NSR ROYALTY. 5.1 The Optionee pay to the Optionor a royalty (the “NSR Royalty” ) equal to a 1% percent in aggregate of Net Smelter Returns (as defined in Subsection 1.1), subject to §5.4 of this Agreement. This NSR Royalty will be payable for so long as the Optionee and/or its successors and assigns hold any interest in the Leases.
5.2 Payment of the NSR Royalty will be made quarterly 70 days after the end of each quarter of the Optionee. Within 70 days after the end of each quarter for which the NSR Royalty is payable, the records relating to the calculation of the NSR Royalty for such quarter will be paid by the Optionee and any adjustments in the payment of the NSR Royalty will be made forthwith after completion of the annual audit. All payments of the NSR Royalty for a year will be deemed final and in full satisfaction of all obligations of the Optionee in respect thereof if such payments or calculations thereof are not disputed by the Optionor within 30 days after receipt by the Optionor of the said payment. The Optionee will maintain accurate records relevant to the determination of the NSR Royalty and the Optionor, or its authorized agent, shall be permitted the right to examine such records at all reasonable times.
5.3 The determination of the NSR Royalty hereunder is based on the premise that production will be developed solely on the Leases except that the Optionee will have the right to commingle ore mined from the Leases with ore mined and produced from other properties provided the Optionee will adopt and employ reasonable practices an procedures weighing, sampling and assaying, in order to determine the amounts of products derived from, or attributable to ore mined and produced from the Leases. The Optionee will deliver the Optionor a description of Optionee’s commingling plan not less than 30 days before commencing of commingling. The Optionee will maintain accurate records of the results of such sampling, weighing and analysis with respect to any ore mined and produced from the Leases. The Optionor or its authorized agents will be permitted the right to examine at all reasonable time such records pertaining to commingling of ore or to the calculation of Net Smelter Returns.
5.4 The Optionee shall have the right to purchase the 1% NSR Royalty for US$1,000,000, at any time.
NSR ROYALTY. The NSR Royalty payable to Optionor (the “Payee”) pursuant to Section 3 of the Agreement will be paid by Optionee or Optionee’s Company (together the “Payor”) in accordance with the terms of this Schedule B.
NSR ROYALTY. In consideration for the transfer and sale of the Property by the Seller to the Purchaser, the Seller shall be entitled to receive a royalty (the “NSR Royalty”) of two percent (2%) of the Net Smelter Returns (as defined in Schedule “B” hereto) derived from the Property following the commencement of Commercial Production thereon, which NSR Royalty shall be inclusive of any other royalties payable with respect to the Property (including, without limitation, the Prior Royalties). With respect only to the initial 250,000 ounces produced on the Property (the “Initial Production”), the dollar amount of the NSR Royalty applicable thereto shall be increased if the average end of day price of gold for the twelve (12) month period immediately preceding the sale of the Initial Production as quoted on the New York Mercantile Exchange (COMEX) (the “Gold Price”) is equal to or greater than US $500/oz, the increase being calculated as follows:
(i) if the Gold Price is equal to or greater than US $500/oz but less than US$600/oz, then the dollar amount of the NSR Royalty shall be increased by 5% with respect to such Initial Production (i.e. if the amount of the NSR Royalty for the Initial Production was $100,000, the amount payable would be $105,000);
(ii) if the Gold Price is equal to or greater than US $600/oz but less than US$750/oz, then the dollar amount of the NSR Royalty shall be increased by 10% with respect to such Initial Production (i.e. if the amount of the NSR Royalty for the Initial Production was $100,000, the amount payable would be $110,000); and
(iii) if the Gold Price is equal to or greater than US $750/oz, then the dollar amount of the NSR Royalty shall be increased by 15% with respect to such Initial Production (i.e. if the amount of the NSR Royalty for the Initial Production was $100,000, the amount payable would be $115,000). For greater certainty and without limiting the generality of the foregoing, the NSR Royalty shall be inclusive of any other royalties payable with respect to the Property granted prior to Closing (including, without limitation, the Prior Royalties) and accordingly, if at the time of any payment of the NSR Royalty, the Purchaser is subject to payment to a third party in respect of the Net Smelter Returns (including payment in respect of any of the Prior Royalties), the amount payable to the Seller shall (without duplication) be reduced by the amount of the third party payment. Notwithstanding the foregoing, the Purchaser shall be...
