ROYALTY IN KIND. Each of NEWMONT and TOTAL may elect to receive its Production Royalty on Precious Metals from the Property "in cash" or "in kind" as refined bullion. 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 Production Royalty for Precious Metals in cash or "in kind" shall be made in writing by each of NEWMONT and TOTAL and delivered to SEABRIDGE on or before November 1 of each year. In the event no written election is made, the Production Royalty for Precious Metals will continue to be paid to NEWMONT and/or TOTAL, as the case may be, as it is then being paid. As of the date of this Agreement, NEWMONT elects to receive its Production Royalty on Precious Metals "in kind" and TOTAL elects to receive its Production Royalty on Precious Metals "in cash". Royalties on Other Minerals shall not be payable "in kind". (1) If NEWMONT and/or TOTAL elect to receive its Production Royalty for Precious Metals in "in kind", NEWMONT and/or TOTAL, as the case may be, shall open a bullion storage account at each refinery or mint designated by SEABRIDGE as a possible recipient of refined bullion in which SELLERS owns an interest. NEWMONT and/or TOTAL, as the case may be, shall be solely responsible for all costs and liabilities associated with maintenance of such account or accounts, and SEABRIDGE shall not be required to bear any additional expense with respect to such "in-kind" payments. (2) Production Royalty will be paid by the deposit of refined bullion into NEWMONT and/or TOTAL's account, as the case may be. On or before the 25th day of each calendar month following a calendar month during which production and sale or other disposition occurred, SEABRIDGE shall deliver written instructions to the mint or refinery, with a copy to NEWMONT and/or TOTAL, as the case may be, directing the mint or refinery to deliver refined bullion due to NEWMONT and/or TOTAL, as the case may be, in respect of the Production Royalty, by crediting to NEWMONT and/or TOTAL's account, as the case may be, the number of ounces of refined bullion for which Production Royalty is due; provided, however, that the words "other disposition" as used in this Agreement shall not include processing, milling, beneficiation or refining losses of Precious Metals. The number of ounces of refined bullion to be credited will be based upon NEWMONT and/or TOTAL's, as the case may be, share of the previous month's production and sale or other disposition as calculated pursuant to the commingling provisions of section 9(f) hereof. (3) Production Royalty payable "in kind" on silver or platinum group metals shall be converted to the gold equivalent of such silver or platinum group metals by using the average monthly spot prices for Precious Metals described in section 9(a) hereof. (4) Title to refined bullion delivered to NEWMONT and/or TOTAL, as the case may be, under this Agreement shall pass to NEWMONT and/or TOTAL, as the case may be, at the time such bullion is credited to NEWMONT and/or TOTAL's account, as the case may be, at the mint or refinery. (5) NEWMONT and/or TOTAL, as the case may be, agree(s) to hold harmless SEABRIDGE from any liability imposed as a result of the election of NEWMONT and/or TOTAL, as the case may be, to receive Production Royalty "in kind" and from any losses incurred as a result of NEWMONT and/or TOTAL's, as the case may be, trading and hedging activities. NEWMONT and/or TOTAL, as the case may be, assumes all responsibility for any shortages which occur as a result of NEWMONT and/or TOTAL's, as the case may be, anticipation of credits to its account in advance of an actual deposit or credit to its account by a refiner or mint. (6) When royalties are paid in "in kind", they will not reflect the costs deductible in calculating "Net Smelter Returns" under this Agreement. Within thirty (30) days of the receipt of a statement showing charges incurred by SEABRIDGE for transportation, smelting or other deductible costs, NEWMONT and/or TOTAL, as the case may be, shall remit to SEABRIDGE full payment for such charges. If NEWMONT and/or TOTAL, as the case may be, does not pay such charges when due, SEABRIDGE shall have the right, at its election, with SELLERS's consent, such consent not to be unreasonably withheld, to deduct the gold equivalent of such charges from the ounces of gold bullion to be credited to NEWMONT and/or TOTAL, as the case may be, in the following month.
