RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Uranium1's cash cost/lb down to $9juro777,
Regarding the off take terms, I believe they are moot as the fundamental problem is that now CGN has its hooks into FCU and is the financier of last resort. I expect the next financing will be at a lower price, resulting in more dilution, and that CGN will also request additional board seats. I see the march to production as a creeping takeover by CGN that will be accomplished by diluting shareholders in successive financings until they have full control of the board and the company, and any development plans. A good example of how this might unfold is to look at the history of Selwyn Resources (now Selwyn Chihong Mining) after accepting Chinese investment.
juro777 wrote: You have absolutely no way of knowing this. We'll find out when PLS becomes a producing mine if we're all still following it then.
sell_high wrote: Still a crappy deal.
juro777 wrote: 5% is the typical brokerage fee that miners pay to sell on the spot market. With this deal the brokerage is being bypassed and the purchaser and miner are doing business directly. The savings has been passed directly to CGN since in a normal spot transaction the miner wouldn't see that 5% anyway.
sell_high wrote: Actually that's incorrect. It's at a
5% discount from average spot market prices at the time of delivery. prem124 wrote: Pursuant to the Off-take Agreement, CGN Mining will purchase 20% of annual uranium production from the PLS Property and will have an option to purchase an additional 15%, at industry standard terms.
Nothing was mentioned about spot price. Standard practice is long term supply agreement. However you should write to the company and ask about their interpreation of this clause.