Madison Metals Signs Uranium Forward Sales Agreement and Creates the First Uranium-backed NFT with Lux Partners
Madison Metals Signs Uranium Forward Sales Agreement and Creates the
First Uranium-backed NFT with Lux Partners
TORONTO, ON – September 30, 2022 – Madison Metals Inc. (“Madison” or the “Company”)
(CSE: GREN) (OTCQB: MMTLF) is pleased to announce the signing of a historic and first-of-its-
kind uranium forward sales agreement with Lux Partners Ltd. (“Lux”). Lux operates Lux
Network, the first decentralized blockchain integrated with and operated by a network of
regulated bank and money transmitter partners. The five-year exclusive supply agreement
provides for the delivery of up to 20 million pounds of U3O8 from Madison’s uranium projects
in Namibia following the commencement of commercial production. The fulfillment of the
U3O8 delivery would back the first-ever uranium-backed non-fungible tokens (“NFTs”).
“Having the ability to potentially monetize our uranium resources at a premium using
innovative technology provided by industry leaders is a testament to our forward-thinking
strategy to deliver shareholder value,” said Duane Parnham, Executive Chairman and CEO of
Madison Metals. “We believe there are many benefits to forward selling a portion of our
assets in this way. We expect it to provide non-dilutive capital to explore, develop and mine
our properties while also generating additional revenue through token trading fees.”
Parnham continued, “The Lux team has outstanding capabilities and a proven track record
launching and driving demand for the most innovative products in the world, generating
billions of dollars in revenue.”
Lux NFTs bring liquidity and universal access to the uranium market and usher in a new era for
both the tokenization of physical assets and the distribution of the earth’s most valuable
resources. Lux Uranium NFTs are to be minted exclusively on Lux Network but will be made
available on every major blockchain thanks to the Lux Standard for asset-backed NFTs.
Starting Oct. 15, 2022 via the Lux Market, almost anyone in the world will be able to mint Lux
Uranium NFTs. By selling direct to retail, Lux is able to offer buyers the lowest possible price,
disintermediating opaque and inefficient financing with transparent and clear pricing. For
more information please see Lux.Market.
“We are pleased to form this strategic alliance with Madison’s resource team to support the
launch of Lux Uranium and the Lux Network ( Lux.Network) of blockchains, which powers the
minting, trading, and staking of the NFTs,” said Zach Kelling, CEO of Lux Partners. “Through
staking, users are exposed to the upside of the uranium market while also earning additional
fees from lending and liquidity. By digitizing assets, Lux expects to unlock greater price
discovery, asset value, and liquidity throughout the entire mineral extraction lifecycle.”
Lux will initially tokenize 7.65 million pounds of U3O8 that Madison has contributed to the Lux
partnership. This will be followed by an additional 12.35 million pounds to be minted as the
market dictates. The sales of tokens are intended to generate cash which will be returned to
Madison plus royalties from trading fees. Madison’s capital proceeds of funds will be used to
advance compliant resource/reserve figures, as well as for engineering and economic studies
and mining. Madison will also be managing a risk assessment program and hedge book to
purchase additional uranium products as or if needed on a tax-neutral basis.
Learn more about Madison’s evolution via the newly branded madisonmetals.ca website and
updated corporate presentation.
In connection with the forward sales agreement, Madison will issue three million common
shares to an arms-length consultancy advisor that made introductions and facilitated the
transaction. The common shares issued under the agreement are priced at CAD$1.22, as of
close of market on Thursday, September 29, 2022.
About Madison Metals Inc.
Madison Metals Inc (CSE: GREN) (OTCQB: MMTLF) is an upstream mining and exploration
company focused on sustainable uranium production in Namibia and Canada. Using cutting-
edge technologies and modern strategies, Madison Metals is positioned to move advanced
uranium assets to market quickly.
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.
Additional information about Madison Metals Inc. can be found at madisonmetals.ca and on
the Company’s SEDAR profile at www.sedar.com.
About Lux Partners Ltd.
Lux is a FinTech company domiciled in the Isle of Man and partnered with a regulated and
licensed money transmitter business. Lux enables institutions to take advantage of blockchain
technology use-cases in a tax advantaged and regulated environment, with proper
compliance, KYC, and AML procedures. Lux executives have an extensive track record of
managing transactions and investments across a wide range of industries. Institutions and
governments alike can send and receive tokenized assets, with proper compliance, KYC, and
AML procedures. Lux processes transactions in crypto and fiat, given its ability to process Swift
and Fed wires natively from the blockchain, while still providing the highest levels of security
and privacy thanks to the Lux Bridge, which uses zero knowledge proofs to secure assets and
enable private transactions over the Lux Network. Lux is uniquely positioned to launch a
multitude of highly profitable and risk-weighted verticals that are exceedingly scalable within
sizable and fast-growing markets. These verticals include secure transaction processing, asset
management, DeFi ecosystems, and tokenized investments in natural resources and emerging
markets.
Additional information can be found at Lux.Partners/about
For further information, please contact:
Duane Parnham
Executive Chairman & CEO
Madison Metals Inc.
+1 (416) 489-0092
Media inquiries:
Adam Bello
Manager, Media & Analyst Relations
Primoris Group Inc.
+1 (416) 489-0092
Neither the CSE nor the Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.
Forward-looking Statements
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 fulfillment of terms of the forward sales agreement described in this press
release, including but not limited to the future production capacity and delivery of U308 by
Madison; the issuance of shares of Madison; the timing and amount of estimated future
exploration and the anticipated use of funds by the Company.
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 the Company 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 the Company 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,
production delays; currency fluctuations, the global economic climate, dilution, share price
volatility, competition, labour shortages, and unanticipated expenses of the Company.
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 the Company to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to: failure of the Company or its
contractual partners to fulfil their respective obligations under agreements; unanticipated
delays or shortages in production at the Company’s mineral projects in Namibia; the impact
the COVID 19 pandemic may have on the Company’s 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; accidents, labour disputes and shortages; environmental
risks; and other risks of the mining industry.
Although the Company 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 the Company’s SEDAR profile
page at www.sedar.com. The Company disclaims any obligation to update or revise these
forward-looking statements, except as required by applicable law.