News: CAI Calidus Resources Says Purchased 2.5% Net Smelter Return Royalty Over Tenements At..., page-11

Yes, Andee, I got that wrong. I actually multiplied 60c by 40m, thinking we'd given 40m shares, but yes we've paid AUD$2.4m for this net smelter.

People are trying to explain it to me but they are not being clear to a novice.

I have read 'Net smelter return (nsr) is the net revenue that the owner receives from the sale of the mines gold less transportation costs and refining costs...as a royalty it refers to the percentage value that the mine operator has to pay..' (corrected your spelling mistakes, 'discostu89' )

But who is paying who ? Who owns the mine - surely Calidus?
Who operates the mine - surely Calidus?

Who was to get this 2.5% NSR royalty? presumably the previous owners?
Who gets the rest of the nsr, ie 97.5% ? presumably Calidus?

I believe we granted this 2.5% nsr to the previous tenement owners so perhaps that explains it all - we now own and operate and now keep all 100% nsr not paying the old owners any royalty