ZETA GOLD COIN White Paper - ZETA GOLD COIN - Zeta Group Holdings
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ZETA GOLD COIN ZETA GOLD COIN White Paper Private & Confidential
ZETA GOLD COIN ii
Private & Confidential
Contents
Definitions .............................................................................................................................................. 2
Zeta Gold Coin Overview ............................................................................................................ 4
Estimated Mining Valuation . ..................................................................................................... 7
Exploration Activities ..................................................................................................................... 8
Risks ........................................................................................................................................................ 12
Project Information . ..................................................................................................................... 14
Directors ............................................................................................................................................... 18
Board Adviser ................................................................................................................................... 19
Initial Exchange Offering .......................................................................................................... 20
Tokensale Information . .............................................................................................................. 20
Gold Storage ..................................................................................................................................... 21
Subscriptions and Redemptions ........................................................................................ 22
Gold Price Forecast 2020 ......................................................................................................... 23
Long-Term Gold Target . ............................................................................................................ 24
Details of Main Parties ............................................................................................................... 25
Disclaimer ........................................................................................................................................... 26
1
ZETA
GOLD
COIN
Definitions
For the purposes of this Whitepaper, the following expressions have
the following meanings:
Company means ZETA GROUP GOLD INVESTMENT COMPANY.
Cayman Islands means the British Overseas Territory of the Cayman Islands.
Coinholder means a person who is registered on the Exmarkets
Exchange as the holder of a participating coin.
DCSX means the Dutch Caribbean Securities Exchange.
Directors means the Directors for the time being of the Company.
Due Diligence means the work carried out by the Directors to ensure the
validity of the Company’s assets such that the ownership
of the claim tenures are duly recognised and licensed in
Canada, the physical gold stored at the SGPMX and the
basket of crypto currencies such as Bitcoin & Ethereum.
Eligible Investor means those persons who are eligible to hold coins,
subject to KYC and AML practices.
Exmarkets means a primary crypto exchange registered in the British
Virgin Islands (“BVI”) since 2018.
Free Miner Certificate means the certificate issued by the Canadian Government
to show the named persons entitlement and ownership of
the right to exploit registered claim tenures.
Gold Bearing Channel means the gold bearing paleochannel as confirmed
in the “Alice Creek Placer – Gold Exploration Project”
commissioned by Mr Alex Loo and prepared by Mr Daniel
Cardinal, P, Geo., F.G.A.C. Professional Geoscientist –
British Columbia, referred to as the “Cardinal Channel”.
IEO Initial Offer Price means the launch price in US Dollars for each participating
Coin
2Private & Confidential
Investment Manager means Zeta Group Holdings Ltd the firm or corporation
appointed, and from time to time acting, as investment
manager of the Company. The Principal of the Investment
Manager is Mr Paul Edward Morton who is also a Director of
the Company as detailed in this PPM.
Mary Creek Zeta 1, 2 & 3 means the claim tenure mineral titles collectively known as
MaryCreekZeta (“MCZ”) and registered under under Free Miner
Certificate number 258168 with the Government of Canada.
Management Agreement means the agreement by which the Company has appointed
the Investment Manager to manage the Company’s
investments in relation to the Company.
NI 43-101 means a national instrument for the standards of disclosure
for mineral projects within Canada. The instrument is
a codified set of rules and guidelines for reporting and
displaying information related to mineral properties owned
by, or explored by, companies which report their results on
recognised stock exchanges.
Offering means the offer of the coin being made on the terms of this
Whitepaper (as such may be amended from time to time).
Quarter means the quarters of the financial year ending on the last
day of March, June, September and December respectively.
Quoted Price means the price of the participating coin as quoted from time
to time on Exmarkets or any other recognised exchange.
Registration means the registration agreement and policies as
determined by Exmarkets to open an account.
US dollars, US$ and cent means the currency of the United States of America.
