Labuan, Malaysia / 31 January 2020 — MetalStream Ltd (LL16561, “MetalStream”) is pleased to announce the launch of MSGLD security tokens (“MSGLD”) bringing the advantages of tokenisation to the global mining sector.
MetalStream is set to transform financing for junior miners through its innovative use of metal stream contracts and the tokenisation of gold to be delivered under these contracts, by its MSGLD security tokens issued on the Ethereum network. Security tokens represent the rights to assets and offer an immutable and auditable record of ownership via the blockchain. MSGLD are backed by and redeemable for certified gold bullion and are offered to purchasers at a discount of approximately 30% to the current spot price of gold.
Liquidity is intrinsic to the MetalStream model as security tokens are more easily stored and traded than physical gold. MSGLD can be traded 24x7 either directly or via a digital security exchange. The gold backing MSGLD is certified at a minimum fineness of 99.5% and is sourced from reputable and experienced mining companies operating in low-risk and regulated jurisdictions. MSGLD are fully compliant with all relevant securities laws and regulations.
MetalStream Managing Director, Mr Rohan Cavaliero is enthusiastic about the company’s enormous potential, “I am delighted to announce the launch of MetalStream and the new MSGLD security tokens. Our promise to all stakeholders is to provide liquidity, safety and value based on forward purchase agreements with public companies which operate reputably and transparently. Furthermore, MetalStream has no debt and undertakes to utilize token subscriptions to fund the forward purchases of in-ground gold resources. Our model enables us to fulfill all our obligations whilst still offering incredible value to subscribers. We have only tokenized small proportions of our suppliers’ known gold resources, leaving sufficient value for them to operate their mining developments profitably.”
MetalStream has signed forward purchase agreements with Canamex Gold Corp. (“Canamex”) and Guyana Goldstrike Inc. (“Guyana Goldstrike”) for a combined total of 80,000 oz of gold to back the first issuance of the MSGLD. Both Canamex and Guyana Goldstrike are publicly listed companies in Canada, with experienced and respected leadership.
Canamex CEO and President, Mr David Vincent is supportive of the MetalStream model, “Gold mining companies have had to become more creative in financing the development of their projects and they have increasingly turned to gold metal streaming transactions as a catalyst to help secure financing for gold mining project development. This gold metal streaming transaction enables the company to finance the project development through monetizing a portion of the value of in-ground defined gold resources.”
Guyana Goldstrike CEO and President, Mr Peter Berdusco, is also welcoming of the new model, “Traditional equity and debt finance markets have not been available to gold mining companies to the extent they have been in the past. Gold metal streaming transactions, like this, are now playing a role in bridging this current challenging environment for mining sector financing.”
MetalStream’s MSGLD represents an evolution in gold securities as they are a more flexible, cost-effective, and efficient way to acquire, hold and trade gold bullion. With MSGLD, investors get the liquidity of a token plus the safety of gold at a 30% discount to the spot price. MSGLD will soon be available for purchase for USD 5.25 per token, with 16 million tokens offered.
Canamex and Guyana Goldstrike are party to forward purchase agreements to supply gold to MetalStream and have no involvement with the issuance of MSGLD security tokens, nor are they bound by the terms and conditions associated with MSGLD security tokens. Neither Canamex, nor Guyana Goldstrike, have expressed any opinion on the viability of, or the risks associated with, an investment in MSGLD security tokens.
MetalStream Ltd (LL16561) is a company incorporated in the Labuan International Business and Financial Centre, Malaysia, which is an independent offshore financial jurisdiction regulated by the Labuan Financial Services Authority under the purview of the Ministry of Finance, Malaysia. Its core business is the issuance of security tokens fully backed by and redeemable for precious metals.
MetalStream has assembled a team of industry leaders in mining, technology and capital markets to bring the benefits of tokenization to the mining industry. MetalStream’s first security token is the innovative MSGLD that is backed by and redeemable for gold bullion and sold at a 30% discount to the current spot price of gold.
MetalStream’s MSGLD represents an evolution in gold securities as they are a more flexible, cost-effective and efficient way to acquire, hold and trade gold bullion. With MSGLD, investors get the liquidity of a token plus the safety of gold at a 30% discount to the spot price.
The Labuan Financial Services Authority accepts no responsibility for the adequacy or accuracy of this release.
This document contains forecasts, projections, goals, plans, and other forward-looking statements regarding MetalStream’s earnings and other data. Such forward-looking statements are based on MetalStream management’s assumptions, estimates, outlook, and other judgments made in light of information available at the time of preparation of such statements and involve both known and unknown risks and uncertainties.
Accordingly, plans, goals, and other statements may not be realized as described, and actual financial results, success/failure or progress of development, and other projections may differ materially from those presented herein.
Even when subsequent changes in conditions or other circumstances make it preferable to update or revise forecasts, plans, or other forward-looking statements, MetalStream disclaims any obligation to update or revise this document.
Unless otherwise specified, all financial data in this document is defined in USD.
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