Baby Doe gold project optioned to Premier Gold
Mines for a net smelter return royalty, cash, and
exploration expenses
VANCOUVER, BC, Oct. 8, 2020 /CNW/ - (TSXV: OGN) Orogen
Royalties Inc. ("Orogen" or the "Company") is pleased to announce
that it has optioned the Baby Doe gold property in Esmeralda County, Nevada to Au-Reka Gold
Corporation, a subsidiary of Premier Gold Mines U.S.A. ("Premier"). Premier can earn up to a
100% interest in the Baby Doe gold project by making cash payments
totaling US$1.0 million and spending
US$10 million in exploration
expenditures over an eight-year period. Once Premier has obtained a
100% interest, Orogen will retain a 3% net smelter return royalty
("NSR") on the Baby Doe claims and a 1% NSR on the Mustang
claims.
"Orogen holds a portfolio of precious and base metal exploration
projects generated from it's exploration pipeline that allows for
organic royalty creation. It is the backbone of our business and
provides our shareholders multiple opportunities for wealth
creation," commented Orogen CEO Paddy
Nicol. "We are very pleased to have Premier Gold as a
partner to advance exploration on our Baby Doe project."
Premier can earn an initial 55% interest (the "Initial
Interest") from Orogen over a four-year period by making cash
payments of US$200,000 to Orogen and
completing US$5.0 million in
exploration expenditures. Premier will also assume cash payment
obligations of US$200,000 to
underlying vendors on the Mustang claims. Once Premier has earned
its Initial Interest, Premier has a one-time, 60-day option to earn
an additional 45% interest (the "Bump-Up Option") in the Baby Doe
project by making a cash payment of US$300,000 to Orogen and spending an additional
US$5.0 million on exploration
expenses. Upon completing the Bump-up option, Premier will make a
cash payment of US$500,000 to Orogen
and grant a 3% NSR on the Baby Doe claims and a 1% NSR on the
Mustang claims. Half of the NSR on the Baby Doe claims can be
purchased for US$3.0 million.
If the project receives a decision to proceed with commercial
production, Premier will pay US$1.0
million to Orogen and have 90-days to make an additional
cash payment equal to US$7.50 per
gold-equivalent ounce in resources and reserves up to a maximum
US$10.0 million.
About the Baby Doe Project
The Baby Doe project is a gold-silver epithermal vein prospect
located in the White Mountains, Esmeralda
county, Nevada (Figure 1).
The project lies within a large, shallow level, steam heated
alteration zone containing historic mercury mines. Outcropping
drilled gold systems occur to the north and south of the project
area, and the most intensely altered portion of the system on the
Baby Doe property has seen only limited historic drilling and no
known deeper tests of the system (Figure 2). This project was
generated as part of a regional generative program focusing on
steam-heated alteration zones interpreted to occur above epithermal
gold deposits, similar to the Silicon project that is being
advanced by AngloGold Ashanti NA, where Orogen holds a 1% NSR.
The Baby Doe project includes 27 unpatented mining claims
subject to an Option Agreement dated June
24, 2020 ("Mustang Option") with Nevada Select Royalty Inc.,
a subsidiary of Ely Gold Royalties, Inc. (TSX.V:ELY, OTCQX:ELYGF),
whereby Orogen has an option to acquire 100% interest in the claims
for cash payments totalling US$200,000, and the reservation of a 2% NSR.
Qualified Person Statement
Orogen's disclosure of technical and scientific information in
this news release has been reviewed by Robert Felder, Senior Vice President for Orogen.
Mr. Felder is a Certified Professional Geologist (#11012) with the
American Institute of Professional Geologists and a Qualified
Person under the definition of National Instrument 43-101.
About Orogen Royalties
Orogen Royalties Inc. is engaged in project generation for
precious and base metal discoveries in western North America with a focus on organic royalty
creation and royalty acquisitions. Orogen's royalty portfolio
includes the Ermitaño West gold deposit in Sonora, Mexico (2% NSR) being developed by
First Majestic Silver Corp. and the Silicon gold project (1% NSR)
in Nevada, USA, being developed 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
Orogen Royalties Inc.
1201 - 510 West Hastings Street
Vancouver, BC
Canada V6B 1L8
info@orogenroyalties.com
Notes
**Figure 1: Total Inferred Resource: ML Gold Corporation.
(2018). Palmetto Resource Estimation and Technical Report (Report
No. 171-00767-00-RPT-01_R1) WSP Canada Inc.
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.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Orogen Royalties Inc.