The Blue Hill Foundation started its Blue Hill Mining project with the intention of financing itself
through an STO. It planned to use the token model of each token representing an asset/share of
the company and subsequently its exploration licenses for the Blue Hill Mines.
An STO was considered as the main strategy as it would be disruptive and innovative but also because it offered several advantages for all parties involved: the investor and the company itself.
- It would allow retail investors to enter the mining industry usually reserved for corporations and high-end accredited investors.
- It would give the investors the opportunity to participate into a fully regulated and law compliant security token fast and accurately.
- It would give the investor the security of having an asset backed token.
- It could allow the company to get the necessary funding for the project in an innovative way giving investors the chance in a stake of the profits rather than the multinational players that control the mining industry.
- 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 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 mines presented itself. Swiss Asian Resources was introduced to provide the Blue Hill Mining Project with it’s own Liquidity System (buying-selling of mines).
This led the project to early success, as this self- induced Liquidity System reduced our financial needs and we decided to cover them by a private funding placement with Swiss Asian Resources and GWE (GWE via Swiss Asian Resources). In This way, we managed to allocate all the BHF-Tokens in exchange for the new mining exploration licenses sooner than expected or planned.
Having reached this point of the project, we have come to the conclusion that the original plan of running an STO is no longer required. Although this has led to a favorable disruption of our roadmap, we have learned along the way that currently the security token market is still very young and underdeveloped. Alongside this the security token market lacks suitable exchanges for liquidity for our investors. Taking this into account we will offer our BHF-Token holders (via the Blue Hill Platform) a vote between the listing of our utility BHF-Token or our future security BHM-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 tokens into the Blue Hill Platform that can only be accessed by the token holders. Once voting is complete we will seek to list our token on a suitable exchange.
In summary our project will continue making great strides with the development of our platform and purchasing of more mines. 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 successes with you.