TIDMBNR
RNS Number : 8923Y
Blenheim Natural Resources PLC
11 December 2017
11 December 2017
Blenheim Natural Resources Plc ('Blenheim' or 'the Company')
Strategic Agreement to Develop Commodity Focused
Blockchain-based Platforms
and Investment of US$1.05 million
Blenheim, the AIM-quoted resource investment company, is pleased
to announce that it has entered into a non-binding collaboration
agreement with leading global cyber security and online brand
protection company BrandShield Ltd ("BrandShield") to develop
proprietary blockchain-based platforms that will enable resource
sector focused companies to conduct transactions globally. In
addition, the Company has agreed to invest US$1.05million for a
7.22% stake in BrandShield's ordinary share capital as part of a
total $US1.81m capital raising.
The Board of Blenheim believes that there is a distinct
opportunity to utilise blockchain platforms in the resource sector
particularly in commodity trading and Initial Coin Offerings
('ICOs'). The agreement and investment is part of the Company's
strategy to pursue opportunities in the natural resource sector
that have the potential to add significantly to shareholder
value.
BrandShield is an international technology company originally
backed by Office of the Chief Scientist of Israel's Ministry of
Economy (now renamed The Israel Innovation Authority), with an
R&D center based in Israel. The company's solution is already
used by companies from different industries, including banking,
financial, insurance, software, IT, gaming, fashion,
pharmaceuticals, sports, consumer goods, travel, automotive,
non-for-profits, and more. Among its customer are companies such as
VISA, New-Balance, KTM Sportmotorcycle, Radisson hotels and
Swisscom. It has a deep understanding of web-based platforms and
cyber intelligence through its algorithms and proprietary online
monitoring capabilities and also specialises in protecting
blockchain companies planning ICOs from digital fraud. Utilising
its technology, along with developing its own utility coin,
BrandShield is expanding its solution to the crypto-currency and
blockchain industry, making it well-placed to develop
blockchain-based solutions for the natural resources sector.
Blenheim will utilise its knowledge and expertise within the
resource sector to assist in the development and roll-out of these
solutions.
The Directors believe that the application of blockchain
technology has significant implications across the natural
resources sector; and in particular consider the following three
areas are of particular interest to the natural resources
sector:
-- Trading & Payments - Blockchain technologies are
beginning to disrupt and open energy trading markets. Boundaries
between asset classes are blurring as cash, energy products, and
other commodities become digital assets. One of the advantages of
cryptocurrencies, such as Bitcoin, is the significantly lower costs
associated with cross-border payments, in addition to the instant
transfer, cutting out the need for intermediaries and the time
required for them to validate and clear the funds.
-- Mitigated Risk of Fraud & Disputes - Blockchain-enabled
applications can address issues such as fraud, error and otherwise
compromised transactions to limit credit risk and transaction
capital requirements. By trading physical commodities on a
blockchain solution, commodity traders could benefit from increased
speed of exchange, improved availability of data, and enhanced
reliability and auditability as records are verified in near
real-time. Ultimately, this could result in minimising transaction
backlogs and overall costs.
-- Transparency & Compliance - Blockchain, by design, should
enable greater transparency and efficiency. Sharing digital
blockchain information in joint-operating agreements could reduce,
if not eliminate, the need for reconciliations between companies
and for data hubs controlled by third parties. This could disrupt
the current processes for balloting partners on new projects,
performing joint interest billing, and reporting production
revenue.
In accordance with investment stategy, the Board continues to
look for investments that will provide exposure to rapidly emerging
opportunities within the natural resource space, including
technology applicable to the sector. This investment, which will be
funded from existing cash reserves, follows the recent agreements
providing the Company with exposure to highly prospective
exploration portfolios focussed primarily on technology metals,
including lithium in southern Mali (a rapidly emerging and
potentially globally significant lithium district) and cobalt and
nickel in Cameroon, where the Company has gained exposure to an
extensive land position surrounding the world class Nkamouna and
Mada Cobalt-Nickel Project. By investing in several targeted
opportunities, the Board believes it has a blended portfolio that
provides exposure to potentially transformation opportunities.
Blenheim Director, Charlie Wood, said, "Through this investment
we join a business that has globally scalable IP and Tier 1
exposure with Visa, New-Balance and other world class stakeholders.
Trading and transactional security are becoming ever more critical
and we believe BrandShield, with its deep understanding of
web-based platforms and cyber intelligence, is ideally placed to
develop blockchain based solutions for the natural resources sector
as well as supporting commodity focussed ICOs. We believe that
companies in this sector will benefit from blockchain technology
for a range of applications, from optimising efficiency, to
transparency in business transactions, to securely storing
inventory data on the blockchain. In the last few years, the
industry has struggled with price volatility and production levels,
which has led to cost-cutting efforts, reduced outputs and layoffs.
These challenges have prompted many companies to rethink how they
operate and to identify new ways to optimise supply chain
management and transaction processing. As such, blockchain is
gaining traction and broader acceptance by the commodities sector
for its potential to fundamentally change the way certain
transactions are conducted.
