Orogen Royalties Options Llano De Nogal to Riverside Resources

Orogen Royalties Options Llano De Nogal to Riverside Resources

Llano de Nogal option to fall under the Riverside/BHP Exploration 2022 funding arrangement

TSX.V:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen" or the "Company") is pleased to announce it has signed an option agreement (the "Agreement") with Riverside Resources Inc. (TSX.V:RRI) ("Riverside") for the Llano de Nogal copper-gold porphyry project in Sonora, Mexico

Under the terms of the Agreement, Riverside can earn a 100% interest in Llano de Nogal by making cash payments totaling US$2.48 million and exploration expenditures of US$5 million over a six-year period. Orogen will retain a 1% production royalty on Llano del Nogal. Riverside will retain a ten-year buy-down right whereby 0.5% can be purchased for US$10 million.

"Orogen assembled the Llano de Nogal land package through staking and third-party acquisitions," commented Orogen CEO Paddy Nicol. "Llano del Nogal contains several copper-gold porphyry and polymetallic vein targets and is one of the few undrilled projects in the Cananea-La Caridad porphyry copper trend. Llano de Nogal represents an excellent opportunity for an economic discovery, and we welcome Riverside/BHP's exploration expertise and financial backing on the project. Initial exploration plans at Llano de Nogal include geology, geophysics and geochemistry with a budget of US$1.0 million."

About the Llano Del Nogal property

The Llano del Nogal project is a 98-square-kilometre land package in the prolific Cananea-La Caridad porphyry copper trend (Figure 1). The property is located 35 kilometres northwest of the La Caridad mine that, after 35 years of historic mining, has a measured and indicated mineral resource of over 6.4 Bt grading 0.17% copper[1]. The project is also 60 kilometres southeast of the Cananea (Buenavista Mine), one of the world's largest porphyry copper deposits with a total global resource of over 15Bt at 0.22% copper1 remaining after over 120 years of continuous mining.

Llano del Nogal displays evidence of an extensive strong alteration system developed within a window of Cretaceous age altered volcanics cut by Laramide intrusions and breccias (Figure 2). Three principal target zones exist on the property (Figure 3): a northern magnetic high concealed by post mineral cover and rimmed by copper anomalous skarns and veins, a central magnetic high at Suanse associated with an extensive eroded lithocap and quartz-chalcopyrite veins exposed in drainages, and a southern magnetic low bounded by northeast trending structurally controlled polymetallic veins and extensive quartz-sericite pyrite alteration.

Orogen Royalties Inc, Thursday, May 5, 2022, Press release picture

Figure 1 - Llano de Nogal Location Map

Orogen Royalties Inc, Thursday, May 5, 2022, Press release picture

Figure 2 - RTP TMI magnetics and principal targets

Orogen Royalties Inc, Thursday, May 5, 2022, Press release picture

Figure 3 - Simplified geology and surface geochemistry

Llano de Nogal Option Agreement Terms

Riverside can earn a 100% in the Llano de Nogal project by making cash payments of US$2.48 million and US$5.0 million in exploration expenditures subject to the following schedule:

Date

Cash

($US)

Cumulative Exploration Expenditures ($US)

Closing of transaction

$30,000

-

First Anniversary

$50,000

$500,000

Second Anniversary

$50,000

$1,300,000

Third Anniversary

$100,000

$2,000,000

Fourth Anniversary

$200,000

$3,000,000

Fifth Anniversary

$300,000

$4,000,000

Six Anniversary

$1,750,000

$5,000,000

During the option period, Orogen and Riverside will jointly retain the right to exercise and retain any Net Smelter Return ("NSR") royalty buydown rights with respect to the Suanse claims (0.5% NSR royalty for C$1 million) and the Coyotes claims (1.5% NSR royalty for US$1.5 million).

Once Riverside has exercised its option on Llano de Nogal, Riverside will grant to Orogen a 1% Production Royalty, of which 0.5% can be purchased for US$10 million within 10 years of the exercise date.

At any time, Riverside may transfer all its rights and obligations under the Agreement to BHP Exploration Chile SpA ("BHP") or its affiliates pursuant to the Exploration and Financing Agreement between BHP and Riverside dated May 15, 2019.[2],[3]

Qualified Person Statement

All technical data, as disclosed in this press release, has been verified by Laurence Pryer, Ph.D., P.Geo., Exploration Manager for Orogen. Dr. Pryer is a qualified person as defined under the terms of National Instrument 43-101.

About Orogen Royalties Inc.

