PRODUCT |
: |
Gold Bullion (Aurum Utalium) Metal in “GLD” Standard Bar Form |
FORMAT |
: |
12.5 KG Au Bullion Bars 50kg/month to 3 MT/Month x 12 (no spots) |
FINENESS |
: |
999.5/1000 Parts Pure Gold per “GLD” Specifications or Better |
HALLMARKS |
: |
Johnson Matthey or other LBMA Approved Refinery |
|
|
|
PRICE |
: |
The purchase value of Each and Every Lift of the Product as per this |
|
|
Agreement (the “Purchase Value”) shall be calculated on the date Delivered |
|
|
to Buyer´s account, in advance of any discounts, as follows: “The number of |
|
|
fine troy ounces of the Product delivered in Each and Every Lift, as |
|
|
established by the assayer certificate issued by the refinery (one kilogram |
|
|
being 32.1507425 fine troy ounces), multiplied by the fine troy ounce’s price |
|
|
according to the last known 2nd fixing of the London Bullion Market |
|
|
Association (the “LMBA”) on the day Delivered to the Buyer´s account and |
|
|
displayed by the “LBMA”. In the event the “LBMA” is not operating on that |
|
|
scheduled day, the price calculation used shall be based on the second |
|
|
“LBMA” fixing of the next market opening day.” |
DELIVERY |
: |
Any Bullion Bank/LBMA JM facility (subject to seller approval) |
GUARANTEE |
: |
Buyer issues SBLC/BG from a top 25 bank to |
|
|
Seller covering first 3 months of deliveries as buyer performance guarantee. Cash Escrow is also an option for the buyer if preferred. |
|
|
NOTE: The seller will issue a performance guarantee in the form of SBLC from Citibank equal to size of buyer’s monthly delivery. |
DISCOUNT |
: |
Gross Discount 10% & Net Discount 8% CIF |
|
|
Seller’s Side 1%(Closed) & Buyer’s Side 1% |
PAYMENT |
: |
Payment shall be in clean, clear and legal United States Dollars funds |
|
|
against the Au Metal “GLD” Standard Gold Bullion. |
III. TRANSACTION PROCEDURE
1. Buyer’s Signatory returns either a full Official Letter Of Intent or ICPO. We will provide the sellers name for the LOI, once we have pre-approved the Au request with the seller. A Letter of Request template will be provided for this purpose at the appropriate time.
NOTE: SCO on Seller’s letterhead will be provided by the Seller’s Mandate to the Buyer, AFTER the Au LOR is submitted and approved.
2. The Seller signs and seals the FCO and buyer returns with countersignature
3. Seller presents SPA
4. The Seller and Buyer sign, seal and exchange the Sales and Purchase Agreement (SPA);
5. Seller’s attorney issues a legal attestation that an instrument of delivery Guarantee (Sellers SBLC from Citibank) will be held as Performance Guarantee.
6. The Seller and his Banker/Bullion Officer will wait 24 hours, One (1) Banking day for the Buyer’s Bank/Banker/Bullion Officer to provide and confirm, the SBLC Sellers Account in the amount of $ ___________ covering first 3 months of delivery of the Au Metal “GLD” Standard Hallmarked Bars.
7. Upon receipt of Buyer’s instrument, the Seller will begin processing Au Concentrate through a contracted private refinery relationship into Au Metal “GLD” Standard Hallmarked Bars to be transferred to the Buyer´s Account at_____________________. First tranche of Said delivery of Hallmarked Bullion Bars from Seller’s refinery to the Buyer’s Account shall begin not more than 30 days from the Seller’s receipt of the Buyer’s SBLC deposit, following tranches will be every 30 days for the remainder of the contract as per the trenching schedule.
8. Seller’s instrument of guarantee shall be considered released upon delivery of a quantity of Au Metal “GLD” Standard Hallmarked Bars, equal to the deposit amount placed by Buyer.
9. Buyer shall pay the Seller for the Aurum Utalium (AU) Hallmarked Bars delivered under the terms of this contract, in clean, clear United States Dollars of non-criminal and non-terrorist origin, by a wire transfer for 100% of thee face value of the Hallmarked Bars (less the agreed discount) contained in each shipment delivered to the Buyer within 72 hours of receipt of delivery.
IV. NON-CIRCUMVENTION
The Parties agree not to circumvent each other or any others who are involved in this Transaction and shall maintain the Transaction in strict confidentiality. Neither Party shall disclose any information to any third party/parties who are unrelated to the Agreement and the Transaction. The person(s) breaching the above statements of confidentiality and circumvention shall be liable for any legal costs.
VI. FORCE MAJEURE
This Agreement shall be covered by the Force Majeure clauses as stated by the “International Chamber of Commerce” in Paris, France, which clauses are deemed to be incorporated herein.
VII. ARBITRATION
This Full Corporate Offer shall be covered by US Law. Any disputes arising out of, or in the context of this Full Corporate Offer or related to any Agreement concluded as a consequence of this Full Corporate Offer shall be finally settled by arbitration with the International Chamber of Commerce. The seat of the “Arbitral Tribunal” shall be in New York, USA. The three (3) arbitrators so appointed shall appoint the Chair-Person of the “Arbitral Tribunal”.
IX. VALIDITY
This Agreement shall not be amended unless agreed upon by both Parties with written consent signed and exchanged between the Parties, personally by the Seller or the Seller’s Trustee and the Buyer or the Buyer’s Trustee. This Full Corporate Offer shall have a term of Twenty Four hours from the date of seller’s signature.
X. IN WITNESS WHEREOF
The Parties have executed this Soft Corporate Offer and the Parties acknowledge the first date referred above as the official and legal date of this Soft Corporate Offer.
BANK ACCOUNT DETAILS OF THE SELLER
Upon receipt of buyer’s RWA letter addressed to seller and signed by two bank officers from buyer’s bank. Seller’s bank will directly contact buyer’s bank to provide seller’s banking coordinates on a bank-to-bank basis.