Streaming Agreement Definition

The tax on payments and deliveries of metals under streaming agreements depends on the tax legislation of the parties` jurisdictions and, if they differ, on the entry into force of double taxation agreements. In any event, streaming agreements generally provide that all shipments of metals in streaming or payments made by a party are made without deduction, withholding or charge on the basis of taxes collected by the competent authorities. This streaming agreement was then amended on December 30, 2015 to allow an additional down payment of $15 million with a streaming option, subject to certain conditions by Golden Star`s access to an additional $5 million (this option was not exercised and expired). Expand an existing mine. If a streaming agreement is used to finance a mine extension, the miner will probably have to start delivering the gold immediately. However, the miner will receive the benefits of the streaming company`s large down payment, which can use it to finance its expansion efforts. As with the construction of a new mine, the use of a streaming agreement can help keep debt off balance sheet. This is an important aspect of a capital-intensive sector – and requires high pre-costs for the construction and expansion of mines before expenditures bring any benefit. The streaming contract was amended on December 30, 2015 to provide an additional $15 million in streaming down payment. In typical metal electricity financing, a streaming company makes a down payment to a raw materials company in return for the right to acquire a fixed percentage of the future production of one or more metals produced by a project and makes routine payments for each metal unit supplied under the streaming agreement.

Streaming transactions are usually long-lasting and are often for the life of me. While the mining company`s obligations under a streaming agreement are generally not guaranteed, the streaming company can naturally provide security, generally being tied to the relevant project resources from which the metals are made. In general, failure to comply with the operator`s obligations under the streaming contract under a civil code legal system, unless the parties otherwise agree, would allow the purchaser to enforce outstanding obligations or require early termination of the contract by judicial law, as well as to demand damages for default or delay in service.