- $U is the first token to be physically backed by uranium
- The goal is to create a global, 24/7 spot market, and to enable frictionless physical delivery for qualified entities
NASSAU, Bahamas, Sept. 14, 2023 /PRNewswire/ — Sanmiguel Capital Investment (Bahamas) Ltd., a financial advisory firm assisting in the tokenization of real world assets, announced today Uranium3o8 ($U), a token physically-backed by uranium. This is the first such token to enable the purchase of uranium and represents a significant step forward in the movement to better secure supplies of the valuable commodity.
As the world continues to shift towards clean energy sources, experts believe that nuclear power is “a firm generation bedrock to underpin more intermittent solar and wind” and that “it would be a big stretch for renewables to fill all of the gap” left when fossil fuel plants eventually go offline. To that point, there are currently 60 nuclear reactors under construction around the world, and many countries including Switzerland, Spain, and Japan are working to increase capacity at currently operating reactors; while the UK parliament has urged officials to triple nuclear capacity by 2050.
Uranium3o8 is now possible due to the support of Madison Metals Inc., a leading mining firm with several decades of experience extracting resources from the earth. Each $U token is physically backed by one pound of uranium through a forward sales agreement between Madison and Sanmiguel Capital Investment. The aim is to meet the rising demand by simplifying access to uranium price movements for individuals and providing utilities with transparent pricing and traceability from mine to plant.
“Our goal is to democratize ownership of this vitally important resource,” said Ryan Gorman, head of strategy at Uranium3o8. “Utilities are seeking easier ways to obtain uranium, and individuals are starting to view it as an emerging asset class worth inclusion in their portfolios; and to enable mining firms to better finance operations for extracting previously illiquid resources from the earth.”
Historically, in order to buy uranium, utilities have had to negotiate prices over-the-counter and go through a number of logistical hurdles and middlemen that added layers of cost and uncertainty to the process, as it relates to reliable pricing of the product because no real spot market for it actually exists. By tokenizing uranium and tying each token to one pound of Uranium 3o8, an element found naturally in the earth that needs to be enriched in order to be used in reactors, the Uranium3o8 team aims to create a transparent, 24/7 spot market for the commodity – in the process creating a new liquid asset that can also be invested in by individuals and institutions around the world.
“Uranium3o8 is the beginning of a new chapter for uranium, and for our firm,” said Madison Metals CEO Duane Parnham. “Tokenization is the next great advancement in the mining industry, and we’re excited to be part of this charge.”
Token holders must meet strict regulatory requirements in order to take physical delivery of the uranium. The recipient must hold a minimum of 20,000 $U tokens (representing 20,000 pounds of uranium) and be able to prove to Madison Metals that they are qualified under local laws and regulations to receive it. Subject to legal requirements, physical delivery is handled by Madison Metals. Once the actual delivery is complete, the tokens tied to the delivered uranium are burned. The Uranium3o8 team is responsible only for the issuance and administration of the token.
The uranium backing the $U tokens is being supplied from a Madison’s in the ground resources in Namibia, with an initial amount of 20,000,000 pounds pledged to the project.
Madison Metals Inc. is an innovative upstream mining development company focused on sustainable uranium production within a world-class jurisdiction.
Holding majority interests in advanced tier-one uranium exploration and development projects in Namibia, Madison Metals’ innovative monetization strategy aims to provide non-dilutive capital to the company, enhancing shareholder value.
With over 50 years of mining experience, 22 of those in Namibia, the company’s management team has geological and financial expertise, and a history of creating value through exceptional business plan executions.
Disclaimer: Sanmiguel Capital Investments Ltd. does not provide legal, tax, or investment advice. Holdings of digital assets, including the Uranium3o8 Token ($U), is speculative and involve a substantial degree of risk, including the risk of complete loss. There can be no assurance that $U will be viable, liquid, or solvent. No Uranium3o8 communication is intended to imply that $U or any digital asset services are low-risk or risk-free. Redemptions of uranium must meet strict regulatory requirements and are at the sole discretion of our resource partner, Madison Metals. Uranium3o8 makes no representations, nor could it, regarding a $U holders’ ability to redeem the token for uranium. $U is not registered under U.S. securities laws, U.S. derivatives laws, or the securities and derivatives laws of any other jurisdiction. This press release is not an offer to buy or sell securities under any jurisdiction. $U is not available for U.S. persons, entities with U.S. parent companies, entities with U.S. subsidiaries, or persons from other prohibited jurisdictions.
Uranium3o8 was launched by traditional financial industry and blockchain veterans with a vision to make navigating the global uranium market seamless and straightforward through transparent, secure transactions and physical delivery for qualified institutions. Our goal is to enable sovereign uranium ownership, and to provide supply security to clean energy generators around the world. We’re bringing the future of uranium access today.
About Madison Metals
Madison Metals Inc. (CSE: GREN) (OTCQB: MMTLF) is an upstream mining and exploration company focused on sustainable uranium production in Namibia and Canada. 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.
This release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the timing and amount of estimated future exploration and the anticipated use of funds by Madison Metals that were received from forward sales agreement. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “schedule”, “estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are made based upon certain assumptions and other important facts that, if untrue, could cause the actual results, performance or achievements of Madison Metals to be materially different from future results, performances or achievements expressed or implied by such statements.
Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Madison Metals will operate in the future. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, currency fluctuations, the demand for digital assets such as tokens and NFTs, the fulfillment of the conditions of the contract with Uranium3o8 or Sanmiguel, interest rates, the global economic climate, dilution, share price volatility, competition, labour shortages, and unanticipated expenses of Madison Metals.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Madison Metals to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact the COVID 19 pandemic may have on Madison Metals’ activities and the economy in general; the impact of the recovery post COVID 19 pandemic and its impact on precious metals; receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future metal prices; the market for digital assets such as NFTs, accidents, labour disputes and shortages; environmental risks; and other risks of the mining industry. Although Madison Metals has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. You can find further information with respect to these and other risks in filings made with the Canadian securities regulatory authorities that are available on Madison Metals’ SEDAR profile page at www.sedar.com. Madison Metals disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law
Media contact for Uranium3o8
Head of strategy, Uranium3o8
Media inquiries for Madison Metals:
Manager, Media & Analyst Relations
Primoris Group Inc.
+1 (416) 489-0092
SOURCE Sanmiguel Capital Investment