Woulfe Mining Corp WFEMF

IMC $35 Million ...

[Mark101]

According to the last news release on Sept 20 financing is to follow within the next 4-6 week ...

We are now at week 3 ... so within the next 3 weeks evrything should fall into place ... hopefully without a glitch !

One question that is still left unanswered is at what kind of "premium" are we selling the tungsten to IMC ?

[mercurysmith]

Mark101 I couldn't agree more.  Details of a loan agreement are easy to get through Sedar, but details of an equity offtake agreement are held close to the chest--me may not know those details until the cash flow is accounted for in the financial statements after production.  I assume they will use some sliding formula based on spot price of tungsten less some agreed upon discount

[mercurysmith]

I meant to add that some (such as professorc) think it will be based on some set number rather than on a sliding scale percent of spot price.  Hence their comments that it will be good for IMC when the spot price is high and better for Woulfe when the spot price is low.  Problem is we just haven't seen the agreement terms.  I suspect the way IMC is hedging against high spot

[professorchaos]

To clarify, I think it will be a sliding scale. But I'm fairly certain that it will slide to above the spot price when the spot price is particularly low, and below the spot price when it's particularly high.   The exact terms should never be released, because that kind of information is far too valuable to competitors in adjusting their corporate strategies.

[ark88]

To clarify, I think it will be a sliding scale. But I'm fairly certain that it will slide to above the spot price when the spot price is particularly low, and below the spot price when it's particularly high.   I have to disagree. The offtake agreement states that the IMC will purchase at a DISCOUNT to market price. That makes absolute sense when they're putting up money upfront.

[professorchaos]

Have you actually seen the offtake agreement? I'm curious how you know what it states.   In last spring's conference call, I think i remember Brian Wesson mentioning something to the effect of what I wrote. He emphasized that IMC benefits when prices are high, and woulfe benefits when prices are low. Maybe the issue is the degree of a discount that IMC receives (the sliding scale that

[ark88]

Professorchaos; how do i know that the offtake will be sold at a discount?Simple. Its on Wolfe website under projects.>