91,600 oz. of
Gold Offered at $1,200 per oz.
Alpha Maximized l 91,600 oz. ($110 million) of gold is offered as a private placement of gold forward contracts. The gold is contained in previously-mined virgin ore, partially processed tailings, and other unprocessed mineralized rock (collectively gold-ore) lying on the surface of historic United States gold mines. The gold forward contracts are offered at $1,200/oz., with $200/oz. due at initial purchase and $1,000/oz. due at gold delivery within 36-months.
Gold purchased via forward contract at $1,200/oz. and delivered fully-hedged at $1,800/oz. within 36-months.
LBMA certified 99.95% pure gold is delivered at a fixed price of $1,800/oz. The $1,800/oz. delivery price locks in a prospective 300% ROI, 48.2% annualized return, and 43.1% uncorrelated alpha. Gold forward contracts can be resold/assigned any time prior to gold delivery.
Pinnacle of ESG l GoldVault USA leaves no environmental, societal, or governance stone unturned in its pursuit of quantifiable ESG gains. From restoration of each mining site to its original pristine beauty, to long-term reinvestment in each local community, to maximizing local employment on a sustainable basis, to inclusive fully transparent democratic governance, GoldVault's forward contracts are the pinnacle of ESG investing.
Trust Protected l The acquisition, ownership, sale, and recycling of gold-containing ore (virgin ore, partially processed tailings, and other unprocessed mineralized rock) lying on the surface of these historic gold mines is conducted through standalone trusts protecting each purchaser's gold holdings.
Gold Recycled l Each trust recycles stockpiles of previously mined gold-containing ore lying on the surface of historic gold mines. 1.2 million est. tons of gold-ore is lying in stockpiles on the surface of gold mines in Arizona and Nevada ready to recycle to 916,600 est. oz. of 99.95% pure gold. Over 90% of the work is done. The gold-ore is literally sitting on the 2-yard line.
There is zero mining left to do. The only jobs left are recycling gold-ore and maximizing ESG gains.
Certainty of Value l In terms of valuation certainty nothing can compare to recycling previously-mined gold-ore, where the appraisal process starts with ore lying on the surface, not buried under hundreds of feet of solid rock. By starting with 100% of the ore fully exposed for precise measurement, the value of the gold contained in each stockpile can be determined with maximum accuracy (e.g. 95%+ confidence).
1.2 million est. tons of gold-containing ore lying exposed on the surface of each mine has been initially tested by independent geologists and laboratories to yield 916,600 est. oz. of 99.95% pure gold.
The value of 1.2 million est. tons of gold-ore containing 916,600 est. oz. of gold will be independently underwritten and appraised at the start of gold recycling operations.
Management Team l Ownership to 1.2 million est. tons of gold-ore are held in trusts and protected by trustees from leading trust companies with their collective experience spanning dozens of projects. Trustees are supported by a dedicated team of leading third-party investment managers, project managers, back-office administrators, and mining, environmental, commodities, financial, accounting, compliance, and legal advisors.
Operations Team l Each trust's gold recycling operations are managed by leading mining services companies. Industry leaders with experience spanning hundreds of mining and reclamation projects. Global leaders that have collectively recycled billions of dollars of precious metal-containing ore, tailings, and other unprocessed mineralized rock and reclaimed hundreds of precious metals mines around the world.
Each trust's management and operations team is comprised of the best the United States has to offer with a reserve of experience so deep there is likely no administrative, legal, project management, or gold recycling task they have not successfully preformed dozens, even hundreds of times.
Optimal Protection l From dedicated, self-contained trusts protecting each purchaser's holdings, to unrivaled valuation certainty, to fully hedged gains, to performance bonds guaranteed by leading financial institutions, to trust administration, project management, and recycling operations by leading firms, no stone has been left unturned to mitigate risk, protect gold-ore holdings, lock-in gains, and ensure delivery of each purchaser's gold bullion.
Gold Reservation Form l The below Gold Reservation is essentially a 30-day non-binding option to purchase LBMA certified 99.95% pure gold at $1,200/oz. which is delivered within 36-mos. at a fully-hedged price of $1,800/oz.
Limited Time Offer l Once forward contracts for 10% or $110 million of total gold holdings have been sold at $1,200/oz., the remaining 90% or $990 million of gold will be refined and sold in the open market at the prevailing spot price.
Partial view of a stockpile of pre-recycled gold-ore ready to transport and refine to certified 99.95% pure investment grade gold.
Zero Mining. 100% Recycling.
Each of the Arizona and Nevada gold mines were prolific producers 100 years ago. Historical federal and state government gold production records show each mine produced millions of dollars of gold (at current prices).
