Vexillum Gold Reserve Program
Acquire Physical Gold at a Discount to the LBMA Gold Price
The Vexillum Gold Reserve Program provides private and institutional purchasers with a structured way to acquire physical gold at a predetermined discount to the applicable LBMA Gold Price.
Choose between:
3-Month Gold Reserve
5% below the applicable LBMA Gold Price
6-Month Gold Reserve
10% below the applicable LBMA Gold Price
Your purchase price is established when your transaction is completed, with settlement at the applicable maturity date.
Additional purchaser protection options are available, including an optional guarantee for placements of US$100,000 or more and, for purchasers in the UAE, an optional postdated cheque covering the placement amount with no minimum purchase requirement.
Complete the enquiry form to receive further information about the program, current availability and the structure applicable to your proposed purchase.
A Different Approach to Acquiring Physical Gold
The Gold Reserve Program is not a conventional retail bullion purchase.
Rather than purchasing gold for immediate delivery at or above the prevailing market price, participants enter into a forward purchase arrangement with Vexillum Minerals.
The purchaser commits capital today and receives a predetermined discount to the applicable LBMA Gold Price in exchange for accepting a defined period before settlement.
The structure provides two options:
3-Month Reserve | 6-Month Reserve | |
Discount | 5% | 10% |
Reference | LBMA Gold Price | LBMA Gold Price |
Term | 3 months | 6 months |
Underlying asset | Physical gold | Physical gold |
Purchaser protection options | Available | Available |
The program is available to both private and institutional purchasers, subject to eligibility, KYC/AML requirements and applicable program terms.
How the Gold Reserve Program Works
1. Select Your Allocation
Determine the amount of physical gold you wish to acquire and whether you prefer the 3-month or 6-month program.
2. Establish Your Purchase Price
Your purchase is calculated using the applicable LBMA Gold Price and the discount corresponding to your selected term.
3 months: 5% discount
6 months: 10% discount
3. Complete Documentation and Funding
Following acceptance and completion of the required KYC/AML process, the applicable purchase documentation is executed and the transaction is funded.
Purchasers selecting an available guarantee or UAE postdated-cheque structure will also complete the documentation applicable to that protection.
4. Vexillum Fulfils the Gold Allocation
During the term, Vexillum manages the sourcing, production, refining and fulfilment requirements associated with the contracted gold allocation.
5. Settlement at Maturity
At the end of the applicable term, settlement takes place in accordance with the purchaser’s agreement and eligibility.
Why Can Vexillum Offer Gold Below the LBMA Price?
The Gold Reserve Program forms part of Vexillum’s broader precious-metals strategy and is designed, in part, to provide working and development capital supporting gold production and supply.
Vexillum’s model is therefore different from that of a conventional bullion retailer purchasing finished gold at wholesale prices and reselling it to customers at a premium.
Gold used to fulfil Gold Reserve Program obligations may be sourced through a combination of Vexillum’s own project interests and production activities, joint venture and supply relationships, and other approved sources.
In return for committing capital in advance and accepting a defined period before settlement, Gold Reserve Program purchasers receive the applicable discount to the LBMA Gold Price.
The commercial exchange is straightforward:
Vexillum receives committed capital for a defined period.
The purchaser receives a predetermined discount on physical gold.
Purchaser Protection
A forward purchase requires the purchaser to consider not only the price of gold, but also the contractual performance of the counterparty.
Vexillum therefore offers additional protection structures for eligible Gold Reserve Program purchasers.
Institutional Guarantee
Available for placements of US$100,000 or more
Purchasers committing US$100,000 or more may request an optional guarantee covering the amount paid under their Gold Reserve Program transaction.
The guarantee is arranged as part of the transaction prior to purchaser funding and is intended to provide additional protection against Vexillum’s failure to perform its delivery obligation in accordance with the applicable contractual terms.
Vexillum bears the cost of issuance.
The guarantee is subject to its own terms, eligibility requirements, satisfactory proof of funds and the underlying Gold Reserve Program documentation.
Full guarantee terms and documentation are provided to prospective purchasers during the transaction process.
UAE Purchaser Protection
Optional Postdated Cheque — No Minimum Placement
Purchasers located in the UAE have an additional protection option regardless of the size of their Gold Reserve Program placement.
At closing, Vexillum Minerals can issue the purchaser with a postdated cheque covering the amount of the placement.
The cheque is:
- issued by Vexillum Minerals;
- delivered to the purchaser as part of closing;
- issued for the amount of the purchaser’s placement; and
- dated 30 days after the contractual maturity date.
The cheque is intended to provide protection in the event of Vexillum’s non-performance.
Purchasers selecting this option enter into a separate agreement governing the postdated cheque, including the circumstances under which it may be presented.