Appears in 1 contract
ROYALTY IN KIND. Each of NEWMONT and TOTAL may elect to receive its Production Royalty on Precious Metals from the Property "in cash" or "in kind" as refined bullion. 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 Production Royalty for Precious Metals in cash or "in kind" shall be made in writing by each of NEWMONT and TOTAL and delivered to SEABRIDGE BUYER on or before November 1 of each year. In the event no written election is made, the Production Royalty for Precious Metals will continue to be paid to NEWMONT and/or TOTAL, as the case may be, as it is its then being paid. As of the date of this Agreement, NEWMONT elects to receive its Production Royalty on Precious Metals "in kind" and TOTAL elects to receive its Production Royalty on Precious Metals "in cash". Royalties on Other Minerals shall not be payable "in kind". (1) If NEWMONT and/or TOTAL elect elects to receive its Production Royalty for Precious Metals in "in kind", NEWMONT and/or TOTAL, as the case may be, shall open a bullion storage account at each refinery or mint designated by SEABRIDGE BUYER as a possible recipient of refined bullion in which SELLERS NEWMONT owns an interest. NEWMONT and/or TOTAL, as the case may be, shall be solely responsible for all costs and liabilities associated with maintenance of such account or accounts, and SEABRIDGE BUYER shall not be required to bear any additional expense with respect to such "in-kind" payments. (2) Production Royalty will be paid by the deposit of refined bullion into NEWMONT and/or TOTALNEWMONT's account, as the case may be. On or before the 25th day of each calendar month following a calendar month during which production and sale or other disposition occurred, SEABRIDGE BUYER shall deliver written instructions to the mint or refinery, with a copy to NEWMONT and/or TOTAL, as the case may be, directing the mint or refinery to deliver refined bullion due to NEWMONT and/or TOTAL, as the case may be, in respect of the Production Royalty, by crediting to NEWMONT and/or TOTALNEWMONT's account, as the case may be, account the number of ounces of refined bullion for which Production Royalty is due; provided, however, that the words "other disposition" as used in this Agreement shall not include processing, milling, beneficiation or refining losses of Precious Metals. The number of ounces of refined bullion to be credited will be based upon NEWMONT and/or TOTAL's, as the case may be, NEWMONT's share of the previous month's production and sale or other disposition as calculated pursuant to the commingling provisions of section 9(f) hereof. (3) Production Royalty payable "in kind" on silver or platinum group metals shall be converted to the gold equivalent of such silver or platinum group metals by using the average monthly spot prices for Precious Metals described in section 9(a) hereof. (4) Title to refined bullion delivered to NEWMONT and/or TOTAL, as the case may be, under this Agreement shall pass to NEWMONT and/or TOTAL, as the case may be, at the time such bullion is credited to NEWMONT and/or TOTAL's account, as the case may be, at the mint or refinery. (5) NEWMONT and/or TOTAL, as the case may be, agree(s) agrees to hold harmless SEABRIDGE BUYER from any liability imposed as a result of the election of NEWMONT and/or TOTAL, as the case may be, to receive Production Royalty "in kind" and from any losses incurred as a result of NEWMONT and/or TOTAL's, as the case may be, NEWMONT's trading and hedging activities. NEWMONT and/or TOTAL, as the case may be, assumes all responsibility for any shortages which occur as a result of NEWMONT and/or TOTAL's, as the case may be, NEWMONT's anticipation of credits to its account in advance of an actual deposit or credit to its account by a refiner or mint. (6) When royalties are paid in "in kind", they will not reflect the costs deductible in calculating "Net Smelter Returns" under this Agreement. Within thirty (30) days of the receipt of a statement showing charges incurred by SEABRIDGE BUYER for transportation, smelting or other deductible costs, NEWMONT and/or TOTAL, as the case may be, shall remit to SEABRIDGE BUYER full payment for such charges. If NEWMONT and/or TOTAL, as the case may be, does not pay such charges when due, SEABRIDGE BUYER shall have the right, at its election, with SELLERSNEWMONT's consent, such consent not to be unreasonably withheld, to deduct the gold equivalent of such charges from the ounces of gold bullion to be credited to NEWMONT and/or TOTAL, as the case may be, in the following month.
