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Classic Minerals And AuResources Drive Blockchain-Backed Funding For Gold Mining Ventures

Classic Minerals Limited, an Australian gold exploration company, and AuResources AG, a Swiss fintech startup, have begun a $60 million funding initiative to leverage blockchain technology to boost the gold mining and fintech sectors.

The collaboration is designed to accelerate the development of Classic’s gold projects, particularly the Kat Gap Project in Western Australia and the Forrestania Gold Project, by avoiding traditional commodity trade funding.

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 the companies’ interests. 

Classic’s Kat Gap project, situated approximately 170km south of Southern Cross, has demonstrated potential. It boasts a $41 million reserve 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, facilitating further exploration.

In addition, Classic Minerals has acquired full control of the 500 km² Forrestania Gold Project Properties. The Forrestania Project, with a history of production and resources Inferred and Indicated, represents additional exploration and development for blockchain-backed financing.

Gold Financing Enters The Digital Age

After a long period of planning and support from investors, Ian Cooper, CEO of AuResources, expressed his excitement about the partnership by stating the following:

Being able to reach 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 move forward, and we couldn’t have found a better partner than Classic Minerals.

Furthermore, the financing structure, backed by gold “tokens” using distributed ledger technology, aims to provide investors with increased security and transparency. 

On the other hand, John Lester, Chairman of Classic Minerals, expressed his gratitude towards AuResources and Black Manta Capital Partners for their support, stating: 

The launch of this funding round firmly establishes Classic on the international stage. We are now poised to deliver exceptional value to AuResources, Black Manta Capital, and our esteemed shareholders.

Overall, the partnership and the new funding strategy underscore the use and wider adoption of blockchain technology within the crypto asset industry and for traditional finance (TradFi) companies such as gold and other commodities. 

Blockchain

Featured image from Shutterstock, chart from TradingView.com

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Deloitte Survey Shows 76% Of Finance Execs Think Physical Money Is Nearing Its End

A recent survey from Deloitte that collated data from 1,280 senior finance executives in 10 locations across the world produced interesting results regarding the blockchain industry. This survey is Deloitte’s fourth annual Global Blockchain Survey, which focuses on the financial services industry (FSI). Findings from the survey show that there is a need for the industry to turn towards product modernization and distribution in order to see economic growth.

When polled, 76% of the 1,280 respondents said they believed that the end of physical money is near. And that digital assets were set to replace fiat currencies in the next five to 10 years. This will obviously have a significant impact on the financial services industry, but the respondents remained optimistic about the revenue potential of both blockchain and crypto, and digital currencies.

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“The Deloitte ‘Global Blockchain Survey’ shows that the foundation of banking has been fundamentally outlived and financial services industry players must redefine themselves and find innovative ways to create economic growth in the future of money.” – Linda Paw-czuk, Principal, Deloitte Consulting LLP, and global and U.S. blockchain and digital assets leader

Blockchain Is Already Mainstream, Says Survey

The survey also showed that the majority – nearly 80% – of global FSI leaders believed that digital assets are going to be very/somewhat important to their various industries in the next two years. They also see both digital assets and blockchain technologies as a strategic priority now and in the future.

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73% of respondents admitted that a recurring fear was that their various organizations would lose competitive advantage if they failed to adopt digital assets and blockchain technology. Findings also showed that 81% of respondents agreed that blockchain technology is highly scalable, and according to them, has already achieved mainstream adoption.

The world is no doubt headed towards a completely digital world. Things like paper currencies are likely to be obsolete in the near future. Hence, financial services industries need to shift to new business models for revenue generation. Digital assets will be used to simplify payments. And 43% of respondents said that these new payment options represent a “very important” role for digital assets.

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Richard Walker, a principal at Deloitte Consulting LLP and U.S. financial services industry blockchain leader, had some thoughts on this. “As digital asset disruption rapidly changes the marketplace, global financial services are striving to reinvent themselves, creating businesses to generate new sources of revenue.” Walker went on to add, “Opportunities for real change in several areas of the global financial markets exist for those players that explore new ways to harness the power of blockchain technology and digital assets to reimagine their business modes.”