{"id":60,"date":"2020-04-01T19:43:29","date_gmt":"2020-04-01T11:43:29","guid":{"rendered":"http:\/\/charltonsnaturalresources.com\/?page_id=60"},"modified":"2020-05-26T17:28:31","modified_gmt":"2020-05-26T09:28:31","slug":"offtake-agreements","status":"publish","type":"page","link":"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/","title":{"rendered":"Off-Take\/Take or Pay Agreements"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; admin_label=&#8221;ContentWrapper2&#8243; module_id=&#8221; &#8221; module_class=&#8221;content-wrapper2&#8243; _builder_version=&#8221;4.0.5&#8243; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;0px||0px|||&#8221; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; transparent_background=&#8221;off&#8221; padding_mobile=&#8221;off&#8221; make_fullwidth=&#8221;off&#8221; use_custom_width=&#8221;off&#8221; width_unit=&#8221;on&#8221;][et_pb_row column_structure=&#8221;2_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; module_class=&#8221;main-content2&#8243; _builder_version=&#8221;4.4.3&#8243; width=&#8221;100%&#8221; max_width=&#8221;100%&#8221; z_index_tablet=&#8221;500&#8243; box_shadow_horizontal_tablet=&#8221;0px&#8221; box_shadow_vertical_tablet=&#8221;0px&#8221; box_shadow_blur_tablet=&#8221;40px&#8221; box_shadow_spread_tablet=&#8221;0px&#8221;][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.0.47&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Breadcrumbs&#8221; module_class=&#8221;breadcrumb-wrapper&#8221; _builder_version=&#8221;3.27.4&#8243;]<div class=\"breadcrumb\">\r\n<ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/' title='Advising Resource Companies'>Advising Resource Companies<\/a><\/li><li><span>Off-Take\/Take or Pay Agreements<\/span><\/li><\/ul>\r\n<\/div>\r[\/et_pb_text][et_pb_text admin_label=&#8221;Section Title&#8221; _builder_version=&#8221;4.4.3&#8243; hover_enabled=&#8221;0&#8243; global_module=&#8221;229966&#8243;]<h2 class=\"section-title\">Advising Resource Companies<\/h2>\n[\/et_pb_text][et_pb_text admin_label=&#8221;Content MenuBar1&#8243; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;230379&#8243;]<div class=\"content-menubar\">\n<div class=\"page-menu-panel\">\n<h3>Advising Resource Companies<\/h3>\n<p><span class=\"hamburger\"><\/span><\/div>\n<ul class=\"cm-parent\"><li class=\"page_item page-item-32 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/\">Infrastructure Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-34\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/key-issues\/\">Key Issues<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-36 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/\">EPCM and EPC Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n\t<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-51 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/\">Mining Joint Venture Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n\t<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-60 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/\">Off-Take\/Take or Pay Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-64\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/farm-out-in-agreements\/\">Farm Out\/Farm In Agreements<\/a><\/li>\n<li class=\"page_item page-item-65\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/minerals-royalties\/\">Minerals Royalty Agreements<\/a><\/li>\n<li class=\"page_item page-item-66\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/mining-service-agreements\/\">Mining Service Agreements<\/a><\/li>\n<\/ul><\/div>\n[\/et_pb_text][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-title\">Off-Take\/Take or Pay Agreements<\/h1>[\/et_pb_text][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.4.3&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243;]<p>Charltons is experienced in the negotiation and drafting of mining off-take agreements (&#8220;Off-Takes&#8221;), including Off-Takes between Chinese State-Owned Enterprises and international miners.<\/p>\r\n<p>\r\n    As Off-Takes are typically negotiated far in advance of the construction of the mine plant and infrastructure they play an important role in the mineral company&#8217;s ability to secure future financing. Having Off-Takes in place also lends\r\n    credibility to a listing, which may impact the IPO share price.\r\n<\/p>\r\n<p>Properly drafted Off-Takes should:<\/p>\r\n<ul class=\"list-default\">\r\n    <li>Describe the terms of the agreement, and<\/li>\r\n    <li>Allocate the risks between the producer\/seller and the purchaser<\/li>\r\n<\/ul>\r\n<p>\r\n    A mineral company must initially decide whether or not it wishes to enter into an Off-Take (essentially a form of buy\/sell agreement) or a marketing agreement. Off-Takes differ from marketing agreements in that they typically include\r\n    &#8220;must buy&#8221; clauses.\r\n<\/p>\r\n<p>\r\n    An Off-Take should also address the allocation of risks and conditions relating to the change in possession and ownership of the product, for example whether Incoterm-referenced delivery terms or independently negotiated terms should\r\n    apply, the method of price benchmarking, force majeure, provisions relating to product quality and late payment. As with all international commercial contracts, consideration should be given to the agreement governing law and\r\n    arbitration clauses.