Finlay Minerals of Vancouver has just closed a private placement, raising $1,672,670. Okay, fine. But then you read the words “NFT units” and all of a sudden it’s like your grandma trying to explain TikTok. Have we entered a brave new world of mining finance and blockchain? Or is this just a clever marketing ploy, too, aimed at getting the attention of the techy investors who can’t tell a pickaxe from a pixel. And more importantly, should you care?

Mining Meets The Metaverse? Seriously?

Let's be real. When you hear "NFT," you probably think of Bored Apes selling for millions, not a warrant attached to a mining company's stock. The curiosity is definitely there. Despite appearances, Finlay Minerals isn’t in the business of selling digital art. They’re trying to give you the upside to buy at a set price down the road. These "NFT units" aren't actual NFTs in the traditional sense – they're just using the term to latch onto the hype. It’s the equivalent of trying to rebrand your dog as a “blockchain canine” to impress the other pups at the park.

This isn't necessarily a bad thing. Branding aside, innovation is inspiring and necessary, regardless of the form it takes. It does raise the question: is this really about leveraging the blockchain, or is it about grabbing headlines? I'm leaning toward the latter.

The underlying warrant entitles the holder to acquire one share at an exercise price of $0.20 until June 9, 2027. Now, with accelerated expiry potentially on the table, this introduces a whole new layer of urgency.

The new variable of accelerated expiry of the warrants, hiding in plain sight, adds yet another layer of complexity. So what does that mean for you, the conscious investor. It means you need to pay attention. If Finlay Minerals’ stock price soars, they can make you exercise your warrants early or lose them. This creates a time-sensitive aspect to the investment, which can inadvertently lead to a pressure to rush to a decision.

Financial Literacy: A Moral Imperative

Unlike in an IPO, the private placement was done under exemptions allowing for much less regulatory oversight. The fact that only insiders participated is not, by itself, an evil crime, but it always makes you go hmmm. The CFO, Gordon Steblin, purchased 200,000 shares. Transparency, or the firestorm-in-waiting created by the illusion of transparency, is what really stirs the people’s anger.

Now, here’s where the progressive in me rears its ugly head. We can’t forget that as we design these things, we have to make sure that investors, particularly the ones not paying attention now, know what they’re buying. Relegating such a critical skill to a privilege is not acceptable. Financial literacy is a right. Are these complicated financial vehicles purposefully meant to confuse, duping the unsuspecting? It's a question worth asking.

Think about it: someone who got burned by a meme stock might see "NFT" and think they're getting in on the next big thing. They might not realize they're buying a warrant tied to a mining company exploring for base and precious metals in northern and central BC. The disconnect is stark.

This is where utility and practical value enter the chat. We need upfront, plain language descriptions of these complex financial instruments, cut through the jargon and all. We should help investors do business smarter, wise and well-informed rather than casino-style speculation driven by buzz.

Beyond the Buzzwords: What's the Real Deal?

At the end of the day, Finlay Minerals’ private placement success largely rests on the shoulders of their exploration activities. If they strike gold (or copper, or whatever they're looking for), the warrants will be valuable, regardless of whether they're called "NFT units" or "Shiny Share Vouchers." This is investing in a private mineral exploration company. It's risky.

That $1,672,670 raised will go toward exploration. That's good. Exploration is a gamble. There's no guarantee they'll find anything. That's the anxiety part.

Let's not forget the finder's fees of the $89,196 and 829,145 finder warrants transferred to arm’s length parties. That's a significant chunk of change. Though it’s typically business as usual, it’s an interesting caveat to point out given where the money is headed.

So what’s going on with Finlay Minerals’ reference to “NFT warrants”—a blockchain-related twist or a scammy-sounding gimmick? I think it's a bit of both. This promotional strategy is truly an ingenious attention grabbing tactic. At the same time, it’s a reflection of the growing convergence of the real world and the digital world. As stewards of capital, we have to see through the hype and understand the fundamentals behind it. Avoid letting the fear of missing out (FOMO) drive your decisions.

Do your research. Understand the risks. And don’t forget, a fool and his money are quickly separated, even if there are 20 NFTs.