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About Orogen Royalties Inc. (OTCQX: OGNRF, TSXV: OGN)
Orogen Royalties Inc. is a Vancouver-based royalty and mineral exploration company focused on the organic creation and acquisition of royalties on precious and base metal discoveries in North America. The company employs a unique business model that combines royalty acquisitions with prospect generation, enabling it to generate long-term revenue streams while minimizing upfront costs and financial risk. Orogen's portfolio includes high-quality royalties on producing and advanced-stage assets, as well as a pipeline of exploration-stage projects.
Core Business Model
Orogen's primary revenue streams are derived from royalty payments on operating mines and advanced development projects. The company holds a 2% net smelter return (NSR) royalty on the Ermitaño gold-silver mine in Sonora, Mexico, operated by First Majestic Silver Corp., and a 1% NSR royalty on the Expanded Silicon gold project in Nevada, USA, being advanced by AngloGold Ashanti. Additionally, Orogen generates income through the sale and optioning of mineral projects developed under its prospect generation strategy.
Key Assets and Operations
- Ermitaño Gold-Silver Mine: Located in Sonora, Mexico, this producing mine is a cornerstone asset for Orogen, generating consistent royalty revenue. The mine has demonstrated strong production metrics, with high gold and silver recoveries and ongoing exploration success, including the discovery of the Navidad vein system.
- Expanded Silicon Project: Situated in Nevada, USA, this advanced-stage gold project includes the Merlin and Silicon deposits, with total inferred and indicated resources exceeding 16 million ounces of gold. AngloGold Ashanti continues to advance the project with significant drilling and prefeasibility studies.
- Prospect Generation Portfolio: Orogen's exploration efforts have resulted in a diverse portfolio of royalties and projects, including the TCS VHMS project in British Columbia and the Si2 gold project in Nevada. These assets are often optioned to partners, creating additional royalty opportunities.
Competitive Position
Orogen operates within the competitive royalty and streaming sector, distinguishing itself through its low-cost, organic royalty creation model. This approach allows the company to build a robust portfolio without incurring significant debt or shareholder dilution. By focusing on early-stage exploration and leveraging partnerships with operators, Orogen mitigates risks while maintaining exposure to high-potential discoveries.
Industry Context
The mining and royalty industry is characterized by cyclical commodity prices, operational dependencies on mine operators, and the need for strategic asset diversification. Orogen's focus on precious metals aligns with strong demand for gold and silver as safe-haven assets and industrial inputs. The company's geographic focus on North America provides access to politically stable jurisdictions with established mining infrastructure.
Strategic Focus
Orogen aims to expand its royalty portfolio through both acquisitions and organic creation. The company's financial discipline, as evidenced by its debt-free balance sheet and strong working capital, positions it to capitalize on counter-cyclical growth opportunities. Ongoing exploration and development by operators at key assets like Ermitaño and Expanded Silicon are expected to enhance the value of Orogen's royalty interests over time.
Conclusion
Orogen Royalties Inc. is a well-positioned player in the royalty and exploration sector, offering investors exposure to precious metal assets with reduced financial risk. Its innovative business model, high-quality asset portfolio, and strategic focus on North American jurisdictions underscore its potential as a significant value creator in the mining industry.
Orogen Royalties Inc. has acquired the Celts epithermal gold-silver project located in the Walker Lane, Nevada. The project features untapped potential for epithermal gold mineralization based on evidence suggesting advanced argillic alteration indicative of boiling zones. This strategic acquisition highlights surface expressions similar to AngloGold's Silicon deposit, which contains 3.37 million ounces of gold. The Celts project comprises 560 hectares and is located on BLM-managed ground, with significant exploration potential.
Orogen Royalties (TSXV: OGN, OTCQX: OGNRF) announced its Q3 2022 results, highlighting a net gain of $123,461 or $0.001 per share, a significant improvement from a net loss of $972,294 in 2021. The company's revenue from royalties, primarily from the Ermitaño mine, surged by 39%, with sales of 478 gold equivalent ounces at an average price of US$1,728 per ounce. Despite general and administrative expenses rising to $802,149, Orogen maintains a strong working capital position of $10,743,487, reflecting its ongoing financial stability.
