Avana Resources Limited, an East African gold producer and explorer, has announced a $20 million digital security token offering to accelerate and broaden its production and exploration capabilities. A security token is essentially a digital, liquid contract for fractions of any asset that already has value, like real estate, a car or corporate stock. Using security tokens means investors can expect that their ownership stake is preserved on the blockchain ledger.
The company is mostly for engaging in responsible and sustainable production, development and exploration of gold resources in East Africa and Madagascar.
The firm mainly has active mining operations in Kenya that can process 12 tons of ore per hour (tph) from an estimated 513,000 ounces of gold that is available at a grade of about 6 grams per ton.
The money obtained will make it possible to finish the geophysical and drilling projects in Kenya, Madagascar, and Mozambique as well as enhance production in Kenya to 36 tph.
Yesterday the CEO, Sam Malin said, “Avana has launched a successful gold operation in Kenya and with today’s announcement looks to significantly increase the capacity of the Kenyan operation while also accelerating development of its operations in Madagascar and Mozambique.”
Token holders will be entitled to 30% of net profit originating from all revenues generated from Avana Resources globally.
In Madagascar and Mozambique, the business has conducted gold exploration and found gold. As a consequence of geological surveys and previous exploratory work, the team is also aware of additional metals and minerals in each of its locations.
Token holders have the potential of benefiting from significant blue-sky opportunities related to these minerals.