NSR ROYALTY. In addition, Lessee shall pay to Lessor a royalty at the rate of 3% of the Net Smelter Returns from the Properties (the “Initial NSR Royalty”). After the first anniversary of Lessee commencing mining operations, the Initial NSR Royalty shall be reduced to 1.5% of the Net Smelter Returns from the Properties (the “Subsequent NSR Royalty”). The Initial NSR Royalty and Subsequent NSR Royalty shall be paid no later than 30 days after the end of each calendar quarter in which Products have been sold. To be clear, this Initial NSR Royalty and Subsequent NSR Royalty is in addition to any royalties required by the third party leases, or other royalties that are recorded with the titles to any of the Properties. Lessee will be responsible for timely paying all such third party royalties directly.
NSR ROYALTY. 4.1. Subject to paragraph 4.2 the Optionor shall retain a 2V2% NSR in respect to the Property.
4.2. At any time during the term of this Option Agreement or at any time after the Optionee has exercised the Option, the Optionee may purchase a l'A% NSR (ie 60% of the Optionor's 21/2% NSR) from the Optionor for $3,000,000.
NSR ROYALTY. 4.1 On commencement of Commercial Production from the Properties, Purchaser will pay to Vendor the NSR Royalty, on the terms described in Schedule “B” attached hereto.
4.2 On written notice to the Vendor, the Purchaser may request a right to purchase from Vendor 1% of the NSR Royalty for $1,000,000 (the “Buyback Right”) thereby reducing the NSR Royalty held by the Vendor to 2%.
NSR ROYALTY. In accordance with clause 3.2(b) of the Agreement, the Purchaser has granted this NSR Royalty to Vista, and as such subject to (c) below, the Purchaser shall pay to Vista a quarterly production net smelter return royalty on the Gold produced and sold, by or on behalf of the Purchaser or its Affiliates (the “Operator”), that is derived from the mining concessions described in Schedule “C” comprising the Property in accordance with the following (the “Royalty”):
NSR ROYALTY. 1 NSR Royalty. Upon commencement of Commercial Production (as defined in Exhibit "D") from the Property, Desert Mountain shall be entitled to receive and 777 shall pay to Desert Mountain a 3.5% NSR Royalty calculated as set out in Exhibit "D." 777 shall be entitled to deduct from any royalty payment the amount of any Advance Royalty Payments not previously deducted against the NSR Royalty. The NSR Royalty shall be paid annually within 60 days of the end of each fiscal year of 777 during which the Property is in Commercial Production. If all data necessary to compute such payment are not available at the time a payment is due, 777 shall make such payment on a best estimate basis and shall finalize such payment as soon as possible thereafter. If Commercial Production is commenced during the time 777 is required to make Advance Royalty Payments and the NSR Royalty payable for any year is equal to or less than the Advance Royalty Payments paid by 777 to Desert Mountain during such year, then the NSR Royalty will be deemed to have been paid and no further royalty will be due for such year. Each payment of NSR Royalty shall be accompanied by a detailed statement setting out the calculation of the royalty for such year.
NSR ROYALTY. 3.1 SDCI hereby grants, sells, assigns, transfers and conveys and agrees to pay to Diaquem a royalty of 2% of Net Smelter Returns in respect of all Minerals (other than Diamonds) produced from the Property determined as set out in Section 3.2 (the "NSR Royalty").
3.2 For purposes of calculating the NSR Royalty, “Net Smelter Returns” means the gross revenue received by SDCI from the sale of, or any proceeds of insurance received by or for the benefit of SDCI with regard to the loss or destruction of or damage to, any Minerals (other than Diamonds) minus (to the extent not previously deducted in determining gross revenue) (i) all insurance, freight, transportation or handling charges ex head frame in the case of the sale of ores and ex mill or other treatment facility in the case of the sale of concentrates or other post ore stage products, (ii) any custom milling charges paid to a non-Related Party and (iii) any smelting and refining charges.
NSR ROYALTY. 10.1 At the Closing, a royalty interest in all minerals (including metals) within, upon or under the Property, calculated at the rate of 1.0% of net smelter returns from the sale of mineral products extracted or derived from the Property (the “NSR Royalty”), shall be reserved to Optionor from the Property. At the Closing, Optionor and Optionee will execute the NSR Royalty agreement in the form set out in Schedule “C” hereto (the “Royalty Agreement”), provided that Exhibit “A” of the Royalty Agreement shall be modified at the time of signing the same to the extent necessary to reflect any changes that occur to the Property prior to the Closing.
10.2 The NSR Royalty will run with the land and form part of the Property, and shall apply to the Property held by Optionee, its successors or assignees.
