{"id":1121310,"date":"2019-06-14T23:08:41","date_gmt":"2019-06-14T23:08:41","guid":{"rendered":"https:\/\/www.mining.com\/?p=993827"},"modified":"2019-06-14T23:08:41","modified_gmt":"2019-06-14T23:08:41","slug":"digital-financing-emerging-as-funding-option-for-cash-strapped-miners-report","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1121310","title":{"rendered":"Digital financing emerging as funding option for cash-strapped miners \u2014 report"},"content":{"rendered":"

Speedy progress in
\nblockchain technology is prompting companies to reinvent the way they operate
\nand deliver products and services to their clients, particularly in the mining
\nand metals industry.<\/p>\n

Though
\ntraditionally slow in adopting technological innovations, miners are
\nincreasingly adopting blockchains and smart contracts as a source of
\nproductivity and transparency gains, a study
\nby global law firm White & Case<\/a> shows.<\/p>\n

\"\"
Source: Rise of digital finance \u2014 Tokenising mining & metals assets by White & Case.<\/a><\/em><\/figcaption><\/figure>\n

According to
\nauthors Rebecca Campbell and Andrzej Omietanski, the same technologies could
\nalso herald new sources of finance, particularly for small to medium miners,
\nwhich continue to struggle to raise equity and equity-like capital to fund
\nventures. <\/p>\n

While traditional
\nfinancing options \u2014 bonds, loans, project finance, prepayment, convertible
\nbonds, equity \u2014 remain generally the most attractive and understood, it is now
\ncommon for companies to access multiple financing sources.<\/p>\n

Mining royalty and
\nmetal streaming financings, say Campbell and Omietanski, have been particularly
\npopular with miners in the last decade as an alternative financing source for
\ngrowth projects, allowing access to early-stage capital without diluting equity
\nownership.<\/p>\n

White & Case
\nargues it\u2019s time for digital token offerings to become an alternate or
\nsupplement to traditional financing options available to mining companies. The so-called
\n\u201ctokenization\u201d is gearing up as a standardized mechanism for providing access
\nto the ownership of traditional assets by representing them in digital and
\nprogrammable form on public or private blockchains. It\u2019s particularly being
\napplied to illiquid assets in the belief that the collective digitization and
\nunitization of the underlying asset can make it more tradeable.<\/p>\n

\n
\"\"
Source: Rise of digital finance \u2014 Tokenising mining & metals assets by White & Case.<\/a><\/em><\/figcaption><\/figure>\n<\/div>\n

In a report published
\nearlier this month<\/a>, the Financial Stability Board warns however that, while
\ndigital tokens could be an answer to lack of investors, they could potentially
\ncreate an appearance of liquidity in assets that are inherently illiquid, which
\nwould may also have negative implications for financial balance.<\/p>\n

Campbell and
\nOmietanski believe the arrival of tokjenization to the mining industry is
\nimminent. They foresee traditional mining royalty financings, wrapped in a
\nsecurity token offering (STO), as the first blockchain-based digital financing
\nstructures to be widely applied in the worldwide sector.<\/p>\n

They conclude that while it may take some time for the traditional ecosystem to change, it’s a question of when, not if.<\/p>\n","protected":false},"excerpt":{"rendered":"

Though traditionally slow in adopting technological innovations, miners are increasingly adopting blockchains and smart contracts as a source of productivity and transparency gains.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[624,2849,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1121310"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1121310"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1121310\/revisions"}],"predecessor-version":[{"id":1121311,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1121310\/revisions\/1121311"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1121310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1121310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1121310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}