dock skulle sådana aktieägare vars innehav är
registrerat via Euroclear få utdelningar i SEK. Värdeminskning av CAD i förhållande till
SEK skulle kunna reducera värdet av investeringen i aktierna eller av eventuell
utdelning.
Framtida erbjudanden av skuldbaserade värdepapper eller aktier – NGEx kan komma
att behöva ytterligare kapital för att finansiera vidare prospektering, utveckling,
kommande produktion eller andra oförutsedda möjligheter. Om NGEx anskaffar
ytterligare kapital genom utgivande av aktier så skulle en sådan finansiering späda ut
nuvarande aktieägares rösträtt och rätt till utdelning.
Avsnitt E – Erbjudande
E.1 Emissions-
belopp och
emissions-
kostnader
N/A; detta prospekt utfärdas i samband med en sekundärnotering på NASDAQ OMX
Stockholms huvudlista och NGEx riktar inget erbjudande att förvärva aktier.
E.2a Motiv till
erbjudandet
och användning
av medel
N/A; detta prospekt utfärdas i samband med en sekundärnotering på NASDAQ OMX
Stockholms huvudlista och NGEx riktar inget erbjudande att förvärva aktier.
-
NGEx RESOURCES INC. | Sammanfattning 22
E.3 Erbjudandets
former och
villkor
N/A; detta prospekt utfärdas i samband med en sekundärnotering på NASDAQ OMX
Stockholms huvudlista och NGEx riktar inget erbjudande att förvärva aktier.
E.4 Intresse-
konflikter etc.
N/A; inga intressekonflikter eller liknande existerar.
E.5 Lock-up-avtal N/A; det finns inget lock-up-avtal.
E.6 Utspädning N/A; detta prospekt utfärdas i samband med en sekundärnotering på NASDAQ OMX
Stockholms huvudlista och NGEx riktar inget erbjudande att förvärva aktier.
E.7 Kostnader för
investerare
N/A; NGEx Resources ålägger inte några kostnader på investerarna.
-
NGEx RESOURCES INC. | Risk factors 23
RISK FACTORS An investment in securities involves a significant degree of risk. The Company’s business, operating results or
financial position may be adversely affected by a number of risk factors which are beyond the control of the
Company. The Company is exposed to a number of risks inherent in mining exploration and development. Risk
factors deemed to be of particular significance to the future prospects of the Company are described below. The
risk factors described below are not exhaustive. The Company’s business, operating results and financial
position may also be materially adversely affected by other risks and uncertainties which are currently unknown
to the Company, or which are currently not viewed as material. Further, risks are not ranked according to
degree of importance. Nor do they indicate how significant the impact could be on the Company’s operations.
The risk described herein should also be considered in connection with the other information included in the
prospectus and the macroeconomic environment, as well as the cautionary statement regarding forward-
looking information set forth in the Section “Important information” above.
Risks relating to NGEx Resources The operations of the Company are speculative due to the high risk nature of its business. Material risk factors
and uncertainties, which should be taken into account in assessing the Company’s activities, include, but are
not necessarily limited to, those set out below. Any one or more of these risks and others could have a material
adverse effect on the Company.
RISKS RELATING TO THE BUSINESS
Uncertainty of Funding
The exploration and development of mineral properties requires a substantial amount of capital and may
depend on the Company’s ability to obtain financing through joint ventures, debt financing, equity financing or
other means. General market conditions, volatile metal prices, a claim against the Company, a significant
disruption to the Company’s business, or other factors, may make it difficult to secure the necessary financing.
The Company may not be successful in obtaining required financing on acceptable terms when needed. Failure
to obtain any necessary additional financing may result in delaying or indefinite postponement of exploration
or development or even a loss of property interest. If the Company needs to raise additional funds, such
financing may substantially dilute the interests of shareholders of NGEx and reduce the value of their
investment.
Foreign Operations Risk
The Company conducts exploration activities in foreign countries, including Argentina and Chile. Each of these
countries exposes the Company to risks that may not otherwise be experienced if all operations were located in
Canada. The risks vary from country to country and can include, but are not limited to: civil unrest or war,
terrorism, illegal mining, changing political conditions, fluctuations in currency exchange rates, expropriation or
nationalization without adequate compensation, changes to royalty and tax regimes, high rates of inflation,
labor unrest and difficulty in understanding and complying with the regulatory and legal framework respecting
ownership and maintenance of mineral properties. Changes in mining or investment policies or shifts in
political attitudes may also adversely affect the Company’s existing assets and operations. Real and perceived
political risk may also affect the Company’s ability to finance exploration programs and attract joint venture or
option partners, and future mine development opportunities.
