Origen Resources Enters into Agreement to Sell 100% Interest in the Arlington Project

Rhea-AI Summary

Origen Resources Inc. enters into an agreement to sell 100% interest in the Arlington Project to Nickelex Resources The agreement includes cash payments, exploration expenditures, share issuances, and royalty terms. Origen also grants incentive stock options to its officers, directors, advisors, and consultants. The company aims to monetize assets and support project advancement.

Positive

• Origen Resources Inc. has successfully entered into an agreement to sell a 100% interest in the Arlington Project to Nickelex Resources
• The agreement outlines cash payments totaling $130,000, exploration expenditures of $250,000, share issuances valued at $200,000, and royalty terms for Origen.
• Origen will retain a 2% royalty of net smelter returns, with an option for Nickelex to purchase 1% of the royalty for $1,000,000.
• In addition to the agreement, Origen has granted incentive stock options to its key stakeholders to purchase up to 1,100,000 common shares at $0.05 per share for five years.
• The company's CEO, Gary Schellenberg, expressed satisfaction with the transaction as a step towards asset monetization and partnership with a proven project advancement group.

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - April 23, 2024) - Origen Resources Inc. (CSE: ORGN) (FSE: 4VXA) (the "Company" or "Origen") is pleased to announce that it has entered into an agreement with Nickelex Resources Corporation ("Nickelex") (TSXV: NICK) to sell a 100% interest in its Arlington project located 17km north of Beaverdell in south-central British Columbia.

The Arlington Agreement, which is subject to Regulatory Approval provides that Nickelex may earn a 100% interest in the Arlington Property by meeting the following obligations to Origen, all by the first anniversary of Regulatory Approval:

• Making cash payments totaling $130,000 ($30,000 of which is reimbursement of costs associated with the Bond posted in regards to the current drill permit to be assigned to Nickelex);
  
  
• Incurring exploration expenditures of $250,000 on the Arlington Property; and
  
  
• Issuing shares to Origen valued at $200,000 within 7 days of Regulatory Approval; and issuing additional shares to Origen valued at $200,000, or 2 million shares, whichever is greater in aggregate value, by the first anniversary of Regulatory Approval.

Origen will retain a royalty of 2% of net smelter returns, provided that Nickelex may purchase 1% of such royalty at any time for a one-time payment of $1,000,000.

"Entering into the Arlington agreement is another step towards our goal of monetizing the Company's assets. The Origen Team is happy to see this asset move to a group with a proven track record of advancing projects and we are excited to be a significant shareholder moving forward," states Gary Schellenberg, CEO.

Stock Option Grant

Origen wishes to announce that it has granted incentive stock options of the Company to its officers, directors, advisors and consultants for the right to purchase up to an aggregate of 1,100,000 common shares of the Company, exercisable at the price of $0.05 per share for five (5) years. The effective date of the grant of option is April 23, 2024. The stock options granted will be in accordance with the Company's Stock Option Plan and will have the required four-months hold period legend, pursuant to the Policies of the CSE and regulatory authorities.

On behalf of Origen,
Thomas Hawkins
Managing Director

For further information, please contact Gary Schellenberg, Chief Executive Officer, at 604-681-0221.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Certain of the statements made and information contained herein may constitute "forward-looking information." In particular references to the private placement and future work programs or expectations on the quality or results of such work programs are subject to risks associated with operations on the property, exploration activity generally, equipment limitations and availability, as well as other risks that we may not be currently aware of. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/206565

FAQ

What is the agreement between Origen Resources Inc. and Nickelex Resources regarding?

The agreement involves the sale of a 100% interest in the Arlington Project from Origen to Nickelex.

What are the obligations for Nickelex in the Arlington Agreement with Origen?

Nickelex is obligated to make cash payments totaling $130,000, incur exploration expenditures of $250,000, issue shares valued at $200,000, and grant additional shares or cash to Origen.

What royalty will Origen retain in the Arlington Agreement with Nickelex?

Origen will retain a 2% royalty of net smelter returns, with an option for Nickelex to purchase 1% of the royalty for $1,000,000.

How many common shares can stakeholders purchase through the incentive stock options granted by Origen?

Stakeholders can purchase up to 1,100,000 common shares at $0.05 per share for five years through the incentive stock options granted by Origen.

Who expressed satisfaction with the Arlington Agreement transaction on behalf of Origen?

Gary Schellenberg, the CEO of Origen, expressed satisfaction with the Arlington Agreement transaction as a step towards asset monetization and partnership with a proven project advancement group.