Madison Metals signs uranium resale agreement and creates first uranium-backed NFT with Lux Partners
TORONTO, Sept. 30, 2022 (GLOBE NEWSWIRE) — Madison Metals Inc. (“Madison” or the “Company”) (CSE: GREN ) (OTCQB: MMTLF ) is pleased to announce the signing of a historic and first-of-its-kind uranium forward sales agreement with Lux Partners Ltd. (“Lux”). Lux operates the Lux Network, the first decentralized blockchain integrated with and powered by a network of regulated banking and money transmitter partners. The five-year exclusive supply agreement provides for the supply of up to 20 million pounds of U3O8 from Madison’s uranium projects in Namibia after the start of commercial production. The fulfillment of U3O8 delivery would return the first ever uranium-backed non-fungible tokens (“NFTs“).
“Having the opportunity to potentially monetize our uranium resources at a premium using innovative technology provided by industry leaders is a testament to our forward-looking strategy to deliver shareholder value,” said Duane Parnham, executive chairman and CEO of Madison Metals. “We believe there are many advantages to reselling a portion of our assets in this way. We expect it will provide non-dilutive capital to explore, develop and mine our properties, while generating additional revenue through token trading fees.”
Parnham continued, “The Lux team has unparalleled capabilities and a proven track record launching and driving demand for the most innovative products in the world, generating billions of dollars in revenue.”
Lux NFTs bring liquidity and universal access to the uranium market and usher in a new era for both the tokenization of physical assets and the distribution of the Earth’s most valuable resource. Lux Uranium NFTs will be minted exclusively on the Lux Network, but will be made available on all major blockchains thanks to the Lux standard for asset-backed NFTs.
Starting on October 15, 2022 via the Lux Market, almost anyone in the world will be able to mint Lux Uranium NFTs. By selling directly to retail, Lux is able to offer buyers the lowest possible price, preventing opaque and inefficient financing with transparent and clear pricing. For more information see Lux.Market.
“We are excited to form this strategic alliance with Madison’s resource team to support the launch of Lux Uranium and the Lux Network (Lux.Network) of blockchains, which power the minting, trading and staking of the NFTs,” said Zach Kelling, CEO in Lux Partners. “Through efforts, users are exposed to the upside of the uranium market, while at the same time earning extra fees from lending and liquidity. By digitizing assets, Lux expects to unlock greater price discovery, asset value and liquidity throughout the mineral extraction lifecycle.”
Lux will initially tokenize £7.65 million U3O8 that Madison has contributed to the Lux partnership. This will be followed by a further £12.35m to be minted as the market dictates. The sale of tokens is intended to generate cash that will be returned to Madison plus royalties from trading fees. Madison’s capital proceeds of funds will be used to advance compatible resource/reserve figures, as well as for technical and economic studies and mining operations. Madison will also manage a risk assessment program and hedge book to purchase additional uranium products as needed on a tax-neutral basis.
Learn more about Madison’s development via the newly branded madisonmetals.ca website and updated corporate presentation.
In connection with the forward sale agreement, Madison will issue three million ordinary shares to an arm’s-length consultant who introduced and facilitated the transaction. The ordinary shares issued under the agreement are priced at CAD 1.22, at the close of trading on Thursday, September 29, 2022.
About Madison Metals Inc.
Madison Metals Inc (CSE: GREN) (OTCQB: MMTLF) is an upstream mining and exploration company focused on sustainable uranium production in Namibia and Canada. Using cutting-edge technologies and modern strategies, Madison Metals is positioned to move advanced uranium resources to market quickly.
With over 50 years of mining experience, including 22 years in Namibia, the management team has geological and financial expertise and a track record of creating shareholder value.
Additional information about Madison Metals Inc. can be found at madisonmetals.ca and on the company’s SEDAR profile at www.sedar.com.
About Lux Partners Ltd.
Lux is a FinTech company based in the Isle of Man and works with a regulated and licensed money transmitter business. Lux enables institutions to take advantage of blockchain technology use cases in a tax-advantaged and regulated environment, with proper compliance, KYC and AML procedures. Lux executives have an extensive track record of managing transactions and investments across a wide range of industries. Both institutions and governments can send and receive tokenized assets, with proper compliance, KYC and AML procedures. Lux processes crypto and fiat transactions, given its ability to process Swift and Fed wires natively from the blockchain, while providing the highest levels of security and privacy thanks to the Lux Bridge, which uses zero-knowledge proofs to secure assets and enable private transactions over the Lux network. Lux is uniquely positioned to launch a number of highly profitable and risk-adjusted verticals that are extremely scalable within significant and fast-growing markets. These verticals include secure transaction processing, asset management, DeFi ecosystems and tokenized investments in natural resources and emerging markets.
Further information can be found at Lux.Partners/about
For further information, please contact:
Duane Parnham
CEO and managing director
Madison Metals Inc.
+1 (416) 489-0092
[email protected]
Media inquiries:
Adam Bello
Manager, media and analyst relations
Primoris Group Inc.
+1 (416) 489-0092
[email protected]
Neither the CSE nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
This release contains “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements include, but are not limited to, statements regarding the fulfillment of the terms of the forward sales agreement described in this press release, including, but not limited to, future production capacity and delivery of U308 by Madison; issuance of shares in Madison; the timing and amount of estimated future exploration and expected use of funds by the Company.
In general, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “expects”, “budget”, “plan”, “estimate”, “forecasts”, “intends”, “continue”, “anticipate” or “do not anticipate”, or “believe”, or variations of such words and expressions or statements that certain actions, events or results “may”, “could” , “would”, “will”, “may” or “will be taken”, “occur” or “achieve”. Forward-looking statements are made based on certain assumptions and other material facts that, if untrue, could cause the actual results, performance or performance of the Company to differ materially from the future results, performance or performance expressed or implied by such statements. Such statements and information are based on a number of assumptions regarding current and future business strategies and the environment in which the company will operate in the future.
Certain important factors that could cause actual results, performance or achievements to differ materially from those in forward-looking statements include, but are not limited to, production delays; currency fluctuations, the global economic climate, dilution, share price volatility, competition, labor shortages and unforeseen expenses to the Company. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that could cause the actual results, level of activity, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to to: failure of the Company or its contractual partners to fulfill their respective obligations under agreements; unexpected delays or lack of production at the Company’s mineral projects in Namibia; the impact the COVID 19 pandemic may have on the company’s activities and the economy in general; the impact of the recovery following the COVID 19 pandemic and its impact on precious metals; receipt of necessary approvals; general business, economic, competitive, political and social uncertainty; future metal prices; accidents, labor disputes and shortages; environmental risk; and other risks in the mining industry.
Although the company has attempted to identify important factors that may cause actual results to deviate significantly from those contained in forward-looking statements, there may be other factors that cause the results not to be as expected, estimated or intended. No guarantee can be given that such statements will prove to be accurate, as actual results and future events may differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Additional information with respect to these and other risks can be found in filings with the Canadian securities regulators available on the Company’s SEDAR profile page at www.sedar.com. The Company disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.