ZGC means the Zeta Gold Coin
3ZETA GOLD COIN Zeta Gold Coin Overview Zeta Gold Coin, a unique product in the multi-faceted Blockchain space where each coin is made up of four constituent parts; 10 grams (10g) physical 999.99 gold bullion secured and stored at the SGPMX vault, 0.008 of a Bitcoin the leading Cryptocurrency, 0.2 of Ethereum and the upside from Zeta Group Gold Investment Company’s gold exploration activities in Canada, the world’s #5 gold producing country and at the present time, backed by 30.65 km2 of gold claim properties with gold reserves currently valued at US$525 per coin. Zeta Group Gold Investment Company is a company incorporated solely for the purpose of exploiting and monetising proven gold reserves in the Cariboo Gold Fields of British Columbia, Canada. Zeta Group Gold Investment Company (the “Company”) is a private company limited by shares and incorporated in the Cayman Islands. The Company shares have a technical listing on the Dutch Caribbean Stock Exchange (“DCSX”) – Curaçao – under the International Securities Identification Number (“ISIN”) KYG9895Y1070 and cleared/settled through ‘Fundsettle’ a division of Euroclear. The objective of the Company is to exploit alluvial and mineral mining rights of its 30.65 km2 together with Alice Creek (13.78 km2) along the recently discovered Gold Bearing Channel (“GBC”) in British Columbia, Canada, North America. The Company has outsourced investment management to Zeta Group Holdings Ltd (“Zeta Holdings”), a company incorporated in the Seychelles. Zeta Holdings is owned and managed by Paul E Morton, one of the founders of the Group while David Hirst, the other founder of the Group and Paul E Morton own all non- participating voting shares of the Company. The Company itself is managed by a Board of Directors comprising: David Hirst and Paul E Morton, together with a Board adviser Mr Stephen Hogg. The Board will supervise the investment manager, review/supervise all mining outsourcing and activities, if applicable, and ensure the monetisation of the mining rights and gold resources. 4
Private & Confidential
Gold Mining in Canada
With over 5 years of geophysical and geotechnical analysis, the Company is now in the
position to fully monetize the gold reserves within its claim tenure footprint. The claims are
situated in the gold rich fields of the Cariboo region of British Columbia, Canada. Through
the application of drill holes, test pits and geological work carried out over the last 4-5
years, there is an estimated c.286,000 ozt of gold per 1.55 km2.
Through the application of capital secured through the coin IEO the Company is planning to
dual list / IPO. This funding will significantly enhance the value of the Company’s assets.
The Company has adopted a valuation of US$110 per ozt as mandated by the Toronto
Stock Exchange for unmined, unproven gold reserves. This produces an estimated
valuation of c.US$290 million.
The Company has minimized its exposure to risk through extensive geological analysis.
The proving of gold reserves through formal geological reports (NI 43-101)* does not
necessitate a full scale mining operation, which would be both time consuming and
expensive. However, the impact of obtaining the formal NI 43-101 report would increase
significantly the valuation of the gold reserves from US$110 per ozt which the Company is
currently adopting for unmined, unproven reserves.
All In Sustaining Costs (“AISC”)
This example using an average realised gold price of
$1,672 *
US$1,672 per ozt of All In Sustaining Costs (“AISC”)
from Newmont Goldcorp, one of the world’s leading
THE DIFFERENCE
metals & mining companies, shows that if you deduct BETWEEN THE ALL-IN COST
AND MARKET PRICE IS
GOLDCORP’S MARGIN
the ‘General & Administration costs of US$105 then
the resultant figure shows the gold production cost of
$874
US$769 per ozt. $105 General & administrative costs
$23 Exploration costs
$7 Other
9% Maintenance
Zeta Group Gold Investment Company is currently 16% Consumables
17% Energy
using a valuation of US$110 per ozt for unmined,
17% Labour
$300
OPERATING
COSTS 20% Other
unproven reserves. Therefore, once a NI 43-101 has
Disclosing sustaining capital costs
been conducted on selected claims, the Company provides greater transparency about the
true cost of producing an ounce of gold.
Again in 2012, Goldcorp maintained the
can then use the spot price of gold less the AISC of
lowest all-in costs among our peers.
$439
SUSTAINING
CAPITAL
EXPENDITURES
c.US$769 as mentioned above to value its reserves; MARKET PRICE
*2012 average realised
ALL-IN
(SUSTAINING)
gold price per ounce CASH COSTS
this results in a very significant increase to value.
