SourceEnergy’s onboarding of partners with responsible mining assets ensures that all collaborations align with the principles of the Wealth Ecology Model, promoting environmental stewardship, social responsibility, and corporate governance. In addition to adhering to comprehensive sustainability standards, it is crucial to establish a clear process for the valuation of assets to maintain transparency and accountability in the Digital Mineral Asset Platform (DMAP).

1. Certification and Compliance

• 43101 or Equivalent: Partners must submit an updated National Instrument 43-101 (NI 43-101) report or its global equivalent to verify the quantity and quality of mineral reserves and resources.
• Environmental and Social Governance (ESG) Certifications: Documentation proving compliance with recognized ESG standards and practices.

2. Sustainable and Ethical Mining Practices

• Sustainability Report: An annual sustainability report that details the environmental practices and metrics of the partner.
• Community Engagement: Demonstrable evidence of beneficial engagement with local communities, including any social impact assessments conducted.

3. Corporate and Financial Governance

• Ethical Conduct Documentation: A robust code of conduct with specific policies on anti-corruption, anti-bribery, and ethical business practices.
• Financial Health: Recent audited financial statements to evaluate the economic stability and potential risks associated with the mining operations.

4. Legal and Regulatory Compliance

• Compliance Documentation: Proof of compliance with all relevant local and international mining laws and regulations.
• Licenses and Permits: Copies of all current mining licenses and operational permits.

5. Technological Integration and Data Security

• Technology Assessment: Evaluation of technological readiness for integration with DMAP’s blockchain and digital infrastructure.
• Data Protection Protocols: Description of cybersecurity measures and data protection strategies employed by the mining partner.

Asset Valuation Process

SourceEnergy’s asset valuation process is a critical component of the onboarding procedure, ensuring that the digital representation of mineral assets on DMAP reflects their true economic worth.

A. Asset Appraisal

• Initial Valuation: Conducted through an independent assessment using the latest mineral prices, projected extraction costs, and the discounted cash flow method to estimate the present value of future net revenues.
• Resource Verification: Validation of the mineral reserve quantities and qualities as reported in the NI 43-101 or equivalent document.

B. Regular Re-evaluations

• Periodic Reviews: Scheduled re-assessments of asset values based on market conditions, new extraction technologies, and changes in regulatory landscapes to maintain asset accuracy on DMAP.
• Impact of ESG Factors: Adjustments in valuation reflecting the impact of the partner’s ESG practices on operational efficiency and corporate reputation.

C. Reporting and Transparency

• Transparent Reporting: All valuation methodologies and adjustments must be clearly documented and made accessible to stakeholders through DMAP to ensure transparency.
• Stakeholder Engagement: Regular updates and consultations with stakeholders to address any concerns and provide clarity on valuation processes.

D. Integration with DMAP

• Digital Asset Creation: Conversion of valued mineral assets into digital tokens, each representing a share of the physical asset, based on the validated valuation.
• Blockchain Recording: Secure recording of all asset valuations and re-valuations on the blockchain to ensure immutability and traceability.

Conclusion

The onboarding requirements for partners with responsible mining assets and the detailed asset valuation process are designed to ensure that all partners and assets within SourceEnergy’s DMAP are credible, sustainable, and aligned with the overarching principles of the Wealth Ecology Model. This rigorous approach not only upholds the integrity and transparency of the digital asset platform but also ensures that it operates as a robust, trusted ecosystem for managing and trading mineral assets.

SourceEnergy Group R&D