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

San Ramon (Au)

Offtake Status Quotational Period(Business Days) Effective NSR (%) Description of the Project
51% Au Production n/a 2.1% High-grade gold operation with strong exploration potential
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