An innovative and industry leading cryptocurrency that will be backed by cash and asset security has been launched by Perth-based corporate advisory firm PCF Capital.
The cryptocurrency, dubbed FutureGold, will operate via a registered managed investment scheme powered by blockchain technology and will be fully compliant with cryptocurrency best practice and applicable securities law. It will match investors’ increased demand for new and dynamic investment products and the gold mining sector’s challenge to raise development funding.
For the first time, cryptocurrency and blockchain technology will be used to disrupt the traditional funding mechanism available to emerging gold mining companies, the company explains.
FutureGold intends to undertake its Security Token Offering in Q1, 2019 and issue up to five million Security Tokens, to raise up to US$250 million.
The proceeds from the FutureGold offering will be used by FutureGold to invest in eligible mining projects, based on strict industry leading investment criteria that incorporates PCF Capital’s experience of completing 150 mining asset transactions worth an aggregate $2.5 billion across the world.
PCF Capital founder and executive chairman of FutureGold Liam Twigger says that this innovative cryptocurrency will provide much-needed capital support to a sector that is increasingly being ignored by traditional funding sources.
“The ASX and the TSX are full of shells and zombie-like companies that have mining and exploration projects but no hope of getting them funded, particularly in these times when risk-averse investors are dominant” Mr Twigger said.
“There are more than 300 junior resource companies listed on the ASX, TSX and AIM markets with gold projects containing over 300 million ounces – and all are looking for funding.
“The companies’ plight is exasperated by the fact that in North America investors have switched out of the junior mining sector in favour of bitcoin and medicinal cannabis stocks.
“This has created a perfect storm for junior miners – and FutureGold can provide the perfect solution by matching investor interest in regulated and transparent cryptocurrencies with junior miners’ needs for innovative funding solutions.
“So far in 2018, $20 billion has been raised in crypto offerings, up from $6 billion in 2017. The time is right for a legitimate mining industry cryptocurrency to enter the fray.”
The FutureGold Security Token Offering will be made pursuant to a product disclosure statement and will require FutureGold to obtain an Australian financial services licence (AFSL) from the Australian Securities and Investments Commission. Future Gold is in the process of applying for an AFSL and will be assisted in this process by PCF, which has held an AFSL for more than 10 years.
The Security Tokens will be Know Your Client (KYC) and Anti Money Laundering (AML) compliant. It is intended that the tokens will be tradable on a recognised Global Digital Asset Exchange to provide investors with liquidity, confidence and security.
FutureGold’s mission will be to deliver strong returns for investors at the same time as assisting emerging mining companies by providing a much-needed source of funding.
A potential type of transaction could see FutureGold offering an emerging mining company a cash pre-payment in return for a royalty or share of production over the company’s initial production. A considered and balanced investment portfolio across a number of companies should see FutureGold accrue a reliable and growing income stream for the benefit of Security Token holders.
In addition to benefiting from potential capital appreciation in the Security Token value and the liquidity and transparency of a crypto exchange listing, Security Token holders will receive monthly and quarterly reports regarding the investments made by FutureGold.
Subject to the performance of the gold royalties and streams acquired by FutureGold, Security Token holders may also receive future dividends and upside from potential Security Token buy backs.
“FutureGold will open up the mining sector to a whole new demographic of investors who want to be involved in cryptocurrencies but have so far not had an opportunity to take this to the world of mining.
“This innovative new investment product will be compliant to enable both institutional and retail investors to participate,” Twigger concludes.