One of the problems you had in trying to find information is that you were apparently using the wrong name for it. The most common term is NSR, which stands for either net smelter return, or net smelter royalty. Here's a link to some definitions.
The actual terms of an NSR must be clearly spelled out in the legal mumbo-jumbo of the agreement that creates the NSR. It's impossible to answer your specific questions about this particular contract without reading it. If I am not mistaken, any shareholder can attend the corporate offices of KWG, and request an opportunity to read the actual contract.
For greenfields exploration plays like the Ring of Fire properties, an NSR would most likely be in the form of a percentage of the gross revenue of any ore sold from the subject claims......but as I say, you'd have to read the contract to know the correct answer.
An NSR is generally offered to the original prospector as part of the payment given to him by a junior explorer which is willing to do the expensive work of trying to prove up mineralization on the claims. But like any asset, those rights can be sold or bartered or whatever.
In this case, I am told that the NSR was held by Richard Nemis. KWG's purchase of this 1% NSR would be very lucrative, if the former FWR chromites (or any other mineralization there) are put into production. I'm told that Nemis still holds another 1% NSR on those claims, and that he holds other NSRs also......but I do not know that either of these references to Nemis are factual.
Lar
