A typical net smelter return (NSR) royalty entitles the holder to a percentage of the gross revenue a mining operator receives from the sale of the mine’s products to the smelter, less certain costs. This presentation will begin with an overview of the nuts-and-bolts issues involved in drafting, negotiating, and valuing NSR royalties generally, including establishing a market price, proper deductions, and dispute resolution provisions. The speakers will then address how NSRs are being modified for certain rare earth elements and critical minerals, including lithium, for the new energy economy, where refining or processing may differ and the market price of the minerals may be more difficult to ascertain. Finally, the presentation will discuss U.S. and Canadian securities and disclosure requirements for holders of NSRs, including thresholds for reporting.
Video presentation from the 70th Annual Natural Resources and Energy Law Institute.
1 CLE Credit – Approval ID:
CO ID - 849637
This course has been accredited for CLE credit in Colorado. CLE credit hours shown are for Colorado only. A CLE course number for Colorado will be provided to attendees on their certificates of attendance once a course has been completed. New Mexico attorneys who complete a course must notify us (cle@rmmlf.org) because we are required to report credits for you. If this course has been approved for RPL/CPL credit with the American Association of Professional Landmen (AAPL), the credits will be listed below in a separate section for AAPL. If applicable, Component Codes for AAPL recertification will also be provided. Please contact RMMLF if you need independent verification by the provider of your attendance or participation for CLE purposes. Except as provided above, RMMLF generally does not apply for accreditation from any other MCLE/CPD organizations for its online legal education program. Upon completion of a program a certificate of attendance will be issued to all attendees. Except as provided above, attendees must verify with their respective state bars and CPD organizations and their specific rules as to whether or not the certificate of attendance will be recognized by that body for MCLE/CPD purposes, and the number of CLE/CPD credits that may be available. The live presentation of the on-demand program has been accredited in most mandatory states as part of a larger course, but such accreditation does not assure recognition of the on-demand program.
LINDSAY DOFELMIER is a Senior Associate in Hogan Lovells’ Denver office. Her practice is global and spans all stages of project development. She advises clients on resource development on public, private and Indian lands, complex commercial transactions, permitting, compliance, disputes, and issues arising under federal and state statutes related to energy, the environment, and natural resources. Lindsay provides full-service support for her clients in complex extractive- and energy-industry transactions and disputes—from conducting front-end due diligence and ESG consulting to drafting and negotiating acquisition, divestiture, merger, supply, and royalty agreements and related financing and investment instruments, providing daily operational support for projects, and representing clients in disputes in state and federal courts. Before joining Hogan Lovells, Lindsay was an associate in the Houston office of a major international law firm where her practice focused on environmental transactions and a legal fellow in Defenders of Wildlife’s Denver office, where she worked a variety other of legal matters related to conservation and special status species. Lindsay clerked for the Honorable Melinda Harmon of the Southern District of Texas and is a member of the Turtle Clan of the Onondaga Clear Sky First Nation.
ALI NAUSHAHI is a Partner at Bennett Jones in Toronto, Ontario. Ali practices corporate and securities law, with an emphasis on corporate finance, mergers and acquisitions, and mining. Ali acts for clients in connection with mergers and acquisitions, public equity and debt offerings, private placements, reverse takeover transactions, and stock exchange listings. While Ali acts for clients in a number of industries, he focuses on the mining sector. Ali has assisted mining and royalty/streaming companies with acquisitions and divestitures, joint ventures, royalty and streaming transactions, earn-in agreements, and offtake agreements. Ali also advises companies on various matters relating to corporate governance and continuous disclosure obligations.
If available, this course will include materials (PowerPoints presentations and scholarly papers) authored by the speaker or speakers.
