Forward Contract, Off-Take Contract. Off-take development financial packages provides a predictability for sales and sometimes eliminates the volume and price risk. Off-take contracts are legal contracts between two entities regarding specific amounts of goods to be delivered from one company to another.The supplier commits to sell to the buyer, and the buyer to buy from the supplier, when production starts. Prices are usually agreed when the off-take contract is drawn up. The amount of finance provided will typically be dependent upon the value of the contract and the timing for commencement of the off-take.Off-take agreements are generally negotiated long before construction of the facility begins. (for new projects). Off-take contracts have benefits for both the sellers and buyers of resources and services. Please contact us now for more details.
