November 9th, 2016 — London: Innovate Finance member TRAC Technology Limited (“TRAC”), the parent company of the online gold trading platform Real Asset Company, has agreed to enter a joint venture with Kolar Gold Limited (LON: KGLD), the London Stock Exchange AIM-quoted gold exploration and mine development company.
As part of the agreement, Kolar Gold will use the FinTech innovation to launch an online gold and silver trading and storage platform for the India market. In addition, Kolar Gold concurrently acquired 27.3% of existing shares in TRAC.
TRAC currently stores, on behalf of its clients, over 120kg of gold and in excess of 4.3 tonnes of silver, across vaults in London, Geneva, Singapore and Hong Kong.
The joint venture will be on a 50:50 basis between the Company and TRAC whereby Kolar will provide the first £50,000 and TRAC will act as the technology partner and utilising its proven platform in the UK with the Real Asset company.
India has a population of 1.25 billion people and is the world’s second largest consumer of gold bars/coins and gold jewellery.
Ralph Hazell, CEO of The Real Asset Co, commented: “By leveraging Kolar Gold’s Indian assets and contacts, and our experience of building our established UK-focused precious metals storage & trading platform and gold-backed cryptocurrency on a Blockchain (Goldbloc), we are well positioned to offer a similar product for the Indian market.”
Cameron Parry, CEO of Kolar Gold, commented: “We are delighted to have agreed this JV with TRAC, enabling Kolar to launch an online resource for gold trading and storage for the people of India, building on our gold mine development and exploration interests in country and leveraging off our network there. This JV, using proven technologies and expertise, gives us a low cost entry point into a potentially vast market.”
TRAC was founded in 2010 in the UK and developed a gold and precious metals trading platform, allowing users to easily track and trade physical gold and silver. TRAC generates revenues through transaction and storage fees. When purchasing gold or silver through TRAC’s platform, clients take direct ownership of the physical gold/silver in their own name with TRAC acting as custodian. As at today’s date, TRAC stores on behalf of clients in excess of 120kg of gold and over 4,400kg of silver at vaults across London, Geneva, Singapore and Hong Kong.