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Bring new investors into your natural resources business

The natural resources industry is highly profitable, making it an attractive option and a promising opportunity for investors. However, fundraising for a natural resources business may still be quite challenging — difficulty of raising capital in a particular country of registration, inability to take a bank loan without collateral, or the reluctance of traditional investors — all resulting in the potential of such resources being unrealized.

Tokenization is a disruptive technology that allows a natural resources business to access a broad circle of investors and provide liquidity for its assets or securities.

What can you achieve with the tokenization of natural resources?

  • Reach out to more diverse investors

    Banks and institutional investors aren’t the only available option — raise funds globally from individual investors, who find natural resources appealing, and crypto investors, who are interested in diversifying their portfolios. Such an approach will help you get better fundraising terms and attract more capital.

  • Monetize illiquid assets

    Some natural resources like rare diamonds are extremely hard to get direct cash flow from. Instead of just keeping the assets with no profit or trying to sell them to one buyer, you can tokenize them. This will allow multiple people to easily invest in these assets by purchasing tokens that provide indirect ownership rights.

  • Become more attractive to investors by creating liquidity

    Trade the tokens easily, getting one step ahead of traditional securities and physical assets: decentralized finance protocols provide advanced instruments for this process, thus winning better liquidity. Liquid assets always attract more investors.

  • Improve your brand image

    Adopting the newest technologies makes your business being seen as modern and disruptive, just as it raises the trust for your company — either from investors' or clients' perspective.

  • Reach out to more diverse investors

    Banks and institutional investors aren’t the only available option — raise funds globally from individual investors, who find natural resources appealing, and crypto investors, who are interested in diversifying their portfolios. Such an approach will help you get better fundraising terms and attract more capital.

  • Monetize illiquid assets

    Some natural resources like rare diamonds are extremely hard to get direct cash flow from. Instead of just keeping the assets with no profit or trying to sell them to one buyer, you can tokenize them. This will allow multiple people to easily invest in these assets by purchasing tokens that provide indirect ownership rights.

  • Become more attractive to investors by creating liquidity

    Trade the tokens easily, getting one step ahead of traditional securities and physical assets: decentralized finance protocols provide advanced instruments for this process, thus winning better liquidity. Liquid assets always attract more investors.

  • Improve your brand image

    Adopting the newest technologies makes your business being seen as modern and disruptive, just as it raises the trust for your company — either from investors' or clients' perspective.

How to move natural resources to the Blockchain?

  • Securitization

    The first step is transferring the ownership of assets that need to be tokenized — the resource itself (oil, gas, gold, etc.), a mine, or a plantation — to the Special Purpose Vehicle and then issuing securities of this SPV owning the assets.

  • Tokenization

    The issued stocks are transformed into tokens. Thanks to this, they become way more accessible, flexible, and liquid. As these tokens are actually tokenized securities, they are regulated as ones, which ensures the investors are granted complete legal protection.

  • Offering

    From this moment on, you have full capability to offer your tokens to investors globally and launch a marketing campaign targeted at investors all around the world.

  • Management

    After you have sold the tokens to investors and raised funds, you can continue managing and maintaining the asset, divide the investors' cash flow and withhold your fee, or hire an outsource company that will be conducting all these tasks.

What can be tokenized?

Natural resources

Metals and minerals are great to be tokenized. In such a case, the issued tokens and their price are backed by a particular amount of the given resource; investors holding the tokens receive a proportional share in the total pool. Tokenized natural resources such as tokenized gold become much easier to trade via a liquidity pool or by listing on specialized security token exchanges.

Extraction and sale business

Another possible scenario is tokenizing a business that does the extraction and sale of natural resources itself. This way, token holders basically become shareholders of the company and receive a part of its generated cash flow from the sales of mined metals and minerals.

Why Stobox expertise is important for you?

  • Individual approach to every client

    Each case is unique so our specialists go through every detail to provide the best solution on how to do your offering, choose the most suitable jurisdiction, and mitigate the risks.

  • Assurance of results

    Stay sure that our specialists will deliver the best results and make your offering go as smoothly as possible.

  • Dedicated team

    A team of professionals with thousands of hours of research in the tokenization field will help you do your offering right.

A step-by-step guide on tokenization

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The challenges in reaching investors that can be avoided with the help of tokenization

Attracting investors to the natural resources industry business is hard for two main reasons.

  • The field ia capital-intensive

    Before generating real profits, a lot of capital for mining equipment and geological research is needed. Thus, it's hard to attract investors who are ready to invest without guarantees of profits.

  • Risks at early stages

    A real presence of deposits of natural resources cannot be proven before a thorough study of the area. Some mineral deposits may be insufficient for the company to become cost-efficient which establishes a considerable risk for the investors.

Solutions offered by tokenization

By getting access to a wider range of investors and clients, tokenization helps to attract digital assets investors to your project. They are hungry for risk and want to allocate their funds in exchange for potential hight returns. Besides, the opportunity to trade tokens allows investors to make an early exit if they want, which is also a decisive factor that impacts investors' behaviour and increases trust.

How can Stobox help you with tokenization?

We provide a turn-key natural resources tokenization solution based on your company goals and provide full support helping you save time and money.

  • natres consulting
    Consulting & Advisory

    A comprehensive analysis of your project (adopting the proper structure, picking the best jurisdictions for setting up the holding company, determining the correct type of security, etc.)

  • legal document
    Legal Management

    Drafting papers, regulatory filings, and setting up the corporate structure. We have studied private placement laws of more than 20 jurisdictions and acquired legal partners in more than 10, which makes us your perfect match in the mission of pursuing your global ambitions.

  • natres marketing
    Marketing

    By using our investor communities and a vast network of marketing investor relations partners, we provide a skyrocketing perspective in reaching investors for your project.

  • natres support
    Lifetime support

    Even after your STO is over, we are still ready to support your token and the platform, solve technical issues, conduct corporate actions such as dividend payments, assist in operating the corporate structure, facilitate secondary trading of securities, and support investor communities.

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