For example, the smallest mine located in Nevada shows documented gold production from the 1890s to 1920s in excess of $100 million at today's prices. And like the other mines, a large amount of the gold-containing material was either not processed or only partially processed using antiquated technology and discarded on the surface.
THE GOLDEN RULE OF RECYCLING
The richer the gold-ore originally mined, the richer the gold-ore left behind.
These old mines originally contained some of the richest deposits of gold-ore ever discovered in the United States. The remainder of those ultra-rich underground deposits of gold-containing ore now lie on the surface, only waiting to be transported and refined to LBMA certified 99.95% pure 1 oz., 100 oz., and 400 oz. gold bars.
1.2 million est. tons of pre-recycled gold-ore (e.g. previously mined unprocessed and partially processed gold-containing material) has been lying in stockpiles on the surface of historic Arizona and Nevada gold mines for the past century.
There is zero mining left to do. The only jobs left are recycling the gold-ore and maximizing ESG gains.
The pre-recycled gold-ore stockpiled on the surface of each of the historic gold mines was initially surveyed for size and tested for concentration of gold in 2019, 2020, and 2021 by independent geologists and testing laboratories.
Initial independent testing reports show 1.2 million est. tons of pre-recycled gold-ore contain 916,600 est. oz. of 99.95% pure investment grade gold valued at $1.1 billion (net of recycling costs), 10% of which is offered pre-recycled at $1,200/oz.
Preselling 10% of gold-ore holdings at a discounted price of $1,200/oz. is an effective way to (1) quickly capitalize gold processing operations, and (2) maximize profits when the remaining 90% of gold-ore are later refined and sold at spot prices.
Recycling Advantage
Recovery Gains l The gold-ore was mined from the 1840s to the 1930s, where miners were only able to process the richest deposits of gold. Back then, much of the gold locked in the ore was unrecoverable and discarded on the surface of each mine.
In contrast, today’s recycling technology can potentially increase the amount of gold recovered from 1.2 million est. tons of ore by 3-fold.
Production Savings l Gold mining today is a long and costly undertaking. In the United States, it can take 20 years to open a new mine and produce the first ton of gold-containing ore. Over that 20-year span, environmental laws are certain to become ever more restrictive, with the risk of never opening increasing each year.
In contrast, finding and extracting 1.2 million est. tons of gold-ore from under hundreds of feet of solid rock is already done. There is zero mining left to do. All that remains to be done is recycling the gold-containing ore lying on the surface, potentially eliminating 75% to 80% of typical gold production costs and 20 years of risk.
Certainty of Value l The entire 1.2 million tons of gold-ore holdings is underwritten and valued at the highest independent appraisal standards prior to the start of recycling operations.
Since the gold-ore is lying fully exposed on the surface it can be cost-effectively and definitively tested for concentration of gold (e.g. independent testing of 300+ samples for large stockpiles) and accurately measured for size using digital and physical surveys. This allows the value of gold in each stockpile to be determined with maximum accuracy (e.g. 95%+ confidence).
Compare that to the uncertainty, time, and expense of an independent appraisal for a typical gold mine with 100% of its reserves hidden under hundreds of feet of solid rock. A valuation that can easily require drilling hundreds of test holes, each hundreds of feet deep, with core samples tested every few feet; the cost of which can exceed millions of dollars, consume 12-24 months of time, and never approach a 95%+ confidence level.
In terms of valuation certainty, cost, and speed nothing can compare to recycling previously-mined gold-ore, where the appraisal process starts with 100% of the gold-containing material lying exposed on the surface for precise measurement.
Recycling Advantage l A potential 3-fold increase in recovered gold, refined at an estimated cost of less than $200/oz. or 20% to 25% of typical gold production costs, and potentially delivered in one-tenth the time, creates a monumental ESG-driven strategic advantage of gold recycling over gold mining.
Partial view of two stockpiles of pre-recycled gold-ore ready to transport and refine to certified 99.95% pure investment grade gold.
Recycled Gold
Legacy of Contamination l Stockpiles of previously mined gold-containing rock (ore) have been lying on the ground since the 1840's contaminating the environment.
When left undisturbed hundreds of feet underground the gold-containing rock does not create any environmental problems. But, when the gold-containing rock is brought to the surface, it brings with it a wide range of environmental contaminants that continually leach out into the environment as the rock breaks down year after year, decade after decade.
Cost -vs- Benefit l Recycling existing stockpiles of ore lying on the surface actively improves the environment, versus any type of mining activity which only makes it worse.
