- Asia Broadband Inc. recently signed a letter of intent (“LOI”) to acquire a 200-hectare property housing two gold mining sites, a processing facility and existing infrastructure
- The property, estimated to be worth about $30 million, is part of the bigger picture as the company is expected to launch a 100% gold-backed token soon to diversify its revenue generation streams
- The company outlined its AABB Gold Token’s characteristics in a recent news release
Asia Broadband (OTC: AABB), a resource company focused on the production, supply, and sale of precious and base metals, primarily to Asian markets, has made strides on several fronts since its February 2021 development update on the soon-to-be-launched AABB Wallet and AABB Gold token. According to recent news releases, AABB signed a letter of intent (“LOI”) to purchase an historic production gold mine property and on-site processing facilities in the prolific mining region of Mascota in Jalisco, Mexico, and also clarified the exact characteristics of the AABB Gold token (“AABBG”).
The signed LOI sets the wheels in motion for the eventual acquisition of the 200-hectare property, located about 3 kilometers from Barra de Navidad – a small town on the western coastline of Mexico’s Jalisco state – subject to further due diligence and negotiations. The property houses two mine sites, a 50-ton per day processing facility and other existing infrastructure (https://ibn.fm/p1vuz).
In total, Asia Broadband is expected to pay about $30 million for the property, an investment that will bring the company closer to fulfilling its strategic vision and goal. Fundamentally, AABB aims to differentiate itself from its competitors as well as increase shareholder value by launching a gold-backed digital currency, wallet and exchange. It will back its gold token with physical gold acquired from future mining production, such as mining sites at the 200-hectare property, and gold purchased from cash reserves or credit. So, the purchase is part of a bigger picture.
Per its February development update, AABB’s wallet and token developer Core Holdings Corp (“CSHC”) was at an advanced stage of testing the wallet applications on both iOS and Android, in addition to continuing the enhancement of AABB’s gold token website. The developer had also begun the creation of AABB’s cryptocurrency exchange (https://ibn.fm/JEAzu).
With the information on the progress of the development of AABB’s wallet and exchange already in the public domain, Asia Broadband sought to provide a similar level of clarity regarding its gold token. In the March 9 news release (https://ibn.fm/xAeza), AABB pointed out that its cryptocurrency token will have the following characteristics:
- AABBG will be backed 100% by physical gold held by AABB
- At present, AABB holds $30 million in physical gold
- AABB will release approximately 5.5 million tokens in the initial token release
- The price of each token will be equivalent to the current price of one-tenth (0.1) gram of gold plus a 2% transaction fee
- The price of each token will be tied to and supported by AABB at the market price of gold at a minimum
- The minimum supported price of AABBG will increase or decrease according to the fluctuation in the price of gold
- The price of AABBG will also be driven by market demand
- Purchase of AABBG will be through AABB Wallet
- Buyers will need to hold existing cryptocurrencies to purchase AABBG
- Purchase of AABBG will be finalized upon depositing existing cryptocurrencies from third-party wallets into AABB wallet in exchange for AABBG
- AABB Wallet will allow the intra-wallet transfer of AABBG between purchasers and people with AABB Wallet
- AABBG tokens will not be exchangeable within the AABB Wallet for other cryptocurrencies
Being a source of shareholder value, the AABB Gold token is a strategic offering aimed at diversifying the company’s revenue. AABB will rely on two revenue-generating streams: transaction fees and the token’s market-demand-driven price appreciation. The company anticipates that an increase in the token circulation will boost the revenue earned from transaction fees, its primary stream.
At the same time, AABB is banking on the limited release of the tokens as well as the expanded use and velocity of token exchanges as the main drivers of growth for its secondary stream. Notably, gold-backed tokens are attractive investment options because they offer more stability than other digital currencies (https://ibn.fm/vLrqP), suggesting that Ethereum-based AABBG is bound to appeal to cryptocurrency enthusiast upon launch.
Asia Broadband’s objective is for AABBG to become a worldwide standard of exchange that is secured and trusted with gold backing. With the recent announcement regarding the LOI, AABB’s strategic approach and AABBG’s attractiveness as a gold-backed token due to its inherent stability, the conditions seem favorable for the company to actualize this goal.
For more information, visit the company’s website at www.AsiaBroadbandInc.com.
NOTE TO INVESTORS: The latest news and updates relating to AABB are available in the company’s newsroom at https://ibn.fm/AABB
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