VANOUVER, BC / ACCESSWIRE / January 23, 2023 / Orogen Royalties Inc. (TSX.V:OGN) (OTCQX:OGNRF) (“Orogen” or the “Company”) is pleased to announce that the Company has entered into a purchase and sale agreement (the “Agreement”) with a wholly owned US subsidiary of Strikepoint Gold Inc. (“Strikepoint”) (TSX. V:SKP) (OTCQB:STKXF) whereby Strikepoint has acquired a 100% interest in the Cuprite gold project, located in Nevada, USA.
In consideration, Strikepoint will issue 6,428,571 shares at an appraised value of $450,000, reimburse $35,208 in project-related costs and provide a 3% net smelter return (“NSR”) royalty.
Pursuant to the terms of a generative alliance agreement (the “Alliance”) between Altius Minerals Corporation (“Altius”) and Orogen previously announced on September 12, 20221proceeds from the sale of Cuprite will be split equally between the alliance, with each party receiving 3,214,285 shares and a 1.5% NSR royalty.
“The alliance was formed to take advantage of the combined capabilities of Orogen and Altius and to focus on targets with similar geological characteristics to the major discovery at AngloGold Ashanti’s Silicon project, in which both Orogen and Altius have royalty interests generated through early exploration investments.” commented Orogen’s president and CEO, Paddy Nicol. We welcome the technical expertise that Strikepoint brings to the Cuprite project and look forward to the results of their future exploration efforts.”
About the Cuprite Gold Project
The 2,170 hectare Cuprite gold project is located in Nevada, fifteen kilometers south of Goldfield. (Figure 1).
Cuprite is a district-scale prospect with over twenty square kilometers of advanced argillic alteration that forms one of the largest steam-heated cells in Walker Lane. The alteration cell is bisected by Highway 95 with the western cell developed over Cambrian basement and the eastern cell, the main focus of the Alliance’s exploration efforts, developed over Miocene and Oligocene tuff.
Within the eastern cell, eastward alteration vectors toward shallow gravel cover with cinnabar (and mercury-in-soil anomaly), residual silica, and powdered silica were observed, all observed proximal to the eastern boundary of the outcrop. Favorably oriented faults, related to the Miocene Stonewall caldera, crop out in the shallow gravel bed and constitute highly potential feeder structures untested by drilling.
Cuprite is an analogue of AngloGold Ashanti’s silicon deposit (preliminary inferred resource of 3.37 million ounces of oxide gold and 14.17 million ounces of silver2), which was originally identified by Orogen’s exploration team in 2014 and where Orogen and Altius hold a 1% NSR royalty and a 1.5% NSR royalty respectively. Like Cuprite, Silicon exhibits an extensive, highly developed, vapor-heated alteration zone at the surface with anomalous mercury and cinnabar, and shares a similar geological and structural setting.
Figure 1: Location of the Cuprite project
Transaction Details
Strikepoint has acquired a 100% interest in the Cuprite project by issuing 6,248,571 shares of Strikepoint with an appraised value of CAD 450,000, reimbursing USD 35,208 in project-related costs and granting a 3% NSR royalty to the alliance, whereby 0, 5% of the NSR royalty can be purchased for $2.5 million.
The issuance of Strikepoint shares is subject to regulatory approval by the TSX Venture Exchange.
Statement of qualified person
All technical data disclosed in this press release has been verified by Laurence Pryer, Ph.D., P.Geo. VP Exploration for the company. Dr. Pryer is a qualified person as defined in National Instrument 43-101.
About Orogen Royalties Inc.
Orogen Royalties Inc. focuses on organic royalty creation and royalty acquisition on precious metal and base metal deposits in Western North America. The company’s royalty portfolio includes the Ermitaño gold and silver mine in Sonora, Mexico (2% NSR royalty) mined by First Majestic Silver Corp. and the Silicon gold project (1% NSR royalty) in Nevada, USA, which is being developed by AngloGold Ashanti NA. The company is well financed with several projects that are actively explored under joint ventures.
On behalf of the board
OROGEN ROYALTIES INC.
Paddy Nicol
President and CEO
To learn more about Orogen, please contact Paddy Nicol, President and CEO at 604-248-8648, and Marco LoCascio, Vice President, 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
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- https://orogenroyalties.com/news-releases/orogen-royalties-and-altius-minerals-form-nevada-generative-alliance-and-announce-acquisition-of-the-cuprite-epithermal-gold-pro/
- https://www.anglogoldashanti.com/portfolio/reserves-resources/
Forward-looking information
This press release contains certain statements that may be considered “forward-looking statements”. All statements in this presentation, other than statements of historical fact, that address events or developments that Orogen Royalties Inc. (the “Company”) expects 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.
Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future results and actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, development and exploration success and continued access to capital and financing, and general economic, market or business conditions. In addition, the extent to which covid-19 may affect the Company’s operations 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 measures taken in Canada and other countries to contain and treat the disease. Although it is not possible to reliably estimate the duration or severity of these developments and their financial impact as of the date of the approval of these condensed interim reports, a continuation of the prevailing conditions could have a material adverse effect on the Company’s financial condition and results for future periods.
Investors are cautioned that such statements are not guarantees of future results 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 as of 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 change.
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