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ILN Today Post

PRECIOUS METALS STREAMING AGREEMENTS

What is a streaming agreement?
A streaming agreement is a specialized agreement of purchase and sale for gold, silver or other precious metals pioneered by Franco- Nevada Mining Corporation in the early 1980’s. In general terms, a purchaser financing company will agree to purchase a specific percentage interest in the precious metal production (typically gold or silver) from a mine at a discounted price and for a specific time period (often the life of the mine). The financing company will make an upfront cash payment and then will purchase the commodity on an on-going basis at a price equal to the lower of a fixed price and the prevailing market price of the commodity. More…

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