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Gold/Mining/Energy : North American Palladium(AMEX:PAL)- PGM Producer -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (513)	3/8/2000 2:21:00 PM
From: Kim Johnson	Respond to of 976

Elizabeth, You are correct about this being a "Net Smelter". I was wrong. I misunderstood this paragraph. 1998 Annual Report to Shareholders Royalty Agreement The Company is required to pay a royalty to The Sheridan Platinum Group ("SPG" ) equal to 3% of the defined Net Cash Proceeds up to December 31, 2000. Thereafter a royalty of 5% of the Net Cash Proceeds is to be paid until the expiration of the Lac des Iles mine leases. The royalty payment was a result of a global settlement between the Company and J.P. Sheridan et al in which the Company acquired 100% interest in the LDI mine claims. Sheridan gets about a million $$ per month for his interest according to a broker who follows PDL. The reports you are looking for can be found at; sedar.com

To: Elizabeth Andrews who wrote (513)	3/8/2000 3:40:00 PM
From: Ptaskmaster	Respond to of 976

You are correct, it appears to be a NSR. I found a hard copy of the 1996 Annual Report [Form 20-F] which stated on p. 38 under related party transactions (note 13 to consolidated financial statements): "SPG Commitment The Company is required to pay a royalty to SPG commencing May 1, 1994 equal to 3% of the defined Net Cash Proceeds up to December 31, 2000. Thereafter a royalty of 5% of the Net Cash Proceeds is to be paid until the expiration of the Lac des Iles mine leases. All SPG royalties will be paid through the metal processor who separates the concentrates and related processing charges into two parts, one of 97% belonging to the Company and one of 3% belonging to SPG, which is paid directly to SPG." Ptaskmaster