| Offtake | 100% Au + Ag offtake |
| Operator: | GoGold Resources Visit GoGold Resources for more info |
| Location: | Mexico |
| Quotational Period (Business Days) | 11 |
| Status | Production |
Description of the Project
Low cost operation with plans to double capacity in the near-term
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