NSR definition
Examples of NSR in a sentence
The Optionee or its successors and assignees shall have the right, following delivery of written notice to the Optionor, at any time prior to commencing commercial production from the Property, to purchase one-half of the NSR from the Optionor in consideration for a one-time cash payment to the Optionor of $1,000,000, or alternatively, to purchase the whole NSR from the Optionor in consideration for a one-time cash payment to the Optionor of $2,000,000.
For the avoidance of doubt, if the ▇▇▇▇▇▇▇▇ Royalty is determined to be valid, then the Optionee would be required to pay the ▇▇▇▇▇▇▇▇ Royalty for any overlapping claims, but not the NSR.
The NSR is equal to one percent (1.0%) of Net Smelter Returns (subject to reduction pursuant to exercise of the NSR buy-back right in the Property Option Agreement of which this Schedule “B” forms part) from the sale of any Product derived from the Property.
The NSR, which shall be a perpetual interest and covenant that runs with the land, shall be reserved to the Optionor in the quitclaim deed conveying the Property to the Optionee at the Closing.
The Optionor hereby grants to the Optionee the sole, exclusive option to acquire the Equity Interests of the Subsidiary (the “Option”), subject to the reservation or grant of the NSR, in consideration for the delivery of an up-front cash payment, the issuance of the Payment Shares at the Listing (as defined below) and the payment of the Deferred Consideration.