Product Description

From Manzanillo port:

Iron ore (magnetite)

Specifications:

*3.0% Fe, *2% and below *2% Fe rejection, above *3.0% US$2/MT per each 1%

Sizes (at buyer choice):

1.5” to fines

or

*0 mm to fines

Deliveries:

*0,**0 MT +/- *0% per month first delivery

*0,**0 MT +/- *0% per month subsequent deliveries or more if required.

Price:

US$*0/MT “FOB”  Manzanillo port.

Contract length:

One year with rolls and extensions (with quarter price revisions).

I will provide an overview of the purchasing procedure that will apply:

1.- If required by the buyer: TTM with the supplier miner in Manzanillo port or Jacmex can attend in buyer’s representation.

2.- Miner will make a brief presentation of his mine and offered mineral, documents review.

3.- Visit to the mine to witness all their infrastructure and to the miner courtyard to see their mineral.

4.- After the visit, the contract is signed at the notary, and the buyer makes a down payment equivalent to 5,**0 MT (based on the selling price value).

5.- The deliveries to the designated fiscal courtyard will start in *0 days from the time that the down is received.

6.- The iron ore is analyzed at the magnetic conveyor belt exit by GTM, Alfred Knight or SGS laboratory at buyer expense.

7.- As soon as the laboratory results are ready the truck loads will be ready to be delivered at buyer’s freight forwarder designated fiscal courtyard “FOB subject to payment terms”.

Payment terms:

*0% payment when every 5,**0 MT are delivered to the port fiscal courtyard, until the *0,**0 MT are ready, the *0% balance as soon a the iron ore is on board the vessel the B/L is ready. Payments should be done by wire transferences.

My company will be supervising the production and deliveries, notifying the buyer, the production process  in a daily basis, in this way the buyer,will know when to do the payments.