Blockchain Bridge Built: Lion Copper's $2.5M Raise Tokenizes Real-World Copper Assets

Lion Copper and Gold Corp. (OTCQB: LCGMF) has raised up to $2.5 million through a private placement of convertible debentures, a move the company says will accelerate its plans to integrate real-world assets (RWAs) into blockchain-based frameworks. The secured debentures, offering a 12% annual interest rate and convertible at $0.0965 per share, are set to mature in 12 months. Proceeds will be allocated to acquiring land and mineral rights in Nevada's Yerington area, a strategic step as the company explores tokenization opportunities for its copper projects.

The fundraising aligns with a broader industry trend highlighted in a recent DigiFT 2025 research paper, which underscores tokenization's role in transforming traditional assets into programmable digital counterparts. The report notes that RWAs are transitioning from experimental phases to foundational infrastructure, with institutional players and regulators increasingly supporting their adoption. "Tokenization is no longer a speculative concept-it's a catalyst for redefining liquidity, access, and efficiency in financial markets," the paper states.

Lion Copper's convertible offering includes provisions allowing interest settlements in shares and the issuance of warrants exercisable at $0.0965 for 60 months. A portion of the funding-$450,000-comes from a related-party subscription, which the company plans to exempt under securities regulations. The debentures are secured against the newly acquired land and mineral rights, mitigating risk for investors while aligning with the company's long-term strategy to leverage blockchain for asset management.

The Yerington Copper Project, central to Lion Copper's growth, has already demonstrated strong economic potential. Earlier this year, the company released pre-feasibility study results projecting $694 million in post-tax net present value and 14.6% internal rate of return at a $4.30/lb copper price. With tokenization, the company aims to enhance transparency and fractional ownership of its copper reserves, a move that could attract a new class of investors seeking exposure to physical commodities through digital platforms.

Industry experts view such initiatives as part of a larger shift toward hybrid financial systems. "Tokenized RWAs bridge the gap between traditional markets and decentralized finance, enabling 24/7 trading and novel use cases like collateralized lending," said a spokesperson for a blockchain analytics firm. This aligns with Lion Copper's vision to position its assets within a digital ecosystem, potentially unlocking liquidity previously constrained by geographic and operational barriers.

The company's leadership transition in April 2025, with John Banning appointed CEO, has further prioritized technological integration. Banning's compensation package includes performance-based stock options tied to market capitalization milestones, reflecting investor confidence in the company's digital strategy.