COMMODITY SPECIFICATION
Commodity:
Rough Diamonds
Origin:
Botswana Government
Quantity:
200’000 carats spot with 1 000 000 carats as per
attached manifest every month.
Form:
Rough Diamonds
Contract/Spot:
Contract
Price:
$2 600 NEG.
Commissions: 3%
payable by The BUYER to SELLER attorney who will act as paymaster for
commissions
SELLER Side – 1.5%
BUYER Side – 1.5%
Instrument:
BCL as per Appendix 2 then after SKR ICBPO (MT799) blocked funds
Delivery:
CIF Sellers Brinks Account Geneva, Switzerland Free Trade Zone or as discussed
Between Buyer and Seller
Packing:
Standard International export containers.
QUANTITY
A trial lift of 200 000 carats then 1
000 000 carats as per attached manifest every
month for an initial period of 12 months with Rolls & Extensions for 60 months CIF Sellers Brinks Account
Geneva, Switzerland Free Trade Zone or as discussed between Buyer and
Seller.
PRICE
$ 2 600 US Dollars per ct
PAYMENT TERMS
1. Upon approval of the Buyers
Gemmologist assay report by the BUYER, the BUYER will issue an instruction to
his Bank, to pay via EFT direct into Seller Bank Account the value as per
issued manifest. This payment will take place within 24 (twenty four)
hours
PROCEDURE
1) LOI to be sent from End Buyer
with mandate appointment letter and signed NCNDA, SELLER will then issue fully signed and completed SPA (Sales &
Purchase Agreement) for the BUYER’s review and acceptance with 1 (one) – 2
(two) business days of receiving confirmation from the BUYER on acceptance of
draft SPA (Sales & Purchase Agreement) and / or LOI (Letter of Intent).
2)
Upon mutual approval of the SPA (Sales & Purchase Agreement) the
BUYER will sign the SPA (Sales & Purchase Agreement) and IMFPA (Irrevocable
Master Fee Protection Agreement), and return electronically signed copy of this
agreement to the SELLER via secure electronic mail. Copy of Buyer’s and Buyer’s
Gemmologist’s Passports to accompany SPA. This to be completed within two
business days of Buyer accepting the draft SPA
3)
BUYER and SELLER will each lodge their respective SPA’s (Sales &
Purchase Agreements) and
IMFPA (Irrevocable Master Fee
Protection Agreement) with their respective Bank Officers within 2 (Two)
banking days of signature by both parties.
4) Within
two days of the Buyer lodging the SPA with the Buyers Bank, the Buyer provides
the Seller with a BCL (Bank Comfort Letter) MT199 / MT999 for the full value of
1 000 000 carats namely USD 2 600 000 000.0 (two
billion six hundred million dollars) as per Appendix 2 as
proof of financial capability
5)
Stones moved from mine vault and placed into Brinks in Botswana, 1
000 000 carats (one million carats) every month.
6) SELLER provides the
BUYER with a verifiable SKR as Proof of Product in Brinks Botswana.
7)
Buyer will provide the Sellers Bank with an ICBPO (MT799) Blocked Funds
as a Payment Guarantee as per the relevant manifest, 1 000 000 carats
every month
8)
After verification of the ICBPO MT799 Blocked Funds, the Diamonds will
be moved to Sellers Brinks Account Geneva, Switzerland Free Trade Zone or as
discussed between Buyer and Seller
9)
Seller to pay all export expenses in country of origin and Buyer to pay
all import expenses in country of import.
10) SELLER will issue the BUYER and BUYER’S Gemmologist team with invitation
letter to view and verify the diamonds at Sellers Brinks Account Antwerp. Verification
of parcel to take place at a minimum
rate of 50 000 carats per day.
(Payments, as shown below in para 12 are to be released on a daily basis after
assay).
11) BUYERS Gemmologist team will issue an assay report on the diamonds
according to issued Manifest to both the SELLER and BUYER for approval.
12) Upon approval of the BUYERS Gemmologist assay report by the BUYER, the
BUYER will reseal the parcel of diamonds in his name and issue an instruction
to his Bank, to pay via Electronic Funds Transfer direct into Sellers nominated
Bank Account the value of the diamonds as per the agreed manifest within 24
hours
13) Upon verification of BUYERS payment by the SELLER, the SELLER will issue
the BUYER with a copy of all export documentation including but not limited to
the following:
a. 3 x Commercial Invoices in favour of the BUYER
b. Kimberly Process Certificates for the manifest
c. Certificate of Origin
d. Declaration that
the product is free and clear and of non-criminal origin, unencumbered and free
of any liens,
transferable and exportable.
e. Export Permit
14) Ownership of the product will be transferred to the BUYER immediately
upon:
a. Verification of receipt of funds from the
BUYER’s Bank by the SELLER’s Bank within 24 (twenty four) hours
b. Verification of
receipt of commissions from the BUYER’s Bank by the assigned paymasters
specified in the IMFPA (Irrevocable Master Fee Protection Agreement).
15) Assigned Paymasters will be responsible for paying any beneficiaries
listed in the IMFPA (Irrevocable Master Fee Protection Agreement) within 1
(one) – 2 (two) days as per any conditions outlined in the IMFPA (Irrevocable
Master Fee Protection Agreement).
