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Origen Resources Inc. (CSE: ORGN,OTC:OGGNF) (FSE: 4VXA) (the "Company" or "Origen") is pleased to announce that it has entered into a Letter of Intent ("LOI") to acquire an additional prospective Rare Earth Elements (REE) project in Brazil. The mineral concession package totals over 33,000 hectares in Piauí State within the northeastern region of Brazil (the "Property").
Key Highlights
- The prospective 33,075 hectare claim package is located in Bahia and Piauí States and significantly enhances the Company's district scale footprint and diversification in this emerging area.
- Property wide shallow soil sampling completed by the Vendor identified an anomalous REE area approximately 4 km x 6 km and centered on a high value of 282 ppm TREO+Y.
- The primary target model is the Ion Absorption Clay-hosted REE deposit model.
- IACD-style deposits produce over 80% of all heavy (H)REE supplies worldwide (as estimated in 2024).
- Exclusive 150 day Due Diligence period.
"With this acquisition, Origen will be one of the largest claim holders in this emerging Rare Earth belt, controlling over 68,000 ha. Early-stage, impactful acquisitions have been key to our success in the past, and being among the first to identify the significance of this belt has allowed our team to acquire this district-scale land package. Due diligence work on this project will commence in the coming weeks to further define the prospectivity of this new claim package," states Gary Schellenberg, CEO and Director.
Incorporadora e Mineração Santa Rosa Ltda. ("Santa Rosa" or the "Vendor") has identified a significant ionic clay-hosted rare earth element ("REE") target over an area of approximately four by six kilometres within this new 33,000 hectare land package in northeastern Brazil.
Initial reconnaissance soil sampling, conducted on a wide sample separation of approximately 1.5 kilometres, has defined a spatially coherent anomalous zone, with seven (7) out of thirty-three (33) samples returning elevated values, including a peak of 282 ppm TREO+Y. The consistency of anomalous values across wide spacing strongly encourages follow-up infill and systematic exploration. Laboratory analysis was conducted by SGS Geosol, a recognized commercial laboratory with experience in geochemical analysis and holds ISO9001:2015 and ISO14001:2015 certification.
The REE mineralization is interpreted to be hosted within lateritic profiles developed over the Rio Preto Group, a geological setting analogous to other emerging ionic clay-hosted REE deposits in Brazil, including Serra Verde (Goiás) and Caldeira (Minas Gerais). This style of REE mineralization is increasingly recognized for its potential for lower energy mining requirements, less chemically aggressive recovery, and strategic importance in the global supply of critical minerals.
Origen has been granted an exclusive 150 day Due Diligence Period and may enter into a definitive agreement upon completion. Fieldwork for the Due Diligence Period will be assisted by the Vendor and a Brazilian consultant, with oversight by Coast Mountain Geological Ltd. of Vancouver, Canada.
John Harrop, P Geo., a Qualified Person as that term is defined in NI 43-101, has supervised the preparation, or approved the scientific and technical disclosure in the news release. Mr. Harrop is employed by Coast Mountain Geological Ltd. He is not independent of the Company as defined in NI 43-101. He is independent of the SGS Geosol laboratory.
Terms of the Acquisition
To acquire a 70% interest following a positive due diligence outcome and entering into a definitive agreement, Origen will pay the Vendor $100,000 USD and issue 2,000,000 shares. Origen will make a further and final payment of $100,000 USD and issue 4,000,000 shares upon the second anniversary of the definitive agreement. Within two years of completion of the Due Diligence Period, Origen must also incur $1,500,000 of exploration expenditures. After this two year period, Origen and the Vendor will enter into a 70/30 Joint Venture. The Vendor will retain a 2% royalty of which 1% can be purchased at any time prior to commercial production for $1,500,000 USD.
About Origen
Origen is fully focused on this new Brazilian REE acquisition, its 100% interest in the Los Sapitos Lithium project in Argentina and its 100% owned gold-silver Wishbone project in the Golden Triangle of British Columbia, along with a property portfolio of two 100% owned precious and base metal projects in southern British Columbia it is actively seeking partners for.
On behalf of Origen,
Gary Schellenberg,
CEO and Director
For further information, please contact Gary Schellenberg, CEO at 604-681-0221.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Certain of the statements made and information contained herein may constitute "forward-looking information." In particular references to the private placement and future work programs or expectations on the quality or results of such work programs are subject to risks associated with operations on the property, exploration activity generally, equipment limitations and availability, as well as other risks that we may not be currently aware of. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/292585
