Silver Streaming Agreement
In streaming contracts, both parties grant the usual assurances and guarantees of a bilateral agreement with regard to (1) their validity and good reputation with regard to their respective legal systems, (2) their legal capacity and prior authorizations necessary to conclude the contract and be bound by its conditions; (3) the absence of conflict between the rights and obligations of each party under the Treaty and existing agreements with third parties, the statutes of each company and applicable laws. But what is silver streaming? And what are the pros and cons of investing in silver streaming companies? In the context of streaming agreements, disputes relating to the quantity of metal broadcast delivered to the buyer or the calculation of the uncredited balance of the deposit are generally settled amicably by the parties, mainly within a period determined for this purpose. In the absence of an agreement within that period, the case shall be submitted to a statutory auditor, selected by the parties from a list of chartered accountants drawn up in advance in the agreement or, on the other hand, by the appointment of a chartered accountant with sufficient and serious experience in the matter. Ultimately, objections to the accountant`s report or other issues relating to the interpretation, validity, enforceability, and termination of the streaming contract are usually resolved by an arbitrator instead of ordinary courts, given that the parties normally come from different jurisdictions. The definition of the rules of arbitration depends entirely on the jurisdiction of the parties to the agreement and, above all, on the jurisdiction of the mining project and the assets guaranteed. The determination of the number of arbitrators is based not only on economic considerations, but also on the corporate policy of mining companies, which want greater impartiality, especially when the arbitrator`s decision is final and binding on the parties. Over the past decade, persistent volatility in commodity prices, rising production costs and the reluctance of formal financial institutions have led mining companies to face some difficulties and higher costs in seeking traditional financing through traditional equity and external financing, This has led them to set up alternative mechanisms beyond the formal financial market and the usual project financing structures. in research. Streaming deals have become an alternative that is making way for a whole new sector that has acquired an important role in the global market in terms of players, number of transactions, mineral volume and financial values. Franco-Nevada (TSX: FNV, NYSE: FNV), a stock often recommended by expert Adrian Day, is another major streaming player. The focus is on gold and is interested in guaranteeing royalties in addition to flows. Although the cumulative value of existing global streaming deals has been estimated at more than $9 billion, streaming remains a relatively new and little-used mode of funding outside the United States.
Nevertheless, the number of Australian streaming transactions is expected to continue to increase, while traditional sources of funding remain difficult to obtain. To this end, the number of streaming companies entering the Australian market will increase, while traditional companies would like to expand their existing portfolio to streaming. . . .