What is the “Liquidity System”?
In the beginning, our “Liquidity System” was an internal process aimed to generate money liquidity outside of the secondary market, in order to achieve the project’s financial goals but now, it’s a “constant” liquidity source for our Scalability System.
The way that our Liquidity System makes money is by taking advantage of a unique opportunity to buy mining exploration licences from struggling owners that want to make a quick sale, as they do not have the financial means and knowledge to operate these licenses (what we call distressed mines).
Before buying any mining exploration project, each license goes through an enhanced due diligence process, regarding:
- the current and legal status of the license
- the demand of the minerals in question
- the geological exploration works performed
- the financial status
- any supporting credible reports from the national archives such as the reliable USSR reports.
The final step in this purchasing process is to make a pre-geological scanning in order to discover the presence of mineral resources such as gold, copper, nickel, cobalt and any other precious metals within the mining exploration license.
Once the Geological-Scanning shows successful results, the purchase will take place that is provided by Swiss Asian Resources (see previous Swiss Asian Resource article for more information). These mining exploration licenses will then be sold for a profit which in summary is called our “Liquidity System”.
Initially, the profits generated by our “Liquidity System” were gonna be used in order to help Blue Hill Mining achieve its financial hard-cap goal. As the Blue Hill Mining hard-cap was reached, our “Liquidly System” will continue to contribute towards the Burning Program as well as into our Scalability System to buy more distressed mining exploration licenses and keep feeding our “Liquidity System”, which will result in an increase in the underlying value of the future security okens.
What is the “Burning Program”?
It is a mechanism within the Blue Hill Mining token model. The “Burning Program” will buy tokens from the market. These purchased tokens will then be burnt in order to decrease the number of tokens in circulation. This means that the future co-ownership of the Company’s shares from the burnt token(s) will be distributed amongst the rest of the existing token.
The “Burning Program” will be supported by the profits generated from:
- Our Liquidity System.
- The sale of the minerals such as gold, copper, nickel and cobalt to the market.
- The future trading activities of the Blue Hill Platform.
A minimum of 20% of the profits generated from the above will be contributed towards the “Burning Program” and the balance will be used to buy more mining exploration licences.
What are the objectives of our Liquidity System and Burning Program?
The ultimate goal and final stage of the life of the Blue Hill Mining Project is the BuyBack Plan, which will occur when the underlying value of the future security token reaches the US$30 value. This can be achieved by the combination of our “Liquidity System” and “Burn Program” as they both complement each other.
While our “Liquidity System” will boost the Scalability System in the acquisition of mining licenses, that will continually increase the underlying value of the future security token; the “Burning Program” will continue to burn tokens, meaning that there will be less and less tokens with time, until eventually the underlying value per future security token reaches US$30. By combining both our “Liquidity System” and “Burning Program”, it is only a matter of time until the BuyBack Plan reaches its ultimate goal for the future security token holders.
