It is an ERC20 utility token, based on the Ethereum blockchain, whose value is not tied to the price of gold. Goldenugget’s gold is mined in Africa in the company’s own mines. The gold mined will be sold during some online auctions on Goldenugget’s website and payments will only be made with the GNTO token.
During the first two weeks, it will be possible to buy the tokens with a 25% discount, at a price of 0.75 dollars each. The discount percentage will gradually decrease over the next few weeks, reaching a price of $0.95, from the eleventh to the sixteenth week.
The issuing company, Pieffe Consulting SA, based in the Canton of Ticino, will use this IEO to finance the environmentally friendly gold mining business in Ghana, with the promise to investors that, after acquiring the token, they will be able to exchange it with other investors or use it to buy the gold extracted in West Africa.
The objective is to raise 20 million euros for the purchase of machinery, concessions, authorisations and to finance working capital so that mining can begin.
It is estimated that the total turnover of the mining activity will reach about 20 million euros for the first year and increase thereafter as a result of new investments.
The token sale will not proceed with a classic ICO but will be placed directly on the Eidoo app with an IEO, or an Initial Exchange Offering, providing consistency and security to the entire project.
Furthermore, the token is classified as a utility token because its sole purpose is to allow access to the blockchain-based platform on which it will be possible to buy gold. This means that the value of the token should remain relatively stable over time, even though it is not anchored to the market price of gold.
Goldenugget intends to periodically announce auctions on its platform, with participation reserved for token holders, during which they will also place financial instruments based on blockchain with the gold as the underlying, without excluding the future expansion to other precious metals.