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Classic Minerals And AuResources Drive Blockchain-Backed Funding For Gold Mining Ventures read full article at worldnews365.me

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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. 

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