*The NI 43-101 officially serves as the Canadian Government qualified audit of resources
and as such is legally binding and accepted by global stock exchanges
5ZETA GOLD COIN Zeta Gold Coin Overview continued Canada is the 5th largest producer of Gold globally (source: World Gold Council, US global Investors). Boasting a stable political, legal and economic system Canada is one of the top ranked countries globally for investment and recognized as one of the most attractive countries in which to invest in Gold Mining. The Cariboo Gold belt located in south British Columbia, Canada, has long been established and remains a world class gold production region. Participating in the exclusive geological expansion of gold bearing properties, the Coinholder will benefit from the mining rights, contracts and valuation based reserves. The Company works with specialist geologists and survey experts, among which world renowned SRK are recognized as global leaders in the field. The Company’s model is based on exploration, proving reserves, enhancing valuation. The geologist teams will be conducting extensive work and produce surveying, sampling, geological reports and all other technical due diligence that is necessary to verify the presence, location and quantum of gold and mineral resources. SRK Consulting is the world leader in its field, with a team of multidisciplinary specialists that provide a comprehensive, integrated approach to viability studies (including scoping, feasibility and prefeasibility), due diligence reviews, economic evaluations and risk assessments. Mining companies must satisfy environmental regulations and address community expectations at all stages of the mining life cycle. Our specialist providers comply with internationally recognized practices and reporting requirements and independent technical reports produced for worldwide stock exchanges, banks and private investors. 6
Private & Confidential
Estimated Mining Valuation
[Casey Research Industrial Average [911 Metalurgist
from US$30/oz to US$160/oz] between 5%-10%]
Name of P&P Gold Conversion Estimated Value Gold in @ US$50/oz (au) @ US$100/oz (au) @ 7.5% SPOT gold
Property in Ground Factor Resource Property asset disposal asset disposal asset disposal
(oz) (P&P → Actual (oz) @ US$1,750/oz value value value
Extraction) (US$ 1,750/oz)
Alice Creek 166,720 80% 133,376 US$ 233,408,000 US$ 6,668,800 US$ 13,337,600 US$ 17,505,600
ZETA 3,290,841 80% 2,632,673 US$ 4,607,177,400 US$ 131,633,640 US$ 263,267,280 US$ 345,538,305
US$ 138,302,440 US$ 276,604,880 US$ 363,043,905
Estimated Share Value
US$ 57.62 US$ 115.25 US$ 151.27
[2.4 million issued Participating Shares]
NOTES
1. P&P Gold in the Ground (oz)
This represents ‘Proven’ and
‘Probable’ gold resource.
3. Estimated Resource (oz)
2. Conversion Factor The volume and value of unmined gold is estimated based on preliminary
Conversion is defined here as reports and estimates by geologists.
the reduction in gold volume as
4. NI 43-101 Geological Report
the project moves from Inferred
National Instrument 43-101 (the “NI 43-101” or the “NI”) is a national
resources to ‘Proven’ & ‘Probable’
instrument for the Standards of Disclosure for Mineral Projects within
reserves.
Canada. The Instrument is a codified set of rules and guidelines for reporting
and displaying information related to mineral properties owned by, or
explored by, companies which report these results on Stock Exchanges.
The Capital Raising and Application of Investor
Funds via the coin IEO
The raising of capital through the coin IEO will provide the
Company with a solid structural base for an IPO in London or on
the Toronto Stock Exchange (“TSX”). Use of Funds:
• Maximise Zeta Claim Tenure Leases
• Commission NI 43-101 Reports
• Claim Tenure Maintenance
• Canadian Structure (SPV)
• London IPO
• Working Capital
7ZETA
GOLD
COIN
Exploration Activities
A Review of SRK Exploration Services Ltd Document ‘A Competent Persons Report on
the Alice Creek Placer Project, British Colombia, Canada - March 2018’
Reliance on Information
In preparing this review, the author has relied on the information provided in the SRK
CPR and by ZGGIC and has not carried out any validation or verification of the furnished
information, which is taken in good faith.
Completed Exploration by the Joint Venture
An initial exploration of the Alice Creek Project area was commenced in 2015 by the
ZGGIC joint venture partner and included outcrop mapping, sample panning, 2D
resistivity surveys comprising 7no. West-East oriented survey lines and a small drilling
programme of 2no. reverse circulation (RC) boreholes referenced 2015-1 and 2015-2. The
depth of both boreholes was 27.4m.
Resistivity survey lines 03, 04 and 05 were specifically positioned to investigate the
extents of the GBC. All lines were 475m in length. Survey Line 03 was positioned
approximately 185m north of line 05 and line 04 was laid out approximately 175m further
north of line 03.
Resistivity survey line 05 was also positioned close to an historical RC borehole
referenced VL92-4 (This borehole was undertaken in 1992 by a unit of the British
Columbia Geological Survey Branch (BCGS)).
Additionally, a pilot test pit, approximately 21m deep with a surface area of approximately
1296m2, was excavated in August / September 2017 in the area bounded by the previous
exploratory work.
The main findings of this exploratory work are reported in detail in Section 8 of the CPR
and are briefly summarised here:
• The postulated basal gravel channel varies in thickness.
• North of borehole 2015-01, bedrock lies at a depth of 18.3m and the gravel
channel isapproximately 4m thick, covered by 14.3m of clay overburden.
• Around borehole 2015-02, bedrock is at a depth of 23.2m and the gravel channel
is 2.5m thick, covered by 20.7m of clay / silty sand overburden.
8Private & Confidential
• At historical borehole VL92-4 the BCGS report indicates a gold bearing stratum
‘several metres thick’.
• Nine samples from the gravel horizons in boreholes 2015-01 and 2015-02 were
assayed and returned gold values ranging from 0.001 ppm Au to 19.70 ppm Au
(19.70g/t) over a 0.3m interval in borehole 2015-01. Samples from borehole 2015-
02 showed gold grades up to 1.59 ppm Au (1.59g/t) over an interval of 0.1m.