Orogen Royalties Inc. signed an option agreement with Nevada Gold Mines LLC to allow NGM to earn a 100% interest in the Maggie Creek gold project in Nevada by making cash payments of US$5 million and incurring US$6 million in exploration expenses over five years. Orogen retains a 2% net smelter return (NSR) royalty. Additionally, Orogen acquired a 3% NSR on the Hank copper-gold project in British Columbia, which includes a potential US$2.5 million milestone payment. The strategic acquisitions are expected to enhance Orogen's royalty portfolio.
Orogen Royalties Inc. has announced the successful voting results of its Annual General and Special Meeting held on October 27, 2022. A total of 56,588,746 shares were voted, equating to 31.66% of total shares. Key resolutions included the appointment of new directors, with votes for each exceeding 99%. Additionally, Samantha Shorter has joined the Board, bringing over 15 years of experience in mineral exploration. Orogen continues to focus on royalty creation and acquisitions in Western North America.
Orogen Royalties has entered an option agreement with Barrick Gold for the Pearl String gold project in Nevada. Barrick can earn a 100% interest by paying US$1.5 million and incurring US$4 million in exploration expenses over five years. A minimum of US$800,000 must be spent by the second anniversary. Upon exercising the option, Orogen retains a 2% net smelter return royalty. The Pearl String project spans 16.6 square kilometers and is designed for high-sulfidation epithermal gold deposits.
Orogen Royalties Inc. has closed a deal with Green Light Metals Inc. to sell the Kalium Canyon Gold Project for $30,000 cash and 1,000,000 shares valued at $400,000. Orogen retains a 3% net smelter return (NSR) royalty and a potential $5 million payment upon commercial production. The project includes significant mineralized structures with historic drilling results showcasing promising gold grades. The acquisition strengthens Orogen's royalty portfolio and maintains potential upside through future mineral production.
Orogen Royalties Inc. has signed an option agreement with Rackla Metals Inc. for the Astro gold project in Northwest Territories, Canada. The agreement allows Rackla to earn a 100% interest by issuing 120,000 shares, spending $250,000 on exploration, and making cash or share payments totaling $382,000 within 12 months. After acquisition, Orogen will maintain a 2.5% net smelter return royalty. The Astro project spans 288 square kilometers and shows promising gold mineralization, with surface sampling returning results up to 17.7 grams per tonne gold. This partnership aims to advance exploration efforts on the project.
Orogen Royalties Inc. has announced a new generative exploration alliance with Altius Minerals Corporation, aiming to identify gold and silver targets similar to the recently discovered Silicon deposit in Nevada. The alliance boasts a budget of US$300,000 for field evaluation and project acquisition, funded by Altius. The first disclosed project is the Cuprite epithermal gold project, located 80 kilometers from Silicon, covering a 2,170-hectare area. The two companies will share costs and proceeds evenly from designated projects, focusing on leveraging combined expertise to enhance exploration efforts.
Orogen Royalties Inc. (OGNRF) reported its Q2-2022 financial results, highlighting revenue of $959,825, primarily from the Ermitaño mine royalty. The company achieved 373 attributable gold equivalent ounces sold at an average price of US$1,871 per ounce. Notably, Orogen experienced a net loss of $648,635, contrasting with a net income of $934,809 in the previous year. General and administrative expenses rose to $875,220, attributed to increased share-based compensation. The company holds strong financials with zero debt and $10.55 million in working capital.
Orogen Royalties Inc. (OGNRF) announced the acquisition of the La Verdad epithermal gold-silver project in Durango, Mexico, emphasizing its rich geological potential. The project covers 264 hectares and features gold and silver-rich veins spanning over 2.5 kilometers. Recent trench results showed promising grades, including 3.1 g/t gold and 190 g/t silver. Notably, La Verdad shares geological traits with the Ermitaño project, which contributes cash flow through a royalty. This acquisition aligns with Orogen's strategy for organic royalty generation and growth.
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