Gold Prepayment Agreement


Oceana Gold is now confident that production from Haile`s U.S. gold mine will increase sales in 2020. PXF transactions are generally considered by financiers as a kind of secured financing, although no collateral is usually given for the manufacturer`s assets, with the exception of purchase contracts and the account to which the proceeds of the sale are paid. The financing is therefore available at a lower cost than that available to this producer every hour on an unsecured basis. From the financial`s point of view, his risk to the manufacturer`s credit risk is reduced by the fact that the financier buys the guarantee on the cash flows that the manufacturers will promise as part of the purchase agreements (i.e. he assumes the credit risk on the buyer). The price of gold bars can be set at 20% or 30% discount. OceanaGold estimates that this year it will produce between 360,000 and 380,000 gold oncs from its assets in Haile (UNITED States) as well as Waihi and Macaraes (New Zealand). The use of the proceeds of the gold deposit under the PPG agreement will be used to finance (i) the repayment of US$5,100,000 to Mojave Desert Minerals, LLC to clear covered bonds used in the acquisition of the gold Road mine and processing plant in Arizona, USA (as issued in the company`s August 8 press release). 2017), (ii) the development and recirculation of the Gold Road mine, (iii) general working capital and (iv) payment of certain commitments and/or liabilities in the process of cancelling the item For example, under a typical gold-forward sales contract, a gold miner is required to deliver a certain amount of gold at monthly intervals over a specified period of time.

The amount of gold to be supplied can be structured to increase steadily, which corresponds to the exploitation and production of gold in a developing mine. The contract is paid in advance and the duration of the contract is one year. The expected delivery time of 1-2 kilograms of gold is 6 months. In the next transaction, the expected delivery time is 3 months. The prepaid sales contract allows the EU citizen to buy gold and sell that gold tax-free. Since the broadcast product is often a by-product of other operations, streaming can be used in addition to other financing agreements. This allows the producer to access financing without reducing its wider credit capacity. Streaming is a relatively fast and inexpensive method of financing. Although investors typically conduct detailed due diligence prior to entering into the streaming agreement, the agreement will generally be less restrictive for the manufacturer than for traditional forms of debt financing, allowing the producer to retain greater control over the overall operation of the project. Once the contract or contract is signed, payment is made directly to our bank account. Under a contract for the futures sale of goods, the seller undertakes to exchange a certain quantity of goods throughout the duration of the contract, this quantity being delivered in quantities corresponding to the expected performance of the project in question.

Normally, the buyer bears the price risk associated with the product, while the seller bears the costs and expenses related to the manufacture, transportation, refining and delivery of the goods. . . .