Aurum Asset Management’s CEO, Mateen Sal Khalid, has been leading talks with Centcorp, a major player in the gold mining industry, regarding the establishment of a strategic partnership between the two organizations. It is understood that talks between both parties are in the final stages and both sides will formally announce the establishment of a strategic partnership in the next few days.
Mateen Sal Khalid, CEO of Aurum Asset Management, stated that “Aurum Asset Management and Centcorp will be able to complement each other and as such establishing a strategic partnership with Centcorp is one of the best options to ensuring our continued growth.”
Centcorp’s core business is the provision of one-stop technical solutions for the development of new or existing mineral projects. Services provided include, engineering and design, professional advisory and operational management.
Centcorp management’s attitude regarding the establishment of a strategic partnership with Aurum Asset Management has been extremely positive. According to industry sources, Centcorp’s executives firmly believe that both parties would be able to realize significant synergies through the strategic partnership with Aurum Asset Management.
According to industry analysts, the global economic uncertainty over the past two years, due to the trade war between the United States and China, has led to rising gold prices, which is expected to surge to a record $2,000 per ounce. As a result, more and more gold producers are seeking strategic partnerships or mergers with each other in order to expand production.
Significant mergers and acquisitions in the gold mining industry in recent years include the acquisition of Randgold Resources Ltd. By Canada-based Barrick Gold and the acquisition of Goldcorp by its rival, US-based Newmont Mining for $10 billion.
Centcorp’s innovation in metal recovery would greatly reduce production cost. In addition, the RYCAN approach adopted by Centcorp would reduce the use of cyanide in gold mining by 50%, enabling a more environmentally friendly approach toward gold recovery. This technology conforms to recent global as well as regulatory trend towards greater environmental protection.
Aurum Asset Management has been strongly committed to the development of blockchain-based security tokens, issuing two security tokens, namely the Open Aurum (OA) Token and the Stable Gold (SG) Token. These two digital assets are backed by physical gold assets and as such, fully integrate digital and physical gold assets, which allows Aurum Asset Management to be more focused on expanding the scale of its gold mining operations. As the first token that represents equity in gold mines, the strategic partnership between Aurum Asset Management and Centcorp will have a positive effect on the market value of the Open Aurum Token.
Senior figures within Aurum Asset Management further noted that this partnership would further expand on the company’s size, scale, and scope of operations within the gold mining sector. He said that through this strategic partnership, Aurum Asset Management would be able to achieve its key strategies for enterprise growth and further development.