RE:Premier Gold Mines Announces Financing Arrangement with
Can anyone make sense of the silver stream arrangement? How many ounces are invloved?
"Silver Stream of US$11.5 million (50% of the silver production from the Mercedes Mine for the initial four quarters, 60% for the subsequent four quarters, and 70% until the delivery of 1.25 million ounces of silver, after which the delivery will be reduced to 25% of the silver production until the delivery of 2.0 million ounces, and reduced further to 12.5% thereafter) with an ongoing payment based on 20% of the prevailing silver price"
Is the silver stream for the life of mine? So after delivering 2.0 million ounces, it then drops to 12.5% of production? That seem rather dear. Just simple math here, but 2 million ounces at $20 per ounce is $40 million. Am I understanding this wrong?
Where does the 20% of prevailing silver price fit in?
This is not clear at all to me.
If someone can put this into simple english that would be much appreciated.
Thanks!