STAC Whitepaper

The Gold STACK Income Fund ("STAC") is an N-2 closed-end fund structure designed to transform gold production into institutional-grade cash flow instruments. The Fund bridges the gap between mineral wealth and bankable cash flow — the critical failure point for most gold projects. STAC is not a mining company, not a crypto project, and not a SPAC. It is a structured finance vehicle that acquires contractual cash flow rights from gold production and monetizes them through three diversified channels: institutional offtake agreements, digital gold distribution, and residual market sales. The Fund targets a $75M anchor capital raise (denominated in LXUSD) that catalyzes $100M+ in senior institutional financing, creating a total capital stack of $175M+ for gold asset acquisition and development.

STAC is structured as an N-2 closed-end fund with operating subsidiaries, designed for institutional deployment. The Fund has completed drafting of 22 prospectus sections plus a Statement of Additional Information (SAI), ready for counsel review. The offering is conducted under SEC Regulation D, Rule 506(c), which permits general solicitation to verified accredited investors. All securities are issued by SJU Gold Holdings, the designated gold-named entity selected from the HDSJ group. The Fund's digital securities component — the STAC token — is issued on the Solana blockchain as an SPL token, representing direct equity ownership in the Fund. This token is a security, not a utility token, and is subject to all applicable securities regulations.

The Fund employs a multi-layer capital structure designed to maximize returns while managing risk: Anchor Capital ($75M LXUSD): Catalytic capital that secures gold asset rights and demonstrates institutional commitment. This is the foundation that enables senior capital to flow. Senior Capital ($100M+ Combined): • Bank Prepay Facility (JPMorgan Chase): $40M–$60M advance against future gold deliveries • Institutional Offtake (Glencore, Trafigura): $25M–$50M in take-or-pay agreements • European Credit (Banque Havilland, UBP): $15M–$30M secured by gold receivables • Digital Offtake Layer (Tether Gold): 20–30% of production allocated to tokenized gold Total Capital Stack: $175M+ combining anchor and senior sources, with a target DSCR of 1.5–2.0x.

The Fund targets annual gold production of 150,000–250,000 ounces, monetized through three distinct channels: Channel 1 — Institutional Offtake (60–70%): Fixed and indexed pricing agreements with Glencore and Trafigura provide predictable, contracted cash flow. This is the backbone of revenue stability. Channel 2 — Digital Gold Distribution (20–30%): Production allocated to Tether Gold tokenized distribution, offering premium liquidity and pricing optionality through digital commodity markets. Channel 3 — Residual Market Sales (10–20%): Spot market exposure capturing upside when gold prices rise above contracted levels. Pure market alpha opportunity. This three-channel approach ensures revenue diversification and reduces dependence on any single counterparty or market condition.

The STAC token is a Solana-based SPL token representing direct equity ownership in the Gold STACK Income Fund. Key specifications: • Token Name: STAC • Blockchain: Solana • Token Standard: SPL • Total Supply: 100,000,000 tokens • Token Type: Equity Security (not a utility token) Token Allocation: • 40% — Fund Operations & Treasury • 25% — Accredited Investor Allocation • 15% — Institutional Partners • 10% — Team & Advisors (4-year vesting schedule) • 10% — Reserve & Liquidity Pool Compatible Wallets: Phantom and Solflare. The token is designed for institutional and accredited investor custody, with full compliance with SEC regulations governing digital securities.

The Fund targets the following financial metrics (all projections are forward-looking estimates and are not guaranteed): • DSCR (Debt Service Coverage Ratio): 1.5–2.0x • Dividend Yield: 5–8% annually • IRR on Equity: 12–18% • NAV Multiple: 1.2–1.4x (target public trading valuation) These targets are achievable because revenue is contracted, hedged, and diversified across multiple channels. However, investors should note that these are projections only and actual results may differ materially. No assurances of returns are made or implied.

The Fund has identified and disclosed 13 categories of risk factors: 1. Gold Price Volatility Risk 2. Mining and Production Risk 3. Counterparty and Credit Risk 4. Regulatory and Compliance Risk 5. Digital Asset and Blockchain Risk 6. Liquidity Risk 7. Capital Structure and Leverage Risk 8. Environmental and Social Risk 9. Geopolitical and Jurisdictional Risk 10. Insurance and Hedging Risk 11. Management and Key Person Risk 12. Stablecoin and LXUSD Risk 13. Concentration and Diversification Risk Investors should carefully review the complete risk factor disclosures available on the Legal Disclosures page before making any investment decision.

The Fund maintains comprehensive regulatory compliance across multiple frameworks: SEC Regulation D, Rule 506(c): All investors must be verified accredited investors. The Fund takes reasonable steps to verify accredited status through documentation review, third-party verification, or professional certification confirmation. GENIUS Act Compliance: The Fund's use of LXUSD as part of its reserve architecture complies with the Guiding and Establishing National Innovation for U.S. Stablecoins Act, including reserve requirements, transparency provisions, and consumer protection measures. N-2 Filing: The Fund has drafted 22 prospectus sections plus a Statement of Additional Information, ready for counsel review and SEC filing. AML/KYC: Robust anti-money laundering and know-your-customer procedures are implemented for all investors and transactions.