Namibian uranium-backed digital currency is selling very well
Regina EGINA MURPHY
A DEAL to create a cryptocurrency backed by uranium mined in Namibia has earned Canadian mining company Madison Metals US$5.12 million (N$92 million) in 13 days.
Madison Metals holds a 23% stake in the Namibia Nuclear Corporation Ltd mining license 121, located 46 km northeast of Swakopmund and covering base and rare metals, dimension stones, industrial minerals, nuclear fuel minerals and precious metals.
The company purchased the shares Sept. 12 for $2 million and announced Sept. 30 that it had signed a historic and first-of-its-kind uranium forward sale agreement with the US-listed fintech company. Isle of Man Lux Partners Ltd.
Under the five-year forward sale agreement that began Oct. 15, Madison Metals is expected to deliver approximately 20 million pounds of triuranium octoxide (U308) from its mining projects in Namibia.
The five-year exclusive supply agreement sees Madison supplying 7.65 million pounds (3,500,000 kg) of U3O8 from its Namibian mines to the Lux partnership for the first-ever non-fungible tokens (NFTs) backed by the uranium.
Non-fungible tokens are blockchain-based and operate on secure and protected networks.
For its part, Lux Partners then creates the Lux Uranium NFTs which are minted and sold via the Lux Network.
Lux Uranium NFTs are available for sale in any country that is not under sanctions by the United States, Canada and Namibia.
The sanctioned countries – Russia, Iran, India and North Korea – are prohibited from concluding a sales contract with Lux, and are therefore blocked from access to purchase on the Lux Market.
Lux also says that any proceeds collected for the supply of mining projects will not be used to aid or assist Chinese or Russian mining projects.
Madison Metals said initial sales exceeded all of Lux’s projections as NFTs continue to offer an exceptional value proposition, price discovery and transparency for uranium exposure at a marginal discount to at the current U3O8 spot price quoted at USD52.60 (N$947, 80) using 24 October rates.
The company also said it will provide additional guidance over the next two weeks as follow-on orders, market listings and partnerships are made public.
Madison Metals Inc claims to be an “upstream mining and exploration company focused on the sustainable production of uranium in Namibia and Canada using advanced technologies and modern strategies”.
In addition to the shares of Namibia Nuclear Corporation, Madison announced at the end of September that its plan to buy 85% of Otjiwa Mining and Prospecting CC in exclusive prospecting licenses 8531 and 8115 was at an advanced stage.
These exclusive prospecting licenses fall under the Rössing North Uranium project.
In addition, Madison Metals said the Department of Mines and Energy approved the transfer of one-third of Giraffe Energy Investments Close Corporation concessions for a cash payment of C$50,000 (N$664,455) in september.
There appears to be massive demand for nuclear generation, which now accounts for 10% of global energy, with over 150 reactors under construction as the world prepares for a carbon-free world.
The Director General of the International Atomic Energy Agency, Rafael Mariano Grossi, told delegates attending the agency’s general conference in Vienna, Austria last month that climate change and the crisis energy have led more countries to consider nuclear energy as a solution.
Grossi said 430 nuclear reactors operating in 32 countries provide about 386 gigawatts of installed capacity, supplying about 10% of the world’s electricity and about a quarter of all low-carbon electricity.
He added that there are 57 reactors under construction in 18 countries, which are expected to provide about 59 gigawatts of additional capacity.
According to Grossi, the projection is that nuclear power generation will double to 873 gigawatts (GWe) by 2050.