Key Capital Corp (KCPC)

[BeamMeUpScotty]

Here's how KCPC will pay for the gold according to what I've read here posted from the company filings.

They will buy the gold direct from producers at a substantial discount to current market price.

Here's how I see them doing that. They go to gold producers and say we will pre buy some of your gold production in exchange for purchasing it at substantial discount or possibly even cost. In return what this does it allows you to mitigate your production costs which are then shared over a larger amount of production.

I can imagine that their conversation with gold producers will go something like this:

"This then, allows you to increase your wider production to mine more gold to make more substantial profits, by our company paying you money to fund your mining operation up front.

What you the gold producing company will benefit from is economies of scale of production and to maximise your production capabilities before the law of diminishing marginal returns starts to hit.

In other words you will benefit from economies of scale of production."

These are my inferences only but it makes a lot of sense to me!