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Canamex Gold shares surge 45% after it agrees pioneering crypto-currency deal

Thursday, December 7, 2017 9:01
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Headline: Bitcoin & Blockchain Searches Exceed Trump! Blockchain Stocks Are Next!

Shares in Canamex GOLD Corp (CVE:CSQ)  jumped 45% after the mine developer branched out into crypto-currency  –  a move that could transform the way the business and its projects are financed.

It has signed ‘terms of agreement’ with Harmonychain, a Norwegian fintech company. The pair will “consider the issues around” an initial coin offering potentially backed by GOLD or silver using Ethereum blockchain technology.

“The new paradigm of secure digital currencies and tokens opens up a new opportunity for Canamex, as a potential alternative means of doing financings,” said chief executive David Vincent.

“We believe that this concept could be a first for the industry.

“One of the great benefits with raising capital via this concept, is that there could be minimal dilution for the  shareholders, in addition to the benefits of transparency, the potential asset backing of the tokens and it  being attractive compared to traditional debt or equity financings.”,

GOLD and GUS

Canamex, which owns the Nevada-based Bruner Gold Project and Silverton Gold Property, has exclusive rights to use the GOLD, GUS (gold United States) and SUS (silver United States) symbols.

It is in exalted company by taking the first baby steps in the world of crypto-currency.

BP, Microsoft and JP Morgan are part of the Enterprise Ethereum Alliance, where members are also considering the range of possibilities that the new digital world of currencies provides companies.

The news emerged as the cost of a single Bitcoin, the most well-known and widely traded crypto-currency, smashed through the US$16,000 mark.  This time last year the price was below US$800.

There have been significant developments in token and blockchain-based technology. It can provide a fast and secure transaction structure with a verifiable, publicly available audit trail.

Asset-backed tokens

Tokens such as the one being mooted by Canamex, that are backed by metal resources, would increase the security and trust, the firm said in a statement.

It added:  “The company and Harmonychain intend to explore the issue of asset-backed tokens which are backed by metal resources; currently gold and silver, and products derived thereof.

“The Tokens would be based on the Ethereum blockchain technology platform and the Tokens could be exchangeable into the physical product,  using Ethereum smart contracts.

“The tokens may accordingly be used as an alternative tool for investors who are looking for gold and silver exposure or hedging or investors who simply want exposure in digital tokens which have the security of the underlying value of hard assets (as opposed to Bitcoin and other un-backed crypto currencies).”

In morning trade, Canamex shares were changing hands for 17.5 cents, up 5.5 cents.

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/188470/canamex-gold-shares-surge-45-after-it-agrees-pioneering-crypto-currency-deal-188470.html

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