Appears in 1 contract
ROYALTY IN KIND. Each of NEWMONT and TOTAL may elect to receive its Production Royalty on Precious Metals from the Property "in cash" or "in kind" as refined bullion. 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 Production Royalty for Precious Metals in cash or "in kind" shall be made in writing by each of NEWMONT and TOTAL and delivered to SEABRIDGE BUYER on or before November 1 of each year. In the event no written election is made, the Production Royalty for Precious Metals will continue to be paid to NEWMONT and/or TOTAL, as the case may be, TOTAL as it is its then being paid. As of the date of this Agreement, NEWMONT TOTAL elects to receive its Production Royalty on Precious Metals "in kind" and TOTAL elects to receive its Production Royalty on Precious Metals "in cash". Royalties on Other Minerals shall not be payable "in kind". (1) If NEWMONT and/or TOTAL elect elects to receive its Production Royalty for Precious Metals in "in kind", NEWMONT and/or TOTAL, as the case may be, TOTAL shall open a bullion storage account at each refinery or mint designated by SEABRIDGE BUYER as a possible recipient of refined bullion in which SELLERS TOTAL owns an interest. NEWMONT and/or TOTAL, as the case may be, TOTAL shall be solely responsible for all costs and liabilities associated with maintenance of such account or accounts, and SEABRIDGE BUYER shall not be required to bear any additional expense with respect to such "in-kind" payments. (2) Production Royalty will be paid by the deposit of refined bullion into NEWMONT and/or TOTAL's account, as the case may be. On or before the 25th day of each calendar month following a calendar month during which production and sale or other disposition occurred, SEABRIDGE BUYER shall deliver written instructions to the mint or refinery, with a copy to NEWMONT and/or TOTAL, as the case may be, TOTAL directing the mint or refinery to deliver refined bullion due to NEWMONT and/or TOTAL, as the case may be, TOTAL in respect of the Production Royalty, by crediting to NEWMONT and/or TOTAL's account, as the case may be, account the number of ounces of refined bullion for which Production Royalty is due; provided, however, that the words "other disposition" as used in this Agreement shall not include processing, milling, beneficiation or refining losses of Precious Metals. The number of ounces of refined bullion to be credited will be based upon NEWMONT and/or TOTAL's, as the case may be, 's share of the previous month's production and sale or other disposition as calculated pursuant to the commingling provisions of section 9(f) hereof. (3) Production Royalty payable "in kind" on silver or platinum group metals shall be converted to the gold equivalent of such silver or platinum group metals by using the average monthly spot prices for Precious Metals described in section 9(a) hereof. (4) Title to refined bullion delivered to NEWMONT and/or TOTAL, as the case may be, TOTAL under this Agreement shall pass to NEWMONT and/or TOTAL, as the case may be, TOTAL at the time such bullion is credited to NEWMONT and/or TOTAL's account, as the case may be, TOTAL at the mint or refinery. (5) NEWMONT and/or TOTAL, as the case may be, agree(s) TOTAL agrees to hold harmless SEABRIDGE BUYER from any liability imposed as a result of the election of NEWMONT and/or TOTAL, as the case may be, TOTAL to receive Production Royalty "in kind" and from any losses incurred as a result of NEWMONT and/or TOTAL's, as the case may be, 's trading and hedging activities. NEWMONT and/or TOTAL, as the case may be, TOTAL assumes all responsibility for any shortages which occur as a result of NEWMONT and/or TOTAL's, as the case may be, 's anticipation of credits to its account in advance of an actual deposit or credit to its account by a refiner or mint. (6) When royalties are paid in "in kind", they will not reflect the costs deductible in calculating "Net Smelter Returns" under this Agreement. Within thirty (30) days of the receipt of a statement showing charges incurred by SEABRIDGE BUYER for transportation, smelting or other deductible costs, NEWMONT and/or TOTAL, as the case may be, TOTAL shall remit to SEABRIDGE BUYER full payment for such charges. If NEWMONT and/or TOTAL, as the case may be, TOTAL does not pay such charges when due, SEABRIDGE BUYER shall have the right, at its election, with SELLERSTOTAL's consent, such consent not to be unreasonably withheld, to deduct the gold equivalent of such charges from the ounces of gold bullion to be credited to NEWMONT and/or TOTAL, as the case may be, TOTAL in the following month.
