What Is A Streaming Agreement

That`s why investors should consider gold streaming companies like Franco-Nevada, Wheaton and Royal Gold. Streamers` costs are limited to their initial investments, they avoid mining (and associated risks), they have broad and diversified streaming portfolios, they benefit from the growth in production in the mining facilities in which they invest and they still offer gold. Add the dividends offered by the biggest broadcasters and streaming seems to be the best way to invest in gold. In special circumstances, other plans, such as a buyback option, could be used. This option could, for example, allow the mining company to buy back part of the promised production from the streaming company, usually at a fixed price in the form of a portion of the refunded deposit. Deliveries could also be used in the event of a delay in delivery and compensation from the streaming company. In addition to restrictions on the sale of shares or share rights through the operator, which the purchaser may require of the operator`s shareholders or parent companies as an additional guarantee, streaming agreements generally include restrictions on changing the control of the parties. In streaming agreements, the consideration to be paid or the purchase price of the streaming metal is paid in advance by the buyer; Therefore, such a down payment is treated in practice as a down payment that can be structured as a full down payment or a series of payments that depend on the completion of pre-defined sequential terminals or a combination of the two. Depending on the stage of development of the mining project, these steps may include the completion of predictability or feasibility studies, the obtaining of operating licences and approvals, the start or completion of construction, and the start of commercial operations. Of course, such restrictions are stricter on the part of the operator, as a change of control can result in a reorganization process that would ultimately affect the decision to operate the mining operation, provided the streaming agreement is respected. Accordingly, a change of control by the operator would not be permitted unless the operator accepts that the obligations arising from the streaming contract remain fully in effect despite the change of control, or the obligations of the operator arising from the contract are taken or, at the very least, guaranteed by a third party for the benefit of the purchaser, in which case the operator is exempt from its obligations.