Goldcliff Resource Corp. is examining regulatory compliance requirements for an initial coin offering as part of an effort to introduce a digital currency based on gold.
The company said Dec. 7 that its plan incorporates its existing assets, the online DirectRoyalty crowdsourcing platform and the Pine Grove gold project in Nevada.
Goldcliff hopes to use its 40% interest in the Pine Grove project as one of the initial sources of gold for the initial coin offering.
The company noted that the DirectRoyalty platform will be reconfigured on blockchain technology to facilitate users' ability to receive and distribute funds in digital currency.
Gold producers will receive a discounted upfront payment for a set amount of gold to be delivered to third party custodial agents as produced, over a predefined duration, while tokens purchased will entitle holders to a distribution from the owners' share of the platform.
Goldcliff is in discussions with other gold operations that could also be included in the offering.
The EU's markets regulator issued warnings last month to investors and firms taking part in initial coin offerings, highlighting the risk, after the U.K.'s financial regulator issued a similar warning in September.
