Offer for Sell
Chilian Iron Ore
Commodity : Iron Ore 63% / Rejection 61%
Contract term: SPOT
then can roll into 12 month contract
Minimum 70,000 Mt SPOT per month or more
FOB ( Incoterms 2010)
Only after Official request USD per MT, FOB
The Buyer can have the following options for Payment. This will be for the SPOT
1. Buyer instructs their bank to issue a Documentary Letter of
Credit (DLC) with a REDLINE Clause whereby after the DLC is issued the Seller has the right to raw down $94.00 per Mt for the purpose of Mine/Product quality inspection at the
mine patio site prior to transporting, Transporting/Trucking after inspection at the Patio to the port storage facility, port storage costs, SGS Inspection during loading, loading costs to cover
loading, customs clearance and documents. Balance of the contracted amount is payable 100% at sight against payment documents for the SPOT as per the contract.
2. Buyer instructs their bank to issue a SBLC for the SPOT.
The SBLC is payable 100% at sight against payment documents.
3. Minimum Order 120,000Mt: Buyer instructs their bank to issue
a Wire Transfer for the SPOT shipment to USA Bank, a nominated Trust Account. Upon receipt of the wire transfer a Bank Guarantee will be issued in the amount of 110% of the SPOT shipment
amount within 24-48 hours of receiving the deposit transfer. The BG will be issued for 120 days at which time if the Seller has not loaded the product onto the Buyers nominated vessel the
Buyer has the option of cashing he BG and terminating the transaction. If the Seller delivers the product per the terms and conditions of the Contract and the vessel is loaded the issuing
bank for the BG will be notified and the BG will become terminated. Should the Buyer be at fault and delay the vessel arrival for any reason then the BG would be extended to
cover those delays and the Buyer will be accessed any additional charges for storage on the final invoice (NOTE This will allow for 1 or 2 shipments and will be ready for shipment within 65-90
Iron Ore Specifications
63% 61% min
3.00% 4.50% max
0.07% 0.17% max
20mm to 5mm 95% max
Size Below 5mm
The Iron Ore product is processed at our mine patio site on a daily basis.
Specifications may change slightly based on the depth of the unprocessed product and the makeup of the soil. The Specifications noted above are the average and will be verified by SGS or
similar Inspection Company when leaving the mine patio site and when loaded at the port facilities.
1.The Seller guarantees that the product will correspond to
the specifications of Iron Ore 63% and a SGS Report or similar will be supplied to show the exact specifications should the Buyer elect to move forward. The product will have the
following: 63%, if the product is over 63.5% in Fe content then the price will increase by $2.00per Mt., if the product is below 62.5% the price will decrease by the same $2.00 per
percentage point per Mt, rejection is below 61%
2. The payment terms are only for the SPOT
shipment. If all goes according to the terms and procedures and the payment is not delayed then the extended 12 month contract can be payable by a Irrevocable, Revolving, Documentary letter
of Credit payable 100% at sight against payment documents.
1. Buyer will agree to the terms and conditions in this Offer to
Sell (OS) by signing the document and returning it to Seller’s offices together with their Letter of Intent (LOI) to Purchase. The LOI must include detail banking and a letter from the Buyer’s
bank stating he Buyer has the necessary cash on deposit to complete this transaction. Further the LOI must have a corporate resolution from the Buyer/Company giving the necessary approvals for
the individual to sign and bind the buyer/Company.
2. Upon receipt of the signed OS and the Buyer’s LOI and the bank
letter and corporate resolution Seller will instruct their legal department to issue the DRAFT contract for review and comments by the Buyer. Comments will only be acknowledged if they are
in writing and they are from the individual that will be signing the
contract as the legal and authorized representative from the buyer/Company as per the corporate resolution.
3. Once contract is agreed to both Buyer and Seller will sign the
contract and it will be lodged with the Sellers and Buyers banks.
4. Buyer issues payment instrument attached and transaction
5. Once the SPOT shipment has been completed Seller and Buyer can
extend contract into a 12 month term.
We……………….have read the terms and conditions of this Offer to Sell and by accepting the
terms and conditions I am attesting to the fact that we are prepared to move forward with the transaction. I am submitting the LOI, Bank Letter and the Corporate Resolution with this
For and on behalf of
Unless otherwise agreed this offer expires concerning the price on July 31, 2013
5:00pm Eastern Time USA. A signed ICPO from the Buyer (not a mandate or broker) must be received by the closing time noted. (Note the Draft Contract will only be generated
by FGR once we have an ICPO detailing the name of the actual Buyer and their banking as per the procedures noted in this Offer to Sell)