Underlying Agreements - Other Agreements Clause Samples

Underlying Agreements - Other Agreements. Several other agreements affect the lands subject included in the Atna-PMC agreement including the C▇▇▇▇▇▇▇▇▇ Seven Dot Range Management agreement. 4.2.4.1 C▇▇▇▇▇▇▇▇▇ - Seven Dot Agreement This agreement provides annually US$10,000 to be deposited and drawn upon for range improvements by the C▇▇▇▇▇▇▇▇▇’▇ Seven Dot cattle operation. Only 50% of this cost is borne by the P▇▇▇▇▇ Project with the remainder paid by PMC for the remaining acreage which includes lands near its P▇▇▇▇▇ project to the south of the P▇▇▇▇▇ property. This fund was set up to allow PMC to assist and mitigate effects of its operations on the C▇▇▇▇▇▇▇▇▇ cattle business and avoid the continual requests for assistance from its neighbors, the Christisons, to provide backhoes, grader, or bulldozer work to benefit their cattle grazing business. 4.2.4.2 R▇▇▇▇▇▇ (Glamis Gold) Acquisition B▇▇▇▇▇▇ Gold and Homestake Mining (co-owners of P▇▇▇▇▇ Mining Company at the time) purchased R▇▇▇▇▇▇’s (now Glamis Gold) interest in P▇▇▇▇▇ Mining Company on November 30, 1996 and Homestake became operator of the P▇▇▇▇▇ Mine (which was in production at the time). Subsequent to this purchase, B▇▇▇▇▇▇ Gold purchased Homestake and therefore PMC is not a wholly owned subsidiary of B▇▇▇▇▇▇ Gold. This purchase transaction included an overriding royalty interest in the lands controlled by P▇▇▇▇▇ Mining Company at the time of the transaction. This overriding royalty varies dependent upon the type of land (patented fee versus unpatented claims) and any underlying royalties existing on both owned and leased parcels at the time of the transaction. For fee lands owned by P▇▇▇▇▇ Mining Company, Rayrock would be paid a 2.5% Net Smelter Return Royalty on lands not subject to an underlying royalty and 0.5% on those parcels subject to a royalty which would increase to a 1% Net Smelter Return royalty if the average gross value per ton of ore produced was greater than US$175/ton. On fee lands leased by P▇▇▇▇▇ Mining Company and subject to royalties payable to a third-party, the Rayrock royalty would vary from a minimum of 0.5% Net Smelter Return to a maximum of 5% Net Smelter Return as a result of the underlying royalty. The royalty percentage to Rayrock will be determined as the difference between a total royalty load of 6% less the underlying royalty; however the royalty will not exceed 5% or be reduced to less than 0.5% Net Smelter Return. For example, if the underlying royalty is 4%, then the Rayrock overriding royalty would be ...