Appendix 1A: Indicative
199 994 carat manifest
|
Size
|
Color
|
Clarity
|
Amount of
Carats |
Price Per Carat- FIXED
|
Total Price
|
|
5
|
D-H
|
VVS1 – VS2
|
28902
|
1599
|
$46 214 298.00
|
|
6
|
D-H
|
VVS1 – VS2
|
26602
|
1740
|
$46 287 480.00
|
|
7
|
D-H
|
VVS1 – VS2
|
24282
|
2195
|
$53 298 990.00
|
|
8
|
D-H
|
VVS1 – VS2
|
21982
|
2298
|
$50 514 636.00
|
|
9
|
D-H
|
VVS1 – VS2
|
19682
|
3392
|
$66 761 344.00
|
|
10
|
D-H
|
VVS1 – VS2
|
17362
|
3572
|
$62 017 064.00
|
|
11
|
D-H
|
VVS1 – VS2
|
15062
|
3592
|
$54 102 704.00
|
|
12
|
D-H
|
VVS1 – VS2
|
12762
|
5388
|
$68 761 656.00
|
|
13
|
D-H
|
VVS1 – VS2
|
10242
|
5395
|
$55 255 590.00
|
|
14
|
D-H
|
VVS1 – VS2
|
7942
|
5395
|
$42 847 090.00
|
|
15
|
D-H
|
VVS1 – VS2
|
5842
|
6620
|
$38 674 040.00
|
|
16
|
D-H
|
VVS1 – VS2
|
3922
|
6672
|
$26 167 584.00
|
|
17
|
D-H
|
VVS1 – VS2
|
2422
|
6698
|
$16 222 556.00
|
|
18
|
D-H
|
VVS1 – VS2
|
1202
|
6715
|
$8 071 430.00
|
|
19
|
D-H
|
VVS1 – VS2
|
902
|
7191
|
$6 486 282.00
|
|
20
|
D-H
|
VVS1 – VS2
|
602
|
7240
|
$4 358 480.00
|
|
21
|
D-H
|
VVS1 – VS2
|
282
|
7905
|
$2 229 210.00
|
|
|
|
|
199994
|
|
$648 270 434.00
|
|
|
|
|
|
Average Price
|
$3 241.45
|
|
Average Discounted Price
|
$2 600.00
|
||||
|
Total Discounted Price
|
$ 519 984 400.00
|
||||
|
3% Commission
|
$15 599 532.00
|
||||
|
Total Disc Price plus 3% com
|
$535 583 932.00
|
||||
Appendix 1B: Indicative
250,000 carat manifest
|
Size
|
Color
|
Clarity
|
Amount of
Carats |
Price Per Carat-
FIXED
|
Total Price
|
|
5
|
D-H
|
VVS1 – VS2
|
36125
|
1599
|
$57 763 875.00
|
|
6
|
D-H
|
VVS1 – VS2
|
33255
|
1740
|
$57 863 700.00
|
|
7
|
D-H
|
VVS1 – VS2
|
30355
|
2195
|
$66 629 225.00
|
|
8
|
D-H
|
VVS1 – VS2
|
27475
|
2298
|
$63 137 550.00
|
|
9
|
D-H
|
VVS1 – VS2
|
24600
|
3392
|
$83 443 200.00
|
|
10
|
D-H
|
VVS1 – VS2
|
21705
|
3572
|
$77 530 260.00
|
|
11
|
D-H
|
VVS1 – VS2
|
18830
|
3592
|
$67 637 360.00
|
|
12
|
D-H
|
VVS1 – VS2
|
15950
|
5388
|
$85 938 600.00
|
|
13
|
D-H
|
VVS1 – VS2
|
12800
|
5395
|
$69 056 000.00
|
|
14
|
D-H
|
VVS1 – VS2
|
9930
|
5395
|
$53 572 350.00
|
|
15
|
D-H
|
VVS1 – VS2
|
7300
|
6620
|
$48 326 000.00
|
|
16
|
D-H
|
VVS1 – VS2
|
4900
|
6672
|
$32 692 800.00
|
|
17
|
D-H
|
VVS1 – VS2
|
3030
|
6698
|
$20 294 940.00
|
|
18
|
D-H
|
VVS1 – VS2
|
1500
|
6715
|
$10 072 500.00
|
|
19
|
D-H
|
VVS1 – VS2
|
1130
|
7191
|
$8 125 830.00
|
|
20
|
D-H
|
VVS1 – VS2
|
755
|
7240
|
$5 466 200.00
|
|
21
|
D-H
|
VVS1 – VS2
|
360
|
7905
|
$2 845 800.00
|
|
|
|
|
250000
|
|
$810 396 190.00
|
|
|
|
|
|
Average Price
|
$3 241.58
|
|
Average Discounted Price
|
$2 600.00
|
||||
|
Total Discounted Price
|
$650 0000 000.00
|
||||
|
3% Commission
|
$19 500 000.00
|
||||
|
Total Disc Price plus 1.5% com
|
$669 500 000.00
|
||||
