Alexco Resource Corp (AXU)

[desert-heat]

That agreement is for 10 years once production resumes. Yeah it kinda sucks on the upside but it puts a price floor on the downside.

Alexco President and Chief Executive Officer Clynton R. Nauman said, "The amended Silver Purchase Agreement accommodates both Alexco and Silver Wheaton interests in re-establishing silver production at our expanding Keno Hill operations, but also represents a significant value proposition for Alexco shareholders. Simply put, the change not only protects our margins in lower silver price environments, it reduces our operating costs and considerably improves our leverage to upside movements in silver prices. It's important to remember that the impact of the silver stream is only on 25% of the ounces we produce, which leaves 75% of our production fully exposed to the upside. On the strength of this deal, and providing we are able to secure appropriate regulatory authorizations, we will move forward with our longer range plans to fully explore and develop our Flame & Moth deposit. Shorter term, depending on permitting as well as prevailing market conditions, our plan is to establish underground access and exploration platforms at Flame & Moth with a view to making a mine production decision for both our new Flame & Moth deposit and our currently suspended Bellekeno mining operation in 2015."