Orogen Royalties Inc. is focused on organic royalty creation and royalty acquisitions on precious and base metal discoveries in western North America. The Company's royalty portfolio includes the producing Ermitaño gold-silver deposit in Sonora, Mexico (2% NSR royalty) being developed by First Majestic Silver Corp. and the Silicon gold project (inferred gold resources of 3.37 million ounces) (1% NSR royalty) in Nevada, USA, being advanced by AngloGold Ashanti N.A. The Company is well financed with several projects actively being developed by joint venture partners.

On Behalf of the Board

Orogen Royalties Inc.

Paddy Nicol

President & CEO

To find out more about Orogen, please contact Paddy Nicol, President & CEO at 604-248-8648, or Marco LoCascio, Vice President of Corporate Development at 604-248-8648. Visit our website at www.orogenroyalties.com.

Orogen Royalties Inc.
1015 - 789 West Pender Street
Vancouver, BC
Canada V6C 1H2
info@orogenroyalties.com

Forward Looking Information

This news release includes certain statements that may be deemed "forward looking statements". All statements in this presentation, other than statements of historical facts, that address events or developments that Orogen Royalties Inc. (the "Company") expect to occur, 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", "would", "may", "could" or "should" occur.

Forward looking information relates to statements concerning the Company's future outlook and anticipated events or results, as well as the Company's management expectations with respect to the proposed business combination (the "Transaction"). This document also contains forward-looking statements regarding the anticipated completion of the Transaction and timing thereof. Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning the receipt, in a timely manner, of regulatory and stock exchange approvals in respect of the Transaction.

Although the Company believe the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Furthermore, the extent to which COVID-19 may impact the Company's business will depend on future developments such as the geographic spread of the disease, the duration of the outbreak, travel restrictions, physical distancing, business closures or business disruptions, and the effectiveness of actions taken in Canada and other countries to contain and treat the disease. Although it is not possible to reliably estimate the length or severity of these developments and their financial impact as of the date of approval of these condensed interim consolidated financial statements, continuation of the prevailing conditions could have a significant adverse impact on the Company's financial position and results of operations for future periods.

Investors are cautioned that any such statements are not guarantees of future performance and 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 on 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.

[1] https://www.southernperu.com/ENG/invrel/2021/10K/10k2021.pdf

[2] https://www.rivres.com/news/2019-news/riverside-signs-us-2-000-000-strategic-funding-agreement-with-bhp-in-sonora-mexico

[3] https://www.rivres.com/news/2022-news/iversideesourcesorporateutlookfor202220220112070000

SOURCE: Orogen Royalties Inc.



View source version on accesswire.com:
https://www.accesswire.com/700269/Orogen-Royalties-Options-Llano-De-Nogal-to-Riverside-Resources

News Provided by ACCESSWIRE via QuoteMedia

OGN:CA
The Conversation (0)
Orogen Royalties Announces First Quarter 2022 Results and Provides Royalty Update

Orogen Royalties Announces First Quarter 2022 Results and Provides Royalty Update

TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen" or the "Company") is pleased to report operating and financial results for the first quarter ended March 31, 2022 ("Q1-2022") and recent updates from key royalty assets

Paddy Nicol, CEO of Orogen, commented: "Our first full quarter of royalty revenue from Ermitaño and strong results from our prospect generation business have seen Orogen generate a profit for the first quarter of 2022. These results underline the financial stability the company has achieved, maximizing our shareholders' participation in the exciting developments in the Company's royalty and prospect generation portfolio."

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
Orogen Appoints Mr. Justin Quigley as Board Chair

Orogen Appoints Mr. Justin Quigley as Board Chair

TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen" or the "Company") is pleased to announce that Orogen's board of directors has elected independent board member Mr. Justin Quigley as chairman. Mr. Quigley joined in Orogen's board in August 2021 and has taken a key role at the board level to support the Company's corporate strategy

"Orogen has strategically positioned itself as a cash-flowing royalty company with two key royalty assets created from the Company's generative exploration business," said Orogen Chairman Justin Quigley. "The Ermitaño deposit is now in production providing Orogen royalty revenue and the positive advancements at the Silicon project has potential to grow the value of Orogen's royalty on the project. These are quality royalties at the forefront of their value cycle, located in premier mining jurisdictions, and operated by capable mining companies. Our cornerstone assets, taken together with the potential of our early-stage royalty portfolio and 14 optioned exploration projects, positions Orogen to deliver exceptional value for shareholders."

