Perth-based fintech startup ProspEx Group has been selected to participate in Project Acacia, an initiative spearheaded by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC). The company plans to use its innovative digital platform to offer mining companies a new way to raise capital through fractionalised royalties tied to individual mining projects.
ProspEx’s model provides a non-dilutive funding solution, allowing miners to secure capital without issuing new shares or taking on debt. This approach could prove particularly valuable for pre-production and developing mining projects, which often face challenges accessing traditional funding.
By opening up this option to a broader range of investors, ProspEx aims to provide miners with the flexibility and capital they need, even during times of price volatility.
A fresh approach to mining finance
ProspEx Group’s platform is built around its flagship product, the Digital Syndicated Royalty (DSR), a tokenised real-world asset that gives investors direct exposure to mining project revenue.
Once production begins, royalty holders receive a share of the revenue, providing them with passive income that could yield 15-35% annually. This model opens up the royalties asset class, traditionally reserved for large institutional investors, to a broader range of participants, including retail investors, while giving mining companies' existing shareholders new access to income.
The platform will operate on Ethereum, the world’s largest blockchain network, offering a secure and transparent environment for investors.
ProspEx plans to launch a pilot capital raise for a critical minerals mining project in July 2025. The results of this pilot will help inform a broader research paper being developed by the RBA and DFCRC, shedding light on how blockchain-based financial solutions can shape the future of asset markets in Australia.
Addressing mining's funding gap
Mining companies, especially those in the early stages of development, often face difficulties securing funding during both high and low commodity price cycles. ProspEx’s solution offers a way to raise capital without diluting equity or incurring debt, addressing a critical gap in the sector. ‘
“Our model allows [miners] to raise non-dilutive funding and at the same time gives sophisticated investors (and, eventually, everyday Australians) access to quality, passive income-producing investments that have been off-limits up until now,” said ProspEx Group CEO Kassia Kazmer.
ProspEx’s solution also provides liquidity to a traditionally opaque market. By tokenising royalties, the platform offers investors more flexibility and access to smaller investments, making the royalty market more transparent and accessible.
As the platform grows, ProspEx plans to expand its offerings, giving mining companies a new path to capital, while allowing investors to participate in income-generating projects.
Backing from industry leaders
ProspEx Group’s leadership team brings a wealth of experience from both the mining and blockchain sectors. Kazmer, a mining engineer turned fintech entrepreneur, leads the company alongside chief operating officer Adrian Stone, a former executive at Deterra Royalties.
The team is supported by high-profile backers, including mining lawyer Michael Hunt, Bellevue Gold managing director Darren Stralow, and Diggers & Dealers co-owner Myles Ertzen.
The company’s platform is being developed in partnership with Perth-based Blockhead Technologies, a firm specialising in mining software and blockchain applications. As ProspEx’s platform takes shape, it aims to not only reshape how mining projects are financed but also provide a scalable solution for the broader resources sector.
Tapping into critical minerals strategy
ProspEx’s innovative approach is aligned with Australia’s focus on critical minerals. The platform offers a new funding avenue for projects in the critical minerals and battery materials sectors, which have become increasingly important for the country’s economic future.
As ProspEx continues to roll out its platform, the company aims to bridge the funding gap for mining projects, providing miners with the capital they need to thrive while offering investors exposure to high-yield, production-linked royalties.