Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Viscount Mining (TSXV: VML) has entered into a one-of-kind forward sales agreement where investors on the Lux Exchange will gain access to 5 million ounces of silver to be produced from the company’s Silver Cliff property in Colorado.
According to the Western US-focused miner, the metals from Silver Cliff will be part of the world’s first ever silver-backed non-fungible token (NFT) in partnership with Lux.
Lux is a FinTech company domiciled in the Isle of Man and partnered with a regulated and licensed money transmitter business. The company operates a platform that combines blockchain technology and real-world asset storage to create investment opportunities.
By adding Viscount’s silver to the Lux NFT, Lux says its investors will have access to a diversified portfolio of precious metals with which to hold and trade on open markets. The silver NFTs are to be minted exclusively on the Lux Network but will be made available on every major blockchain as a result of the Lux standard for asset-backed NFTs.
“We are thrilled to partner with Lux and provide them with access to an initial 5 million ounces of silver from our property in Silver Cliff,” Viscount CEO Jim MacKenzie said in a media release. “Our team has worked tirelessly to bring this project to fruition, and we are confident that our silver will be an excellent addition to the Lux ecosystem and to global markets.”
The Silver Cliff property lies within a historic mining district where high-grade silver, gold and base metal production came from several mines in late 19th century. The property then underwent exploration between 1967-1984 for the purpose of defining mineral inventories. Its major explorers included Freeport, Hecla, Homestake, Moly Corp, Coca Mines and Tenneco Minerals.
Viscount is currently converting the historic silver resource at Silver Cliff, and has defined an NI 43-101 resource of 2.1 million tonnes grading 84 g/t silver for 5.6 million oz. silver in the indicated category and 3.2 million tonnes grading 70 g/t silver for 7.1 million oz. silver in inferred.
Shares of Viscount Mining were down 9.1% by 12:10 p.m. ET Wednesday. The company has a market capitalization of C$25.2 million ($18.7m).
