By Alicia Maher
Madison Metals has signed a historic sales deal with Lux Partners, the first decentralized blockchain. As part of the deal, Madison will supply Lux with U3O8 for five years.
Madison Metals To Supply U3O8 To Lux For Five Years
As part of the five-year agreement, Madison will supply U3O8 of over 20 million pounds. This U3O8 will be from its station in Namibia. This U3O8 delivery will lead to the first-of-its-kind Uranium-backed NFT.
Duane Parnham, Madison Metals CEO, said this new initiative showcases the company’s forward-thinking nature to deliver value to shareholders. Parnham added that this initiative would allow the company to monetize its uranium resources using nascent technology.
“The company believes it has a lot to gain by selling some of its assets to Lux. This sale will provide the company with capital to mine, explore, and develop other properties. It will also produce extra revenue via token trading fees,” he added.
Parnham commended the outstanding capabilities of the Lux team. He said the team had launched various innovative products into society.
These products have generated revenue worth over a billion dollars. Beginning from October 15th, people can mint the Lux Uranium NFTs on Lux Market. Lux will be selling its NFTs directly to retail buyers.
This strategy would allow the company to provide buyers with the lowest price. It will also replace unclear and inefficient financing methods with clear pricing and transparency.
Lux Network To Offer Minting and Staking Of NFTs
Zach Kelling, Lux CEO, said the company is happy to partner with Madison. This partnership will lead to the launch of the Lux Network and Lux Uranium.
The Lux Network of blockchains will power the minting, staking, and trading of these NFTs. Kelling added that staking would expose users to the uranium market.
Also, Lux will be able to earn extra fees from liquidity and lending. Through asset digitization, Lux expects to unlock better asset value, liquidity, and price discovery in the mineral industry.
Initially, Lux will tokenize U3O8 of about 7.65 million Pounds from Madison. Afterward, depending on the market situation, it will mint another 12.35 million Pounds.
The token sales will generate cash that will go to Madison in addition to royalties earned from trading fees. The process of funds of Madison will be for advancing compliant reserve/resource figures.
In addition, Madison will use it for economic, engineering studies, and mining. The company will also manage a risk assessment initiative and hedge book.
The company plans to buy extra uranium products if it is needed. Furthermore, Madison will give 3 million common shares to the consultancy advisor who facilitates the sales agreement transactions.