Program Structure
A procedural explanation of how the Commercial Gold Offtake Program functions, from subscription through delivery.
The Commercial Gold Offtake Program operates through a structured lifecycle that governs the relationship between subscribers and the program operator. This section details the procedural framework from initial subscription through final delivery, including the corporate hierarchy that supports program administration and the distinct phases that define each counterparty's journey.
Four-phase lifecycle: Subscription, Holding, Settlement, and Delivery
Corporate hierarchy with Digix Inc. as program administrator
Token-based entitlement tracking (GOLDN_OT to GOLDN_SET)
LBMA Good Delivery standard for all physical gold
This section provides an overview of the program lifecycle. All terms and conditions are governed by the definitive program documentation.
Program Lifecycle
Key Principles
No Interest or Dividends:
Entitlements do not bear interest, dividends, or any periodic financial return during the holding period.
Not a Financial Instrument:
Units represent forward delivery rights only, not securities, investment contracts, or financial instruments.
Delivery Contingent:
Physical delivery is contingent upon satisfaction of all program conditions and Stage 2 payment.
LBMA Standard:
All gold delivered meets London Bullion Market Association Good Delivery standards.
Stage 1: Subscription (GOLDN_OT)
Qualified counterparties subscribe by executing program documentation and remitting Deposit of $0.0125 per token ($250 per troy ounce, minimum 200 oz / $50,000). Upon subscription, GOLDN_OT tokens are issued to either the wallet provided by GoldnDigital or purchaser's wallet, upon KYC approval.
Entitlement Holding Period
During this period, subscribers hold GOLDN_OT tokens representing pre-paid offtake rights. These represent forward entitlements to physical gold delivery, not equity or investment interests.
Reserve-to-Vault Process
Gold is mined from Digix Reyes Mining concessions in Bolivia, processed, refined to LBMA standard, and transferred to accredited vaults. Token collateral will be progressively enhanced as refined gold is delivered into secured vault storage.
Delivery Notification
Following completion of the targeted production of approximately 8,000 ounces of refined gold and verification of program readiness, Digix shall provide written notice to eligible subscribers, thereby commencing the settlement and delivery process.
Stage 2: Settlement (GOLDN_SET)
Subscribers remit Deferred Payment ($0.05775 per token / $1,155 per oz). GOLDN_OT tokens are burned and GOLDN_SET tokens minted. Holder elects physical delivery or vault allocation.
Mining Economics & Strategic Pricing
The GOLDN offtake price of $1,405/oz is strategically positioned below prevailing spot prices. This is made possible by the Company's vertically integrated placer mining operations in Bolivia, where all-in extraction costs range from $350–$400 per troy ounce. The 8,000 oz tokenized offering represents the initial production tranche, designed to fund mine modernization and equipment acquisition. The Company retains access to an estimated 800,000–1,200,000 oz of additional reserves across its six concessions, which will be extracted at the same low cost basis following delivery of the initial offtake quantity.
Community Partnership Model
Mining operations are conducted through cooperative partnership agreements with local Bolivian mining cooperatives. Under this structure, 25% of production value is allocated to the cooperative partners, with 75% retained by Digix Reyes Mining S.A. This model ensures alignment with Bolivian mining regulations, maintains strong community relationships, and provides operational stability through local workforce integration — approximately 35 workers per mine site operating in double shifts.
Bolivia: Strategic Jurisdiction
Bolivia was selected as the production jurisdiction based on three factors: (1) critical minerals are central to national economic policy, with the government actively encouraging domestic gold production to strengthen currency reserves; (2) favorable pricing and contractual structures available for co-operative mining agreements; and (3) access to a seasoned local team of 40–50 mining professionals with 15–20 years of operational experience in the La Paz gold region.
Concession History
The six concessions were previously artisanally mined by local cooperatives for 20–30 years. GOLDN's modernization program introduces commercial-scale equipment and processing capabilities to these established gold-bearing sites, transforming subsistence-level operations into structured, auditable production.
Government & Regulatory Alignment
The Bolivian government maintains a structured relationship with mining operators: for each doré bar exported, the operator sells one bar to the government at a modest discount to spot price, supporting national currency reserves. Recent political developments have moved toward more mining-friendly policies, including the appointment of a new Minister of Mines focused on institutionalizing the sector. This alignment provides operational stability and regulatory support for GOLDN's concessions.
Why Major Mining Companies Don't Operate Here
These concessions are controlled through cooperative agreements with local village communities — structures that are impractical for major mining companies. Co-op contracts are capped at 10 years, negotiations occur at the village level with local stakeholders, and the concessions are not structured as conventional mining properties. This creates a market gap that GOLDN's partnership model is uniquely positioned to fill.
Program Administration
Operated by Digix Holding Inc., a Panamanian company
Administered through Digix Master Series LLC (Delaware)
Production through Digix Reyes Mining S.A. operating concessions in Bolivia
This interface provides disclosure and program overview only
Mining Operations
Gold production is sourced from six Digix Reyes Mining S.A.–controlled concessions in the La Paz region of Bolivia, utilizing placer mining techniques with on-site smelting capabilities.
Mining Method
Placer mining (alluvial gold extraction)
Estimated Reserves
800,000–1,200,000 troy ounces across six concessions
Extraction Cost
$350–$400 per troy ounce (all-in)
Concession Area
Approximately 9,758 acres
~35 workers per mine, double shifts
On-Site Processing
Smelting performed on-site; doré bars produced for refinery export
Refinery Partner
Metalor Technologies SA (LBMA 99.999% International Standard)
Key Equipment
Excavators for overburden removal and material handling
Howell trucks for material transport
Macon SD350 wash plant for gold recovery
Gold Zoom 20 concentrator with integrated smelter
4–8 grams per tonne, up to 12 g/t in high-grade zones
Pay Zone Depth
3–5 metres (sweet spot for placer extraction)
Operator Compensation
$1,200–$1,400 per month per operator
Geological Validation
Reserve estimates are based on remote geophysical radar analysis, satellite imaging, and systematic trenching and sampling programs conducted across all six concessions. These methods provide converging datasets that underpin the estimated 800,000–1,200,000 troy ounce resource base.