Parral (Au, Ag)


Offtake 100% Au + Ag offtake
Operator: GoGold Resources
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Location: Mexico
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Quotational Period (Business Days) 11
Status Production

Description of the Project

Low cost operation with plans to double capacity in the near-term


  • 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