Namibian uranium to power the blockchain

Madison Metals Inc. has signed a “historic and first-of-its-kind uranium forward sales agreement” with Lux Network blockchain for up to 20 million pounds uranium oxide from its Namibian operations to be tokenised in the next 5 years.

Among others, the Canadian-based Madison Metals upstream mining and exploration company owns the Rössing North Uranium Project in Namibia. Lux is a fintech company domiciled in the Isle of Man and partnered with a regulated and licensed money transmitter business.

Bitcoin and other cryptocurrencies like Ethereum are powered by blockchain technology, but blockchain has found many uses beyond virtual currencies.

According to a statement by Madison, the fulfilment of the uranium oxide delivery would back the first-ever uranium-backed non-fungible tokens (NFTs).

“Having the ability to potentially monetise our uranium resources at a premium using innovative technology provided by industry leaders is a testament to our forward-thinking strategy to deliver shareholder value,” said Duane Parnham, executive chairman and CEO of Madison.

“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 also generating additional revenue through token trading fees,” he said.

STRATEGIC ALLIANCE

Zach Kelling, CEO of Lux Partners: “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. By digitising assets, Lux expects to unlock greater price discovery, asset value, and liquidity throughout the entire mineral extraction lifecycle,” Kelling said.

Parnham said 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.

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 resources. Lux Uranium NFTs are to be minted exclusively on Lux Network but will be made available on every major blockchain thanks to the Lux Standard for asset-backed NFTs.

MINTING NFTs

Starting next Saturday via the Lux Market, almost anyone in the world will be able to mint Lux Uranium NFTs.

Lux will initially tokenise 7.65 million pounds of uranium oxide that Madison has contributed to the Lux partnership. This will be followed by an additional 12.35 million pounds to be minted as the market dictates.

The sales of tokens are intended to generate cash which will be returned to Madison plus royalties from trading fees. Madison’s capital proceeds of funds will be used to advance compliant resource/reserve figures, as well as for engineering and economic studies and mining, the company said.