VANCOUVER, BC, April 19, 2021 /CNW/ - (TSXV:
OGN) Orogen Royalties Inc. ("Orogen" or the "Company")
is pleased to announce that it has signed a purchase and sale
agreement (the "Agreement") with Kodiak Copper Corp. (TSX.V:KDK)
("Kodiak") whereby Kodiak will acquire the Axe copper-gold porphyry
project in southern British
Columbia, Canada. Upon regulatory approval of the TSX
Venture Exchange and closing of the transaction, Orogen will
receive 950,000 shares of Kodiak and a 2% net smelter return
("NSR") royalty, of which 0.5% can be purchased for $2.0 million.
"The Axe project lies immediately south and adjacent to Kodiak's
MPD project, where drilling in 2019 resulted in the discovery of
the Gate Zone, a high-grade copper-gold zone with characteristics
of a large porphyry system," commented Orogen CEO Paddy Nicol. "At the Gate Zone, drill hole
MPD-20-004 intersected 535 metres grading 0.49% copper and 0.29
grams per tonne ("g/t") gold including 45.7 metres grading 1.41%
copper and 1.46 g/t gold. The 1516 Zone on the Axe property
has similar structural, geochemical, and geophysical properties to
the Gate Zone and remains largely unexplored. We look forward
to Kodiak's planned 30,000-metre drilling and exploration program
at MPD, and believe they are the perfect partner to advance the Axe
project."
About the Axe property
The 4,893-hectare Axe project contains extensive copper-gold
bearing porphyry systems within the highly prospective southern
Quesnellia terrane rocks, the same rocks that host the Highland
Valley, Copper Mountain and New Afton Mines in south-central
British Columbia.
Exploration on the Axe property has occurred sporadically since
the 1960's and traditionally focused on the western side of the
property with drilling targeting magnetic highs within the central
facies of the Nicola Group. However, the recent discovery at
Kodiak's nearby Gate Zone indicates that mineralization can also be
hosted in the eastern facies of the Nicola Group and associated
with a magnetic low. On the Axe property, the 1516 Zone is also
located within the eastern facies of the Nicola Group, and the
regional magnetics and geology highlight the similarities between
both areas (Figure 2).
The 1516 Zone is outlined by a 2200 metre by 400 metre region of
greater than 150 parts per million ("ppm") copper in soils and a
broad chargeability anomaly. Similarly, the discovery holes
at the Gate Zone targeted a 1000 by 300 metre region of greater
than 180 ppm copper in soils and a chargeability anomaly. The 1516
Zone has previously experienced very limited exploration.
Transaction Details
Upon closing of the transaction Kodiak will be subject to the
following terms:
- the issuance of 950,000 Kodiak shares to Orogen;
- Kodiak will grant to Orogen a 2% NSR royalty on the Axe
property of which 0.5% may be purchased for $2,000,000 at any time;
- a cash payment to underlying vendors equivalent to the value of
75,000 Orogen shares up to a maximum of $50,000 upon the completion of 5,000 metres of
drilling on the Axe project;
- a cash payment to underlying vendors equivalent to the value of
200,000 Orogen shares up to a maximum of $150,000 upon the announcement of a measured or
indicated mineral resource estimate of at least 500 million tonnes
at a grade of at least 0.40% copper equivalent; and
- a cash payment to underlying vendors equivalent to the
value of 250,000 Orogen shares up to a maximum of $200,000 upon the completion of a feasibility
study on the Axe property.
Qualified Person Statement
All technical data, as disclosed in this press release, has been
verified by Laurence Pryer, Ph.D.,
P.Geo. a Senior Geologist for the Company. Dr. Pryer is a qualified
person as defined under the terms of National Instrument
43-101.
About Orogen Royalties Inc.
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 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
Orogen Royalties Inc.
1201 - 510 West Hastings Street
Vancouver, BC
Canada V6B 1L8
info@orogenroyalties.com
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.
