TERMS & CONDITIONS
Product: AU (Aurum) Gold Bullion Metal in Bar Form
Form: 1Kg or 12.5Kg (One or Twelve-point Five Kilogram) Bars conforming to GLD Specification
Age: Certified Less than Five (5) years from production
Hallmark: Internationally Recognized Hallmark less than 5 years
Total Quantity: 50MTS (Fifty Metric Tons) with possible rolls and extensions
Tranches: 8MT Per Month for 12 months with possible rolls &
Purity: 999.5/1000 Fineness or Better
Gross Discount Rate: -10% (Minus Ten Percent) Net Discount Rate to the Buyer: -7% (Minus Seven Percent)
Brokers: Total -3% (Minus Three Percent); 1.5% (One Point Five Percent) to the Seller Group (CLOSED), paid by the Seller 1.5% (One Point Five Percent) to the Buyer Group, paid by the Seller (OPEN)
Transaction Currency: United States Dollars (USD) or as agreed (EURO/HKD/CNY)
DELIVERY TERM: BANK TO BANK HK
Payment Method: Funds transfer from Buyer’s nominated BANK account to Seller’s nominated BANK account, AFTER the Assay, Verification and Authentication of AU at HK private security warehouse (being the current storage location of the AU used by the Seller) by parties including, but not limited to: Seller(s) or their representative(s), Brinks representative(s), and Buyer(s) or their representative(s). date to be mutual agreed.
Payment Seller: Brinks or Bank account HK to Seller HSBC HK (Paid by Buyer after AU is Assay, Verification and Authentication of AU at HK
private security warehouse)
1. Certificate of Purity
2. Commercial Invoice
3. Certificate of Ownership
4. Safe Keeping Receipt from storage/warehouse in Hong Kong
5. Packing List
6. Insurance Certificates.
- The Buyer issues and LOI with CIS Package or KYC.
- The Seller’s Power of Attorney (“Seller’s POA”) issues the Draft SPA for approval and acceptance by the Buyer. Once accepted, the Seller’s POA issues fully executed SPA signed and sealed to the Buyer with procedures below, which includes the Sellers and Buyers details and the colored copy of Sellers and Buyer’s passport. In addition, an Irrevocable Master Fee Protection Agreement (IMFPA) must be concurrently be signed by the Buyer and Seller.
- • After the SPA has been signed by the Buyer and Seller’s POA, the following steps are agreed:
- • The Buyer authorizes The Seller to do an ATV/soft probe for minimum funds available for purchase of 8 MT prior to the inspection by the buyer.
- • The Seller authorizes POP to the Buyer Refinery in Hong Kong on successful POF verification
- • During this visit Brinks or buyers representative shall conduct all testing, verification and authentication procedures, including but not limited to Assaying the AU, to the satisfaction of the Buyer. Upon successful verification of the AU, the Buyer shall purchase the Seller AU immediately wire MT 103. The Seller shall simultaneously transfer the ownership of the AU to the Buyer. If the Buyer ops the Seller to deliver the AU after the payments are made to the Buyers Brinks Warehouse, the same shall be done by the Seller;
- • Immediately upon verification that the AU is of minimum purity under 1.7 of this Agreement, both parties irrevocably agree to arrange payment for the AU while at the Warehouse via transferring the agreed sum of moneys from the nominated Brinks accounts or Bank account of the Buyer to the Account of the Sellers HSBC or Nominated Account’
- • Payment for AU under this Agreement in exchange for transfer of title of AU from Seller to Buyer shall be made through the Brinks system, and simultaneous with step 2.iii) the Seller shall transfer the ownership of AU in the name of the Buyer prior to its’ departure or transport from the Warehouse to Brinks HK warehouse (“Brinks Warehouse”)or Buyers warehouse;
- • Immediately following registration of the AU in the Buyer’s name, the Seller shall then arrange with Brinks HK to transport the Buyer’s AU to Brinks HK Warehouse and be responsible for costs associated with transport.
- • Title to the AU shall pass to the Buyer at payment at the Warehouse with payment being between Buyers Brinks or Bank account and Seller’s accounts as per 2.iii) and 2.iii) in this Agreement.
- • Tranches shall be 8MT AU per month to the Brinks Warehouse with a maximum total of 50MT.
- • All supporting documents following 2.ii) of this Agreement comprise the following:
- • Certificate of Purity
- • Commercial Invoice
- • Certificate of Ownership
- • Insurance Certificates
- • Declaration that the Product is Free from Liens and Encumbrance.
- • Safe Keeping Receipt from Warehouse
- • Packing List
- • Within 24 hours, after the exchange of funds and ownership, the Sellers and Buyers IMFPA’s will be paid to the respective Buyer Brokers, Sellers Brokers, Buyer Mandate, and Seller Mandate, or any Agent or Pay Master and party nominates.
- • Any changes agreed to be made to this Agreement by mutual agreement between the Seller’s POA and the Buyer shall not affect the rights of any intermediaries being brokers or mandate holders as listed in the IMFPA which is appended to this Agreement.
- • These Terms and Conditions are subject to the Sales and Purchase Agreement (SPA) acceptable by both parties, Buyer and Seller. If the Sales and Purchase Agreement (SPA) is not accepted by both parties, Buyer and Seller, this agreement is null, and void and no claims can be made by either party.
- • Delivery and payment for each tranche of AU under this Agreement shall be on a monthly basis following the conclusion of the previous tranche transacted between the Buyer and Seller.
CONTACT MADNOX TRADE DESK +1-754-250-9100 OR VINCE@MADNOX.COM