GOLD  $US/OZ $ NYSE:OR  $ TSX:OR    $      

Matilda (Au)

Offtake Status Quotational Period (Business Days) Effective NSR (%) Description of the Project
55% Au Production 12 1.8% Producing asset with expansion plans underway
OFFTAKE MECHANICS

  • Producer agrees to sell a predetermined portion of future gold production from its mine to Buyer
  • Buyer receives the predetermined portion of production in the form of gold credits (i.e. no physical delivery) and agrees to pay the Producer for the quantity of gold received
  • Buyer is entitled to select its purchase price based on any LBMA AM or PM Fixing Price or the Comex (1st Position) Settlement Price during a specific time frame (the “Quotational Period”)
  • The Quotational Period typically commences prior to the Delivery Date and ends subsequent to the Delivery Date
  • The spread between the Buyer’s purchase price and the price the Buyer eventually sells the gold at is kept by the Buyer as profit
    • Offtake effectively acts as a royalty whereby the buyer receives percentage of the total revenue