Security Matters’ (ASX:SMX) has signed a term sheet for receipt of a $1 million in funding to build a much anticipated sustainability solution for silver.

As part of the agreement, a private Canadian investment company engaged in the silver mining industry will make a one to six million dollar investment in SMX.

This will consist of an upfront tranche of  $1 million followed by between a two and five million optional investment into a private investment in public equity (PIPE).

The deal includes an exclusive distribution agreement for a 10-year period for silver which the two companies expect to have fully signed and executed before the end of 2022.

Authenticating ethical sourcing

SMX’s innovative tech platform specializes in digital tracking using unalterable chemical-based barcodes to enable invisible labelling.

The tech has already been used in the ethical sourcing of gold, The Perth Mint and Security Matters Ltd launch trueGold Consortium.

“TrueSilver is the natural progression following the success of trueGold and SMX’s global role on authenticating and certifying ethical sourcing and grading recycled high-end materials, to meet both regulatory requirements and client demands for the gold and now, silver industries,” SMX says.

“This makes SMX the leading investment for mining technology and supply chain accountability for sustainability and circular economy within the mining industry.”

Follows Lionheart III Corp merger

The trueSilver agreement follows a recent announcement that the company will list on the NASDAQ via a SPAC, Lionheart III Corp.

The $US360 million deal values SMX at around $US200 million, 14 times its valuation on the ASX.

Total pro forma equity value of the combined group is expected to be $US360 million, comprised of:

  • US$200 million value for SMX
  • US$126 million of cash in trust with the SPAC if no redemptions
  • US$31 million SPAC sponsor position




This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.