Facilitating Secure Gold Supply Contracts- Bolivia & Canada

Background: A Canadian-based trading company, operating with licensed subsidiaries in Dubai, sought to capitalize on the lucrative gold market by securing a Gold Supply contract with mining consortiums in Bolivia and Brazil. The company’s objective was to procure Gold Doré bars, approximately 95% pure, and export them from South America to the UAE for sale through pre-arranged contracts.

Financial Arrangements: The company engaged with Redeure, a prominent European Provider Group, to navigate the complex landscape of international trade and secure the necessary financial instruments. Under Redeure’s guidance, the company successfully negotiated a Gold Supply contract totaling €31 million with the mining consortiums. To provide payment guarantees to suppliers and establish credibility, our client arranged a Collateral Transfer Facility of €31 million and issued a Standby Letter of Credit (SBLC).

Terms of the Contract:

• Annual Contract Fee: 5.25%
• Term: 12 months / 1 year
• Deposit against Contract Fee: €310,000

Operational Execution: With the financial instruments in place, the procured Gold Doré bars were dispatched to a reputable gold depository in Brazil for export. Redeure played a pivotal role in aligning shipment schedules with the funding of required guarantees, ensuring smooth logistical operations. The Standby Letter of Credit provided the necessary assurance to suppliers and facilitated the export of the commodity to UAE facilities for smelting, setting the stage for subsequent sales as Bullion.

Redeure’s Role: Redeure’s involvement extended beyond financial arrangements. The European Provider Group played a crucial role in negotiating the terms of gold supply and sales agreements, ensuring that the interests of all parties involved were protected. The coordination of shipment schedules with financial commitments showcased Redeure’s expertise in facilitating complex international trade transactions.

Outcomes: Due to Redeure’s comprehensive assistance and ongoing support, our client successfully established enduring relationships with gold suppliers, buyers, a secure logistics firm, and funders. The success of these partnerships is evident in the sustained nature of the facilitated arrangements, with our client continuing to meet its gold supply needs on a revolving basis. This case study highlights the success and sustainability of the facilitated agreements, underscoring the value of Redeure’s expertise in navigating intricate international trade scenarios.