Appears in 1 contract
ROYALTY IN KIND. Each of NEWMONT and TOTAL may elect to receive its Production Royalty on Precious Metals from the Property "in cash" or "in kind" as refined bullion. 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 Production Royalty for Precious Metals in cash or "in kind" shall be made in writing by each of NEWMONT and TOTAL and delivered to SEABRIDGE on or before November 1 of each year. In the event no written election is made, the Production Royalty for Precious Metals will continue to be paid to NEWMONT and/or TOTAL, as the case may be, as it is then being paid. As of the date of this Agreement, NEWMONT elects to receive its Production Royalty on Precious Metals "in kind" and TOTAL elects to receive its Production Royalty on Precious Metals "in cash". Royalties on Other Minerals shall not be payable "in kind". (1) If NEWMONT and/or TOTAL elect to receive its Production Royalty for Precious Metals in "in kind", NEWMONT and/or TOTAL, as the case may be, shall open a bullion storage account at each refinery or mint designated by SEABRIDGE as a possible recipient of refined bullion in which SELLERS owns an interest. NEWMONT and/or TOTAL, as the case may be, shall be solely responsible for all costs and liabilities associated with maintenance of such account or accounts, and SEABRIDGE shall not be required to bear any additional expense with respect to such "in-kind" payments. (2) Production Royalty will be paid by the deposit of refined bullion into NEWMONT and/or TOTAL's account, as the case may be. On or before the 25th day of each calendar month following a calendar month during which production and sale or other disposition occurred, SEABRIDGE shall deliver written instructions to the mint or refinery, with a copy to NEWMONT and/or TOTAL, as the case may be, directing the mint or refinery to deliver refined bullion due to NEWMONT and/or TOTAL, as the case may be, in respect of the Production Royalty, by crediting to NEWMONT and/or TOTAL's account, as the case may be, the number of ounces of refined bullion for which Production Royalty is due; provided, however, that the words "other disposition" as used in this Agreement shall not include processing, milling, beneficiation or refining losses of Precious Metals. The number of ounces of refined bullion to be credited will be based upon NEWMONT and/or TOTAL's, as the case may be, share of the previous month's production and sale or other disposition as calculated pursuant to the commingling provisions of section 9(f) hereof. (3) Production Royalty payable "in kind" on silver or platinum group metals shall be converted to the gold equivalent of such silver or platinum group metals by using the average monthly spot prices for Precious Metals described in section 9(a) hereof. (4) Title to refined bullion delivered to NEWMONT and/or TOTAL, as the case may be, under this Agreement shall pass to NEWMONT and/or TOTAL, as the case may be, at the time such bullion is credited to NEWMONT and/or TOTAL's account, as the case may be, at the mint or refinery. (5) NEWMONT and/or TOTAL, as the case may be, agree(s) to hold harmless SEABRIDGE from any liability imposed as a result of the election of NEWMONT and/or TOTAL, as the case may be, to receive Production Royalty "in kind" and from any losses incurred as a result of NEWMONT and/or TOTAL's, as the case may be, trading and hedging activities. NEWMONT and/or TOTAL, as the case may be, assumes all responsibility for any shortages which occur as a result of NEWMONT and/or TOTAL's, as the case may be, anticipation of credits to its account in advance of an actual deposit or credit to its account by a refiner or mint. (6) When royalties are paid in "in kind", they will not reflect the costs deductible in calculating "Net Smelter Returns" under this Agreement. Within thirty (30) days of the receipt of a statement showing charges incurred by SEABRIDGE for transportation, smelting or other deductible costs, NEWMONT and/or TOTAL, as the case may be, shall remit to SEABRIDGE full payment for such charges. If NEWMONT and/or TOTAL, as the case may be, does not pay such charges when due, SEABRIDGE shall have the right, at its election, with SELLERS's consent, such consent not to be unreasonably withheld, to deduct the gold equivalent of such charges from the ounces of gold bullion to be credited to NEWMONT and/or TOTAL, as the case may be, in the following month.which
Appears in 1 contract
