The Blue Hill Foundation started its Blue Hill Mining Project with the intention of developing a new business model in the mining industry consisting in: a licenses acquisition system and the following exploration and/or exploitation of these licenses portfolio, and the development of a trading and traceability blockchain platform called Blue Hill Platform.
In order to do so, it planned to use a security token model in which each token would be asset backed by the company shares that owns the mining licenses portfolio, as well as a co-ownership of the Blue Hill Platform.
An STO was considered as the main strategy for this two-sided project, as it would be disruptive and innovative but also could offer several advantages for all parties involved:
- It would allow the token holders to enter the mining industry usually reserved for corporations and high-end accredited investors.
- It would give the investors the opportunity to participate in a fully regulated security token.
- It would give the investor the security of having an asset backing the security token.
- It could allow the company to get the necessary funding for the mining licenses portfolio in an innovative way.
- It could allow the company to diversify the shares among thousands of holders.
- Once the Blue Hill Platform is underway it would allow all users (banks, smelters, buyers and sellers to name a few) an opportunity to purchase cheaper minerals that are ethically sourced using the blockchain.
During the funding stage of the Blue Hill Mining Project we found that due to the ever fast changing world of blockchain and cryptocurrency we had to adapt accordingly, and the opportunity to purchase more licenses presented itself sooner than expected. Swiss Asian Resources was introduced in the business strategy to provide the Blue Hill Mining Project with its own mining licenses portfolio, helping the Scalability System to grow. Thanks to the opportunity that Swiss Asian Resources found in the market, it became an independent brand from the Blue Hill Mining Project.
This led the project to early success according to its initial roadmap, as this self-induced Liquidity System reduced the project’s financial needs. On the other hand, Blue Hill Foundation managed to allocate all the BHF-Tokens privately in exchange for new mining exploration licenses from Swiss Asian Resources, and GWE Intech via Swiss Asian Resources.
Having reached this point of the project, the conclusion that the original plan of running an STO for funding itself was no longer required, as the financial needs were reduced and the scope of the project potential grew fastly.
Although this has led to a favorable disruption of our roadmap in our original business idea, we have learned along the way that currently the security token market is still very young and underdeveloped, for which we have changed our initial plan of developing our security token first, for developing our utility token first.
Alongside this the security token market lacks suitable exchangers for liquidity for our investors right now, due to its many unclear regulation processes and its difficulties for the listing into exchanger so, taking this into account we will offer our Utility BHF-Token holders (via the Blue Hill Platform) a voting option between the listing of our utility BHF-Token or our future security token. As a company we want our token holders to understand and analyze the possibilities in the market for both, before voting begins.
However the next important step, before voting, is to focus on creating smart contracts for the issuance and distribution of the utility BHF-Tokens into the Blue Hill Platform, that can only be accessed by the token holders. Once voting is complete we will seek to continue and adapt this part of the roadmap depending on the results.
In summary: Blue Hill Mining Project will continue making great strides with the development of the Blue Hill Platform and the development of the Scalability and Liquidity Systems. We have adjusted and we have adapted to the fast paced blockchain/cryptocurrency world in a very positive way that even we didn’t imagine, so we are glad to share this success with you.