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
AngloGold Announces 3.37 Million Ounce Gold Resource on Orogen's Silicon Royalty Interest

AngloGold Announces 3.37 Million Ounce Gold Resource on Orogen's Silicon Royalty Interest

TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen" or the "Company") is pleased to announce that project owner AngloGold Ashanti NA ("AngloGold") has announced a maiden 3.37 million ounce inferred gold resource at the Central-Silicon zone on the Silicon gold project in Nevada, USA. Orogen holds an uncapped and non-buyable 1% net smelter return ("NSR") royalty on the 58 square kilometre Silicon project

Highlights from AngloGold's Annual Report are as follows1:

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
Orogen Receives First Royalty Payment from the Ermitaño Deposit

Orogen Receives First Royalty Payment from the Ermitaño Deposit

Ongoing exploration indicates new discovery east of Ermitaño

TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen" or the "Company") is pleased to announce that it has received its first quarterly royalty payment of approximately US$480,000 from initial production at the Ermitaño deposit in Sonora, Mexico. Orogen organically generated a 2% net smelter return ("NSR") royalty on the sale of the Ermitaño project to First Majestic Silver Corp. ("First Majestic

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less
Orogen Sells Onjo to Pacific Ridge for Cash, Shares and a Royalty

Orogen Sells Onjo to Pacific Ridge for Cash, Shares and a Royalty

TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen" or the "Company") is pleased to announce that it has signed a purchase and sale agreement (the "Agreement") with Pacific Ridge Exploration Ltd. (PEX) ("Pacific Ridge") to sell the Onjo copper-gold porphyry project ("Onjo" or the "Project") located in north central British Columbia

Upon regulatory approval of the TSX Venture Exchange, Orogen will receive $50,000 cash, and 750,000 common shares of Pacific Ridge, and a 2.0% net smelter return ("NSR") royalty, of which 0.5% can be purchased for US$1.5 million.

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less

Long-Term Value Creation Drives Sustainable Growth for Barrick

All amounts expressed in US dollars

Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) said today it was making significant progress in building a business for the future with a peerless Tier One 1 focused asset portfolio and a strategy that continues to uncover and unlock value, while also fostering productive partnerships in its host countries.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Barrick's Fourmile Project Shows Further World-Class Potential

All amounts expressed in US dollars

 Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today updated its mineral resource estimate for its wholly-owned Fourmile project in Nevada, resulting in a 192% increase in indicated resources (1.4 million ounces grading 11.76gt), a 137% increase in inferred resources (6.4 million ounces grading 14.1gt) and a 35% increase in grade relative to Barrick's 2023 year-end mineral resource estimate 1 .

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Aurum Resources

Takeover Offer for Mako Gold Limited – Share Offer Unconditional and Status of Offers Conditions

Aurum Resources Limited (ASX: AUE) (Aurum) refers to its off-market takeover offer to acquire all of the ordinary shares (Share Offer) and certain options (Option Offers) in Mako Gold Limited (ASX:MKG) (Mako) pursuant to its bidder’s statement dated 30 October 2024 (as supplemented or replaced from time to time) (Bidder’s Statement).

Keep reading...Show less
Rows of gold bars.

Top 10 Gold Reserves by Country

Gold is one of the most important metals on the planet. For millennia it has been used in jewelry, art and currency, capturing the collective imagination as a thing of wonder. Gold's association with royalty and wealth has inspired explorers and treasure hunters alike, who put themselves at risk for a chance to strike it rich.

Today, gold's hold on us as a precious metal is no less powerful. Still used for jewelry and as a store of wealth, the metal also has a variety of modern industrial and electronic applications.

Even though gold seems to be everywhere, in reality it's a finite resource. Only 244,000 metric tons of gold have ever been mined, and two-thirds of that has been extracted since 1950. Comparing that amount to the more than 700 million metric tons of copper that have been pulled from the ground provides an idea of how precious a resource gold truly is.

Keep reading...Show less
Physical gold bar and gold Maple Leaf coin with small gold nuggets on top.

A Guide to Investing in Physical Gold (Updated 2024)

Gold is known as an attractive safe-haven investment and has been used to store wealth during volatile times through history.

It has interesting currency-like tendencies, and retains its purchasing power better than paper currencies.

For that reason, gold market analysts typically recommend that investors build a diversified portfolio with a portion of their wealth in gold bullion. Here the Investing News Network explains what's involved in building and managing a physical gold portfolio.

Keep reading...Show less

Latest Press Releases

Related News

×