> For the complete documentation index, see [llms.txt](https://asteroid-x-1.gitbook.io/asteroid-x-product-book/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://asteroid-x-1.gitbook.io/asteroid-x-product-book/product/issuance-process.md).

# Issuance Process

Asteroid X introduces an innovative approach to financing mining projects through the issuance of Mining Rights NFTs. This process is divided into two main stages, providing a comprehensive and secure method for both mining rights holders and investors.

#### 1. Stage One: Review and Assessment

* Application Submission: Mining companies or individuals apply for financing one or more mining rights. They provide Asteroid X with essential information disclosed by the government, such as legal documents, mining area details, geological reports, technical reports, and feasibility studies.
* Third-Party Evaluation: Asteroid X, based on the information provided by the applicants, conducts an on-site inspection and assessment of the mining area through a third-party agency. This step is crucial to determine the financing scale and value of the mining rights.
* Digital Modeling with Drone Technology: Utilizing drone technology, Asteroid X digitizes the physical mining area, creating a 3D model of the mining rights. This model is showcased through a visual data mode, enhancing the understanding and value of the mining rights.
* Blockchain Integration: The mining rights are then uploaded to the blockchain, establishing a decentralized point for digital asset conversion of the mining rights. This process ensures the confirmation of ownership rights for both the mining rights holder and the investors.

#### 2. Stage Two: Launch and Trading

* NFT Purchase: Investors can purchase mining rights NFTs through Asteroid X, becoming holders and beneficiaries of the mining rights. They enjoy the same mining profits as the original rights holders.
* Utilization of Funds: Post-financing, the mining rights owners use the funds for geological exploration reports, exploration activities, and to explore greater value for the mining rights.
* Periodic Reporting and Further Financing: Asteroid X requires periodic submission of reports for updates. If further potential is discovered, subsequent rounds of financing (Series A, B, etc.) can be initiated.
* Free Trading of NFTs: Investors have the freedom to buy or sell mining rights NFTs at any stage through Asteroid X.

#### 3. Stage Three: Exit Mechanism

* Profit from Sale or Merger: The mining rights can be profitably sold or merged with offers from larger mining companies.
* NFT Buyback and Destruction: Prior to listing on the ASX, the mining rights owners will buy back and destroy all NFTs based on the latest valuation.
* Value Appreciation in Reports: If subsequent reports reveal more valuable information (e.g., resource quantity, grade), the value of the NFTs may increase, potentially yielding higher returns.
* Profit from Subsequent Financing Rounds: Investors from earlier financing rounds can sell their stakes in the open market during subsequent rounds of financing, realizing profits.