Even today's best operated gold mines are problematic. The two largest gold mines in the United States (#3 and #4 in the world) are located in Nevada. Each mine produces approximately one (1) cubic yard of gold per year. But to do so, they must deface and destroy hundreds of acres of pristine land, displace and kill thousands of animals, consume enormous amounts of electricity, fossil fuels, water, and chemicals, and create millions of tons of contaminated waste and pollution.
In terms of cost/benefit, how can a single block of gold no larger than a coffee table justify this level of destruction and waste in the 21st Century? Especially when millions of tons of gold-containing ore have been lying exposed on the surface for the past century only waiting to be recycled.
Gold mining and gold recycling lie at opposite ends of the sustainable investment spectrum. Gold mining creates minimal economic benefit at maximum environmental cost, while gold recycling creates maximum economic benefit at minimal environmental cost.
When measured against any sustainable investing benchmark gold recycling is a win-win for the environment and investors.
This is not ESG lip-service investing. Investing in the recycling of old historic United States gold mines and restoring them to their original beauty is the greenest possible investment in gold.
The Ultimate in ESG l In terms of ESG, this is far more powerful than the greenest investment in gold. GoldVault USA leaves no environmental, societal, or governance stone unturned in its pursuit of ESG gains. From restoration of each mining site to its original pristine beauty, to long-term reinvestment in each local community, to maximizing local employment on a sustainable basis, to inclusive fully transparent democratic governance, GoldVault's gold forward contracts represent the absolute zenith of ESG investing.
Recycled gold is the pinnacle of ESG.
View of a pre-recycled gold-ore stockpile mined in the 1880's ready to transport and refine to certified 99.95% pure investment grade gold.
$200/oz. at purchase $1,000/oz. at delivery
$1.1 billion of gold is available for sale. $110 million (10%) of which is currently offered as a private placement of 36-month delivery gold forward contracts. The $1,200/oz. forward contract purchase price is comprised of two payments. $200/oz. is due at initial purchase, and a $1,000/oz. recycling fee is due when the certified 99.95% pure investment grade gold is physically delivered or automatically resold for cash (USD).
The $1,000/oz. recycling fee is deducted from automatic resale of gold at delivery, meaning a buyer's total cash commitment is equal to its $200/oz. initial purchase.
Gold purchased via forward contract for $1,200/oz. and delivered fully hedged at $1,800/oz. within 36-months.
99.95% pure investment grade gold is delivered to buyers within 36-months or automatically resold at spot prices in sufficient quantities of gold to yield $1,800/oz.
Partial view of a pre-recycled gold-ore stockpile ready to transport and refine to 99.95% pure investment grade gold.
Liquidity l Gold forward contracts can be immediately resold/assigned without limitation. Additional contract liquidity provided by brokers, dealers, and third-party market makers. While liquidity is an important consideration, one can assume that a self-liquidating 10:1 collateralized 43.1% alpha investment with zero standard deviation of returns would be one of the last assets an investor would sell to satisfy liquidity demands.
Leverage l The $1,000/oz. recycling fee is automatically deducted from gold sales proceeds, meaning buyers have no additional out-of-pocket costs after their original $200/oz. purchase. A $200/oz. investment controls a fully-hedged $1,800/oz. gold delivery yielding a built-in leverage ratio of 9 to 1 ($1,800 / $200).
Management and operations teams comprised of the best the United States has to offer ensure that each Trust's gold-containing ore is optimally recycled and maximum ESG gains are realized. Gold-ore recycling is comprised of three steps: (1) transporting the ore to gold refiners, (2) refining of gold-ore to 99.95% pure gold, and (3) delivery of LBMA certified 1 oz., 100 oz., and 400 oz. 99.95% pure gold ingots and bars to secure, licensed, insured, and bonded vaulting facilities.
Project Scope: 0% Gold Mining, 100% Gold Recycling.
Each Trust's gold-ore recycling operations are managed by leading mining services companies. Industry leaders that have collectively recycled billions of dollars of precious metals and reclaimed hundreds of precious metals mines. In terms of ensuring on-time delivery of each purchaser’s gold there is likely no activity these firms have not performed across hundreds of projects.
Ownership to all 1.2 million tons of pre-recycled gold-ore is held in dedicated Trusts with gold-ore recycling overseen by Trustees from leading trust companies. Each Trustee is supported by a dedicated team of leading third-party investment managers, project managers, back-office administrators, and mining, environmental, commodities, financial, accounting, compliance, and legal advisors. There is likely no administrative, oversight or legal aspect of gold recycling these Trust Management and Operations Teams have not collectively performed dozens, even hundreds of times.
