Definition of offtake financing28 Jun 2019 10:11
Does this mean no dilution of shares
An offtake agreement is an agreement between a producer and a buyer to purchase or sell portions of the producer's future production. An offtake agreement is normally negotiated prior to the construction of a facility—such as a mine—to secure a market for the future output of the facility.
The offtake agreement serves an important role for the producer. If lenders can see the company has a purchaser before production begins, an offtake agreement makes it easier to obtain financing to construct a facility.