GW1 6.38% 5.0¢ greenwing resources ltd

Sales Agreement (Possehl)

  1. 45 Posts.
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    Can someone please confirm which for me what the agreement is with Possehl? From what i remember the agreement was for 50% of stage 1 production (6,000 tonnes p/a is stages 1's expectation so 3,000 tonnes p/a) for 3 years. Does that mean that over the year they will only take a maximum of 3,000 tonnes? Or is it 50% of total production (so if BASS produces 7,000 tonnes can that be upped to 3,500 tonnes they will take or if BASS only produces 4,000 tonnes will they only take 2,000 tonnes)?

    The agreement starts on Jan 1st and we are expecting the drying plant to be recommissioned sometime next month, so are BASS able to start drying and stockpiling to sell everything they have (assumed <3,000 tonnes stockpiled by Jan 1st) on Jan 1st? Could we expect $300,000 cash to come from the agreement on the first day on 2018 (being approximately 250 tones production for half the month of December from simply drying what we already have plus anything else we already have dried in the sheds (assuming 50 tonnes for this example))?

    Take the cash value and dates with a grain of salt. I am simply using $1,000 per ton as a proxy for what can be expected from the sales agreement and Jan 1st as it is the first day of the agreement. At this stage i have no idea what the agreed upon price will be and if the above eventuated on Jan 3rd i don't think anyone could complain.
 
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