Digital Metal Exchange (DMX) has created 440 digital commodity tokens representing 44,000 oz. of gold (nearly USD 88 million at today’s spot price) discounted by 14 to 18%, for gold from NuFortune’s Radio Mine and Lindsay’s Mine, located in Western Australia.
The pre-sale of the tokens is currently open and there has been healthy investor interest. On reaching full subscription, these digital assets will begin trading live on DMX’s institutional grade commodity trading exchange.
Perth-based NuFortune Mines is committed to environmentally responsible production of certified “Clean Gold.” It is Australia’s first Zero Cyanide Mining™ Clean Gold producer, and uses processes which eliminate the use of cyanide or mercury from the production cycle. Both classes of chemicals are commonly used in gold production, and their use has, historically, resulted in significant environmental degradation in many mining locations. The process also eliminates hydrochloric acid and carbon. In its drive to become “the world’s first truly environmentally friendly gold miner,” NuFortune has partnered with technology innovation firm Clean Earth Technology to use its non-toxic reagents in the extraction of gold. This makes the forward sales from NuForture’s mines available for ethical investment funds and, in the future, for ESG offsets (similar to carbon credits).
Digital Metal Exchange (DMX) provides mine operators and asset owners such as NuFortune with the ability to fund their exploration and development through discounted forward sale of some of their future production. Through its Asset Monetisation Process™, DMX creates digital assets backed by a particular quantity of metal. These tokens are offered for sale to investors and are listed on DMX. This process offers a funding source for the promoters and a liquid marketplace for the tokens. With clear provenance of the resulting metal built into the process, gold offered for sale by the DMX client mines carries the DMX Single Origin Gold™ certification.
CEO, Digital Metal Exchange:
“This agreement marks the establishment of a new liquid asset class – tradeable discounted forward sales – where previously such arrangements, if available, were done over the counter without clear price signals or the ability for investors to sell out prior to maturity.. Demand for metal will continue to grow as the world moves to renewable energy, electric vehicles and advanced technologies such as quantum computing. Our Asset Monetisation Process™ makes it possible for emerging mines to fund their exploration and production in a way that does not dilute ownership but rather is highly transparent and offers clear accountability. The process benefits producers with more efficient and cost effective funding and provides investors with access to discounted metals and active secondary markets.”
“We are delighted to work with NuFortune’s to deliver our first discounted forward sales. NuFortune’s ethos marries up very well with our approach – focusing on technological innovation to build value with an environmentally responsible mindset, and satisfying the demands of the market with solutions that carry multiple benefits for different stakeholders.”
Chairman, NuFortune Group:
“Technology platforms have opened up new markets, and disrupted old ones, in industries from transport to personal finance and retail to healthcare. We are excited to be setting this emerging industry trend of using digital assets to finance exploration and production for emerging producers. Technological innovation brought by DMX is opening up entirely new ways to secure capital, without undue costs, and with a level of transparency that will soon become an industry benchmark.”
“Using technological innovation in the finance and investment sector of the metals industry is to us a natural reflection of our overall technology focus which includes, for example, our intention to mine and treat ore using contemporary, safe technologies with a small environmental footprint. The world badly needs reliable sources of safely produced metals and the world’s industry therefore needs safe industrial technologies. This agreement with DMX is for us the logical next step in our drive towards satisfying both of those goals.”
Digital Metal Exchange