Even though they have put down thousands of dollars, the buyers often stop paying on their claims part way through the process after they realize they’ve been duped, but the company just sells it again to another buyer.

This assay system of ounces per ton sounds simple enough, but the use of the metric system and the additional measuring terms of “grams per ton” and “parts per million” (ppm) has created some misunderstanding of ore value.

This is the point where you might ask, “What do these types of contracts typically look like and how are they negotiated?” Well, that is the topic of this month’s article.