Cision PR Newswire
Uranium3o8 launches to the public, forever changing how uranium is traded, bought, and sold
News provided bySanmiguel Capital Investment (Bahamas) Ltd.
Nov 21, 2023, 12:15 PM ET
NASSAU, Bahamas, Nov. 21, 2023 /PRNewswire/ -- Sanmiguel Capital Investment (Bahamas) Ltd., a financial advisory firm assisting in the tokenization of real world assets, announced today that Uranium3o8 ($U), an asset-backed token backed by uranium, has gone live on Uniswap.
Until now, uranium transactions have been conducted off-market through complex negotiations that rely on opaque pricing, and costly delays due to negotiating with brokers and resource providers competing against RFPs or RFQs. There also is no active futures market, further reducing the ability to lock in pricing and supply predictably and reliably like one can with most other commodities.
Uranium is a vitally important commodity that is crucial to the clean energy future of our planet, yet it trades the same way it did decades ago despite being bought and sold in mass quantities for roughly the same amount of time as jet fuel - through paper-based transactions involving middlemen and layers of added cost.
"Uranium markets are ripe for innovation," said Ryan Gorman, head of strategy for Uranium3o8. "If we are to effectively combat climate change and enable easier access to nuclear energy, we need to create more efficient markets for uranium itself, and tokenization is the best possible solution."
Democratising access to a vitally important resource
The goal of Uranium3o8 is to create the first-ever spot market for the heavy metal, allowing for efficient price discovery and dynamic pricing based on actual supply and demand and to enable people from all backgrounds to gain exposure to the price movement of uranium - thus, unlocking the commodity to new liquidity and in the process creating an entirely new asset class previously only available to a select few.
Demand for uranium is growing rapidly, and is expected to keep rising over the next several decades. With one report suggesting global uranium needs will double by 2040 as nuclear capacity surges at least 76 percent by that time on the back of dozens of new reactors being built and existing ones being recommissioned or expanded, and others seeing the lifetimes extended through reconditioning efforts. Even Japan and the United States are embracing nuclear fuel again.
Bringing more liquidity to uranium should enable more exploration and mining to occur, which in turn should help resource providers better meet the rapidly growing demand of nations increasingly turning to nuclear power as they seek to reduce overall carbon footprints.
"A new day has dawned for utilities, enrichers, and others looking to buy or sell uranium," said Gorman, adding "and we've only just begun - soon, additional products supporting uranium industry participants will be brought to market early next year."
How it works
Each token represents one pound of physical uranium. Token holders must meet strict regulatory requirements in order to take physical delivery of the commodity. The recipient must hold a minimum of 20,000 $U tokens (representing 20,000 pounds of uranium) and be able to prove to resource partner 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 $U tokens is being supplied from Madison's in-the-ground resources in Namibia, with an initial amount of 20,000,000 pounds pledged to the project.
Madison Metals Inc. is an innovative upstream mining development company focused on sustainable uranium production within a world-class jurisdiction.
Holding majority interests in advanced tier-one uranium exploration and development projects in Namibia, Madison Metals' innovative monetization strategy aims to provide non-dilutive capital to the company, enhancing shareholder value.
With over 50 years of mining experience, 22 of those in Namibia, the company's management team has geological and financial expertise, and a history of creating value through exceptional business plan executions.
Sanmiguel Capital Investments Ltd. does not provide legal, tax, or financial advice. Holdings of digital assets, including the Uranium3o8 Token ($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 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.
To learn more about Uranium3o8, please visit:
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 (Bahamas) Ltd.
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