• Distinct gold bearing horizons within the gravels are apparent. 3no. separate gold
bearing horizons were identified on hole 2015-01 ranging in thickness from 0.3m
to 0.6m.
• Resistivity lines 03 and 05 show additional potential buried gold bearing placer
channels or alluvial terraces to the north and east of the boreholes.
• Gold particles were recovered from panned samples collected from the gravel
layers encountered in the test pit. Samples returned gold values ranging from
0.02 ppm Au to 5.34 ppm Au (5.34g/t).
Preliminary Estimate of Inferred Gold Resource
A preliminary estimate of the inferred gold resource within the postulated GBC in Claim
no. 831515 based on an interpretation of the results of the exploratory work is provided at
Appendix 1. The estimate indicates the following:
Inferred gold resource within resistivity survey lines 04 57,476 ozt
and 05 (approx 360m length)
Assuming the GBC extends N-S for full 1.8km length of the claim area (1.5534 km2) and
similarground conditions / grade exist, the extrapolated inferred gold resource within
Claim No.831515 is:
Inferred gold resource over 1.8km length of GBC 287,380 ozt
Conclusions
The results of the drilling and trial pit indicate that the gold bearing strata typically lie at a
depth of 20-25m which, subject to consideration of the cut off grade and other economic
factors, is within reasonable extraction limits.
It should be noted that only limited site exploration and testing has been undertaken in
the target claim area. As such, the estimate of the inferred gold resource is qualitative
9ZETA
GOLD
COIN
in nature and should be viewed accordingly. However, it is understood that additional
resource drilling is planned with the aim of fully defining the extents of the resource which
together with a comprehensive sampling and testing regime will allow a quantitative
estimate of the resource to be undertaken.
Similarly, the estimate of inferred gold resource over the ZGGIC claim footprint is
speculative and will require significant exploration and definition before an accurate
assessment of the resource can be determined. Nevertheless, as the ZGGIC claims are
geographically positioned close to the target area, it is reasonable to assume that similar
substrata conditions exist across the whole claim area.
Appendix 1 – Estimate of Inferred Gold Resource
Zeta Group Gold Investment Company
Preliminary Estimate of Inferred Gold Resource in Claim No. 831515
Reference Draft SRK document ‘A Competent Persons Report on the Alice Creek Placer Project,
British Columbia, Canada – March 2018’
Consider area between survey lines 04 and 05:
Grade 6.3g/tonne (ave from 2015-01 & 205-02 drill holes cf 5.34g/tonne from test pit)
Strike length 360m (between survey lines 04 & 05. See Fig 8.11 in SRK report)
Depth 25.83m (see Note re Depth)
Width 125m (scaled from Fig 8.11 in SRK report)
Specific Gravity 1.8 (assume gravel with sand, natural SG1.9 & compacted clay SG 1.74)
Note re Depth
BH VL92-4 BH 2015-01 BH 2015-02 Ave
Depth to bedrock 36 18.3 23.2 25.83
Thickness of deposit >4 4 2.5 3.5
Overburden depth 32 14.3 20.7 22.33
10Private & Confidential
Estimate overburden
assume vertical sides, base width 125m, ave depth 22.33m
Volume 360*125*22.33 = 1004850m3
Tonnage of 360*25.83*125*1.8 = 2092500 tonnes
mineral deposit
Less overburden 1004850*1.8 = 1808730 tonnes
Adjusted tonnage 283770 tonnes
Tonnage * Grade 283770*6.3 = 1787751g of gold
g/tonne to ounces 1787751*0.03215 = 57476 troy ounces (over 360m section length)
Extrapolate over Claim no. 831515
Claim area 155.33 ha
Approx dimensions 1.8* 0.863 = 1.5534 sqkm
Assume similar conditions over full length of claim
Extrapolating
Factor by 1800m/360m
Inferred gold resource 57476*1800/360 = 287 380 ozt
Notes
1. Assumes 100% of gold recovery. In practice approximately 90% recovery is possible subject to
equipment selection, set up and use
2. Subject to confirmation of cut off grade
3. Additional resistivity surveys have identified potential gold bearing target areas to the north and west
of the claim area. Currently no data is available for these target areas
11ZETA
GOLD
COIN
Risks
The risks in this investment relate principally to the spot price of gold, the existence and
market interest / price of entitlements to land of gold assets, the operating risks of a
potential gold mining operation undertaken by Zeta Group/its outsourcing partners and
the fulfillment of contractual obligations by Zeta Group partners as well as the exposure
to the CAD:US$ exchange rate and the volatility of gold prices together with the value of
the link to Cryptocurrencies Bitcoin & Ethereum.
