Dear Sir you could send me your SCO CIF to my email address: email@example.com
>> Mr. Marcio Prado, ATICA S.R.L.
SCO on Gold Bullions
From: ATICA S.R.L.
Subj.: SCO on Gold Bullions
PRODUCT: Gold (Aurum Utalum)
ORIGIN: Mexico and others
QUALITY: 24 kts
FORM: Bullions 12,5 kg
QUANTITY: 500 kg first trial shipment 1000 kg per week
PERIOD: 52 continuous weeks, after the first trial shipment.
It will be calculated based on the previous day’s Second (3:00 P.M.) fixing price for gold (Au) as quoted on the London Bullion Market Association (LBMA) in United States Dollars (USD) per fine troy ounce on the day of final assay by Buyer’s nominated Assayer.
In the event that the LBMA is not operating on that scheduled day, the purchase price calculation shall be based on the Second LBMA Fixing (3:00 P.M.) price of the previous Market opening day in London, England. LBMA discount will be 3% net to Buyer.
Besides the above discount there will be 0,5% for the official representative Buyer and 0,5% for participants on Buyer´s side and 0,5% for participants on Seller´s side.
Buyer and Seller sign SPA and Buyer issues in a period no longer than 5 business days from the date of SPA signing, a Deposit Conditional MT 103/72 in Seller´s favor equivalent of 12% of the agreed tonnage i.e. 6,3 ton.
The main function of the Deposit Conditional MT 103/72 is commit the Seller to reserve exclusively for the Buyer the agreed amount of Gold, object of this offer and to make the weekly deliveries CIF of the product in the refinery that the Buyer indicates in any safe country in the world. It also has the function of guaranteeing to the Seller the Gold payment delivered to the Buyer.
Seller´s bank issues simultaneously in favor of Buyer a Performance Bond (PB) of 2% of the value of the Deposit Conditional MT 103/72. The PB will have the same duration as the MT 103/72 The Gold value will be taken on the opening day of the Deposit Conditional MT 103/72 according to the London Bullion Market Association (LBMA) minus 3% net discount to Buyer to determine the amount of the Deposit Conditional MT 103/72.
Seller requests that the Deposit Conditional MT 103/72 be handled by his PayMaster in USA, Messrs. Barton Law Firm, LPA in Ohio, under following reference:
Barton Law Firm, LPA
7445 Airport Highway, Suite 1
Holland, OH 43528
Seller will deliver the gold bullions in any refinery in the world that the Buyer indicates. The gold will enter relevant refinery on Buyer`s name.
The first trial shipment of 500 kg will be performed in a period of time no longer than 20 working days from the date Seller`s bank accepts the Deposit Conditional MT 103/72.
Upon successful completion of the first trial delivery of 500 kg Seller will continuously deliver 1000 kg every week until fulfilling the SPA.
Once the refinery issues Certificates of Quality and Weight, Buyer will proceed to instruct the issuing bank of the Deposit Conditional MT 103/72 to allow in Seller`s favor the transfer of funds corresponding to the received material or Buyer will make due wire transfer separately if the agreement forsees that the Deposit Conditional remains open for the duration of the SPA
In the first case, the Buyer will make the Deposit Conditional MT 103/72 revolving when the funds for the first 6,3 tons are exhausted and so on until the SPA is fulfilled.
In the second case, the Deposit Conditional MT 103/72 remains valid for the duration of the SPA and may be used to cover the payment of the last 6,3 tons of the SPA.
The result of the chemical analysis of the refinery will be conclusive for The Parties.
Upon taking possession of the assayed Gold, Buyer will have the following documentation:
- Commercial invoice,
- Certificate of origin
- Certificate of ownership,
- Quality certificate,
- Weight certificate
Seller will cover all expenses in the country of origin of the Gold, including taxes, legal documentation, custos procedures, insurance, land and air freight, etc. to the nearest international airport to the test site.
Buyer will cover all expenses in the country of importation of the Gold, including taxes, legal documentation, customs clearance, insurance, transfer of customs to the place of testing, analysis of quality and weight in the refinery of his choice.
This exclusivity is granted and effective for 3 days from this date signed and will remain in effect until cancelled by me in writing. Email, facsimile copies or photocopies of documents or agreements pertaining to this subject are declared and regarded as valid and equal to the original, provided they are represented by proper signatories. Originals may be obtained upon request.
Seller issues relevant Soft Corporate Offer (SCO)
Buyer sends a Letter of Intend (LOI)
Seller sends Firm Corporate Offer (FCO)
Buyer signs FCO
Buyer issues his Corporate Purchase Order (CPO)
Seller submits draft SPA
Buyer and Seller sign SPA
Seller issues a Pro-Forma Invoice
Buyer´s bank issues the Deposit Conditional MT 103/72
equivalent to 12% of the SPA
Seller´s bank issues in Buyer´s favor a 2% Performance
of the face value of the Deposit Conditional MT 103/72
Seller prepares the gold shipments according to the SPA whose start-up is embodied in the text