Numerous countries have introduced changes to mining regimes that reflect increased government control or
participation in the mining sector, including, but not limited to: changes of law affecting foreign ownership,
mandatory government participation, taxation and royalties, exploration licensing, export duties and
repatriation of income or return of capital. Moreover, there is a risk that industries which are deemed to be of
national or strategic importance in countries in which the Company has assets, including mineral exploration,
-
NGEx RESOURCES INC. | Risk factors 24
will be subject to nationalization. The risk also exist that further government limitations, restrictions or
requirements, not presently foreseen, will be implemented. Changes in policies that alter laws regulating the
mining industry could have a material adverse effect on the Company. The Company’s assets in these countries
may be subject to requisition or confiscation, whether legitimate or not, by an authority or body.
In addition, in the event of a dispute arising from foreign operations, the Company may be subject to the
exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction
of courts in Canada. The Company may also be hindered or prevented from enforcing its rights with respect to
a governmental instrumentality because of the doctrine of sovereign immunity. It is not possible for the
Company to accurately predict such developments or changes in laws or policy or to what extent any such
developments or changes may have a material adverse effect on the Company.
Economic and Political Instability in Argentina
The Josemaría Project and the Filo del Sol Project are located in San Juan Province, Argentina. There are risks
relating to an uncertain or unpredictable political and economic environment in Argentina, especially as social
opposition to mining operations in certain parts of the country and increasingly protectionist economic
measures are implemented by the National Government. During an economic crisis in 2001 to 2003, Argentina
defaulted on foreign debt repayments and on the repayment on a number of official loans to multinational
organizations. In addition, the government has renegotiated or defaulted on contractual arrangements. More
recently, the Argentinean government placed currency controls on the ability of companies and its citizens to
obtain USD, in each case requiring Central Bank approval (resulting in, at times, a limitation on the ability of
multi-national companies to distribute dividends abroad in USD) and revoked exemptions previously granted to
companies in the oil and gas and mining sectors from the obligation to repatriate 100 per cent of their export
revenues to Argentina for conversion in the local foreign exchange markets, prior to transferring funds locally
or overseas. Similarly, the government adopted a requirement that importers provide notice to the
government and obtain approval for importation before placing orders for certain goods. These actions
indicate that the Argentinean government may alter or impose additional requirements or policies that may
adversely affect the Company’s activities in Argentina or in its ability to attract joint venture partners or obtain
financing for its projects in the future.
Corruption and Bribery
The Company is required to comply with anti-corruption and anti-bribery laws, including the Canadian
Corruption of Foreign Public Officials Act and the U.S. Foreign Corrupt Practices Act, as well as similar laws in
the countries in which the Company conducts its business. If the Company finds itself subject to an
enforcement action or is found to be in violation of such laws, this may result in significant penalties, fines
and/or sanctions imposed on the Company resulting in a material adverse effect on the Company.
Environmental and Socio-Political Risks
The Company seeks to operate within environmental protection standards that meet or exceed existing
requirements in the countries in which the Company conducts its activities. The Company also aims to conduct
its activities in accordance with high corporate social responsibility principles. Present or future laws and
regulations, however, may affect the Company’s operations. Future environmental costs may increase due to
changing requirements or costs associated with exploration and the developing, operating and closing of
mines. The Company is subject to environmental regulation in the various jurisdictions in which it operates.
Failure to comply with these laws, regulations and permitting requirements may result in enforcement actions,
including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and
may include corrective measures requiring capital expenditures, installation of additional equipment, or
remedial actions. Parties engaged in mining operations or in the exploration or development of mineral
properties may also be required to compensate those suffering loss or damage by reason of the mining
activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or
regulations. Furthermore, environmental hazards may exist on the properties on which the Company holds
-
NGEx RESOURCES INC. | Risk factors 25
interests which are unknown to the Company at present and which have been caused by previous or existing
owners or operators of the properties.
Programs may also be delayed or prohibited in some areas due to technical factors, new legislative constraints,
social opposition or local government capacity or willingness to issue permits to explore in a timely manner.
In parts of Argentina, there is significant environmental opposition to both mineral exploration and mining. This
has affected properties in some of the provinces where the Company works, in particular in Mendoza where
the Company has two drill ready projects, Paramillos and Papagallos. In certain other Argentine provinces
including La Rioja there is a significant degree of anti-mining sentiment which affects the risk of successfully
top related