Vancouver, British Columbia ––– iMining Technologies Inc. (TSXV: IMIN) (the “Company” or “iMining“) is pleased to announce that it has entered into a letter of intent dated August 16, 2021 (the “LOI”) with 2860336 Ontario Inc. (the “Seller”), to acquire three validators which are securing the Ethereum Proof-of-Stake blockchain (the “Acquisition”). These three validators, together include 102.184 Ethereum tokens, valued at $462,500 (at the time of acquisition) which iMining will acquire in consideration of issuing 2,500,000 shares.
The Ethereum blockchain is transitioning from a Proof-of-Work (physical machines) mining to a Proof-of-Stake (cloud-based) mining, called staking, whereby an investor is required to deposit 32 Ethereum into the Eth2.0 deposit contract to setup a validator. Each validator is then required to attest transactions for which the Ethereum blockchain pays rewards to the validator. To date, more than CAD $28 billion have been staked to secure the Ethereum Proof-of-Stake blockchain. Currently, the Ethereum blockchain is rewarding approximately 5.9% return in Ethereum to all validators active on the Proof-of-Stake chain.
“The acquisition of these validators will bring immediate and future benefits to iMining while contributing to the security of the Ethereum Proof-of-Stake blockchain,” stated Gary Arca, CFO of iMining.
The Acquisition allows iMining to purchase 102.184 Ethereum, which are already staked on the Eth2.0 deposit contract and earning a reward for attesting transactions, without using its cash reserves to acquire the Ethereum, or paying fees charged by various exchanges or over-the-counter service providers.
The validators are currently running at 100% efficiency and have had no penalties or slashing against them. As the current wait time can be up to ten business days to activate a validator, iMining will have no delays since it is purchasing validators which are already active.
Conditions for Closing
The LOI provides that closing of the Acquisition is subject to several conditions including, among other things: (i) receipt of all regulatory approvals, including the TSX Venture Exchange; and (ii) requisite corporate approval of the various transactions contemplated by the Acquisition, from the directors and shareholders of iMining and the Seller, as applicable and required.
The acquisition of the three validators can be considered a “related party transaction” in that the Seller is controlled by the Company’s President & CEO. The Company expects to rely on the exemptions in MI 61-101 as to the requirements for a formal valuation and shareholders’ approval pursuant to sections 5.5(a) and 5.7(1)(a) respectively (the fair market value being less than 25% of the Company’s market capitalization).
About iMining Technologies Inc.
iMining Technologies Inc. is a growth oriented, TSXV listed company, focused on linking traditional capital markets with blockchain investment opportunities. Through its wholly owned subsidiaries, the company provides retail and institutional investors a safe and secure way to stake, mine and exchange digital assets using proprietary and secure solutions. We are driven by our core values to operate with transparency, efficiency, and sustainability as we work toward building long-term shareholder value.
ON BEHALF OF THE BOARD
Signed “Saleem Moosa”
Saleem Moosa, Director
FOR FURTHER INFORMATION, please contact:
iMining Corporate Offices:
Robert Eadie, Director
Telephone: 1-604-602-4935 t Facsimile: 1-604-602-4936
Toll Free: 1-866-602-4935
Evan Eadie, Corporate Development
Telephone: (604) 602-4935 ext. 203
Toll Free: 1-866-602-4935
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking statements, which relate to future events or future performance, and reflect management’s current expectations and assumptions, and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of activities, future cryptocurrency prices, operating risks, and other risks in the cryptocurrency industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.