Sunday, December 3, 2017

Mining consortium to use cryptocurrency ICO to raise capital for future gold projects instead of borrowing money from banks

One of the primary reasons why gold producers are so beholden to the Comex and other futures markets is the fact that many of these companies are obligated through debt to the same bullion banks that run the paper gold derivative market.  And there is a running fear in the mining industry that if they chose to sell their output to another market, such as the Shanghai Gold Exchange, these banks would instantly call on those loans and bankrupt the miners.

So with the advent of the Blockchain, cryptocurrencies, and the ICO (Initial Coin Offering), there is now an alternative to the traditional lending model by which mining companies used in the past to raise capital.  And a international consortium of gold miners are buying into this new frontier and instituting their own ICO to raise capital outside the banking system.

Golden Alliance was established as an international investment consortium of mining and consulting companies to create profits from implementation of gold and other mining investment projects. 
The group has announced a Golden Alliance Coin (GDA) token sale to raise $50 mln and invest in the mining projects the group is currently working on. 
Out of which $25 mln is planned to be used to purchase 25 percent of Golden Alliance. The funds exceeding this amount will be invested in the future portfolio of gold and other ore mining Golden Alliance projects. 
People will get paid dividends in the form of gold or cryptocurrencies. Dividends will be issued proportionally to the number of tokens you hold. 
Investors are likely to make significant profits from the guarantee of investments which are actually in real gold, silver and other precious metals, and in gold reserves. Furthermore, investors will also benefit from the company’s investments in exploration, verification and extraction in the fields and at new mines the company plans to explore. 
The ICO is scheduled to begin on Nov. 27, 2017, and will last for 31 days. There’s a total supply of 500 mln tokens. One GDA token is equal to about $0.10. – The Merkle

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