Check out Highlight no 5 in the Qrtrly & what it...

Check out Highlight no 5 in the Qrtrly & what it means.

"Preliminary discussions held with a large overseas antimony-gold refinery that approached Nagambie in regards to an offtake arrangement for Nagambie's future antimony-gold flotation concentrate."

What does that mean:
1) initiated by "large overseas refinery" not by NAG so they want this.
2) What is an offtake arrangement about.

An offtake agreement is between a producer and a buyer to purchase/sell a portions of the producer's future production (ie pre-purchase.)

It is normally negotiated before construction of the production facility to

1) secure supply for the buyer and
2) provide funding for the producer (NAG) for capex or "set up costs" prior to production.

OA's are typically used to help the selling company (NAG) acquire project financing for future construction, expansion projects, or new equipment through the promise of future income and proof of existing demand for the goods.

So if they Pre-Purchased 3 or 6 mths of supply, we know roughly how much that would be in dollars from my early estimates. Based on processing 100k Tonnes of Ore (which is modest).

Cost of Pre-Purchase of 3 mths production would be about (25% of $125m) .... $31m

Cost of Pre-Purchase of 6 mths production would be about (50% of $125m) .... $62m

So how much did they want to Pre-purchase 3 mths, 6 mths, more?

What could NAGs do with $31m or $62m (or similar amount), well obviously set up to the Production Stage which would cost I believe $7m-$8m (including downramp incline etc)

Well both parties win. Great move by the overseas refinery, bring it on.