The Company is equally exposed to all general economic, industry, country, market and
contractual risks incurred in the ordinary course of its business.
Specifically, any interested party should consider the following risks:
• While there are thorough geological opinions on unmined gold reserves based
on government mandated standards, there can be no certainty that all such
estimated gold reserves actually exist or can be economically mined. The
geological report classifies reserves as proven, probable and possible but even
so all measures are taken on a sample/survey basis and the yield may not be
consistent through the claims area or actually exactly as forecast.
• While the Toronto Stock Exchange has developed accepted valuation criteria for
unmined gold, there is no certainty that in the future the market will actually pay
such value for unmined gold. Moreover, if the gold price falls dramatically, the
market may have no interest in acquiring further gold mines at all or only at very
depressed prices and the market for physical gold may become unattractive.
• There are market conditions for gold or demand asymmetries under which
unmined gold may not achieve its full potential or value for an extended period.
• There is a risk of unknown or unpredicted political, economic or administrative
hurdles once mining is about to commence and this may depress the value of the
unmined gold.
• If a decision is taken to mine the gold, operating risks of a gold mine are
considerable. They include environmental, weather, equipment, mechanical,
human, IT systems and process failures among other unforeseeable risks.
• Mining outsourcing partners, executives and staff may misjudge operations,
misallocate funds or become insolvent with considerable losses involved.
Creditors may have a claim on some of the entitlements to land of gold assets.
12Private & Confidential
• Other outsourcing partners and service suppliers may breach contracts, fail in
their performance and cause losses.
• The partner responsible for the geological reports, mining permits and the
actual preparation of the exploitation of the gold may breach the contract,
run out of liquidity or refuse to honor some or all of his obligations with
commensurate additional capital required to safeguard the interests of investors
or commensurate losses to the investors.
• The Company is exposed to a concentration risk since all assets are essentially
entitlements to land of gold assets and all performance depends on a continued
market value and liquidity of gold at prices above mining costs.
• There may be a foreign exchange risk if mining were to be undertaken as
operating costs are in Canadian Dollars and Gold revenues in US Dollars.
Moreover, the investor may invest from a different base currency than the US
Dollar.
IT MUST BE EMPHASISED, THAT THE COMPANY WILL BE
SUBJECT TO NORMAL MARKET RISKS AND NO ASSURANCE
CAN BE GIVEN THAT THE INVESTMENT OBJECTIVES OF THE
COMPANY WILL BE ACHIEVED.
13ZETA
GOLD
COIN
Project Information
Zeta Gold Coin, a unique product in the multi-faceted Blockchain space where each
coin is made up of four constituent parts; 10 grams (10g) physical 999.99 gold bullion
secured and stored at the SGPMX vault, 0.008 of a Bitcoin the leading Cryptocurrency,
0.2 of Ethereum and the upside from Zeta Group Gold Investment Company’s gold
exploration activities in Canada, the world’s #5 gold producing country and at the
present time, backed by 30.65 km2 of gold claim properties with gold reserves currently
valued at US$525 per coin.
The core value of the ZGC is the unique and direct access to gold as a proven asset
class. This presentation aims to outline the business model for the project, define the
required regulatory and operational framework, deepen the understanding of the coin and
the benefits of ZGC ownership.
Well established and listed exclusively on a reputable exchange, Zeta Group Gold
Investment Company (“The Company”) decided to launch a niche, proprietary product
currently missing in the vast space of crypto currencies. The coin is linked to the LME
London Metal Exchange) bullion price daily, based on a stable relation to the gold price.
The coin has four segments:
1. 10g of Physical Gold.
2. 0.008 of the Leading Cryptocurrency, Bitcoin.
3. 0.2 of Ethereum.
and
4. US$525 of Gold Properties in Canada*.
* This is represented by Zeta Group Gold Investment Company’s gold exploration activities
in Canada, which at the present time is represented by 30.65 km2 of gold claim properties
with gold reserves currently valued at US$525 per coin.
The objective of the Company is to exploit its alluvial and mineral mining rights on its
claim tenures in addition to Alice Creek in British Columbia, Canada, North America
such that participating coinholders benefit from the value of the underlying assets of the
Company over the duration of the Zeta Gold Company.
14Private & Confidential
The coin initial launch price is established at US$1,500 representing the actual ZGC
intrinsic value.
Each ZGC coin is backed at inception by:
• 10g of physical gold.
• 0.008 of the leading Cryptocurrency, Bitcoin.
• 0.2 of Ethereum.
and
• US$525 of Zeta Group Gold Investment Company Gold & Mineral resources
contained in the Company’s gold claim properties located in British
Columbia, Canada.
