DisclosureFrustrating as it is, most off take agreements require a lot of confidentiality as to terms, price, delivery, payment and even the identity of the purchaser. Which is crazy making for the shareholders.
At the same time, the Exchange's requirement that material facts be disclosed in a timely manner means that BHS had no choice but to put out this release when it had reached agreement in principle.
Having an off take is key for a mine the size of BHS. We need to know that when a container of concentrate is ready to go a cheque for nearly the whole value of that container will be cut pretty much that day. Once BHS reaches commercial production it needs to manage its cash flow and the first step there is to be assured of prompt payment.