Frequently Asked Questions
Unit Investor FAQs
Will I make a return on my investment?
We believe that MAP units are well positioned to make appreciable gains.
Mineral Assurance is partnering with an experienced mining investment company, to purchase “metal streaming contracts” that provide Mineral Assurance with a proportion of the output of gold mines currently in production.
These metal streaming contacts ensure Mineral Assurance has access to an immediate revenue stream, which sets it apart from the vast majority of projects raising funds through unit offerings.
Because MAP units are tied to actual gold production, (rather than just “gold backed”), we believe that MAP units are likely to enjoy strong support by investors once the units are listed on public markets.
In addition to mineral project funding, we are building eight other products on the MA platform, including a mineral resource registry and mineral exploration data trading facilities . This breadth of business activity, along with the fact that MAP issuance is confined to a maximum cap of 200 million units, is expected to ensure upward pressure on MAP unit trading values.
If I buy project units, why will they rise in value?
MAP units will be listed on public exchanges for trading by 1 December 2019.
MAP units enable holders to participate in the MA platform businesses, of which GOLD investment is the first of a total of nine lines of business. The unit price will reflect the value of the MA platform, especially its significant positive cash flow based on its GOLD investments.
MA Treasury has ample resources to defend the public price of MAP in the future.
How long will it take to get a return on my investment and how much will it increase?
The value of MAP units is linked through their utility to the overall value of the Mineral Assurance business.
While it is not possible to estimate the quantum or timing of unit prices, consider the performance of many unit offerings by businesses that had no cash flow, nor any material product or service at the time of their unit raise. Mineral Assurance is cash flow positive and solving real-world, verified industry problems.
Timing and size of return are difficult to predict. However, for mine development projects we aim to achieve a return for investors in the order of 2X their investment. For units listed on unit currency exchanges, price increases of units are also likely to be driven by speculation.
How will you create unit stability?
The number of MAP units that will be issued is capped, ensuring that unit value will not be continuously diluted. A proportion of the unit issuance is kept in reserve by the MA Treasury, to back the unit value and ensure ongoing liquidity. The MA Treasury effectively acts as a buyer of last resort.
These mechanics will be supported by steady progress of the project against milestones, which will encourage positive investor sentiment.
When and how can I exit?
Units will be listed on exchanges by 1 December 2019 which will allow public trading. Unit value is expected to increase significantly over time which will allow unit owners scope to pursue their own strategy around selling vs holding.
Further, there are incentives for investors to retain pre-sale units as they are exchangeable for discounts in future unit offerings and other capital raisings, which is likely to increase their value over time.
What is the problem you are solving?
Exploration and development capital raising is difficult for the smaller participants in the mining industry and industry advisors report that younger investors are poorly represented in the broader mining investment community.
By using the power of blockchain to eliminate trading inefficiencies, a single transparent, trustworthy and global market is created. It will provide instant and low-cost transactions, Mineral Assurance can access the billions of dollars currently being traded in the unit space by young, entrepreneurial investors. By comparison, stock exchange investment demands large investment and attracts substantial transaction costs.
The mining industry is also deeply dependent on data but the world’s mineral information is largely privately held and generally inaccessible, underutilised, and restricted. While mineral data trading is an established business category, the current price discovery process is inefficient and restricted to a select group.
With first-mover advantage, Mineral Assurance is the dominant mining blockchain platform, set to revitalise the mining industry. Please view our current online products at www.mineralassurance.com.
What are the project risks?
Our research, including extensive consultation with the mining industry, indicates that there is strong appetite for establishing a mining funding platform and mineral data exchange. We therefore see the risks confronting this project as follows:
- Technical failure: (see below, Can we built it?)
- Insufficient funds raised: The staged development process across our portfolio of products ensures that funds raised will be spent on developing viable and commercially valuable products, regardless of whether all products are built. Less funds raised simply means slower implementation of the platform.
- Regulatory restrictions: Our design caters for a “worst case” scenario in terms of Government regulation. All known Government constraints have been taken into account in the current design and our development team has considerable experience in working in heavily regulated industries (eg mortgage market, energy market, public transport industry, etc).
- Our business is registered in Singapore to take advantage of the existing Singaporean regulatory framework for online businesses and unit raising. This known framework mitigates regulatory risk.
How will you remain transparent around money flows?
As with all business transactions, we provide a high degree of confidentiality and security to our investors in relation to their personal details and their investments. However, all transactions are audited by our independent auditors who provide regular pseudonymised reports to all stakeholders.
Unit flows associated with business transactions on the platform are publicly visible through blockchain ledgers.
How are you going to stop early/large buyers from dumping their units?
The reserve fund managed by the MA Treasury will be used to stabilise unit price on exchanges as required. Please refer to the item (above) on unit stability.
Is the mining industry actually interested in participating?
In addition to broadly positive responses from industry participants, we are in the early stages of establishing both business partnerships and advisory relationships. An example is David Holden, an experienced geologist, investor and mining company CEO has agreed to join our mining advisory board to assist in product development, fundraising and industry engagement. Please refer to our website for a full list of our supporters and partners.
Who has committed to uploading their mining data already?
Representatives of the mining exploration industry have indicated their interest in uploading and trading their data. We are actively pursuing this group and the list continues to grow.
We expect in the near future to launch the Data Exchange function which will enable participants to commence uploading and trading data.
Join The Conversation
Share with us your interest in Mineral Assurance and join the conversation that will shape your future.