"We are rapidly developing a portfolio of investments, which
provide us with a number of excellent opportunities to build
shareholder value. We have exposure to highly prospective land
positions in recognised mineral districts that we believe, through
investment by their holders, have significant re-rating potential,
which will in turn impact our valuation. For instance, we recently
invested, subject to our next EGM, in Cobalt Blue Holdings giving
us a prospective 49% interest in a company that has land
surrounding the Nkamouna project, reported to have 59.8 million
tonnes (Mt) grading an average of 0.24% cobalt, 0.68% nickel and
1.37% manganese classified as Measured Mineral Resources with an
additional 60.8 Mt grading an average of 0.22% cobalt, 0.62% nickel
and 1.32% manganese classified as Indicated Mineral Resources,
highlighting the prospectivity of the region. We are excited about
the potential of our investments and look forward to updating
shareholders as we now move from acquisition to development phase
across current portfolio.
Transaction Structure
Blenheim has entered into a Share Purchase Agreement with
BrandShield, a company duly incorporated under the laws of the
State of Israel, to participate in a share placement of new shares
to raise $US1,815,000. On closing of the placing, the share capital
of BrandShield will be 244,350 fully diluted shares. Blenheim has
invested $1,049,987 for a shareholding of 17,635 shares
representing 7.22% of the BrandShield fully diluted equity.
Blenheim has also entered into a non-binding collaboration
agreement with BrandShield, to reflect their mutual intention to
share industry experience and financial and technological resources
with the intent to develop blockchain-based platforms that will
enable resources sector based companies globally to conduct
transactions.
BrandShield is a technology company that provides organizations
a powerful solution to manage and protect IP and brands online.
BrandShield's technology protects brands from fraud, counterfeits,
trademark infringements and other brand abuse activities in many
platforms: websites, marketplaces, mobile apps, social media and
PPC ads. Originally backed by Office of the Chief Scientist of
Israel's Ministry of Economy (now renamed The Israel Innovation
Authority) and with an R&D Center based in Israel, the company
is committed to a continuous development of a solution that meets
the needs of all sizes of entities - from small companies to large
enterprises. As part of its development BrandShield is expanding
its solution to the crypto-currency and Blockchain industry, and as
part of that process is gaining a unique know-how in the industry.
Consequently, BrandShield's understanding of web-based platforms
and cyber intelligence makes it well placed to develop Blockchain
based solutions for the natural resources sector. BrandShield had a
loss before tax of NIS 1.763 million for the 12 months to 31
December 2016 (a loss before tax of NIS1.131 million in 6 months to
30 June 2017). (Note current exchange rate is 1 NIS : GBP0.21). As
at 30 June 2017 its net asset value was NIS 5.424 million. With the
current $US1.81m funding round the business will be transitioning
from its development phase to full global product launch and
expansion into the crypto-currency and blockchain industry.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
**Ends**
For further information please visit
www.blenheimnaturalresources.com or contact:
Chris Ells/Charlie Wood Blenheim Natural Resources Plc +44 (0)1622 844601
Spark Advisory Partners Limited
Neil Baldwin/Mark Brady (Nominated Adviser) +44(0)203 368 3554
Nick Emerson SI Capital Ltd (Broker) +44 (0)1483 413500
Notes to Editors
Blenheim Natural Resources Plc (AIM: BNR) is an investment
company quoted on AIM, with a strategy focused on identifying and
investing in opportunities in mineral exploration and mining, as
well as technology associated with the natural resources
sector.
BrandShield is a global leading online brand protection and
anti-fraud company with a portfolio of multi-nationals including
Visa, New Balance, KTM Sportmotorcycle, Radisson hotels and
Swisscom. Its technology protects brands from fraud, counterfeits,
trademark infringements and other brand abuse activities in many
platforms: websites, marketplaces, mobile apps, social media and
PPC ads. Originally backed by Office of the Chief Scientist of
Israel's Ministry of Economy (now renamed The Israel Innovation
Authority) and with an R&D centre based in Israel, BrandShield
is expanding its solution to the crypto-currency and blockchain
industry.
Blockchain - a single source of truth for shared information,
such as financial transaction data (e.g., a quantity of bitcoins),
legal contracts, deeds of ownership, and identity documentation.
The information is recorded on a ledger that is distributed across
every node (i.e., computer) in a network on the internet, and is
structured and encrypted in such a way that it cannot be altered
without agreement by a majority of the nodes in a network (which
automatically and simultaneously check the change against the
ledger). Any change, such as a payment from person A's bitcoin
wallet to person B's bitcoin wallet, must be requested by the owner
of the data (person A in this case), using a combination of private
and public keys that validate the identity and legality of the
transaction. The greater the number of nodes in a network, the more
secure it is, since any attempt at fraud would require the
corruption of the same chain in every node in a network
simultaneously during the few seconds that the blockchain is
processing a change. This process directly addresses the underlying
issue of trust in society and business that creates the need for
third-party validation (e.g., by banks or lawyers), since the
network itself validates the change.
When new information is added into the blockchain, a new block
is created that is linked to the previous block (containing a
related transaction or contract) and, therefore, the historic data
remains in the chain and an audit trail exists. As an example, in a
relatively simple transaction such as buying a house, the seller
currently would instruct lawyers to draw up the paperwork, terms
are agreed upon, contracts are physically signed by both parties,
proof of payment is provided, and the lawyers then arrange for the
transfer of the title deed. Using blockchain, the seller could send
the buyer the contract containing the digital certificate of
ownership for the house in the blockchain. Once the buyer completes
the terms of the contract by sending the payment, the contract is
automatically completed, and the digital certificate of ownership
is transferred to the buyer. The nodes in the blockchain validate
the transaction and simultaneously update the ledger. In this way,
the updated ownership can be verified on any node. The transaction
is completed quickly, without the need for third-party verification
of signatures and payment, and the history of ownership remains in
one secure and indisputable place-the blockchain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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