AgaBullion is a specialized trader in offtake agreements between a producer of a resource and a buyer to purchase or sell portions of the mining companies’ future production. Offtake agreements are normally negotiated with the miner companies prior to the construction of a plant such as mine, to secure a market for the future output of the facility. With the arrangement of our offtake agreements, the mining companies can show their lenders that there is a purchaser of its production, which makes it easier to obtain financing to construct the facility.
Our offtake agreements are frequently used in natural resource development, in which the capital costs to extract the resource is significant and the mining company wants a guarantee that some of its product will be sold in the market.
We legally binding in our offtake agreements. The agreements are reached prior to the actual gold being produced. There are certain benefits of our offtake agreement to the production company such as;
• Guaranteed market and source of revenue for its production,
• Secure funds for facility creation
• Hedge against future price changes