Lead Ore Product Offer and Contract Specifications

1. DEFINITION: 

In this contract, the following terms shall, unless otherwise specifically defined, have the following meanings:

(A) "LEAD ORE" means the solid mineral contains LEAD(Pb).

(B) "U.S. Currency" means the Currency of the United States of America freely Transferable from and payable to an external account.

(C) "Metric Ton" means a ton equivalent to 1000 Kilogram.

(D) "Wet basis" means LEAD ORE in its natural wet state

(E) "Dry basis" means LEAD ORE dried at 105 degrees Centigrade

(F) "MT" means Metric Ton, “DMT” means Dry Metric Ton, “WMT” means Wet Metric Ton.

(G) “LME” means London Metal Exchange which website is: www.lme.com .

(H) “NGN” means Nigeria Naira (National Currency used in Federal Republic of Nigeria)

2. NAME OF COMMODITY AND SPECIFICATIONS:  LEAD ORE

3. SPECS:  Pb = 40 – 75%,

As = 0.3%,

Fe = 10.5%,

Ca = 0.11%,

Zn = 3.25%,

Ni = 0.01%,

Cu = 0.35%,

Ba = 0.01%,

Mn = 0.2%,

La = NIL,

Yb = NIL,

S = 12.2%,

Moisture = 5% max,

Size = 0 – 50 mm max,

4. RADIOACTIVITY: WILL NOT BE 10 TIMES HIGHER THAN THE NORMAL ENVIRONMENT.

5. Country of Origin: Nigeria

6. PACKING: IN BAGS INTO FULL 20 FEET CONTAINER. Packaging Detail: PACKING: 1-2 m/t. / jumbo bag, or 50kg poly woven bag suitable for long distance Ocean transportation and to change of climate.

7. PORT OF LOADING: APAPA, LAGOS, NIGERIA.

8.  PORT OF DESTINATION:  Buyers Option.

9. INSURANCE: covering all risks, war risk for 110% of invoice value, on board risk, to be effected by the buyer.

11. TERMS OF DELIVERY/SHIPMENT:  The seller shall effect the shipment within 60 Days after signed agreement and placement of payment Instrument {L/C} {LETTER OF CREDIT}.
12. Minimum Quantity: 200 Metric Tons
13. Inspection Agent: Eyeview Inspection  Limited  
14. Payment Method: (1) Local: LPO Backed by a Bank Guarantee. (2) International Buyers: LETTER OF CREDIT
15. Payment Terms: Payment to be made within FIVE (5) working days after Inspection Report.
16. Ex- Lagos Delivery Destination: Lagos Port or Warehouse

17. Lead ore &Lead concentrate price NGN and USD/MT

Lead Concentrate (Pb: 60% - 65% PLUS), Ex-Lagos Price is NGN120, 000 – NGN133, 250; FOB price US$960, CIF price US$986.

Lead Concentrate (Pb: 50% - 60%), Ex-Lagos Price is NGN90,000 – NGN120,000, FOB price US$926 CIF price US$942.

Lead Concentrate (Pb 40% - 50%), Ex-Lagos Price is NGN64, 000 – NGN90, 000; FOB price US$884, CIF price US$898.

Lead Concentrate (Pb 30% - 40%0, Ex-Lagos Price is NGN36,000 – NGN64,000; FOB price US$854, CIF price US$879 .

Lead Concentrate (Pb 25% - 30%0, Ex-Lagos Price is NGN30,000 – NGN36,000; FOB price US$784, CIF    price US$798.

18. TERMS OF PAYMENT:

AA). The seller shall, within 5 working days after signing of the contract, issue a performance bond to the buyer covering 3% of the total value of the contract specified. The performance bond will be in favor of the buyerand sent through the buyers bank.

BB). The buyer, upon receiving the performance bond, shall issue the irrevocable L/C at sight covering the total value specified in the contract in favor of seller through the following information:

   Beneficiary: Earth Factors Limited

     Advising bank in Nigeria

CC) 90 percent of total shipment value by L/C at sight against following shipping documents:

1. Manually signed provisional commercial invoice in three originals covering 90% of total shipment value based on Eyeview Inspection ltd certificate, indicating vessel name, the analytic results, moisture, total quantity, total gross weight, total tare weight, total net weight, total net dry weight, total shipment value and country of origin.

2. Full set (3 originals and 3 non-negotiable copies) of clean on board master ocean bills of lading made out to order and blank endorsed, marked "freight prepaid" and notifying the buyer with full name, address and tel./fax no.

(the shipper should confirm with the shipping company for 21 days free detention of the containers at the port of destination and to state it on the master B/L.)

3. Packing list in three originals indicating container number, vessel name, total quantity, total gross weight, total tare weight, total net weight and total net dry weight of shipment.