ROYALTY IN KIND. Each of NEWMONT and TOTAL may elect to receive its Production Royalty on Precious Metals from the Property "in cash" or "in kind" as refined bullion. 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 Production Royalty for Precious Metals in cash or "in kind" shall be made in writing by each of NEWMONT and TOTAL and delivered to SEABRIDGE BUYER on or before November 1 of each year. In the event no written election is made, the Production Royalty for Precious Metals will continue to be paid to NEWMONT and/or TOTAL, as the case may be, TOTAL as it is then being paid. As of the date of this Agreement, NEWMONT elects to receive its Production Royalty on Precious Metals "in kind" and TOTAL elects to receive its Production Royalty on Precious Metals "in cash". Royalties on Other Minerals shall not be payable "in kind". (1) If NEWMONT and/or TOTAL elect elects to receive its Production Royalty for Precious Metals in "in kind", NEWMONT and/or TOTAL, as the case may be, TOTAL shall open a bullion storage account at each refinery or mint designated by SEABRIDGE BUYER as a possible recipient of refined bullion in which SELLERS TOTAL owns an interest. NEWMONT and/or TOTAL, as the case may be, TOTAL shall be solely responsible for all costs and liabilities associated with maintenance of such account or accounts, and SEABRIDGE BUYER shall not be required to bear any additional expense with respect to such "in-kind" payments. (2) Production Royalty will be paid by the deposit of refined bullion into NEWMONT and/or TOTAL's account, as the case may be. On or before the 25th day of each calendar month following a calendar month during which production and sale or other disposition occurred, SEABRIDGE BUYER shall deliver written instructions to the mint or refinery, with a copy to NEWMONT and/or TOTAL, as the case may be, TOTAL directing the mint or refinery to deliver refined bullion due to NEWMONT and/or TOTAL, as the case may be, TOTAL in respect of the Production Royalty, by crediting to NEWMONT and/or TOTAL's account, as the case may be, account the number of ounces of refined bullion for which Production Royalty is due; provided, however, that the words "other disposition" as used in this Agreement shall not include processing, milling, beneficiation or refining losses of Precious Metals. The number of ounces of refined bullion to be credited will be based upon NEWMONT and/or TOTAL's, as the case may be, 's share of the previous month's production and sale or other disposition as calculated pursuant to the commingling provisions of section 9(f) hereof. (3) Production Royalty payable "in kind" on silver or platinum group metals shall be converted to the gold equivalent of such silver or platinum group metals by using the average monthly spot prices for Precious Metals described in section 9(a) hereof. (4) Title to refined bullion delivered to NEWMONT and/or TOTAL, as the case may be, TOTAL under this Agreement shall pass to NEWMONT and/or TOTAL, as the case may be, TOTAL at the time such bullion is credited to NEWMONT and/or TOTAL's account, as the case may be, TOTAL at the mint or refinery. (5) NEWMONT and/or TOTAL, as the case may be, agree(s) TOTAL agrees to hold harmless SEABRIDGE BUYER from any liability imposed as a result of the election of NEWMONT and/or TOTAL, as the case may be, TOTAL to receive Production Royalty "in kind" and from any losses incurred as a result of NEWMONT and/or TOTAL's, as the case may be, 's trading and hedging activities. NEWMONT and/or TOTAL, as the case may be, TOTAL assumes all responsibility for any shortages which occur as a result of NEWMONT and/or TOTAL's, as the case may be, 's anticipation of credits to its account in advance of an actual deposit or credit to its account by a refiner or mint. (6) When royalties are paid in "in kind", they will not reflect the costs deductible in calculating "Net Smelter Returns" under this Agreement. Within thirty (30) days of the receipt of a statement showing charges incurred by SEABRIDGE BUYER for transportation, smelting or other deductible costs, NEWMONT and/or TOTAL, as the case may be, TOTAL shall remit to SEABRIDGE BUYER full payment for such charges. If NEWMONT and/or TOTAL, as the case may be, TOTAL does not pay such charges when due, SEABRIDGE BUYER shall have the right, at its election, with SELLERSTOTAL's consent, such consent not to be unreasonably withheld, to deduct the gold equivalent of such charges from the ounces of gold bullion to be credited to NEWMONT and/or TOTAL, as the case may be, TOTAL in the following month.
