What is the “Liquidity System”?
Our “Liquidity System” is an internal way to generate money outside of the secondary market in order to achieve the project’s financial goals. The way that our Liquidity System makes money is by taking advantage of a unique opportunity of buy mining exploration licences from struggling owners that what to make a quick sale, as they do not have the financial means and knowledge to operate these mines (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 as well as any supporting credible reports from the national acquires such as the reliable USSR reports. The final step in this purchasing process is to make a pre-geological scanning in order to the 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 managed 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 in called our “Liquidity System”.
The profits generated by our “Liquidity System” will be used in order to help achieve Blue Hill Mining achieve its financial hard-cap goal. Once the Blue Hill Mining Hard-Cap has been reached our “Liquidly System” will continue to contribute towards the burning program as well as to buy more distressed mining exploration licenses to continue to keep feeding our “Liquidity System” that increase the underlying value of the BHF- Tokens.
What is the “Burning Program”?
It is a mechanism within the Blue Hill Mining token model. The “Burning Program” will buy BHF-Tokens from the market (from the token platform once the token is listed). These purchased tokens will then be burnt in order to decrease the number of tokens in circulation. This means that the co-ownership of the mines from the burnt token(s) will be shared amongst the rest of the existing BHF-Tokens; which increases the percentage of co- ownership of the remaining BHF-Tokens and thus increases the underlying value of each BHF-Token (less tokens for the same assets).
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 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 is the objectives of our Liquidity System and Burn Program? The ultimate goal and final stage of the life of the BHF-Token is the buyback plan, which is when the underlying value of the BHF-Token reaches its target value of US$30 per token. This can be achieved by the combination of our “Liquidity System” and “Burn Program” as they both complement each other, as our “Liquidity System” will continue to buy more and more mining exploration licenses that will continually increase the underlying value of the BHF-Token with time and the “Burning Program” will continue to burn BHF-Tokens, meaning that there will be less and less tokens with time, until eventually the underlying value per token reaches US$30. By combining both our “Liquidity System” and “Burn Program”, it is only a matter of time until the buyback plan reaches its ultimate goal for the token holders.