GOLD BUY - CIF - DUBAI

 

To: Gold Seller

Dear Sir / Madam:

Subject: COMPANY SPA-1 Gold Purchasing Procedure

We, COMPANY purchase gold only on CIF Dubai basis under procedures that eliminate or mitigate any potential transaction risks to each of the Seller and COMPANY, respectively. COMPANY is the gold “Buyer”. The following summarizes the COMPANY SPA-1 gold purchasing procedures.1.0 SPA-1 CIF Dubai with Irrevocable Payment Instruction as Payment Guarantee.The Sales Purchase Agreement (“SPA-1”), specifically “COMPANY -- SPA-1 Sept 30, 2013 COMPANY - IRREVOCABLE PAYMENT INSTRUCTION -- FINAL”, provided as a separate file, describes all procedures in detail.

  • We have six (6) refiner accounts at AURORA Precious Metals Group FZC (“AURORA” www.aurorapmg.com) in Dubai, UAE. All SPA-1 transactions are managed through COMPANY Refiner Account 150 at AURORA.  
  • Under SPA-1 procedure COMPANY is prepared to purchase your gold at a discount of 5.00% to LBMA second fixing based on 99.99% purity.  
  • Under SPA-1 procedure COMPANY is prepared to purchase any quantity of gold doré bars (gold dust and gold nuggets are explicitly prohibited from being imported into Dubai) with a purity of at least 75.00% (18k+) (that is free from deleterious or hazardous elements such as Arsenic and Cyanide) from small shipments of 10 Kg to large shipments exceeding 1 Metric Ton.  
  • Under SPA-1 procedure COMPANY is prepared to enter into (A) One-Year to Three-Year Contracts to purchase your gold with monthly, bi-monthly, tri-monthly, weekly or bi-weekly shipments thereunder in amounts equal to or exceeding at least 10 Kg or (B) via a SPOT Contract for One Shipment in an amount equal to or exceeding at least 25 Kg. There are no penalty clauses for the Seller under SPA-1, as SPA-1 has been developed specifically to assist the Seller and COMPANY in developing a long-term, mutually beneficial relationship.
  • Under the applicable SPA-1 procedures, both the Seller and Buyer must jointly file an Irrevocable Payment Instruction with AURORA whereby AURORA will make all payments automatically from COMPANY Refiner Under the applicable SPA-1 procedures, both the Seller and Buyer must jointly file an Irrevocable Payment Instruction with AURORA whereby AURORA will make all payments automatically from COMPANY Refiner

 

             

            2.0 Gold Shipment Processing and Payment Procedures:

             

            2.1 AIR CARGO: We stress that it is essential that the Seller follow the export and delivery CIF Dubai procedures and document examples precisely, as provided for in SPA-1, in respect of air cargo delivery to Dubai International Airport Customs to ensure the smooth import of each Gold Shipment. Once your Gold Shipment arrives at Dubai International Airport Customs, G4SI security (www.g4s.com), the world’s largest precious metals security and transport provider, will clear your Gold Shipment through Customs and deliver your Gold Shipment to AURORA in an armored truck. You, the Seller (or your designated representatives), will accompany me, the Buyer, to AURORA, and in our mutual presence the following will be accomplished:

             

            (X) The box(es) containing your gold are opened and the gold weighed. AURORA, Seller and Buyer agree on the pre-smelt weight of your gold.  

            (X) The gold is placed in a furnace and smelted. Assay Sample is taken of the smelted gold.

            (X) The box(es) containing your gold are opened and the gold weighed. AURORA, Seller and Buyer agree on the pre-smelt weight of your gold.   The gold is placed in a furnace and smelted. Assay Sample is taken of the smelted gold.

            (X) Within approximately 4 hours after the Assay Sample is taken, AURORA will complete the assay of the Assay Sample and provide to both the Seller and the Buyer the Final Assay Report.  

            (X) The Seller and the Buyer verify the LBMA Value of gold on that date and the Seller issues “on the spot” the Final Invoice based on the following factors: (1) the weight in grams of 99.99% fine gold confirmed by the AURORA Final Assay Report, (2) the applicable LBMA gold fixing and (3) the discount to the LBMA agreed between the Seller and Buyer in SPA-1 (e.g., 5.00%).

            (X) The next banking day, AURORA, through COMPANY Refining Account 150 at AURORA, arranges the SWIFT MT103 transfer of Buyer’s full payment to the Seller’s Bank Account specified in the Irrevocable Payment Instruction and provides proof of said SWIFT transfer to the Seller. As Seller and Buyer have jointly signed an Irrevocable Payment Instruction with AURORA, AURORA will make all payments automatically from COMPANY Refinery Account 150 to the Seller. AURORA will transfer the title to the gold from the Seller to the Buyer only after the full payment has been completed.

 

2.2 PRIVATE AIR CHARTER: The Dubai, UAE Customs gold import procedures for Private Air Charter shipments are exactly the same as air cargo procedures, except the Airway Bill of a commercial airline is replaced by the Private Air Charter Manifest.

2.3 HAND CARRY: The Dubai, UAE Customs gold import procedures for Hand Carry shipments are very straight forward. The only difference is that a second Commercial Invoice must be issued to the person hand carrying the gold and the person hand carrying the gold clears the Gold Shipment through Dubai International Airport Customs. We would meet you at Dubai International Airport and then proceed directly to AURORA. Please let us know if you plan to hand carry gold and we will provide you the Dubai hand carry gold import procedure.

 

In order to proceed, we kindly request you please contact a member of the COMPANY team so we may initiate our relationship. Once you are ready to proceed under SPA-1, we request you complete and return the “COMPANY – SPA-1 Seller Information Form” provided as a separate MS Word file.The SPA-1 gold purchasing procedures with Irrevocable Payment Instruction has been developed to eliminate the respective risks of each of the Seller and COMPANY. We recommend that the Seller travel to Dubai, UAE for the First Shipment so we may meet in-person and also do the processing at AURORA together and the subsequent steps to finalize the prompt SWIFT transfer of funds to the designated Seller’s Bank Account. The Seller has the option of accompanying all shipments of gold to Dubai and witnessing the processing at AURORA.Our objective is to develop a long term relationship with real Sellers built on mutual trust and respect.

IF YOU ARE A SELLER AND CAN WORK WITH BUYER PROCEDURE, PLEASE CONTACT W/ AN OFFER. THANKS.

EMAIL: Investments@LadaStone.com