4. Full set (1 original and 1 copy) of insurance policy/certificate for 110% of invoice value, showing claims payable in china, in currency of the draft, blank endorsed, covering all risks and war risks.

5. Seller's certified copy of fax/telex dispatched to the buyer within 5 working days after shipment advising vessel name, container number, shipment date, e.t.a, B/L no., invoice no., total quantity, total net weight, total net dry weight and value of shipment, loading port and destination port.

6. Certificate of origin in one original and one copy.

7. Certificate of analysis in one original and two copies issued by Eyeview Inspection ltd at the port of loading showing actual analytical results and moisture.

8. Certificate of weighing and sampling in one original and two copies issued by Eyeview Inspection  ltd at the port of loading indicating total gross weight, total tare weight, total net weight and total net dry weight.

9. Certificate of loading supervision issued by Eyeview Inspection  ltd at the port of loading describing loading date, the container number, container seal number as well as Eyeview Inspection  ltd seal number on each container, vessel name, voyage no. And sailing date, confirming that the material loaded on the vessel is the same as the material which was weighed, sampled and analyzed.

DD). 10% of total shipment value by t/t against the seller’s final commercial invoice after CIQ inspection at the port of destination port.

 EE). If actual total shipment value is less than the total value of the provisional commercial invoice which the buyer paid to the seller, the seller should return the overpayment to the buyer without delay.

 19. INSPECTION:

A) EYEVIEW INSPECTION LTD.

Weighing, sampling, analysis and loading supervision prior to shipment at the port of loading will be performed by Eyeview Inspection ltd. After weighing and sampling, Eyeview Inspection ltd shall make the seal on each container. The certificate of weighing and sampling, the certificate of loading supervision, the certificates of analysis issued by Eyeview Inspection ltd must show the gross weight, tare weight, net wet weight, net dry weight, the actual analytical results and moisture. The container number, container seal number, vessel name, voyage number and sailing date as well as Eyeview Inspection ltd seal number on each container must be indicated on the certificate. The cost of Eyeview Inspection ltd before shipment will be payable by the seller

B) EYEVIEW INSPECTION LTD

  After completion of sampling each shipment by Eyeview Inspection ltd at the port of loading, the seller must send one small parcel of the samples which are drawn and sealed by Eyeview Inspection ltd to the buyer by express.

C) After arrival of the goods at port of destination, both parties agree to final survey to be performed by CIQ at the buyer’s port of destination. The results of inspection of quality and weight by CIQ  are binding to both parties for final settlement. The cost of CIQ final survey is for account of the buyer.

D). Upon receipt of the CIQ certificate, the buyer shall immediately send the photocopy to the seller and inform the seller of issuing the final commercial invoice.

19. TAXES AND DUTIES:

The seller will be responsible for customs clearance in the country of seller of copper ore. Taxes and duties levied on the copper ore or on the contract and all other costs in the country of seller of copper ore shall be for seller’s account.

The buyer will be responsible for customs clearance in the country of buyer of copper ore. Taxes and duties levied on the copper ore or on the contract and all other costs in the country of buyer of copper ore shall be for buyer’s account.

20. ARBITRATION:

All disputes in connection with this contract or the execution thereof shall be settled through friendly negotiations. In case no settlement can be reached through negotiations, the case should then be submitted for arbitration to any national trade arbitration commission agreed to by both parties. The arbitration shall take place in their chosen country and the decision of the said commission shall be final and binding upon both parties; neither party shall seek recourse to a law court or other authorities for revising the decision. The arbitration fee shall be borne by the losing part.

21. FORCE MAJEURE:  

In case of force majeure the seller shall not be held responsible for delay in delivery or non-delivery of goods, neither party shall be held responsible for breaching this contract which is caused by an act of god insurrection, civil war, military operations, or local emergencies. However, in such case, the seller shall immediately cable / telex the buyer the accident and airmail to the buyer within 15 days after the accident, a certificate of the accident issued by the competent government authorities or the chamber of commerce which as located at the place where the accident occurs as evidence thereof. If the “force majeure” cause lasts over 60 days, the buyer shall have the right to cancel the contract or the under livered part of the contract.

22. EXECUTION OF CONTRACT:

Each of the parties to this contract represents that it has full legal authority to execute this contract and each party is to be bound by the terms and conditions contained in the contract. This contract represents the entire agreement between the parties and any change will be made in written, executed by both parties.

23. THIS PURCHASE CONTRACT, WHICH WAS SIGNED BY SCAN FROM ORIGINAL, OR ELECTRONIC SIGNING AND STAMPING, CAN BE RECOGNIZED AS THE ORIGINAL.

Copyright: Maso Solid Minerals Ventures, August, 2013.