Namibian uranium to be minted Into cryptocurrency




Canadian company Madison Metals, which acquired an interest in Namibia Nuclear Corporation (Proprietary) Limited, signed a five-year uranium forward sales agreement with Lux Partners.


Madison Metals bought 23 per cent interest in mining licence 121 by acquiring 24 shares of Namibia Nuclear Corporation Limited on 12 September 2022.


Lux is a FinTech company domiciled in the Isle of Man that operates the Lux network, the first decentralised blockchain integrated with and used by a network of regulated bank and money transmitter partners. 


Lux enables institutions to take advantage of blockchain technology use cases in a tax-advantaged and regulated environment.


The fintech processes transactions in crypto and fiat, given its ability to process Swift and Fed wires natively from the blockchain while still providing the highest levels of security and privacy.


The five-year exclusive supply agreement with Lux Partners provides for the delivery of up to 20 million pounds of U3O8 from Madison's uranium projects in Namibia following the commencement of commercial production. 


U308 (Triuranium octoxide) is a compound of uranium present as an olive green to black, odourless solid. 


It is one of the more popular forms of yellowcake and is shipped between mills and refineries in this form and has potential long-term stability in a geologic environment. 


The agreement means Lux would create the first-ever uranium-backed non-fungible tokens once Madison delivers uranium from Namibian mines. 


Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. 


Lux will initially tokenise 7.65 million pounds of U3O8 that Madison contributes, followed by an additional 12.35 million pounds to be minted as the market dictates. 


From 15 October 2022, almost anyone in the world will be able to mint Lux Uranium NFTs via the Lux Market.


The sales of tokens are intended to generate cash which will be returned to Madison, plus royalties from trading fees. 


Duane Parnham, Executive Chairman and CEO of Madison Metals, said the ability to potentially monetise uranium resources at a premium using innovative technology provided by industry leaders is a testament to the company's forward-thinking strategy to deliver shareholder value.


"The Lux team has outstanding capabilities and a proven track record launching and driving demand for the most innovative products in the world, generating billions of dollars in revenue.


"We believe there are many benefits to forward selling a portion 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," Parnham said.


Lux Partners CEO Zach Kelling said Lux expects to unlock greater price discovery, asset value, and liquidity throughout the mineral extraction lifecycle by digitising assets.


"We are pleased to form this strategic alliance with Madison's resource team to support the launch of Lux Uranium and the Lux Network of blockchains, which powers the minting, trading, and staking of the NFTs.


"Through staking, users are exposed to the upside of the uranium market while also earning additional fees from lending and liquidity. 


Madison Metals Inc 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 assets to market quickly.


With over 50 years of mining experience, including 22 years in Namibia, its management team has geological and financial expertise and a track record of creating shareholder value.

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