(Letterhead)
LOI
Date: Day/Month/Year
Ref: [BUYER NAME], [BUYER COUNTRY]
To: EKON DIS TICARET LLC
We, [BUYER COMPANY NAME], holding [BUYER NATIONALITY] Passport No.
[PASSPORT NUMBER], Business Address [BUYER BUSINESS ADDRESS], hereby issue
our Letter of Intent for the purchase of Gold from your company.
We are ready, willing and able to purchase a spot deal from your company of five thousand
kilograms guaranteed by a banking instrument XXXX (stipulate the instrument).
Thereafter, should both parties be totally satisfied, we will be ready to purchase up to …….
metric tons on a ……… basis.
Once the gold had reached our refinery, we will receive the Assay report, and upon total
satisfaction we shall pay the seller immediately thereafter the price which has been agreed
upon by both parties.
Quantity:
Payment terms:
Duration: Spot/ yearly
Delivery Location: The gold will be delivered to the buyer's designated refinery in Dubai.
PROCEDURE
TERMS OF DELIVERY & SPOT PROCEDURE: (SPOT)
- Buyer issues LOI and seller issue FCO
Buyer submits ICPO as per seller’s procedures.
- Seller issues Sales purchase agreement (SPA) for buyer’s review, signature and seal.
- The buyer signs the sales and purchase agreement (SPA) and send it back to the seller, and
the seller signs the sales and purchase agreement and sends it back with the commercial
invoice (CI) to the buyer for signature.
- The buyer issues an irrevocable bank guarantee (BG) of total transaction value in
favor of the seller.
- Upon confirmation of BG, seller provides proof of product (POP) through MT600 to
Buyer’s bank, upon buyer’s verifications of the POP, seller will deliver the gold to
the agreed refinery in UAE.
- After assays by the Buyer within 24hrs, requests his bank to transfer the money to the
seller’s designated bank account.
- Both parties agreed that in case of non-performance, the non- performing party will
pay 20% as a penalty clause of the total transaction value.
- Once the initial SPOT deal be successful, upon approval from both parties, the buyer
might avail for a contract with SBLC.
Yours sincerely,
(Signature) (Company Stamp)
