Cunningham Mining Ltd Secures $336M Investment Commitment from GEM Digital Limited
TL;DR
Cunningham Mining Ltd secures $336 million USD investment from GEM Digital, boosting acquisition power and market confidence.
Under the agreement, GEM Digital will provide Cunningham Mining with a Token Subscription Facility of up to $336 million for a 36-month term after a Centralized Exchange listing of the Cunningham Mining Token.
The acquisition of American Creek Resources by Cunningham Mining Ltd will allow for further expansion in the gold exploration sector, which could lead to positive results for all stakeholders.
Cunningham Mining plans to use the increased facility for further acquisitions of gold properties in the coming future, leveraging the expertise and resources of both companies.
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Cunningham Mining Ltd has announced a substantial increase in its investment commitment from GEM Digital Limited, raising the original amount from $153 million USD to $336 million USD. This enhanced financial backing aims to support the acquisition of American Creek Resources Ltd (TSXV: AMK) and to facilitate future acquisitions of gold properties, signaling strong confidence in the company's strategic growth plans.
The agreement stipulates that GEM Digital will provide Cunningham Mining with a Token Subscription Facility of up to $336 million over a 36-month term, pending the listing of the Cunningham Mining Token on a Centralized Exchange. Importantly, Cunningham Mining retains control over the timing and amount of drawdowns, with no minimum drawdown obligation. This flexibility allows the company to strategically manage its financial resources as it navigates its expansion in the gold exploration sector.
Ryan Cunningham, CEO of Cunningham Mining Ltd, expressed enthusiasm about the enhanced partnership with GEM Digital. "We are excited about strengthening our partnership with GEM Digital for this significant token subscription facility, which will enable the company to acquire American Creek Resources Ltd and further expand our presence in the gold exploration sector," he stated. He further elaborated that the acquisition would add American Creek Resources’ twenty percent carried interest in the Treaty Creek Gold deposit to the balance sheet of the pending NGTGOLD Token, which contains over 6 million ounces of in-ground gold resource.
Cunningham also emphasized the long-term value this financing deal would bring to shareholders. "We are confident that this financing deal with GEM Digital will support our acquisition of American Creek Resources Ltd and drive long-term value for our shareholders," he added. The CEO also mentioned that the formal exchange listing of the NGTGOLD Token would be announced shortly, highlighting the strategic alignment and potential growth opportunities in the gold market.
The closing of this financing deal is contingent upon customary closing conditions and regulatory approvals. Further details regarding the acquisition of American Creek Resources will be disclosed in due course.
This investment marks a significant milestone for Cunningham Mining Ltd, a company that recently completed the acquisition of the Nugget Trap Placer Mine in British Columbia, Canada. By digitizing its current and future mining properties and claims through the issuance of NGTGOLD digital asset tokens, Cunningham Mining aims to leverage emerging technologies to optimize its operations and enhance value for stakeholders.
GEM Digital Limited, a digital asset investment firm based in the Bahamas, has a robust portfolio, actively sourcing and investing in utility tokens listed on multiple exchanges globally. This partnership underscores the growing intersection of traditional mining industries with digital asset investment strategies, offering a glimpse into the future of resource management and investment.
Curated from NewMediaWire
