KEA’s Purchasing requirements

Shipping Terms: Free On Board (FOB) Port. Where “Port” refers to the port nearest the mining operation or stockpile your shipment comes from.

Currency Terms: KEA Mining accepts ONLY U.S. Dollars in exchange for international purchases!

Payment Terms: Irrevocable Letter of Credit (ILOC). Irrevocable letters of credit reduce the risk of selling to foreign buyers since they are Fully Funded Documentary Letters of Credit (FFDLC), meaning that the funds must be set aside in a separate account from the buyer’s primary account, which serves as a type of escrow account, and because once issued, ILOCs cannot be modified without the explicit consent of the seller, buyer, and issuer.

Telegraphic Transfer Payments: KEA Mining can and will accept TT payments from international buyers on the following terms:

1.) 100% payment upon arrival of the shipment at the origination port.
2.) KEA Mining is allowed to verify receipt of funds BEFORE the shipment is loaded onto the Mother Vessel
3.) The Telegraphic Transfer currency must be U.S Dollars
4.) All of our policies regarding the proper purchasing process and the proper format and content of documents must be followed.

Down Payment (DP): Once the buyer’s bank has issued an Irrevocable Letter of Credit (ILOC) for the entire amount of the purchase, KEA Mining will issue a Performance Bond of 2% of the purchase amount. The Performance Bond (PB) activates a 30% down payment from the ILOC. This begins the process of

Quantity and Quality Certification: Buyers of KEA Mining products must contract the services of SGS for Quantity and Quality Certification of our deliveries to port. The SGS Quantity and Quality Certification is used to activate the final payment for purchases once they are delivered to the appropriate port and have passed the Quantity and Quality Certification process.

Procedures

KEA Mining will ONLY begin the official process of purchasing and negotiations when KEA Mining receives an acceptable Letter of Intent (LOI) and/or an Irrevocable Corporate Purchase Order (ICPO), which includes full banking information and an explicit authorization to soft probe the Buyer’s bank account, along with a recently drafted Bank Comfort Letter (BCL). Please refer to the Table of Contents to see examples of acceptable LOI, ICPO, and BCL documents.

Upon receipt of an acceptable LOI/ICPO and the successful completion of a soft probe of the Buyer’s Bank account by KEA Mining’s bank, KEA Mining will respond with a Full Corporate Offer (FCO) and a Draft Contract.

The Draft Contract (DC) is followed by negotiations if necessary (through ZOOM) and the signing of the Draft Contract.

Upon acceptance and signing of the Draft Contract, the Buyer shall issue a Fully Funded Documentary Letter of Credit (FFDLC) in the form of an Irrevocable Letter of Credit (ILOC) for the first (Trial Lot) purchase via Bank to Bank (SWIFT MT700), and KEA Mining responds by issuing a Performance Bond (PB) of 2% of the shipment amount, which activates a 30% Down Payment from the Irrevocable Letter of Credit (ILOC).

Upon successful release of the 30% Down Payment, KEA Mining prepares the transport, export, and other necessary documents, allocates the necessary quantities and quality of product, and schedules the transport of the product to the closest port, where a Mother Vessel, chartered by the buyer, is loaded and SGS is contracted by the buyer to assess the quality and quantity of the delivered product. Once the verification process is completed, SGS issues a quality and quantity certificate that is signed and notarized by the buyer and a copy is immediately transmitted to KEA Mining (via WhatsApp). Presentation of the Q&Q Certificate from SGS activates the remaining 70% payment to KEA Mining for the shipment.

Transmitting Documents

All documents are to be scanned once they are signed, notarized and stamped (at a minimum of 600 dpi), and sent through an end-to-end encrypted app (WhatsApp) as digital copies, immediately upon signing, notarizing, and stamping (if necessary) to the other party. Copies that are signed and notarized by both parties and then sent via WhatsApp shall be accepted by both parties as legally binding. Duplicate copies will be made of all signed, notarized, and stamped documents where one party will sign, notarize and stamp (if necessary) two copies and then exchange both signed copies via courier. When the other party receives both copies, they will in turn sign, notarize, and stamp (if necessary) both copies and immediately send a scanned copy to the other party via WhatsApp and one (1) of the two (2) physical copies via courier, so that both parties can maintain proper documentation of the physical documents containing actual signatures & notarizations from both parties.

