Classic Minerals and AuResources Launch $60 Million Blockchain Funding Initiative for Gold Mining
Australian gold exploration company Classic Minerals Limited and Swiss fintech startup AuResources AG have joined forces to launch a $60 million funding initiative that aims to revolutionize the gold mining and fintech sectors using blockchain technology. The collaboration is specifically focused on accelerating the development of Classicโs gold projects, including the Kat Gap Project in Western Australia and the Forrestania Gold Project, by bypassing traditional commodity trade funding.
Blockchain-Backed Capital
AuResources, with support from digital and tokenization-focused bank Black Manta Capital, will provide the initial $10 million in funding. This approach allows Classic Minerals to avoid relying on traditional banking channels and instead leverage blockchain technology to streamline the financing process. The partnership aims to introduce a new business model that aligns with the interests of both companies.
The funding will be used to support Classicโs production capacity at the Kat Gap project and facilitate the development of the Lady Magdalene and Lady Ada deposits. By injecting capital into these projects, Classic Minerals can further explore their potential and increase their production capabilities.
The Kat Gap project, located approximately 170km south of Southern Cross, has already demonstrated its potential with a reserve worth $41 million at 2.5 grams per tonne (g/t) and additional inferred resources of $120 million at 2.19g/t within the area. Following a successful trial mining phase in mid-August 2023, the project has generated revenue, with gold sales surpassing $967,000 across the September and December 2023 quarters. The collaboration with AuResources aims to build upon this initial success by providing additional funding for exploration.
In addition to the Kat Gap project, Classic Minerals has also acquired full control of the 500 kmยฒ Forrestania Gold Project Properties. The Forrestania Project, with a history of production and resources Inferred and Indicated, represents an opportunity for further exploration and development using blockchain-backed financing.
Gold Financing Embraces Blockchain Technology
The partnership between Classic Minerals and AuResources marks a significant milestone in the use of blockchain technology for gold financing. By using distributed ledger technology and gold โtokens,โ the financing structure aims to provide investors with increased security and transparency. This approach is expected to attract more investors to the gold mining industry by offering them a streamlined and trustworthy investment option.
Ian Cooper, CEO of AuResources, expressed his excitement about the partnership, stating that it is the result of two years of dedicated work and the unwavering support of their investors. He also praised Classic Minerals as an ideal partner for this initiative.
John Lester, Chairman of Classic Minerals, expressed his gratitude towards AuResources and Black Manta Capital Partners for their support. He emphasized that this funding round firmly establishes Classic on the international stage and positions them to deliver exceptional value to their partners and shareholders.
The Future of Blockchain in Gold Mining
The collaboration between Classic Minerals and AuResources highlights the growing role of blockchain technology in the crypto asset industry as well as traditional finance (TradFi) sectors such as gold mining. The use of blockchain-backed financing offers numerous benefits, including increased security, transparency, and efficiency in the funding process. As more companies embrace this technology, it is expected to revolutionize not only the gold mining industry but also other commodity sectors.
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