Payment of Royalty In-Kind. Owner may elect to receive its Net Smelter Returns Royalties, either in whole or in part, In-Kind. The elections may be exercised once per year on a calendar year basis during the life of production from the Property. Notice of election to receive the following year's Net Smelter Returns Royalty for In Kind payment shall be made in writing by Owner and delivered to Lessee on or before December 41 of each year. As of the Effective Date of this Agreement, Owner elects to receive its Net Smelter Returns Royalty on gold In Kind. Net Smelter Returns Royalties on Precious Metals other than gold and all Other Minerals shall be payable In Cash. If Owner elects to receive its Net Smelter Returns Royalty In Kind, Owner shall open a bullion storage account at each refinery or mint designated by Lessee as a possible recipient of refined bullion in which Owner owns an interest. Owner shall be solely responsible for all costs and liabilities associated with maintenance of such account or accounts, and Lessee shall not be required to bear any additional expense with respect to such In-Kind payments.
Appears in 5 contracts
Samples: Exploration and Mining Lease and Option to Purchase Agreement, Exploration and Mining Lease and Option to Purchase Agreement (Idaho North Resources Corp.), Exploration and Mining Lease and Option to Purchase Agreement (Idaho North Resources Corp.)
