2020-03-30_REVISION - P2013002 - Laserfiche WebLink

Home Browse Search

following basis: 1. Monthly Royalty for Gold = (Gold Index Price (per ounce) x Number of Troy Ounces of Gold Sold during month) x Royalty Rate for Gold Monthly Royalty for Other Minerals = Other Minerals Proceeds x Royalty Rate for Other Minerals Royalty Rate for Gold: The Royalty Rate for Gold shall be determined based on the scale below, which is indexed to the Gold Index Price as defined below and with the Gold Index Price to be adjusted for inflation as set out below: Gold Index Price (Der ounce) Royalty Rate for Gold $1500.00 and below 4.0% $1500.01-$2000.00 5.0% $2000.01 and above 6.0% Each Gold Index Price (per ounce) in the chart above shall be adjusted for inflation every ten (10) years during the Term on the following basis. At the end of each calendar year, each Gold Index Price (per ounce) shall be multiplied by the average of the consumer price index ("CPI") for each month in such calendar year as published by the Bureau of Labor Statistics of the United States Department of Labor. The CPI-adjusted Gold Index Price (per ounce) at the end of each ten (10) year period shall be the applicable Gold Index Price (per ounce) for the succeeding ten (10) year period. The "Gold Index Price" shall be the average monthly New York Spot Gold Price per ounce, calculated • by dividing the sum of all such prices reported for the month by the number of days for which such prices were reported. If the New York Spot Gold Price ceases to be published, the Gold Index Price shall be determined by reference to prices for refined Gold for immediate delivery in the most nearly comparable established market, as such prices are published in "Platts Metals Week" or a similar publication mutually agreed upon by the Parties. Other Minerals Proceeds: In relation to a particular month, the "Other Minerals Proceeds" is defined as the aggregate of all invoices received by Lessee for each Other Mineral sold during such month. Royalty Rate for Other Minerals: The Royalty Rate for Other Minerals shall be four percent (4%). Production Reports: Production reports for each month shall be submitted to Lessor within thirty (30) days after the end of such month, commencing within thirty (30) days of the first month of production. The requirements for these reports are further outlined in Paragraph 9. No Deductions: It is expressly understood and agreed that none of Lessee's exploration, mining, production or processing costs, including but not limited to costs for materials, labor, overhead, distribution, transportation, loading, crushing, processing, or general and administrative activities, may be deducted in computing Lessor's Monthly Royalty for Gold and Monthly Royalty for Other Minerals. Alt such costs shall be entirely borne by Lessee and are anticipated by the Royalty Rate for Gold and the Royalty Rate for Other Minerals set forth in this Lease. Payment: The Monthly Royalty for Gold and the Monthly Royalty for Other Minerals, together with the Page 3 of 18