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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (198258)9/6/2025 12:59:21 PM
From: Goose94Read Replies (1) of 202016
 
TSX/TSX-V/CSE: Support Mining. Ways to raise capital without diluting shares

1. Metal-backed financing

Prepaid off-take agreements
Traders, smelters or industrial customers pay an advance for future silver deliveries.
Advantage: Immediate cash, secured by existing silver.
Disadvantage: Sale usually at a discount to market price.

Royalty & streaming
Immediate payment from investors in exchange for a fixed percentage of future production.
Advantage: No share issue.
Disadvantage: Permanent participation in earnings.

Metal-backed loans
Banks or specialised commodity financiers accept physical silver or inventories as collateral.
Advantage: Classic loan, no dilution.
Disadvantage: Repayment obligation.

2. Using physical silver as collateral

Lending against inventories
If the silver is already in a processable form (concentrate, doré), it can be used as collateral for a loan from a bank or metal dealer.
Quasi ‘warehouse financing’.

Leasing / metal loans
Financial institutions lend capital against future delivery of silver (e.g. 1 million ounces).
Advantage: Flexible structure.
Disadvantage: Dependence on silver price fluctuations.

3. Strategic partnerships

Industrial buyers (electronics, solar, investment bars) may be willing to advance capital directly in order to secure favourable long-term supplies.

Streaming companies such as Wheaton Precious Metals or Franco-Nevada finance junior companies in precisely this situation.

4. Hedging via the futures market

Hedging / forward sales
Part of the silver is sold at fixed prices via futures.
Banks or traders often pay an advance on these contracts.
Advantage: Immediate cash, price certainty.

Disadvantage: Limitation of upside potential when silver prices rise.

By @Trust-me-2 on pro.ceo.ca
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