Gold explorer, Torian Resources has wrapped up an unusual equity swap and advisory services arrangement with blockchain outfit BullionFX that recently listed its “BULL” gold-backed token on cryptocurrency exchange Digifinex. Under the agreement, Torian acquired a 7.5 per cent stake in BullionFX and is also set to receive 15 million BULL tokens. Torian says each BULL recently ran up to about US$0.85, valuing its stake in BULL at more than US$12 million.
Earlier this year, Torian invested US$1 million in BullionFX and in turn BullionFX was due to acquire some 27.7 million shares in Torian. At the time of the deal, the duo also struck an advisory services agreement related to the development of gold blockchain products.
BullionFX holds nearly 400 million BULL tokens, with 220 million to be distributed to shareholders over the next 12 months.
As part of the agreement, Torian is expecting to collect a total of 15 million BULLs as part of BullionFX’s distribution to shareholders, on top of its 7.5 per cent stake in the blockchain company.
Torian says it has now issued the 27.7 million shares to BullionFX and expects to receive the first batch of BULLs this week, totalling 1.05 million tokens.
BullionFX listed its BULL token on Diginifex last month at a price of US$0.50 per BULL.
Torian reports that BullionFX will look to list on another two cryptocurrency exchanges this year and has already entered an agreement with leading Australian blockchain development studio, Block8.
Torian Resources Executive Director, Peretz Schapiro said:“BullionFX has developed a world-class team and Advisory Board which includes high-profile investors from the finance, precious-metals and payment industries. As Torian moves closer towards becoming a gold producer at Mt Stirling, it will look to leverage these relationships moving forward.
It is for these reasons that we have chosen to invest in BullionFX, as we believe they have the perfect mix of the right business model, solid financial backing and key industry personnel to set the future of gold on a new and exciting path.”
BullionFX Founder, Stephen Moss added: “BullionFX have experienced enormous growth over the past year and continues to attract global talent and investment as we intend to build and develop a major presence within the decentralised banking and finance sector.”
Torian aspires to bring to production its Mt Stirling gold project, located some 40 kilometres north-west of Leonora in Western Australia.
The project lies around 8km from the King of the Hills mine, operated by ASX-listed Red 5 Limited, where more than four million ounces of gold have been defined.
The Mt Stirling deposit boasts an inferred and indicated mineral resource of 2.05 million tonnes at 1.54 grams per tonne gold for 101,722 ounces of contained gold.
Torian has also defined another 253,500 tonnes going 2.01 g/t gold for more than 16,000 ounces of the precious yellow metal at its nearby Stirling Well deposit.
The company believes the Mt Stirling gold system to be open in all directions and has identified multiple regional targets along four key structural corridors at its tenure.
Torian could now be on a path to generating value from potential gold production at Mt Stirling and in terms of blue sky, it has plenty as crypto currencies take hold around the world.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
