I`m going to keep saying streaming, I`m off the commission and I`m going home. I don`t care I would still say streaming, more say this word of the years I don`t see why I will change my habits xD Marlin Gold Mining Ltd. on the $15 million gold broadcasting agreement with Golden Reign Resources Limited and its San Albino gold deposit, Nueva Segovia, Nicaragua. The next episode of our series on alternative financing methods for mining companies is a relatively new form of financing: the metal streaming operation. After the advance (or payments), the investor has the right to purchase metal up to a specified portion of the future production of the mine referred to in the metal streaming agreement. As mentioned above, the metal current is typically composed of a by-product, for example, silver made from a gold or copper mine. The investor pays a fixed price for each metal unit delivered, and the amount of this actual payment less than the market value of the metal delivered is set off against the advance payment. We are often mandated by major national and international mining companies to advise you on royalty transactions, commodity streaming agreements and related financings and acquisitions. Our clients are confident in our long experience in successful structuring, negotiating and documenting various domestic and cross-border financing transactions in the mining sector. At the last meeting of the General Commission on Terminology and Neology, it decided to replace the word streaming with the word „flux“ in order to reduce the number of English words in our dear French language.
The state of South Africa`s mining industry has changed indelibly over the past forty years. From one of the largest contributors to South Africa`s GDP, its contribution has risen from its peak during this period to a third. In 2013, the mining sector directly accounted for 8.3% of GDP on a nominal basis, in contrast to the peak of the sector in the 1970s, when it contributed more than 20% of GDP 1. In difficult market conditions like this, with extremely limited capital markets, mining companies are increasingly looking for alternative forms of financing to finance expansion projects. Streaming has increased worldwide as an alternative mode of financing in the mining industry. This article discusses the evolution of this method of financing and some important considerations in reviewing a streaming transaction. We still find, for example, „network stream“ on VLC.Au end, as much as keeps its diction habits, it will bother who to say „streaming“ instead of „stream“? ^^ As stated earlier, the main trading points of a metal streaming transaction are the amount and date of the deposit, the price of future metal deliveries, the amount of metal sold, and the duration of the agreement. The parties may establish related conditions, including a cap on the quantity of metal delivered, surcharges or metal deliveries if the mine were to cut below average, an option for the mining company to buy back some of the electricity and/or extend the life or other safeguards in the event of a production interruption. Going back to the replacement of the word streaming by „stream“, this is effective from today since the amendment has just been published in today`s Official Journal (21 January).
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