STEP BY STEP PROCEDURES FOR SELLING AND BUYING

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1. First send your LOI (Letter of Intent) to the Seller. Or maybe your more serrious intention on an ICPO (Irrevocable Corporate Purchase Order).  This document should be on buyer’s letterhead and should be signed and sealed by the buyer and seller. It must include buyer’s banking information - bank name and location and account number - or soft probe permission language expressed in the LOI text. The supplier will check buyer’s financial capability. Some Seller or suppliers require a buyer’s BCL (Bank Capability or Comfort Letter) to evaluate the Buyer buying capability.

2. On receipt of the LOI/ ICPO and BCL, and after confirming buying ability of the Buyer, the Seller/Miner/ supplier will send to the buyer a Soft Corporate Offer followed by Pro Forma Invoice, sales/purchase contract and/or FCO (Full Corporate Offer) and SPA - Sales PUrchase Agreement.

3. Once the buyer and suppliers have agreed and signed on the pro-forma invoice, FCO and/or contract, the deal is executed in compliance with the terms of the agreement.

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NCDNA WHY AND WHEN

When brokers are involved, an NCND (Non-Circumvention and Non- Disclosure) and IMFPA (Fee Protection Agreement) will be required and signed by parties involved to secure commissions to Sellers' and Buyers' groups.

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PAYMENT TERMS

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Method of payment is generally Fully Funded Documentary L/C payable at sight (FFDLC), Revolving Documentary L/C (RDLC), Stand-by L/C (SBLC), Bank Guarantee (BG), Escrow Account or ILOC - Irreversible Letter of Credit.

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PAYMENT TERMS IN DETAIL

Start a buying proposition right; provide the text of your proposed payment instrument. The L/C must be issued or confirmed by a prime International Bank acceptable by the supplier. LC must be from a large. reputable international bank.

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In most cases, the Seller/Minersupplier may require the LOI and BCL before he provides a /soft quote. After all why provide an offer or a sample to Buyer who cannot buy.

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WHY THE PROCEDURES TO BUY AND SELL?

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The initial exchange of information between Buyers and Seller is requested to insure that when the time for written, legally binding commitments are to be made by both seller and buyer, all the terms and conditions but have been accepted by both parties.

1. LOI: tells our seller exactly what the buyer wants and reveals which bank he will be using through which he will pay the supplier, and how he will be paying. Upon receiving this LOI info, the Seller knows specifications, shipping schedule, etc., and can tell if the Buyer meets all buyer's conditions. 

2. When the seller knows the buyer can meet his requirements, he tells the buyer for their informal acceptance of all its terms and conditions. . 

3. FCO can now be issued by the seller since he knows exactly all the terms and conditions of the transaction and has agreed to legally meet them all, including price.

4. With the LC text agreed on both buyer and seller (and the seller ‘s bank) a draft contract is signed. AFTER signing SPA the buyers' LC is formally presented to the seller’s bank. The buyer can, at this point, request a Proof of Product from the seller. This allows him to safely, comfortably and legally sign the contract.

5. At this time a POF (Proof of Funds) will be required from the buyer’s bank despite the initial BLC.

6. With signing of the contract the LC can safely be opened by the buyer, with no possibility of problem occurring with either the method of payment on his side or performance by the seller on the other. You can now see why we structure all of our transactions this way. Al buying/selling procedures do not favor either the buyer or seller. Procedures favor the successful completion of the transaction. Procedures work for all buyers and sellers.

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