Madre Tierra Gold: Will The Mining Industry Welcome A New Business Model?

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For the majority of gold mining operations, the business model is similar: mine for gold, extract gold and sell gold on international markets. 

The homogeneity of this model is not necessarily a bad thing. Miners like Agnico Eagle Mines Ltd. AEM and Barrick Gold Corp. GOLD have generated considerable revenue through it, and the vast majority of mining companies have succeeded by following this route.

But that doesn’t mean it’s the only way to operate a mining company. Two possible downsides of this model are the risk and cost associated with funding mining operations and the business’s complete dependence on the results of the mining operations for its survival.

For Madre Tierra Mining Ltd., a new gold mining business model serves as a more appealing route. Operating as a gold explorer, broker and diversifier, Madre Tierra says it created a model based on a trifecta of gold-associated activities for success — one that is meant to diversify risk and loosen dependence on gold mining results.

Armed with Colombian gold reserves and a key commercialization license that permits the company to purchase gold from small-scale and artisanal miners and sell it to the international markets. The company is now looking to raise funds via a Regulation-A round to operationalize their gold trading business and start exploring their properties for gold.

Bites By The Numbers

• Madre Tierra reports having one of the 24 gold-trading licenses in Colombia, giving them a reported competitive advantage over local operators. 
• The company reports having secured mineral rights for over 18 years with the option to renew for an additional 30-year term with no restrictions.
• The company reports full support from the Colombian government and local community for its project. 
• The company reports a highly experienced management team with over 30 years of experience in the mining industry. 

The picture below illustrates the reported benefits of Madre’s unique license agreement.

In summary, Madre Tierra states that the license allows it to bypass local gold buyers, middlemen and gold-buying houses in the process of exporting gold to international gold refineries, which may give the company favorable gross margins – between 15% and 25% – and could generate rapid operational revenue and cash flow for the company. 

Madre Tierra also boasts diversified treasury holdings composed of cash, physical gold and cryptocurrency.

For more on this approach to gold mining, visit Madre Tierra’s website and read its offering circular.

You can learn more about and invest in Madre Tierra here. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Photo by Fernanda Fierro on Unsplash