24th Jul 2025 07:02
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
24 July 2025
Nativo Resources Plc
("Nativo" or the "Company")
Digital Asset Treasury Policy
Nativo Resources plc (LON:NTVO), a gold-focused mining company with interests in Peru, is pleased to announce the adoption of a Digital Asset Treasury Policy to enhance its approach to capital allocation and balance sheet management.
As Nativo prepares to restart gold mining operations at the Tesoro Gold Concession, the Board has reviewed its treasury policy. Going forward, subject to working capital requirements, a portion of any free cash flow from mining and processing activities and a proportion of the proceeds of any future fundraises, may be allocated to Bitcoin, which will be held as a long-term treasury reserve asset.
The Board believes that exposure to both gold and Bitcoin offers shareholders a unique, diversified hedge against inflation. Bitcoin's fixed supply, decentralised nature, and low correlation with traditional assets position it as a compelling complement to gold, which serves as a reliable store of value. In addition, the Company sees potential to use Bitcoin to accept/make payments to/from counterparties, enhancing financial flexibility.
It should be noted that a growing number of publicly listed companies have adopted digital asset focused treasury strategies, and this has sometimes resulted in significant volatility in their share price and a dislocation between their market capitalisation and the underlying value of their assets.
While the Board recognises that an acquisition of Bitcoin may provide diversification benefits, it also acknowledges the inherent risks associated with such an asset. Bitcoin is highly volatile and speculative, with significant price fluctuations. The exposure to digital assets may compound and increase volatility in the Company's share price, potentially diminishing its appeal to investors and constraining its ability to raise additional capital in public markets.
In addition, the regulatory environment for digital assets remains uncertain and subject to change, which may impact the Company's ability to hold or transact in Bitcoin. There are also risks associated with custody, security, and accounting treatment of digital assets, any of which could have a material adverse effect on the Company's operations and investor returns.
Nativo's Digital Asset Treasury Policy would be facilitated through a proposed strategic partnership with Copper.co., a leading provider of institutional-grade custody and collateral management services for digital assets, including cryptocurrencies. Copper.co is in the process of onboarding Nativo and is expected to provide storage, management, and settlement services for digital assets to be held in the Company's treasury. Nemean Services, which provides digital asset security and recovery services and works with Copper.co, is expected to provide third-party security services.
Nativo is moving forward with its plans to establish sustainable gold production in Peru. The strategy is based on three core activities: primary gold mining, gold ore processing, and the recovery of gold from tailings. The Company has already acquired or optioned several projects for development and has identified additional opportunities to scale its operations over the next 12 months.
The Company will maintain a prudent and transparent approach to digital asset management. This policy is intended to be implemented using the Company's proprietary capital in support of its operating business and does not involve the pooling of third-party funds or the operation of a collective investment undertaking.
Christian Yates, Executive Chair of Nativo, commented:
"Nativo is, first and foremost, a mining company. However, in today's evolving financial landscape, exposure to both gold and Bitcoin allows us to future-proof our treasury. With concerns mounting around fiat currency depreciation, rising global debt, and inflation, we believe Bitcoin and gold will continue to strengthen as inflation hedges.
Through our partnerships with Copper.co and Nemean Services, we're implementing a secure and prudent approach to managing digital assets, designed to deliver long-term value to shareholders."
For further information please contact:
Nativo Resources Stephen Birrell, Chief Executive Officer | Via Vigo Consulting |
Zeus Capital (Nominated Adviser and Joint Broker) James Joyce James Bavister |
Tel: +44 (0)20 3829 5000 |
Peterhouse Capital limited (Joint Broker) Duncan Vasey Lucy WilliamsRose Greensmith | Tel: +44 (0)20 7469 0930 |
Vigo Consulting (Investor Relations) Ben Simons Peter JacobAnna Sutton | Tel: +44 (0)20 7390 0234 |
About Nativo Resources plc
Nativo has interests in gold projects in Peru. The Company's strategy is based on three core activities: primary gold mining, gold ore processing, and the recovery of gold from tailings. The Company has already acquired or optioned several projects for development and has identified additional opportunities for expansion. Nativo's nearest-term objective is to scale operations on the Tesoro Gold Concession, focusing on the Bonanza and Morrocota mines. Nativo intends to allocate portions of free cash flow from mining and processing activities and future fundraises to Bitcoin purchases, and to hold Bitcoin as a long-term treasury reserve asset.
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