Issuance → line → production → gold output → payout and redemption. Funds never leave the line.
Financing Logic
CREC MATERIAL CO S.A.S is the Colombian operating entity (NIT 901049019-1, Cali). This page focuses on the logic, structure and build-out path of this round; its existing operations and the relationship boundary with this project are on the "Mine & CREC" page.
Why raise this round
| Reason | Detail |
|---|---|
| Capacity is full | Existing lines run at capacity; new orders cannot be absorbed. Expansion is the only path to incremental demand. |
| Earmarked funding covers the one-off capex | Equipment and installation for one line require 1,000,000 USD up front; earmarked proceeds start construction immediately instead of waiting for internal accumulation. |
| Process and ore source are proven, expansion is repeatable | The new line reuses the existing process and the same ore source; output is derived from actual operating data, with no new reserves or exploration results involved. |
| Per-line accounting keeps it clean | Each 1,000,000 USD maps to one line, accounted and allocated separately, avoiding any mix with existing operations. |
Metal-stream financing framework
This round follows the same structural logic as streaming models such as Wheaton Precious Metals and Franco-Nevada: the investor provides an upfront consideration and receives a delivery right to gold produced by the target line over a defined period — not equity or debt in the mine.
Asset portfolio
The "line" is the smallest unit (each 1,000,000 USD maps to one), accounted and allocated separately, with a clear boundary from CREC’s existing business.
Cash-flow model
Redemption and distribution are funded by that line’s monthly production settlement; the value of the XAUg right is anchored to the line’s gold-equivalent output and operating cash flow, not secondary-market price.
Prepay & delivery
The investor prepays at subscription; the delivery right accrues by agreed ratio and settles at maturity in LBMA-standard gold or equivalent, per the formal agreement.
Build-out path
Raise closed
A full 1,000,000 USD is committed; the line is formally approved.
Build & commission
Equipment procurement, installation, integrated commissioning; capacity derived from measured existing-line data.
Production
The line starts producing; output and gold-equivalent settlement form monthly.
Operating period
19 months of actual production; payout pool accrues monthly, the balance goes to redemption and capital recovery.
Maturity
Term ends; participants elect redemption, extension or transfer.
Key timing
| Item | Basis | Note |
|---|---|---|
| Build & commissioning | 5 months | No output and no payout accrual during this period |
| Term | 24 months | From close of the raise |
| Actual production | 19 months | 24-month term less the 5-month build |
| Projection basis | 19 months | All projections use 19 production months, not the full 24 — a conservative basis |