The Nugget Trap (RWA) Token Offering NGTG$$ commences trading

Rhea-AI Summary

Houston Natural Resources Corp (OTC:HNRC) portfolio company Cunningham Mining has launched its Nugget Trap Token (NGTG$$) on Biconomy Exchange. The token offering includes 100 million units at $0.60 USD per token for total proceeds of $60M USD. CML has secured a USD $336 million investment commitment from GEM Digital and plans to acquire American Creek Resources for USD $150 million. HNRC owns 9% of CML and expects a significant increase in its asset base with a liquidity event in Q4. The token is backed by Placer Claim in-ground assets and requires a six-month holding period to activate embedded offers.

Positive

• Secured $336 million investment commitment from GEM Digital
• Strategic acquisition of American Creek Resources for $150 million
• Expected proceeds of $60M USD from token offering
• HNRC's 9% ownership in CML positions it for asset base increase

Negative

• Six-month mandatory holding period for token holders
• Token value dependent on volatile gold market prices

Cunningham Mining Ltd Focuses on Tokenizing the Mining Industry

HOUSTON, Oct. 25, 2024 (GLOBE NEWSWIRE) -- Houston Natural Resources Corp (OTC:HNRC) portfolio company Cunningham Mining Ltd announced today the launch of its Nugget Trap Token (NGTG$$) offering on the Biconomy Exchange (www.biconomy.com) (https://bit.ly/4feDNbx).

The company intends to list the token on a number of other exchanges. This innovative tokenization initiative aims to revolutionize the mining sector by providing a new financing model for mining operations by leveraging the assets.

Cunningham Mining Ltd (“CML”) has entered into a definitive arrangement agreement with American Creek Resources Ltd ("American Creek") pursuant to which CML has agreed to acquire all of the issued and outstanding common shares of American Creek at a price of USD $0.31per Share in an arm's-length, all-cash transaction valued at approximately USD $150 million on a fully diluted basis. The transaction will be completed by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia) (https://bit.ly/4fgq5oD).

GEM Digital Limited has provided CML an investment commitment for up to USD $336 million. This substantial financial backing is set to fuel CML’s ambitious expansion plans, including the proposed acquisition of American Creek Resources Ltd and future gold property acquisitions. The enhanced token subscription facility will be available to Cunningham Mining for a 36-month term following the listing of the Cunningham Mining Token on a Centralized Exchange. This arrangement provides Cunningham Mining with considerable flexibility, as the company retains control over the timing and maximum amount of drawdowns, without any minimum drawdown obligations (https://bit.ly/3BYSfGm).

HNRC owns 9% of Cunningham Mining Ltd and is expected to provide HNRC shareholders with a significant increase in its asset base and a liquidity event in the fourth quarter.

Real World Asset (RWA) tokens, such as the Nugget Trap Token, provide a groundbreaking opportunity for investors to gain ownership of tangible assets from the mining industry. By digitizing commodities like precious metals and minerals, these tokens offer a unique combination of stability and growth potential. With this potential in digital friendly economy, investors can capitalize on market fluctuations, offering both flexibility and potential RWA tokens as they gain popularity, and they are attracting a broader, more diversified audience.

Key Highlights:

• Issuance Size: 100,000,000 units for proceeds of $60M USD
• Token Offering Price: $0.60 USD per Nugget Trap Token (NGTG$$)
• Purpose: To provide liquidity and financing options for mining operations through tokenization
• Backing: The NGT token is backed by the Placer Claim in-ground assets, including potential gold deposits and physical gold in the BC Golden Triangle of the Nugget Trap Placer Claim

Special Attachment: Spot Gold Price Feature

In conjunction with the Nugget Trap Token offering, Cunningham Mining Ltd is pleased to provide a special attachment related to the current spot gold price. This attachment will offer insights into the gold market trends and how they impact the value of the Nugget Trap Token. Token holders are required to hold for six months to activate the embedded offer.

Digital Asset: Nugget Trap Gold Placer Claim

The Nugget Trap Token is at the forefront of this paradigm shift, transforming how stakeholders engage with real-world assets. Backed by solid industry fundamentals, it represents an exciting innovation in the digitization of physical assets, making the mining industry more transparent, efficient, and accessible. As blockchain technology continues to revolutionize industries, RWA tokens are reshaping the investment landscape, offering a compelling blend of real-world asset ownership and cutting-edge financial innovation to monetize their in-ground assets effectively. This tokenization model not only provides liquidity but also offers tangible value to token holders.

About Cunningham Mining Ltd

Cunningham Mining (www.cunninghammining.com) has successfully completed the acquisition of the Placer Claims known as the "Nugget Trap Placer Mine" in the British Columbia Mineral Title registry, covering 573.7 acres, along with the accompanying permits and authorizations ("Property"). The Property is situated within the Skeena Mining Division of British Columbia, Canada, in the area known as BC's Golden Triangle. The company intends to digitize its claims through the issuance of Digital Asset Tokens.

About Houston Natural Resources Corp

Houston Natural Resources Corp. (OTC: HNRC) (www.hnrcholdings.com) stands as a versatile energy enterprise with stakes in both oil and gas. Notably, the company has successfully obtained full ownership, a 100% interest, in Cunningham Energy LLC, boasting appraised reserves totaling $352 million. Additionally, Houston Natural Resources Corp. holds minority investments in Rhino Energy Ltd, CE Energy Sponsors, LLC, and HNR Acquisition Corp. Demonstrating a commitment to growth, the company remains proactive in its pursuit of new opportunities within the energy and energy transitions sectors, all with the overarching goal of delivering enhanced value to its shareholders.

FORWARD-LOOKING STATEMENTS:

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.

Contact:

Houston Natural Resources Corp
12 Greenway Plaza, Suite 1100
Houston, Texas 77046
Phone: (713) 425-4901
E-mail: frank@hnrcholdings.com  
Website: www.hnrcholdings.com
Twitter: https://twitter.com/CunninghamCorp

FAQ

What is the price of the Nugget Trap Token (NGTG$$) offering by HNRC's portfolio company?

The Nugget Trap Token (NGTG$$) is being offered at $0.60 USD per token, with a total issuance of 100 million units.

How much investment commitment has Cunningham Mining secured from GEM Digital ?

GEM Digital has provided Cunningham Mining with an investment commitment of up to USD $336 million for a 36-month term.

What is HNRC's ownership percentage in Cunningham Mining ?

Houston Natural Resources Corp (HNRC) owns 9% of Cunningham Mining

What is the value of the American Creek Resources acquisition by Cunningham Mining ?

Cunningham Mining is acquiring American Creek Resources for approximately USD $150 million in an all-cash transaction at $0.31 per share.