Verification of ZGC
The constituent parts that make up each coin are verified in the following manner:
• Physical Gold Holdings are held at the SGPMX Singapore: (www.sgpmx.com).
• The Bitcoin & Ethereum are held in a corporate wallet at Exmarkets: (www.
exmarkets.com)
and
• The Gold Properties are registered on the Canadian Government Mineral Titles
website: (www.mtonline.gov.bc.ca/mtov/home.do)
Parameters of ZGC
ZGC is defined as a Coin, the principal value of which is based on 999.99 gold stored in
a renowned vault, with an independent custodian, in combination with a selection of high
yield gold claims tenures in British Columbia, Canada, as well as Bitcoin and Ethereum
Cryptocurrencies.
15ZETA GOLD COIN Features of ZGC ZGC is coded on the ERC20 Blockchain platform, using the state-of-the-art solidity programming language and based on an elaborate Proof-of-Stake (“POS”) algorithm identifying the gold bullion stored in the gold vault account for ZGC holders. Zeta Group Gold Investment Company is a company incorporated solely for the purpose of exploiting and monetising proven gold reserves in the Cariboo Gold Fields of British Columbia, Canada. Compliance of ZGC Depending on the requirements of a specific jurisdiction, the Coin issuer may be required to obtain a specific license to conduct its activities. Given the issuer’s business is also related to transactions with fiat money, the issuer may also be required to ensure compliance with the following requirements: 1. Know Your Client (“KYC”) and Anti-Money Laundering (“AML”) procedures in respect to the users (this can be outsourced to third-party service providers if permitted by local laws), including hiring a compliance officer (refer to the next slide for more detailed info); 2. Internal risk management procedures and internal audit; 3. Engaging a third-party auditor for a periodical financial audit and making the results publicly available; 4. Providing real time information on account balance and tokens in circulation. AML/KYC Compliance of ZGC The ZGC platform shall apply appropriate measures and procedures, by adopting a risk based approach, to focus its effort on those areas where the risk of money laundering and terrorist financing appears to be comparatively higher. The benchmark for AML policies is the Directive EU/2015/849 (4th AML Directive). The procedures and measures to manage and mitigate the identified risks in a cost-effective manner shall include: • adopting the procedures of customer onboarding and customer due diligence in line with the assessed risk of money laundering and terrorist financing. The quality and extent of the required identification data for each type of customer shall meet certain standards (e.g. documents from independent and reliable sources, third person information, documentary evidence); 16
Private & Confidential
• obtaining additional data and information from customers and/or from open sources,
where this is appropriate for the proper and complete understanding of their
activities and source of wealth, and for the effective management of any increased
risk emanating from a particular business relationship;
• ongoing monitoring of high-risk customers’ transactions and activities by reporting
suspicious transactions and applying enhanced due diligence to the identification of
highrisk customers.
Customer Acceptance of ZGC
The ZGC platform will provide services only to those users that are verified in accordance
with the established due diligence procedures. Verification will be required:
1. prior to the establishment of the business relationship, in order to receive the coin;
and
2. prior to redemption of the coin, in order to receive fiat. The procedures for ZGC
customer identification and customer due diligence measures include:
• identifying the customer and verifying the customer’s identity based on documents,
data or information obtained from a reliable and independent source in accordance
with the requirements of the Directive EU/2015/849;
• identifying the beneficial owner and taking risk-based and adequate measures to verify
the identity on the basis of documents, data or information obtained from a reliable
and independent source so that the person engaged in financial or other business
knows who the beneficial owner is; in regards to legal persons, trusts and similar legal
arrangements, taking risk-based and adequate measures to understand the ownership
and control structure of each customer in accordance with the requirements of, and
guidance suggested in, the Directive EU/2015/849;
• obtaining information on the purpose and intended nature of the business relationship;
and
• ongoing monitoring of the business relationship including scrutiny of transactions
undertaken throughout the course of that relationship to ensure that those transactions
are consistent with the information and data in the possession of the person engaged
in financial or other business in relation to the customer, the business and risk profile,
including, where necessary, the source of funds. The documents, data or information
shall be kept up-to-date.
