Orogen Royalties Inc. (OGN:TSXV; OGNNF:OTCQX) has sold the Slaughterhouse iron oxide-copper-gold (IOCG) project in Wyoming to Seabridge Gold Inc. (SEA:TSX; SA:NYSE), who will pay US$300,000 on closing with additional milestone payments up to US$2.55 million.
Orogen will retain a 2.5% royalty on the project, subject to a 0.5% buydown, and smaller royalties on regional land.
The property, which has seen historical mining but no modern exploration, was developed by Orogen's exploration based on regional datasets.
This is another example of Orogen's low-cost approach to generating projects and low-risk business model.
More Drilling Expected at La Rica
It never rains, but it pours: in my review of Orogen's interest in a Colombia high-potential porphyry (Bulletin #1023), I managed a few errors, including getting the name of the property wrong.
Orogen has a royalty in La Rica, part of a large land package being explored by a private company, MCC Mining.
La Rica was drilled beginning last January, focused initially on one target area, and this drilling, according to the company, "has confirmed the significance of the porphyry copper-gold mineralized system initially identified through historical soil and rock sampling."
Thanks to ID for pointing this out and pointing to the company's website, of which I was unaware.
Additional drilling is anticipated by year's end. The information disclosed is indeed rather spare, as it is not inappropriate for a private company.
I stated that "the company has plans to go public perhaps by the middle of next year", but I should have said "it is anticipated" since no go-public plans have been announced.
Any move toward going public would necessitate more public disclosure, which would be positive for Orogen.
Both of these projects are early stage, as are most of the projects on which Orogen holds royalties (other than the producing Ermitaño, of course.)
But developments at those projects — such as Barrick Mining Corp.'s (ABX:TSX; B:NYSE) CA$21 million investment into Kingfisher to advance its Highway 37 project, on which Orogen holds a royalty — will generate news and draw attention to Orogen's royalties.
Orogen is a Buy here, particularly if you do not own it. But the stock has been volatile, so don't chase it.
TOP BUYS this week, in addition to the above, include Altius Minerals Corp. (ALS:TSX; ATUSF:OTCQX), Lara Exploration Ltd. (LRA:TSX.V), Kingsmen Creatives Ltd. (5MZ:SGX), Ares Capital Corp. (ARCC:NASDAQ), Pan American Silver Corp. (PAAS:TSX; PAAS:NYSE), and Metalla Royalty & Streaming Ltd. (MTA:TSX.V; MTA:NYSE American).
Important Disclosures:
- Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Seabridge Gold Inc., Orogen Royalties Inc., Altius Minerals Corp., Lara Exploration Ltd., Pan American Silver Corp., and Metalla Royalty and Streaming.
- Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: All. I determined which companies would be included in this article based on my research and understanding of the sector.
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