Requirements for Obtaining Credit in Gold

Viable project that besides paying the credit leaves utility to the producer.

For it to be considered a good project it will need to have a first rate geological study done on it and this should be done by a recognized and reputable geologist that has experience and moral solvency and it should be done with the international canons.

That normally the tested reserves have at least around three years than that of the necessary amount of time to pay the debt, this means that is we are going to pay a credit for seven years, our tested reserves should at least be of ten years of age.

The mine must have feasibility, in other words with recognized international methods.

The investor should demand all of the enumerated conditions so that the producer not only pays the loan back but also ensures a good margin of utility.

It is demanded that the feasibility study includes all the necessary previsions that could delay the execution of the project.

Risk
The price variation will mean a great risk for the producer, if these were to increase to unsuspected levels within the period that the debt is still being redeemed and would have to share with the investor a percentage above the fixed ceiling price.

In the contract a loan of physical gold is subscribed, for example, 1000 ounces of gold, but what would be received is the amount in US dollars for the amount of gold at the international rate.

Financing is done through a financial institution such as the Mining Bank or a Trader that is already set up in the country. What the producer has received is the amount in value that is equivalent to a determined amount of gold and is obligated to also return the equivalent of that amount of ounces of gold.

The financiers or loaners are actually loaning out is dollars but they are covered in a gold future.