Orogen options the Baby Doe gold project to Premier Gold Baby Doe gold project optioned to Premier Gold Mines for a net smelter return royalty, cash, and exploration expenses
Orogen options the Baby Doe gold project to
Premier Gold
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.
Location map showing the Baby Doe project located in the White Mountains, Esmeralda county,
Nevada (CNW Group/Orogen Royalties Inc.)
Geologic map of Baby Doe project area showing areas of alteration, mercury occurrences and
adjacent, outcropping gold systems (CNW Group/Orogen Royalties Inc.)
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
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.
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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. Visit our website at www.orogenroyalties.com.
CO: Orogen Royalties Inc.
CNW 07:00e 08-OCT-20