RE:RE:RE:Excelsior Mining Completes Copper Cathode Offtake AgreementCopperWave wrote: Not sure if this is good or bad news. Seems a little shady in my opinion, if it was at competitive prices as they say, then they would have stated so in the news release. Whats the point in a release news that's only creates more speculation. Can someone call the company? I emailed JJ and waiting for a response. Can't really step out right now.
There's nothing "shady" about it. It's fairly common in the mining business.
An offtake agreement is essentially a deal between a company that produces a particular resource and a company that needs to buy that resource. It formalizes the buyer’s intention to purchase a certain amount of the producer’s future output.
Offtake agreements are important for many companies but are particularly crucial for those focused on critical and industrial metals. Many of these metals are not sold on the open market, and that makes it harder for producers to offload them.
I consider this good news.