Appears in 1 contract
ROYALTY IN KIND. Each of NEWMONT and TOTAL may elect to receive its Production Royalty on Precious Metals from the Property "in cash" or "in kind" as refined bullion. 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 Production Royalty for Precious Metals in cash or "in kind" shall be made in writing by each of NEWMONT and TOTAL and delivered to SEABRIDGE BUYER on or before November 1 of each year. In the event no written election is made, the Production Royalty for Precious Metals will continue to be paid to NEWMONT and/or TOTAL, as the case may be, as it is then being paid. As of the date of this Agreement, NEWMONT elects to receive its Production Royalty on Precious Metals "in kind" and TOTAL elects to receive its Production Royalty on Precious Metals "in cash". Royalties on Other Minerals shall not be payable "in kind". (1) If NEWMONT and/or TOTAL elect elects to receive its Production Royalty for Precious Metals in "in kind", NEWMONT and/or TOTAL, as the case may be, shall open a bullion storage account at each refinery or mint designated by SEABRIDGE BUYER as a possible recipient of refined bullion in which SELLERS NEWMONT owns an interest. NEWMONT and/or TOTAL, as the case may be, shall be solely responsible for all costs and liabilities associated with maintenance of such account or accounts, and SEABRIDGE BUYER shall not be required to bear any additional expense with respect to such "in-kind" payments. (2) Production Royalty will be paid by the deposit of refined bullion into NEWMONT and/or TOTALNEWMONT's account, as the case may be. On or before the 25th day of each calendar month following a calendar month during which production and sale or other disposition occurred, SEABRIDGE BUYER shall deliver written instructions to the mint or refinery, with a copy to NEWMONT and/or TOTAL, as the case may be, directing the mint or refinery to deliver refined bullion due to NEWMONT and/or TOTAL, as the case may be, in respect of the Production Royalty, by crediting to NEWMONT and/or TOTALNEWMONT's account, as the case may be, account the number of ounces of refined bullion for which Production Royalty is due; provided, however, that the words "other disposition" as used in this Agreement shall not include processing, milling, beneficiation or refining losses of Precious Metals. The number of ounces of refined bullion to be credited will be based upon NEWMONT and/or TOTAL's, as the case may be, NEWMONT's share of the previous month's production and sale or other disposition as calculated pursuant to the commingling provisions of section 9(f) hereof. (3) Production Royalty payable "in kind" on silver or platinum group metals shall be converted to the gold equivalent of such silver or platinum group metals by using the average monthly spot prices for Precious Metals described in section 9(a) hereof. (4) Title to refined bullion delivered to NEWMONT and/or TOTAL, as the case may be, under this Agreement shall pass to NEWMONT and/or TOTAL, as the case may be, at the time such bullion is credited to NEWMONT and/or TOTAL's account, as the case may be, at the mint or refinery. (5) NEWMONT and/or TOTAL, as the case may be, agree(s) agrees to hold harmless SEABRIDGE BUYER from any liability imposed as a result of the election of NEWMONT and/or TOTAL, as the case may be, to receive Production Royalty "in kind" and from any losses incurred as a result of NEWMONT and/or TOTAL's, as the case may be, NEWMONT's trading and hedging activities. NEWMONT and/or TOTAL, as the case may be, assumes all responsibility for any shortages which occur as a result of NEWMONT and/or TOTAL's, as the case may be, NEWMONT's anticipation of credits to its account in advance of an actual deposit or credit to its account by a refiner or mint. (6) When royalties are paid in "in kind", they will not reflect the costs deductible in calculating "Net Smelter Returns" under this Agreement. Within thirty (30) days of the receipt of a statement showing charges incurred by SEABRIDGE BUYER for transportation, smelting or other deductible costs, NEWMONT and/or TOTAL, as the case may be, shall remit to SEABRIDGE BUYER full payment for such charges. If NEWMONT and/or TOTAL, as the case may be, does not pay such charges when due, SEABRIDGE BUYER shall have the right, at its election, with SELLERSNEWMONT's consent, such consent not to be unreasonably withheld, to deduct the gold equivalent of such charges from the ounces of gold bullion to be credited to NEWMONT and/or TOTAL, as the case may be, in the following month.