Each Trustee's mission is to ensure each buyer receives on-time delivery of its certified 99.95% pure gold bullion, and 1.2 million tons of gold-ore holdings providing 10:1 collateralization of each buyer's interests is always secure and its value protected.
1. Trusts & Trustees l $1.1 billion ( est. 916,600 oz.) of pre-recycled gold-ore are held in dedicated Trusts, administrated, and protected by Trustees from leading trust companies. Each Trustee is supported by a dedicated team of leading third-party investment managers, project managers, back-office administrators, and mining, environmental, commodities, financial, accounting, compliance, and legal advisors. Trust Management Teams with extensive experience gained in mining law, environmental law, mine reprocessing operations, and mine reclamation. See Management & Operations Team for additional information.
2. Trust Account l 100% of each Trust's gold sales revenue is deposited in an Operating Trust Account, with each disbursement subject to Trustee approval.
3. Project Management l Each Trust's gold recycling operations are managed by leading mining services companies. Industry leaders that have collectively recycled billions of dollars of precious metals and reclaimed hundreds of precious metals mines. In terms of ensuring on-time delivery of each investor’s gold there is likely no activity these firms have not performed across hundreds of projects. See Management & Operations Team for additional information.
4. Appraised Value l By starting with 100% of the gold-ore already exposed on the surface to conduct hundreds of precise measurements of gold concentration and physical size, the value of the gold contained in each stockpile can be determined with maximum accuracy. The market value of 916,600 est. oz. of gold-ore is underwritten and independently valued at the highest standards, where the value of each underlying stockpile of gold-ore is appraised at a 95%+ level of confidence.
5. Recycling Trust Account l The estimated total cost to recycle all 91,600 oz. of finished gold is collectively held by each Trust in dedicated Recycling Trust Accounts, which are separate from the above general Operating Trust Accounts. Each Recycling Trust Account is administered by its respective Trustee to ensure on-time delivery of each buyer’s gold.
6. Audited Results l Each Trust, its Trustee, and its gold recycling operations are independently audited on a monthly basis by leading accounting firms.
7. Collateral l The 91,600 oz. of gold offered for sale is collateralized by 1.2 million tons of pre-recycled gold-ore estimated to contain 916,600 oz. of 99.95% pure gold (10.0 to 1 prospective collateralization ratio) held in Trust.
8. Hedge l The entire $110 million offering is hedged free-of-charge two ways to ensure each buyer's gold is delivered at $1,800/oz.: (1) est. $1.1 billion of pre-recycled gold-ore held in Trust, and (2) exchange-traded options, futures and forward contracts held in Trust. Two independent levels of protection ensure each buyer's gold is delivered at $1,800/oz., thereby locking-in 100% of prospective investment gains Day 1.
9. Performance Bond l Physical delivery of all 91,600 est. oz. of LBMA certified 99.95% pure investment grade gold ($110,000,000 initial offering) is assured with a performance bond guaranteed by a leading financial institution.
Partial view looking to bottom of a pre-recycled gold-ore stockpile ready to transport and refine to certified 99.95% pure investment grade gold.
Assuming automatic resale of gold bullion upon delivery at $1,800/oz.(i), buyer can lock-in a $600/oz. net gain on the initial day of purchase(ii).
36-mo. ROI = 300%(iii)
Annualized return = 48.2%(iv)
Uncorrelated alpha = 43.1%(v)
Investment payback period = 36-mos.(vi)
Standard deviation of returns = Zero(vii)
Correlation with other assets or investments = Zero(viii)
Sharpe Ratio = Infinite(ix)
Sortino Ratio = Infinite(x)
(i) Gold is delivered at the equivalent price of $1,800/oz. For example, if the spot price of gold at delivery declined to $1,500/oz., then gold-ore held in reserve would be drawn down and refined to supply an additional .20 oz. of gold for each oz. of gold delivered ($1,500 x .20 = $300 + $1,500 = $1,800). The 10:1 collateralized gold holdings protect the $1,800/oz. price even if the spot price at delivery were $200/oz. or 89.4% lower. Gold options, futures, and forward contracts provide an extra layer of downside protection. Complete terms of purchase and sale are contained in the Gold Purchase Agreement.
(ii) $1,800/oz. delivery price - $200/oz. initial cash purchase - $1,000/oz. recycling fee = $600/oz. target gain. The $1,000/oz. recycling fee is deducted from automatic resales of gold at delivery (if so elected), meaning a buyer's total cash investment is equal to its $200/oz. initial purchase.