Once Vexillum has fulfilled its delivery obligations to the purchaser, the agreement permits Vexillum to cancel the cheque.
There is no minimum purchase amount for the UAE postdated-cheque option.
Understanding the Different Protections
The protections available through the program address different risks and should not be confused with one another.
Gold Price Protection
Where applicable under the selected Gold Reserve Program terms, the program’s downside-protection mechanism is designed to address the risk of a decline in the gold price during the contracted period.
Institutional Guarantee
For qualifying placements of US$100,000 or more, the optional guarantee provides additional protection relating to Vexillum’s contractual performance.
UAE Postdated Cheque
For purchasers in the UAE, the optional postdated cheque provides an additional contractual protection mechanism against non-performance and is available without a minimum placement amount.
The precise rights and obligations applicable to each protection mechanism are established in the relevant transaction documents.
Gold Sourcing, Refining and Delivery
The Gold Reserve Program is designed to connect capital with Vexillum’s broader gold production, sourcing and physical precious-metals activities.
Gold used to satisfy program obligations may originate from a combination of:
Vexillum project interests and associated production
Joint venture and production relationships
Approved third-party gold suppliers
Refinery and physical precious-metals supply arrangements
Gold is subsequently processed through the appropriate refining and logistics channels before fulfilment of the applicable purchaser obligation.
This diversified approach means that an individual Gold Reserve transaction is not dependent upon production from one specific mining project.
Further information regarding sourcing, fulfilment and relevant due-diligence materials can be made available to prospective purchasers following enquiry.
Program at a Glance
Asset | Physical gold |
Price reference | LBMA Gold Price |
3-month discount | 5% |
6-month discount | 10% |
Purchasers | Private and institutional |
Institutional threshold | US$100,000 |
Institutional protection | Optional guarantee |
UAE protection | Optional Vexillum postdated cheque |
Minimum for UAE PDC | None |
KYC/AML | Required |
Documentation | Formal contractual documentation |
Settlement | In accordance with applicable program terms and purchaser eligibility |
Frequently Asked Questions
No. The Gold Reserve Program is available to eligible private and institutional purchasers.
The US$100,000 threshold relates to eligibility for the institutional guarantee, rather than eligibility for the Gold Reserve Program itself.
Participants commit their purchase capital in advance and accept a predetermined period before settlement. The program provides Vexillum with capital supporting its gold production, sourcing and related activities.
In exchange for that commitment and deferred settlement, Vexillum provides the purchaser with the applicable discount.
Yes. The Gold Reserve Program is structured around the acquisition and fulfilment of physical gold.
The applicable settlement options, specifications and delivery arrangements are set out in the purchaser’s contractual documentation.
Vexillum uses a diversified fulfilment model incorporating its own project interests and production activities alongside joint venture, producer, supplier and precious-metals sourcing relationships.
A purchaser’s transaction is therefore not dependent upon production from a single mining project.
For placements of US$100,000 or more, purchasers may request an optional guarantee covering the amount paid.
The guarantee provides an additional layer of protection relating to Vexillum’s performance of its contractual obligation and is subject to separate terms and eligibility requirements.
Vexillum bears the issuance cost of the guarantee, subject to the applicable program and guarantee terms.
Eligible UAE purchasers may request a postdated cheque issued by Vexillum Minerals for the amount of their placement.
The cheque is delivered at closing and dated 30 days after the contractual maturity date. A separate agreement governs its use in the event of non-performance and permits cancellation after Vexillum has satisfied its delivery obligations.
No. The UAE postdated-cheque option does not have a minimum placement requirement.
Yes.
Prospective purchasers may request further Gold Reserve Program information and, where appropriate, additional transaction and due-diligence documentation.
Submission of an enquiry does not itself constitute a purchase commitment.
Request Gold Reserve Program Information
Discuss Your Proposed Gold Purchase With Vexillum
Whether you are considering a private purchase or a larger institutional allocation, you can request further information about the Gold Reserve Program, current availability and the protection structure applicable to your proposed transaction.
Submitting this form does not create an obligation to purchase. Gold Reserve Program participation is subject to eligibility, KYC/AML requirements, program availability and execution of the applicable contractual documentation.
Important Information
The information on this page is provided for general informational purposes in relation to the Vexillum Gold Reserve Program and does not constitute investment, financial, legal or tax advice.
Participation is subject to eligibility, applicable law, KYC/AML requirements, program availability and execution of definitive transaction documentation. The terms of executed transaction documents prevail over information presented on this page.
Guarantees, postdated cheques and other purchaser-protection arrangements are subject to their respective terms, conditions and eligibility requirements.
Prospective purchasers should review the relevant contractual documentation and obtain independent professional advice where appropriate before entering into a transaction.