Example Letter of Intent (LOI)

(Must be on the Buyer’s Corporate Letterhead)

Date: (Month, Day, Year)

To: KEA Mining and Quarrying Services
LOI Reference No:

We (company name) hereby declare and confirm that we are ready, willing, and able under penalty of perjury to purchase the following commodity as specified below and certify that we have available full funding for the purchase :

NAME OF THE PRODUCT :
FULL SPECIFICATIONS OF THE PRODUCT :
Quantity: metric tons (minimum shipment 500 m/t)
Destination Port: Indicate port
Contract Duration: # of months.
Target Price: … US$/MT Free on Board (FOB) PORT
Terms of Payment: Irrevocable Letter of Credit (ILOC)

Payment Options KEA Mining will consider: Any type of Fully Funded Documentary Letter of Credit (FFDLC), such as an Irrevocable Letter of Credit (ILOC). Acceptable payment options must be Confirmed, Irrevocable, Transferable or Non-Transferable, 100% payable at sight, and from one of 50 World prime Banks.
Performance Bond: 2% max. from KEA Mining and Quarrying Services:

Full Name of the Bank:
Full Address of the Bank:
Bank Telephone #: Bank Email:
Bank Account Holder or Name:
Bank Account #/IBAN:
Bank SWIFT/Sort Code/ABA No:

We understand that any and all contracts are subject to KEA Mining and Quarrying Services’ successful soft probe of the buyer’s account. We hereby give legal authority and grant the right and permission to KEA Mining to procure the usual bank references and to conduct a soft probe of our bank account.

Full Name of the Company:
Full Name of Signatory:
Position of Signatory (Registered CEO of the company):

Yours truly

Signed: …………………………..

Signed for and on behalf of Company rubber stamp:

Example Irrevocable Corporate Purchase Order (ICPO)

(Must be on the Buyer’s Corporate Letterhead)

Date: (Month, Day, and Year)

To: KEA Mining and Quarrying Services

ICPO Reference No:

We, (Company Name), acting with full corporate responsibility as the prospective buyer, hereby submit our formal Irrevocable Corporate Purchase Order to purchase the following goods.

By signing, we state with full legal responsibility that we are ready, willing, and able to purchase the product/commodity as illustrated below and are the legal signatory with full corporate power to produce the acceptable banking instruments to activate a valid sales contract between ourselves and KEA Mining and Quarrying Services.

Name of the Product/Commodity (IRON ORE, COPPER ORE, ETC,):

Specifications (Attach separate page, if necessary):

Quantity: Metric Tons. Packing: Bulk, Containers

Delivery: Free On Board (FOB) Port

Rate/Size of Shipment (Optional):
Inspection: By SGS or equivalent at buyer’s expense.
Target Price: USD/Metric Ton Free on Board (FOB) Port
Payment Terms:
Performance Bond (PB 2%):

The following commercial banking institution will function as the Primary Bank of Record for this transaction:

Full Name of the Bank:
Full Address of the Bank (Address, City, Zip, Country) :
Phone No:/Email:
Bank Telex No: (Optional)
Bank SWIFT:
Bank’s Officer: (Name / Title)
Direct Phone #: WhatsApp #:

Bank Account Holder or Name:
Bank Account No/IBAN:
Confirming Bank Coordinates:

Full Name of the Bank:

Full Address of the Bank (Address, City, Zip, and Country)
International Trade Department Phone #:
Bank’s Officer (Name/Title):
Direct Phone #:

We understand that any and all offers and/or contracts are subject to successful verification of funds availability by KEA Mining and Quarrying Services. We hereby give our written permission for KEA Mining to seek the usual bank reference and to conduct a soft probe of our account.

By signing, we understand all offers are subject to final agreement on the details of Commercial Invoice or other sales contracts.

Full Company Name:
Full Company Address (Address, City, Zip):
State/Country:
Phone No:
E-mail:
Web URL (Optional):
Name of Signatory:
Title of Signatory (Registered CEO or Official Mandate of the Company :
Dated (Month, Day, Year) :

Signature:

Company Stamp/Seal:

Example Bank Comfort Letter (BCL)

(Must be on the Letterhead of the Buyer’s Bank)
(Include all details: Address, Phone, WhatsApp, E-Mail, etc.)

Date: (Month, Day, Year)
To: KEA Mining and Quarrying Services

Dear Sirs,

This is to confirm that our mutual clients (namely) maintain a banking account with us and are in good standing with our bank.

At their request, we, (full name of the bank), with full authority and mandate hereby confirm that the said client is ready, willing, and financially able to initiate the process of purchasing # of tons of (product name) for the price of USD/MT during the next # of months/years and for the total value of USD, subject to KEA Mining and Quarrying Services, completing the Sales & Purchase Contract.

We, (buyer’s bank), confirm our ability to issue in due course and after the signing of the Purchase Contract, the required Irrevocable Letter of Credit (ILC) on behalf of our client and for the benefit of KEA Mining and Quarrying Services, with full assurance for the full amount of the contract.

We certify that our client named above has sufficient funds and/or has credit facilities with our bank to complete the proposed transaction within the time period outlined in the above-referenced contract.

Our client hereby gives authority to KEA Mining and Quarrying Services to procure the usual banker’s references from our bank officer (NAME), whose direct phone number is (Phone #).

Sincerely Yours

signed by two (2) senior-level bank officers:

Full name of the signatories:

Designation of the signatories:

Clients’ Name as written on account:

Account No/IBAN:

Bank Telephone #:

Bank’s WhatsApp#:

Bank Swift/Sort-Code:
Bank stamp: