Franklin Mining, Inc. (FMNJ)

[vozmil]

"Neubauer, who said he has been burned in a transaction with an overseas Chinese company before, said Raptor will be paid 80 percent of the value of the antimony contained when the material reaches the Chilean port and the remainder when it arrives at its destination in China."

It seems like a normal international trade but only absent is the info about the %age of Antimony in the Ore. Apparently it looks like they have got it processed in Bolivia and then will be trucked to Chilean port. International shipping use FOB or Free on board term in such cases. But here Raptor is not an exporter rather Chinese party was not ready to take all the trouble to 1st trucked the ore to Chilean port for export. It is normal international commodities business that 80 to 95% of the value of the consignment is released by the buyer bank to exporter once the material is on the ship or in this case on the port which I do not understand. The Chinese party in this case is justified to retain 20% of the payment that will be paid after the Ore is tested and verified by their trusted Laboratory in China.

But question for us to know is when and where Ore was processed prior to this agreement by Raptor and what are the results. We do not know what is the FOB cost and whether or not the selling price is ex mine or ex factory in Bolivia.

This haste and non professional way of doing things create confusion and doubts that usually kill even the legit endeavor of a company right at the start.