Canadian junior exploration firm Alix Resources TSXV:AIX is making history with its decision to start paying its contractors in bitcoins, amid expectations that the crypto-currency’s value will continue to surge.
The first agreement, announced late November 12, was reached with contractor Ridge Resources for tungsten exploration work in British Columbia.
“This transaction is the first of its kind within the Canadian junior mining sector and positions Alix as a participant at an early stage in the global bitcoin marketplace,” said CEO Michael England in a statement.
To explore this model of payment more fully with its other service providers, Alix is also working with a software vendor to operate a bitcoin exchange. If the venture is successful, the mining company may be converting its operations to bitcoins entirely.
Bitcoins have been growing in popularity in Canada. The world’s first bitcoin ATM opened at the end of October in downtown Vancouver, dispensing hard money in exchange for bitcoins through a palm-scan security system. Four other ATMs are set to be rolled out in Toronto, Montreal, Calgary and Ottawa next month.
Bitcoin prices have soared as of late, reaching a record high of $395 on November 9 on the Japan-based Mt.Gox exchange and other marketplaces as investors—especially those in China—become increasingly optimistic about the digital currency’s potential growth.
The virtual money was trading close to $400 the morning of November 13.
Reprinted by permission of MINING.com