Selling Copper Cathodes To Exit Buyers

SPECIFICATIONS: Electrolytic Grade A – Standard Cu Cathodes

Elements           Max Value

Cobalt (CO):      0.20 ppm
Lead (PB):         0.20 ppm
Iron (FE):           2.00 ppm
Nickel (NI):        0.20 ppm
Antimony (SB):  0.10 ppm
Arsenic (AS):     0.10 ppm
Bismuth (BI):     0.10 ppm
Tellurium (TE):  0.05 ppm
Selenium (SE): 0.30 ppm
Sulphur (S):      4.00 ppm
Silica (Si):         0.30 ppm
Oxygen (O2):    NIL

PHYSICAL
Length, width and thickness of each sheet shall be equivalent to generally accepted LME internationally accepted measurements. The copper cathode’s surface condition shall be free of imperfections, defects and excess exposure to outdoor weather.
Dimensions : 914 mm x 914 mm x 12 mm (LME Standards)
Weight of each sheet: 125 Kilograms (Approximately ± 2%)
Net weight of each pallet: 2.000 Kilograms (Approximately ±2%)
Net weight per container: 20.0 Metric Tons (Approximately ± 2%)
Gross weight per container: 22.2 Metric Tons (Approximately ± 2%)

Transaction Procedures for Bank Comfort Letter (BCL)

1. Seller sends SCO with Client Information Sheet (CIS and Letter of Intent (LOI) templates to Exit Buyer. 2. Buyer accepts SCO and sends completed CIS with passport photo and LOI to Seller.
3. Seller issues draft Sales and Purchase Agreement (SPA) for Buyer’s review and execution.
4. Buyer returns executed SPA with Buyer’s signature and seal within five (5) working days.
5. Seller countersigns and completes SPA with all applicable banking coordinates and final SPA will be returned within three (3) working days.
6. Upon acceptance and verification by Seller’s Financier, Buyer’s bank issues Bank Comfort Letter (BCL) according to the requested trial shipment quantity. BCL demonstrates Buyer’s ability to pay for product. Funds are not moved, blocked or transferred out of Buyer’s account. BCL to be used in a Private Placement Program.
7. After 15 days, Seller’s agent sends "Invitation Letter" to Buyer for Buyer or his authorized representative to visit Seller’s storage facility in Zambia to physically view and confirm the availability of the copper cathodes and receive a full set of POP documents in Zambia or in Beira, Mozambique.
8. Seller ships product to Buyer’s port of destination on a CIF basis.
9. Within fourteen (14) days after the arrival of the goods at Buyer’s destination, Buyer inspects the Product and upon receipt of ASI, SGS certificate or an equivalent at Buyer’s destination, Buyer pays the Seller for the product with either T/T or MT103 to the Seller’s nominated bank account within 48 to 72 hours.
10. All subsequent deliveries will be made on a CIF basis with 100% due at destination after receipt of inspection report.

OR:

MT 760 SBLC Transaction Procedures

1. Seller issues SCO with MT760 SBLC text and CIS templates (Annex 2 & 3) to Buyer.
2. Upon acceptance of Buyer’s CIS with passport photo & executed acceptance of SCO, Seller issues draft SPA to Buyer.
3. Buyer emends and executes draft SPA and returns to Seller.
4. Seller accepts or emends draft SPA and returns to Buyer.
5. Parties lodge final executed SPA with their respective bank officers.
6. Seller provides video and pictures of product containing Buyer’s name, contact and date.
7. Buyer issues an irrevocable transferable MT760 SBLC for the value of the initial or trial shipment that is valid for 365 days. MT760 SBLC will act as collateral in the event that Exit Buyer or his designated paymaster fails to keep their payment obligations as defined by the Sales and Purchase Agreement (SPA). In the event of a trial shipment, Buyer’s MT760 SBLC must be increased to the value of the monthly shipment value upon completion of the trial shipment.
8. Within fifteen (15) days of Seller’s financier receiving the operative financial instrument, Seller sends Proof of Product (POP), which are documents issued by the Government of the DRC.
9. Seller’s agent sends letter of invitation to Buyer to see Copper Cathodes in Zambia.
10. After inspection by Alex Stewart International, SGS or any other internationally recognized equivalent agency in country of origin at loading port, Seller delivers product to destination port.
11. Seller sends all shipping documents and transfers title of product to Buyer, which is necessary for clearance of product at destination port.
12. Buyer completes product inspection within seven (7) days of product’s arrival.
13. Buyer submits discharging port inspection report to Buyer’s bank and sends copy to Seller.
14. Buyer’s bank sends payment via T/T or MT 103 within five days of final inspection by ASI, SGC, CCIC or an equivalent internationally accepted inspection agency at destination port.

OR:

TRANSACTION PROCEDURES FOR 20%/80% PAYMENT

1. Seller sends SCO to Exit Buyer
2. Buyer sends ICPO/LOI to Seller.
3. Seller issues draft Sales and Purchase Agreement (SPA) for Buyer’s review and execution.
4. Buyer returns executed SPA with Buyer’s signature and seal within five (5) working days.
5. Seller countersigns and completes SPA with all applicable banking coordinates and final SPA will be returned within three (3) working days.
6. Seller sends "Invitation Letter" to Buyer for Buyer or his authorized representative to visit Seller’s storage facility in Zambia to physically view and confirm the availability of the copper cathodes.
7. Buyer visits Seller’s storage facility to physically view and confirm the availability of the Copper Cathodes and receive a full set of POP documents.
8. Buyer pays a pre-delivery financial commitment of twenty percent (20%) of the total invoice value of trial shipment by SWIFT MT103 Cash\Wire Transfer.
9. Payment is made to facilitate complete export documentation costs and the shipment of goods from Zambia to Beira Port and to Buyer’s destination port.
10. Within fourteen (14) days after the arrival of the goods at Buyer’s destination, Buyer inspects the Product and upon receipt of ASI, CCIC or any international equivalent inspection agency report at Buyer’s destination, Buyer pays the Seller the remaining balance of eighty percent (80%) of the total sales amount by T/T or MT103 to the Seller’s nominated bank account within 48 to 72 hours.
11. All subsequent deliveries will be made on a CIF basis with 100% due at destination after receipt of inspection report.
* Seller may provide Buyer with collateral equal to the pre-delivery financial commitment fee of twenty percent (20%) which will be held in a safety deposit box at security company Optimas Security Group (https://www.optimassecurity.com/) Please read the above procedures carefully. If you cannot or will not accept these procedures, we will not be able to work with you on your requirements. These procedures are non-negotiable and required to be in all ICPO’s and LOI’s.

INFORMATION REQUIRED TO PREPARE SCO:
1) Exit Buyer Name
2) Contact
3) Quantity
4) Destination
5) Target LME discount
6) Payment guarantee preference