(iii) $600/oz. target gain / $200/oz. total cash investment = 300% ROI fully-hedged over 36-mos.
(iv) 48.2% targeted IRR equals the annualized rate of return. IRR based on a $200 cash outflow and a single $800 cash inflow at the end of 36-mos.
(v) 48.2% annualized return - 5.1% annualized return (IRR) for gold over past 10 yrs. (2010 to 2020) = 43.1% alpha.
(vi) Investment payback period assumes Gold delivered at the end of 36-mos.
(vii) The target 48.2% annualized return is stabilized by 9 layers of built-in volatility protection designed to mitigate systematic and non-systematic risk (see Safeguards for additional information).
(viii) When the standard deviation (SD) of an investment's annual return is equal to zero (beta = 0) there is ipso facto (by definition) zero correlation with any other asset, investment, or micro- or macro-economic variable.
(ix) Sharpe Ratio calculation: (48.2% targeted rate of return - benchmarked 4.125% 1 yr. US Treasury risk-free rate) / 0 standard deviation of returns = infinity.
(x) Sortino Ratio calculation: (48.2 % targeted rate of return - 5.1% 10-yr. annualized return from gold) / 0 standard deviation of downside risks = infinity.
gold ore.
Closeup view of high-value pre-recycled gold-ore mined over a century ago and lying on the surface ever since; 1.2 million est. tons of which are ready to transport and refine to 916,600 est. oz. of certified 99.95% pure investment grade gold.
The Offering l $110 million of pre-recycled gold-containing ore (10% of $1.1 billion in est. total gold-ore holdings) is offered for sale as a private placement of 36-month forward contracts. Gold is purchased for $1,200/oz., a 33.3% discount from the fully hedged $1,800/oz. gold delivery price. $200/oz. is due at initial forward contract purchase and $1,000/oz. is due at gold delivery. Gold forward contracts can be resold/assigned without limitation prior to delivery of physical gold bullion.
Gold is delivered within 36-months. Physical gold bullion can be automatically resold upon delivery to a secure, licensed, insured, and bonded vaulting facility or retained at purchaser's option.
Gold forward contracts are purchased pre-hedged at $1,200/oz. with delivery at a fixed price of $1,800/oz., meaning buyers lock-in a targeted 300% ROI, 180-day payback period, 48.2% annualized return, and 43.1% uncorrelated alpha on day of original purchase.
Gold forward contracts purchased for $1,200/oz. and delivered fully hedged at $1,800/oz. within 36-months.
From dedicated Trusts protecting each purchaser, to unrivaled valuation certainty, to fully hedged gains, to performance bonds guaranteed by leading financial institutions, to Trust administration, project management, and gold recycling operations performed by the nation's leading firms, no stone has been left unturned to mitigate risk, protect gold-ore holdings, lock-in gains, maximize ESG, and ensure delivery of each purchaser's recycled LMBA certified 99.95% pure gold bullion.
Investment Underwriting l A major advantage of each Trust’s self-contained, fully-transparent structure is the ease, speed, and certainty with which gold purchases can be underwritten.
All investment, administrative, and operational tasks from original acquisition of gold-ore holdings to final delivery of gold bullion are 100% self-contained within each Trust. Each Trust is insulated from any form of outside influence or control, allowing Trustees to administrate each Trust in the exclusive best interest of each purchaser.
Investment underwriting is a streamlined, fully transparent process as there are only two entities to consider; one of the nation's leading trust companies serving as Trustee, one of the nation's leading mining services companies as Contract Gold Processor.
Each Trust's Management and Operations Team is comprised of the best the United States has to offer with a reserve of experience so deep there is likely no administrative, legal, project management, or gold recycling task they have collectively not preformed dozens, even hundreds of times.
Independent underwriting of previously mined gold-ore (100% of which is lying exposed on the surface for easy and precise measurement) can typically be performed by qualified geologists and testing laboratories for less than $10,000 within 2 weeks, even if the purchase being underwritten were for $25 million of gold bullion.
The unique combination of 100% self-contained, fully transparent Trusts administrated and operated by the nation's leading experts in gold recycling and fully-exposed gold-containing ore valued at 95%+ accuracy creates the optimal combination of underwriting certainty and speed.
Gold Reservation l The below Gold Reservation is essentially a 30-day non-binding option to purchase gold at $1,200/oz. which is delivered within 36-mos. at $1,800/oz.
Limited Time Opportunity l Once the initial $110 million (10%) of $1.1 billion in total gold-ore holdings have been sold at $1,200/oz., the remaining $990 million (90%) of gold holdings will be refined and sold in the open market at the prevailing spot price.
.