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ROYALTY IN KIND. Each of NEWMONT and TOTAL GRANTEE may elect to receive its Production Royalty on Precious Metals from the Property Properties "in cash" or "in kind" as refined bullion. The elections may be exercised once per year on a calendar year basis during the life of production from the PropertyProperties. Notice of election to receive the following year's Production Royalty for Precious Metals “in cash cash” or "“in kind" ” shall be made in writing by each of NEWMONT and TOTAL GRANTEE and delivered to SEABRIDGE GRANTOR on or before November 1 of each year. In the event no written election is made, the Production Royalty for Precious Metals will continue to be paid to NEWMONT and/or TOTAL, as the case may be, GRANTEE as it is then being paid. As of the date Effective Date of this Agreement, NEWMONT GRANTEE elects to receive its Production Royalty on Precious Metals "“in kind" and TOTAL elects to receive its Production Royalty on Precious Metals "in cash"”. Royalties on Other Minerals shall not be payable "in kind". (1i) If NEWMONT and/or TOTAL elect GRANTEE elects to receive its Production Royalty for Precious Metals in "in kind", NEWMONT and/or TOTAL, as the case may be, GRANTEE shall open a bullion storage account at each refinery or mint designated by SEABRIDGE GRANTOR as a possible recipient of refined bullion in which SELLERS GRANTEE owns an interest. NEWMONT and/or TOTAL, as the case may be, GRANTEE shall be solely responsible for all costs and liabilities associated with maintenance of such account or accounts, and SEABRIDGE GRANTOR shall not be required to bear any additional expense with respect to such "in-kind" payments. (2ii) Production Royalty will be paid by the deposit of refined bullion into NEWMONT and/or TOTAL's GRANTEE’s account, as the case may be. On or before the 25th day of each calendar month following a calendar month during which production and sale or other disposition occurred, SEABRIDGE GRANTOR shall deliver written instructions to the mint or refinery, with a copy to NEWMONT and/or TOTAL, as the case may be, GRANTEE directing the mint or refinery to deliver refined bullion due to NEWMONT and/or TOTAL, as the case may be, GRANTEE in respect of the Production Royalty, by crediting to NEWMONT and/or TOTALGRANTEE's account, as the case may be, account the number of ounces of refined bullion for which Production Royalty is due; provided, however, that the words "other disposition" as used in this Agreement shall not include processing, milling, beneficiation or refining losses of Precious Metals. The number of ounces of refined bullion to be credited will be based upon NEWMONT and/or TOTAL's, as the case may be, GRANTEE’s share of the previous month's production and sale or other disposition as calculated pursuant to the commingling provisions of section 9(f) hereofSection 1.9. (3iii) Production Royalty payable "“in kind" ” on silver or platinum group metals shall be converted to the gold equivalent of such silver or platinum group metals by using the average monthly spot prices for Precious Metals described in section 9(a) hereofSection 1.2. (4iv) Title to refined bullion delivered to NEWMONT and/or TOTAL, as the case may be, GRANTEE under this Agreement shall pass to NEWMONT and/or TOTAL, as the case may be, GRANTEE at the time such bullion is credited to NEWMONT and/or TOTAL's account, as the case may be, GRANTEE at the mint or refinery. (5v) NEWMONT and/or TOTAL, as the case may be, agree(s) GRANTEE agrees to hold harmless SEABRIDGE GRANTOR from any liability imposed as a result of the election of NEWMONT and/or TOTAL, as the case may be, GRANTEE to receive Production Royalty "“in kind" ” and from any losses incurred as a result of NEWMONT and/or TOTAL's, as the case may be, GRANTEE’s trading and hedging activities. NEWMONT and/or TOTAL, as the case may be, GRANTEE assumes all responsibility for any shortages which occur as a result of NEWMONT and/or TOTAL's, as the case may be, GRANTEE’s anticipation of credits to its account in advance of an actual deposit or credit to its account by a refiner or mint. (6vi) When royalties are paid in "in kind", they will not reflect the costs deductible in calculating "Net Smelter Returns" Returns under this Agreement. Within thirty (30) days of the receipt of a statement showing charges incurred by SEABRIDGE GRANTOR for transportation, smelting or other deductible costs, NEWMONT and/or TOTAL, as the case may be, GRANTEE shall remit to SEABRIDGE GRANTOR full payment for such charges. If NEWMONT and/or TOTAL, as the case may be, GRANTEE does not pay such charges when due, SEABRIDGE GRANTOR shall have the right, at its election, with SELLERS's consent, provided GRANTEE does not dispute such consent not to be unreasonably withheldcharges, to deduct the gold equivalent of such charges from the ounces of gold bullion to be credited to NEWMONT and/or TOTAL, as the case may be, GRANTEE in the following month.
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