Classic Minerals Limited, an Australian gold exploration company, and AuResources AG, a Swiss fintech startup, have initiated a $60 million funding initiative to leverage blockchain technology to boost gold mining and fintech sectors.
O collaboration was designed to accelerate the development of Classic’s gold projects, particularly the Kat Gap Project in Western Australia and the Forrestania Gold Project, bypassing traditional commodity trade financing.
Blockchain-backed capital
In a move that bypasses traditional banking channels, AuResources, backed by digital and tokenization-focused bank Black Manta Capital, will provide the initial $10 million in funding.
This capital injection is intended to support Classic’s production capacity at the Kat Gap project and facilitate the development of the Lady Magdalene and Lady Ada deposits. By leveraging blockchain technology, the partnership introduces a new business model that aligns with companies’ interests.
Classic’s Kat Gap project, situated approximately 170km south of Southern Cross, has demonstrated potential. It has a reserve of US$41 million at 2.5 grams per ton (g/t) and additional inferred features of US$ 120 million at 2.19 g/t in the area.
Following a successful trial mining phase in mid-August 2023, the project has generated revenue, with gold sales exceeding US$967,000 in the September and December 2023 quarters. The collaboration with AuResources aims to build on this initial success by facilitating future explorations.
Additionally, Classic Minerals has acquired full control of the 500 km² Forrestania Gold Project Properties. The Forrestania Project, with production history and inferred and indicated resources, represents further exploration and development for blockchain-backed finance.
Gold finance enters the digital age
After a long period of planning and investor support, Ian Cooper, CEO of AuResources, expressed his excitement about the partnership by stating the following:
Achieving this milestone today is the result of two years of dedicated work and the unwavering support of our investors. The entire team is proud to be moving forward and we couldn’t have found a better partner than Classic Minerals.
Furthermore, the financing structurebacked by gold “tokens” using distributed ledger technology, it aims to provide investors with greater security and transparency.
On the other hand, John Lester, President of Classic Minerals, expressed his gratitude to AuResources and Black Manta Capital Partners for their support, stating:
The launch of this round of financing firmly establishes Classic on the international stage. We are now prepared to deliver exceptional value to AuResources, Black Manta Capital and our valued shareholders.
Overall, the partnership and new financing strategy highlights the broader use and adoption of blockchain technology in the cryptoasset industry and for traditional financial companies (TradFi) such as gold and others. goods.
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