17ZETA GOLD COIN Directors The Company itself is managed by a board of directors comprising: David Hirst, CEO and fellow director Paul E Morton, Investment Manager together with Board adviser Mr Stephen Hogg. The board will supervise the investment manager, review/supervise all mining outsourcing and activities, if applicable, and ensure the monetisation of the mining rights and gold resources. The background of the Directors at the date of this Whitepaper are: Mr David Adamson Hirst BA (Econ) FCA David is a Chartered Accountant who has held previous positions with Ernst & Young London, KPMG Hong Kong and recently as Regional Finance Director of Hyder Consulting Ltd, a multi-disciplinary engineering consulting firm designing and operating major infrastructure projects throughout Asia. David has over 30 years of experience in business accounting, mergers and acquisitions and corporate finance including listing companies on major stock exchanges in Europe and Asia. David has permanent residence status in Hong Kong and currently resides in Hong Kong and Dubai, UAE. Mr Paul Edward Morton Paul is the founder and executive officer of Zeta Group Holdings Ltd a Seychelles incorporated company specialising in private equity structures to offer ‘Alternative Investment’ strategies to private banking, family offices, sovereign wealth funds, HNW and UHNW investors. Paul was and is a co-founder, executive director and one of the two principals of TM Management Ltd; a Hong Kong based Investment Management company incorporated in Hong Kong in 1986. The Company launched the first ever broker based Securities and Futures Commission Authorised Fund in 1988 as investment manager to the custodian and sub-custodian Royal Insurance PLC and Hoare Govett Asia, respectively. Earlier in his career Paul worked in investment and wealth management with Canada Life, Potters Bar, London before moving to Hong Kong in 1984 with an investment broking division of the Tyndall Group. Paul has permanent residence status in Hong Kong and currently resides in London, Dubai,UAE and Hong Kong. 18
Private & Confidential
Board Adviser
Stephen (Steve) Hogg BSc., CEng., MICE
Steve is a civil engineering professional and Chartered Engineer with over 45 years of
experience in the management and delivery of major infrastructure projects spanning a
range of industry sectors both in the United Kingdom and overseas. Steve specialises
in project and commercial management and brings a wealth of practical experience to
the team. He has held senior positions with some of the UK’s foremost multi-disciplinary
engineering consultants including Halcrow Group and CH2M Hill. Steve was also a key
member of a small team responsible for the planning and execution of the mobilisation
and move of operations from the old Hong Kong airport at Kai Tak to the new international
airport at Chek Lap Kok; one of the largest logistics projects ever seen in Hong Kong.
19ZETA
GOLD
COIN
Initial Exchange Offering
ZGC participation is a unique and niche way to embrace the investment opportunities
offered through the ownership of physical gold bullion, exploiting and monetising proven
gold reserves in the Cariboo Gold Fields of British Columbia, Canada, and participating in
the Blockchain crypto currency space which is still, relatively speaking, embryonic in the
world of finance and fiat currencies.
Exmarkets registration offers investors the opportunity during the IEO to subscribe for
ZGC at par, together with the launch bonus.
The Exmarkets Exchange then offers account holders the platform to buy/sell ZGC and
benefit from the future growth of the Coin as a result of the spot gold price, established
unmined gold reserves and the value of the underlying crypto currencies linked to ZGC.
Tokensale Information
Ticker Starting Price Total Supply
ZGC $1,500,000 USD 2,100,000 ZGC
KYC Currencies Available for Sale
No BTC, ETH, USDT 1,000,000 ZGC
Restricted Countries Token Type Hard Cap
None ERC20 £1,500,000,000 USD
20Private & Confidential
Gold Storage
Secure Vault Storage at Le Freeport SGPMX Singapore
A robust Coin with bullion backing requires equally excellent secured storage facilities.
For total peace of mind, we are using the only bullion company licensed by the Singapore
Customs to operate at the (tax-free) high security bonded storage facilities in Le Freeport
Singapore. They are a registered dealer of the Ministry of Law, Singapore, which is
in compliance with the Precious Stones and Precious Metals (Prevention of Money
Laundering and Terrorism Financing) Act. These represent the epitome of secured storage
facilities in Singapore.
The fully allocated and segregated storage facilities within Singapore’s most secure vaults
are fully insured. Clients of the exchange can enjoy having their bullion stored and have
access to instant liquidity should they require it via the Exchange.
21ZETA GOLD COIN Subscriptions and Redemptions Coins can be acquired as an account holder or through the registration process for an account on the Exmarkets website. Investor Suitability Subscription will be accepted only by eligible investors, subject to the terms of the IEO as detailed in this Whitepaper and on the Exmarkets website. The Company may decline subscriptions for any reason from any investor at its sole discretion. It is the responsibility of each investor to verify that the purchase of and payment for the coins is in compliance with all relevant laws of the investor’s jurisdiction of residence. Subscription Process Coins can be acquired through completing the registration process as per the Exmarkets website. Subscriptions will only be accepted at the sole discretion of the Board, following confirmation from Exmarkets that the subscription is acceptable and relevant to the terms of the IEO. For pre IEO sales subscription monies may be paid in US Dollars or any other currency acceptable to the Company. The investor will need to register on the Exmarkets website in order to open an account and the subscribed pre IEO coins will be placed in a ‘cold wallet’ until such time as the IEO has been completed and trading commences. Bank account details for pre IEO subscriptions are as follows: USD Dollars (Funds Remitted Internationally) Bank Name Citibank NA Bank Address 111, Wall Street, New York, NY 10043, USA Swift Code CITIUS33 ABA Routing No. 021000089 For Credit to Cayman National Bank Ltd, A/c. No: 36148883 Swift Code CNATKYKY For Credit to Zeta Gold Investment Company, A/c No: 022-28309 Reference: Subscriber Name 22
Private & Confidential
Gold Price Forecast
The Shift Towards Precious Metals Has Begun
Investment Themes
Every decade has a distinct investment theme. One asset class rises to the top and
outperforms everything else.
