Orogen Royalties sells Kalium Canyon gold project to Green Light Metals
VANCOUVER, BC / ACCESSWIRE / September 26, 2022 / (TSX.V:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. (“Orogen” or the “Company”) is pleased to announce that the Company has entered into and entered into a purchase and sale agreement (the “Agreement”) pursuant to which Green Light Metals Inc. ( “Green Light”) and its subsidiary Green Light Wisconsin LLC (“GLW”) have acquired a 100% interest in the Kalium Canyon gold project (the “Project”) from Orogen’s subsidiary, Renaissance Exploration, Inc. ( “Revival”). As part of the agreement, Renaissance and Badger Minerals LLC (a subsidiary of Green Light) have terminated their option agreement regarding the project (announced on July 15, 2021).
Under the terms of the agreement, GLW acquired a 100% interest in the project by paying $30,000 in cash and issuing 1,000,000 common shares of Green Light at a deemed value of $400,000, subject to certain provisions when listing on a recognized Canadian stock exchange. Orogen will retain up to a 3% net smelter return (“NSR”) royalty and a one-time pre-production payment on certain claims up to US$5 million if the property is brought into commercial production.
About the Kalium Canyon Gold Project
The project covers 135 claims in the Walker Lane trend (Figure 1) where numerous low sulphidation epithermal gold discoveries in Nevada have been made, including the AngloGold Ashanti NA silicon deposit and the Merlin area (where Orogen holds a 1% NSR royalty), North Bullfrog, C-Horst / Lynnda Strip and Eastside. Locally, the project is in the Red Mountain district where approximately 10 million ounces of silver have been produced.
The project contains the Kalium and Argenta zones, northeast trending mineralized structures that parallel the historic 16-1, Nivloc and Mohawk mines where production was from large continuous underground veins. (Figure 2).
The Kalium structure is a one to two kilometer long undrilled corridor overlain by a steam-heated alunite-kaolinite alteration cell. The Argenta Structure to the southeast is approximately four to five kilometers long and hosts a known gold-rich stockwork vein system with historic 1947 15-meter chip channel samples grading 3.74 grams per tonne ( “g/t”) of gold and later reverse circulation drilling returning up to 46 meters grading 1.2 g/t gold. Mineralization is hosted in high angle breccias open at depth. Surface-exposed siliceous agglomerates attest to the low level of exposure of this structural zone, similar to the shallow weathering style exhibited by the Kalium structure.
Both structural zones have the potential to host precious metal mineralization under shallow overburden, and previous drilling has been limited to small portions of these systems.
GLW acquired a 100% interest in the project by paying $30,000 in cash and issuing 1,000,000 shares of Green Light common stock at a deemed value of $400,000, subject to certain provisions at listing to a recognized Canadian stock exchange:
- If Green Light’s listing price is less than $0.40 per common share, Green Light will issue additional complementary shares such that the total issue value of the shares equals $400,000.
- If Green Light is not listed on a recognized Canadian stock exchange within two years, Green Light will pay Orogen an additional $100,000 in cash.
Orogen will retain a 3% NSR royalty on 34 KC claims and 80 MS claims, 1% of which can be purchased for US$2.0 million. In addition, Orogen will retain a 2% NSR royalty on the Marty 8-14 and 30-35 claims.
On the Marty 1-7 and SP 11 claims, Orogen will receive a one-time payment of US$5 per gold equivalent ounce based on gold equivalent ounces estimated in a mineral reserve and resource statement set forth in a NI 43-101 feasibility study and paid within 60 days of commencing commercial production, capped at US$5.0 million.
Declaration of qualified person
All technical data, as disclosed in this press release, has been verified by Laurence Pryer, Ph.D., P.Geo. VP Exploration for the Company. Dr. Pryer is a Qualified Person as defined under National Instrument 43-101.
About Orogen Royalties Inc.
Orogen Royalties Inc. is focused on creating and acquiring organic royalties on precious and base metal discoveries in western North America. The Company’s royalty portfolio includes the Ermitaño gold and silver mine in Sonora, Mexico (2% NSR royalty) operated by First Majestic Silver Corp. and the Silicon Gold Project (1% NSR royalty) in Nevada, USA, advanced by AngloGold Ashanti N/A. The Company is well funded with several projects being actively explored through joint ventures.
On behalf of the board
OROGEN ROYALTIES INC.
President and CEO
To learn more about Orogen, please contact Paddy Nicol, President and CEO at 604-248-8648, and Marco LoCascio, Vice President, Corporate Development at 604-248-8648. Visit our website at www.orogenroyalties.com.
Orogen Royalties Inc.
015 – 789 Pender Street West
Canada V6C 1H2
This press release contains certain statements that may be considered “forward-looking statements”. All statements in this presentation, other than statements of historical fact, that address events or developments that Orogen Royalties Inc. (the “Company”) expects, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”. , “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “should”, “could”, “might” or “should” occur.
Forward-looking information relates to statements regarding the Company’s future prospects and anticipated events or results, as well as the expectations of the Company’s management regarding the proposed business combination (the “Transaction”). This document also contains forward-looking statements regarding the expected completion of the transaction and the timing thereof. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including expectations and assumptions regarding the timely receipt of regulatory and stock market approvals with respect to the Transaction.
Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results may differ materially from those contained in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include market prices, mining and exploration success, the continued availability of capital and financing, and general economy, market or business. In addition, the extent to which COVID-19 may impact the Company’s business will depend on future developments such as geographic spread of the disease, duration of the outbreak, travel restrictions, physical distancing , business closures or disruptions, and the effectiveness of measures taken in Canada and other countries to contain and treat the disease. Although it is not possible to reliably estimate the duration or severity of these developments and their financial impact at the date of approval of these condensed consolidated interim financial statements, the maintenance of the existing conditions could have an adverse impact material to the Company’s financial condition and results of operations for future periods.
Investors are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management as of the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
THE SOURCE: Orogen Royalties Inc.