TSXV:FCO.H - Post by User
Comment by
westernkidon Jun 10, 2010 12:21pm
316 Views
Post# 17177156
RE: RE: Possible Financing Strategy - Offtake with
RE: RE: Possible Financing Strategy - Offtake withdigger...
Usual Pre-sales agreements prices are not based upon
the date that the contract is signed, but on the actual ship
date or receipt date (or any date withe in reason which
can be negotiated) with a provision that the price also will
be based upon some percentage of a know "market" price
(or index).
So, both companies get security. One of a sure sales...and
the other for a sure supply at a less than market price.
In reality, the contents of the sales/purchasing contract, are
wide and diversified. Depending upon the needs of both
companies and the "closeness" of the relationship.
westernkid