You are on page 1of 4

August 14th 2013 Sun Life Group of Companies Dubai, United Arab Emirates.

Dear Sirs, LETTER OF INTEREST UP to 50 Metric Tons of AU Metal with rolls & extensions Reference is made to the above subject. Al-Musyarakah Mining Minerals Sdn Bhd (AMM) is a professional gold trader and gold mining Company Registered in Malaysia with associate companies in Hong Kong and Korea. The Group through AMM is fully authorized as exclusive representative to sell its Gold and Gold located in Korea and Hong Kong. Our company Sititrust & Administrator Limited (SitiTrust) is a legally constituted company according to the Offshore Laws of Labuan, Malaysia having its registered office at Lot 2 (a), Level 4, Wisma Lazenda, Jalan Kemajuan, 87000 Labuan F.T, Malaysia and has the legal capability to enter in to this contract. AMM has appointed SitiTrust as a trustee to undertake all gold transaction including financial and banking requirements. Sititrust acting as Trustee has the authority and ability to provide the volume of 20 MT of AU Metal / Gold with the delivery terms : FOB Korea (hereafter the Seller). All purchases of Au Metal Bars by the Buyer from the Seller shall be delivered to the Buyer through the Sellers Bank / Warehouse in Seoul, South Korea directly. The Au metal supplies will include all the required documents and amongst others to comply with LBMA / GLD format. PRODUCT DESCRIPTION & TERMS : a. b. Commodity Quantity : : Au Metal to GLD Specifications Up to 50 MT - 1MT for the first tranche and a minimum of 1 MT per tranche with rolls & extensions of up to 50 MT c. Origin : South Korea
SitiTrust & Administrator Limited (LL03986)
11 Floor. South Block, The AmpWalk 218 Jalan Ampang, 50450 Kuala Lumpur, Malaysia : +60 (3) 2166 3835 : info@sititrust.com : +60 (3) 2166 3853 http : www.sititrust.com
th

SitiTrust & Administrator Limited (LL03986)

d. e. f. g. h. i. j.

Purity / age Mark Discount Payment Delivery Price valid Bullion the day, the fixing of tranche.

: : : : : :

99.95% or better / 5 (five) years or below 1 kg or 12.5 kg at Sellers option LS Nikko - Internationally Accepted Hallmark / LBMA Recognised Net to Buyer 7% SWIFT MT103 FOB Shinhan Bank or LS Nikko Korea. The agreed purchase price is the quoted price in the latest London Second Fixing Rate (PM) Issued by the London Market Association (LBMA) on the Day-of-Transaction. In event that the LBMA is not operating on that scheduled price calculation used shall be based on second LBMA the next change to last Market opening day for each

Weight of Bar :

DOCUMENTS To be provided by the Seller : a: b: c: purity d: e: f: g: Certificate of Ownership Certificate of Origin Original Certificate of Assay issued by International Assayer for weight and Export Permit / License Warrant / Certificate from Seller that the Metal is of Non-Criminal Origin. Packing lists Six original Commercial Invoices

TRANSACTION PROCEDURES 1. Buyer and Seller complete and exchange signed this Au Sale & Purchase (S & P) Agreement. 2. Buyer and Seller shall lodge the S & P with their common nominated bank (the Bank). 3. Buyer will instruct the Bank to block the funds for delivery of the first tranche of 1.0 MT or more for the benefit of the Seller or its nominees within 10 days after Buyer and Seller sign the Agreement. 4. After blocking the fund for the benefit of the Seller or its nominees, the Seller shall provide within 10 days all the necessary documents to show evidence of Proof of Product and all other necessary documents related to export of the Au Product.

SitiTrust & Administrator Limited (LL03986)

5. Seller delivers the Au Product equal to the face value of the blocked funds along with complete set of original export documents to Buyers bank against the Irrevocable Conditional Pay Order to release payment immediately via ledger-to-ledger transfer / MT103/23 when the below mentioned set of Documents is ready. 6. Delivery of AU Product tranches for up to 50 MT to be agreed between Buyer and Seller. OBLIGATIONS OF THE SELLER AND BUYER Upon receipt of the confirmation of Blocked Funds in favour of the Sellers name, the Seller shall deliver the agreed initial tranche of Au Metal Bars equal to the face value of the Blocked funds per the agreed partial deliveries with a Purity of 99.95% or better from Sellers nominated bank vault with all the necessary approvals, permits and export documents to the Buyers common nominated bank for acceptance. Subsequent tranches to be delivered will be agreed between Seller and Buyer and will follow the same delivery procedures herein provided. Seller shall get approvals, permits, customs export clearance and all the documents that are duly required under the laws of South Korea for further export of the Au Metal Bars by or on behalf of the Buyer. The Buyer shall be responsible for the provision of Payment as mentioned in Payment Clause below. PAYMENT Payment to the Seller shall be made in the form of Blocked Funds for the Au transaction in Sellers or its nominees name as agreed between both parties for value of the first tranche. Payment to the Seller shall be made against delivery of the Au Metal Bars accompanied by above mentioned full necessary Documents in this S & P for the transfer of Ownership to Buyer. Payment shall be negotiated against the aforementioned documentation. Before delivery of the Au Metal Bars to Buyer by Seller, the complete set of Documents shall be handed-over to Buyer to demonstrate that the Au Metal Bars are ready for immediate shipment to the Buyer at any time necessary. Partial delivery is allowed. Currency : The product referred to, in this Agreement is to be calculated in United States Dollars (USD)

SitiTrust & Administrator Limited (LL03986)

Ownership of every tranche of the Au Metal Bars delivered shall pass from Seller to the Buyer upon payment of the Au Metal Bars.

NON-CIRCUMVENTION & NON- DISCLOSURE The Seller and Buyer accepts and agree to the provisions of the International Chamber of Commerce, Paris, France, for non-circumvention and non-disclosure, with regards to all and everyone of the third party assignments with full reciprocation for a period of 5 (five) years from the last performance of delivery.

BANKING COORDINATES The Banking Detail of both the Seller and the Buyer is attached in Appendix E.

TIME LIMITATION It is understood that within 10 banking days after signing of this S&P (after execution by the Seller), the Buyer is obliged to provide the POF. For your information, all Appendices stated above shall be agreed upon and handed over during a face-to-face meeting to be organized. Thank you.

Yours sincerely for SitiTrust & Administrator Limited

Faidzan Hassan Principal / Trust Officer

You might also like