Orogen announces appointment of director and $2.7 million private placement
Orogen announces appointment of director
and $2.7 million private placement
VANCOUVER, BC
,
Feb. 10, 2021
/CNW/ - (TSXV: OGN) Orogen Royalties Inc. ("Orogen" or the
"Company") is pleased to announce that Mr. J.
Patrick Nicol
, the Company's current President and
Chief Executive Officer, has been appointed to the Board of Directors.
Orogen is also pleased to announce that Cranberry Capital Inc., an investment company controlled
by Mr.
Paul van Eeden
, Chairman of the Board of Directors, has agreed to an investment of
$2.7
million
in the Company. Upon the closing of the private placement, Mr. van Eeden will be the
beneficial owner of approximately 14.9% of the Company on a partially diluted basis.
Cranberry Capital will subscribe for 10,000,000 units (the "Units") at a price of
$0.27
per Unit. Each
Unit consists of one common share of the Company and one share purchase warrant (the
"Warrants"). Each Warrant is exercisable into one common share of the Company at a price of
$0.40
for period of five years. No commissions or fees will be paid in connection with the private
placement.
Cranberry Capital's investment is considered a related party transaction within the meaning of
Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions
("MI 61-101"). The Company intends to rely on an exemption from the valuation and minority
shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI
61-101 in respect of Cranberry Capital's investment. The exemption is based on the fact that the
market value of Cranberry Capital's investment does not exceed 25% of the market value of the
Company.
The Company also granted nine million stock options with an exercise price of
$0.35
per share that
vest over four years. The options have a duration of ten years.
The foregoing is subject to regulatory approval by the TSX Venture Exchange.
About Orogen Royalties
Orogen Royalties Inc. is engaged in project generation for precious and base metal deposits 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 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
Visit our website at
www.orogenroyalties.com
.
Orogen Royalties Inc.
1201 - 510 West Hastings Street
Vancouver, BC
Canada
V6B 1L8
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.
SOURCE
Orogen Royalties Inc.
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For further information:
To find out more about Orogen, please contact Paddy Nicol, President &
CEO at 604-248-8648, and Liliana Wong, Manager of Marketing and Investor Relations at 604-248-
8648.
CO: Orogen Royalties Inc.
CNW 19:11e 10-FEB-21