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Canamex Gold announces GoldUSA and SilverUSA offerings to raise up to US$10M

GoldUSA tokens are sold to investors with the understanding that they may be converted into a specified weight of physical gold bullion
A GoldUSA token
The firm has launched a non-brokered private placement of GoldUSA Ethereum ERC20 tokens

Canamex Gold Corp. (CSE:CSQ) has launched a non-brokered private placement of GoldUSA Ethereum ERC20 tokens via a security token offering (STO).

GoldUSA tokens are sold to investors with the understanding that they may be converted into a specified weight of physical gold bullion, contingent on commercial production from Canamex’s Bruner Gold project in Nevada.

READ: Canamex Gold announces closing of GoldUSA security token placement

The tokens are being offered at about 30% discount to the current spot gold price and the minimum subscription is 500 GoldUSA tokens or US$2,250.

Each token is an interest in a one/200th ounce of gold at an offer price of US$4.50 per token.

Also today, Canamex said that further to its release of October last year, the non-brokered private placement of SilverUSA Ethereum ERC20 tokens via a security token offering is still open to subscribers.

The SilverUSA tokens are offered at about a 35% discount to the current spot silver price, and each token is an interest in a one-half ounce of silver at an offer price of US$5 per token. The minimum subscription is for 500 SilverUSA tokens or US$2,500.

The amount being targeted by the company for both these offerings is up to US$10 million.

The Bruner gold project in Nevada is still in the development phase.

The company has not yet made a production decision and is raising capital to advance the project through permitting and feasibility, the results of which are anticipated to support a production decision upon completion.

A preliminary economic assessment (PEA) released last year indicated a US$69.60 net present value for the project, assuming a gold price of US$1,280. The project would require an initial capital expenditure of US$37.81 million.

While the 2018 updated PEA was positive and recommends advancing the project through permitting and feasibility, it is based upon mineral resources only and not mineral reserves. The results of a feasibility study may differ from the results of the PEA.

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