Namibian Uranium to be converted into NFTs on Blockchain – BitcoinKE
Madison Metals, a mining and exploration company that operates uranium mines in Namibia, has signed an agreement with the Lux Network blockchain for up to 20 million pounds of uranium to be tokenized over the next 5 years.
In what is a resale agreement, Madison will supply 20 million pounds of uranium from the Namibian operation to Lux Network over the next 5 years, starting as soon as commercial production, the firm has said.
Madison Metals is an upstream mining and exploration company with a focus on sustainable uranium production in Namibia🇳🇦
The company has signed a uranium resale agreement to create the first uranium-backed NFT with the Lux Network pic.twitter.com/FYT6ymDGAb
— BitKE (@BitcoinKE) 6 October 2022
However, as soon as October 15, 2022, interested persons can go to the Lux Market to mint the uranium NFTs. Mining is exclusive to the Lux Network, but the NFTs will be made available on all major blockchains, thanks to the Lux standard for asset-backed 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, the statement said. According to Madison’s CEO and Chairman, Duane Parnham, the partnership also brings several benefits to the company:
We believe there are many advantages to reselling part of our assets in this way. We expect it to provide non-dilutive capital to explore, develop and mine our properties, while generating additional revenue through token trading fees.
Lux will initially tokenize £7.65m of the uranium contributed to the partnership. The sale of tokens is intended to generate cash that will be returned to Madison, plus royalties from trading fees, the statement indicated.
Lux Uranus #NFTs is 1:1 backed by certified Namibian 🇳🇦 uranium deposits that will be mined over an estimated 5 year period, enabling the lowest possible price directly from mine to chain. $LUX pic.twitter.com/W5ubL45H6b
— BitKE (@BitcoinKE) 6 October 2022
Users will also be able to bet on the assets, according to a statement from Lux Partners CEO Zach Kelling:
Through staking, users are exposed to the upside of the uranium market while also earning additional fees from lending and liquidity. By digitizing assets, Lux expects to unlock greater price discovery, asset value and liquidity throughout the mineral extraction lifecycle.
It is estimated that the unmined uranium could end up earning MadisoN USD 700 million if all NFTs generated in the scheme are sold at their original prices.
See also
Currently, Namibia produces 8% of the world’s uranium.
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