\r\n<\/p>\r[\/et_pb_text][et_pb_text admin_label=&#8221;SubM-Children&#8221; _builder_version=&#8221;4.4.2&#8243;]<div class=\"page-submenu\"> \r\n<ul><li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\r\n<\/div> [\/et_pb_text][et_pb_text admin_label=&#8221;News Title&#8221; module_class=&#8221;content2-news-title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-subtitle\">Read our latest News<\/h1>[\/et_pb_text][et_pb_blog fullwidth=&#8221;off&#8221; posts_number=&#8221;6&#8243; include_categories=&#8221;23&#8243; show_author=&#8221;off&#8221; show_categories=&#8221;off&#8221; show_excerpt=&#8221;off&#8221; show_pagination=&#8221;off&#8221; admin_label=&#8221;News Thumbs&#8221; module_class=&#8221;cu-blog&#8221; _builder_version=&#8221;4.4.2&#8243;][\/et_pb_blog][et_pb_text admin_label=&#8221;Click more news&#8221; _builder_version=&#8221;4.4.2&#8243;]<div class=\"bottom-click-more\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/news\/\">Click here to read more News<\/a><\/div>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25.3&#8243; custom_padding=&#8221;|||||false&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;\/legal\/advising_companies\/off_take_take_or_pay_agreements.jpg&#8221; admin_label=&#8221;Side Hero&#8221; module_class=&#8221;side-hero-wrapper&#8221; _builder_version=&#8221;4.4.3&#8243;][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p><ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/' title='Advising Resource Companies'>Advising Resource Companies<\/a><\/li><li><span>Off-Take\/Take or Pay Agreements<\/span><\/li><\/ul> Advising Resource Companies Advising Resource Companies <ul class=\"cm-parent\"><li class=\"page_item page-item-32 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/\">Infrastructure Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-34\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/key-issues\/\">Key Issues<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-36 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/\">EPCM and EPC Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n\t<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-51 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/\">Mining Joint Venture Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n\t<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-60 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/\">Off-Take\/Take or Pay Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-64\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/farm-out-in-agreements\/\">Farm Out\/Farm In Agreements<\/a><\/li>\n<li class=\"page_item page-item-65\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/minerals-royalties\/\">Minerals Royalty Agreements<\/a><\/li>\n<li class=\"page_item page-item-66\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/mining-service-agreements\/\">Mining Service Agreements<\/a><\/li>\n<\/ul> Off-Take\/Take or Pay AgreementsCharltons is experienced in the negotiation and drafting of mining off-take agreements (&#8220;Off-Takes&#8221;), including Off-Takes between Chinese State-Owned Enterprises and international miners. As Off-Takes are typically negotiated far in advance of the construction of the mine plant and infrastructure they play an important role in the mineral company&#8217;s ability to secure [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":28,"menu_order":4,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:paragraph -->\r\n<p>Charltons is experienced in the negotiation and drafting of mining off-take agreements (\"Off-Takes\"), including Off-Takes between Chinese State-Owned Enterprises and international miners.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>As Off-Takes are typically negotiated far in advance of the construction of the mine plant and infrastructure they play an important role in the mineral company's ability to secure future financing. Having Off-Takes in place also lends credibility to a listing, which may impact the IPO share price.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Properly drafted Off-Takes should:<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>Describe the terms of the agreement, and<\/li><li>Allocate the risks between the producer\/seller and the purchaser<\/li><\/ul>\r\n<!-- \/wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>A mineral company must initially decide whether or not it wishes to enter into an Off-Take (essentially a form of buy\/sell agreement) or a marketing agreement. Off-Takes differ from marketing agreements in that they typically include \"must buy\" clauses.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>An Off-Take should also address the allocation of risks and conditions relating to the change in possession and ownership of the product, for example whether Incoterm-referenced delivery terms or independently negotiated terms should apply, the method of price benchmarking, force majeure, provisions relating to product quality and late payment. As with all international commercial contracts, consideration should be given to the agreement governing law and arbitration clauses.<\/p>\r\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[25],"class_list":["post-60","page","type-page","status-publish","hentry","category-advising-resource-companies","cat-25-id"],"_links":{"self":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/60","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/comments?post=60"}],"version-history":[{"count":11,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/60\/revisions"}],"predecessor-version":[{"id":232302,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/60\/revisions\/232302"}],"up":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/28"}],"wp:attachment":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/media?parent=60"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/categories?post=60"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}