Below are some examples.
• During the 1990s, the stock market surged to record highs. An explosion in
Internet led stocks oversaw the dotcom bubble. The Nasdaq rallied from 330 in
1990 to 5,100 by 2000.
• During the 2000s, precious metals and commodities became the best-performing
assets. Gold rallied from a low of $255 in 2001 to $1923 by 2011.
• During the 2010s (until now), money flows switched to equities. Low and negative
interest rates fueled record stock buybacks and rising earnings multiples. The
DOW bottomed at 6,469 in 2009, and prices peaked in March 2020 at 29,600.
After an 11-year bull market in stocks, the next asset shift has likely begun. Loose
monetary policy and negative bound interest rates suggest 2020-2030 will be a decade
that heavily favors tangible, hard assets like gold and precious metals.
Potential Triggers To A Much Higher Gold Price
A $7,500 - $10,000 price target for gold sounds absurd but these triggers could provide
the platform for much higher gold prices.
• Loss in Confidence Total collapse in confidence in Governments and their ability
to manage. (Strong possibility).
• Widespread Money Printing Governments may resort to debt monetization and
currency depreciation to inflate away record debt levels. (Already occurring).
• Speculation A surging uptrend and new all-time highs in precious metals leads to
the fear of missing out and sparks a speculative bubble. (Likely, but further down
the road).
23ZETA
GOLD
COIN
Long-Term Gold Target
If gold comes back to test the $1,350-$1,400 breakout area, that could be the last great
buying opportunity of this decade. By the end of this decade, we expect gold to reach
$7,500-$10,000. Precious metals are likely to emerge from the global COVID-19 crisis as
the premier asset for investors.
If gold comes back to test the
$1350-$1450 breakout area,
that could be the last great
buying opportunity of this
decade.
24Private & Confidential
Details of Main Parties
Registered Office
Vistra (Cayman) Ltd, PO Box 31119,
Grand Pavillion, Hibiscus Way,
802 West Bay Road, Grand Cayman,
KY1-1205, Cayman Islands
Directors of the Company
Mr Paul Edward Morton, email:
Mr David Adamson Hirst BA (Econ) FCA email:
Board Adviser
Stephen Hogg B.SC.,C.Eng., MICE
Investment Manager
Zeta Group Holdings Ltd, Suite 2512, Langham Place Office Tower,
8 Arygle Street, Mongkok, Kowloon, Hong Kong.
Email:
Administrator
Amicorp Fund Services N.V., Pareraweg 45,Willemstad, Curaçao.
Email:
Custodian Bank
Cayman National Bank Ltd., Cayman National Building, 200 Elgin Avenue,
PO Box 1097, Grand Cayman KY1-1102, Cayman Islands.
Legal Advisors
Appleby (Cayman) Ltd, Clifton House, 75 Fort Street,
Grand Cayman KY1-1104, Cayman Islands.
Auditors
CWC CPA Ltd, Unit 408C 4th Floor Lippo Sun Plaza, 28 Canton Road,
Tsim Sha Tsui, Hong Kong.
25ZETA GOLD COIN Disclaimer Zeta Group Gold Investment Company. All Rights Reserved. The information contained herein: (1) is proprietary to Zeta Group Gold Investment Company; (2) may not be copied or distributed (save (i) as incidentally necessary in the course of viewing it on-line (ii) in the course of printing off single copies of web pages on which it appears for the use of those authorised to view it on-line), or adapted in any way (3) is not warranted to be accurate, complete or timely. This Zeta Group Gold Investment Company-sourced information is provided to you and is at your own risk. You agree that Zeta Group Gold Investment Company is not responsible for any damages or losses arising from any use of this information and that the information must not be relied upon by you the user without appropriate verification. Zeta Group Gold Investment Company informs you as follows: (i) The information provided should not form the sole basis of any investment decision (ii) no investment decision should be made in relation to any of the information provided other than on the advice of a professional financial advisor; (iii) past performance is no guarantee of future results; and (iv) the value and income derived from investments can go down as well as up and can result in a total loss. 26
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ZETA
GOLD
COIN
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