Wednesday, March 7, 2018

Newest gold backed cryptocurrency to emerge comes directly from a gold mining company and is underwritten from a live mining project

The newest gold backed currency to emerge on the scene has a little bit different story behind it as it appears to be the first one to be created directly from a viable gold mining company.

Canamex Gold Corp, a junior miner that trades primarily on the TSX, announced on March 6 of the creation and sale of gold backed token which is being underwritten through the output of their Bruner Gold Project operation.

Proceeds from the sake of tokens will be used on the project itself, with each cryptocurrency being backed by physical gold and allotted royalties from overall production.

Cryptocurrencies remain a hot topic in financial markets in the opening quarter of 2018, and Canamex Gold Corp. (CSQ) is moving to become the first company to issue a crypto-token backed by gold, and from its own project in Nevada no less.  The team is also looking at working with other companies in or near production to help them finance with crypto-token gold and silver royalty streams, instead of traditional debt and/or equity financing. 
It is a new concept and takes some explaining, but the potential to eliminate further dilution for equity holders and create new models for valuation is both vast and fascinating.  Canamex Gold Corp. Chief Executive Officer David Vincent recently gave Proactive Investors a look inside this new funding paradigm.
Canamex Gold Corp. is literally taking currency back onto a gold standard with the introduction of its gold-backed token with an offering currently underway.  We’ll get to your pioneering business structure in just a moment, but first, the Bruner gold project underlies the token.  Tell us about Bruner and the plans there. 
We’ve got Bruner to the stage where we need to complete the engineering studies, the environmental permitting and then we should essentially be at the Preliminary Feasibility Study stage, for a mine financing decision.  We hope to be at that point around the fourth quarter of this year.  At that time, we will make a funding decision to construct the operation. 
The intention is to use the crypto-token model as the funding mechanism for the mine construction, which means it would be a non-dilutive financing for shareholders.  So instead of doing a traditional equity and/or debt financing, we’ll be doing a crypto-token financing, backed by a gold royalty stream off the project – Proactive Investors


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