It is net smelter,

From the Not NR 2007-05-17:

The company further announces that it has entered into an option agreement with Condor Diamond Corp. and Greenstone Exploration Company Ltd. to acquire two claims consisting of eight units adjoining the company's Double Eagle project on the following terms.

Subject to all regulatory approvals, Noront has agreed to issue 175,000 shares and complete, during the calendar year 2007, a minimum of one diamond drill hole to test several highly rated airborne geophysical targets established on the claim group and confirmed by ground geophysics after which it will have earned an undivided 50-per-cent interest on the claims, and further have the right during the second year of the agreement, to earn the balance 50 per cent upon the issuance of a further 225,000 common shares of the company. Condor/Greenstone shall retain a 1-per-cent net smelter royalty which may be purchased by the company at any time upon payment of the sum of $500,000 and/or at the company's option, issuance of an equivalent number of common shares of the company

hope this helps

griz