Orogen Deal Approved
Contributed Opinion

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Orogen Royalties Inc., Metalla Royalty & Streaming Ltd., Franco-Nevada Corp., Altius Minerals Corp., Lara Exploration Ltd., Midland Exploration Inc. , and Fox River Resources Corp.
2. 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.
3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found  below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Adrian Day Disclosures

Adrian Day’s Global Analyst is distributed for $990 per year by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. www.AdrianDayGlobalAnalyst.com. Publisher: Adrian Day. Owner: Investment Consultants International, Ltd. Staff may have positions in securities discussed herein. Adrian Day is also President of Global Strategic Management (GSM), a registered investment advisor, and a separate company from this service. In his capacity as GSM president, Adrian Day may be buying or selling for clients securities recommended herein concurrently, before or after recommendations herein, and may be acting for clients in a manner contrary to recommendations herein. This is not a solicitation for GSM. Views herein are the editor’s opinion and not fact. All information is believed to be correct, but its accuracy cannot be guaranteed. The owner and editor are not responsible for errors and omissions. © 2023. Adrian Day’s Global Analyst. Information and advice herein are intended purely for the subscriber’s own account. Under no circumstances may any part of a Global Analyst e-mail be copied or distributed without prior written permission of the editor. Given the nature of this service, we will pursue any violations aggressively.

Orogen Royalties Inc. (OGN:TSXV; OGNRF:OTCQX) shareholders overwhelmingly voted to approve the plan of arrangement whereby Triple Flag will buy Orogen, then spin out all assets except the royalty of the Arthur Deposit (formerly Silicon).

Just over 75% of shares were voted of which over 99% voted in favor of the plan. All directors also received overwhelming support, also over 99% in each case, an overwhelming endorsement of a job well done.

The plan now goes to the Supreme Court of British Columbia and the TSX Venture Exchange for approval, with closing expected to occur on July 9.

Share/Cash Ratio To Be Determined

As discussed previously, Triple Flag is paying in both shares and cash, with a maximum of 50% of the total consideration to be paid in shares. This means that, in all likelihood, shareholders who elected for shares will receive a combination of shares and cash, though the ratio is not known yet (likely will be early this coming week).

Orogen remains at a discount to the value of the offer and can still be bought, enabling you to receive Triple Flag shares at a modest discount as well as the spin-off shares, also to be known as Orogen Royalties, with the same symbol.

We shall be following the new Orogen when issued. If it starts below its pro-forma valuation of $72 million (or $1.45 per share, allowing for the reduced number of shares out), it can be bought, but we shall also be looking for any initial weakness as the stock is sold down by anyone who bought Orogen in recent weeks for the arbitrage (as often happens).

Metalla Gets New Credit Facility as Geos Ramp Up

Metalla Royalty & Streaming Ltd. (MTA:TSX.V; MTA:NYSE American) retired its convertible facility with Beedie, replacing it with a more traditional revolving credit facility, up to CA$75 million ($40 million plus an accordion of $35 million), with BMO and National Bank. Not only is the total available larger than under the Beedie facility ($50 million), but the interest rate is lower.

Beedie remains the company's largest shareholder, with just over 10% of the shares. After three successive quarters of production somewhat lagging estimates, the GEOs and revenue are about to grow significantly during the second half of the year, first with the restart of the Endeavor Mine in Australia, stronger performance from Tocantinzinho in Brazil, and the start of deliveries from Amalgamated Kirkland.

In 2028 and 2029, GEOs start to ramp up significantly from several new mines, and news on others, including potentially the incorporation of the Gosselin Deposit (on which Metalla has a royalty) into IAMGOLD's adjacent Cȏté Mine.

The shares are trading at about 50% of NAV and remain a buy for long-term investors. The second quarter results may also be a tad light before the expected ramp up over the balance of the year, and this may provide a good entry point if there is stock weakness.

TOP PICKS this week, in addition to above, include Nestle SA (NESN:VX; NSRGY:OTC), Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), Altius Minerals Corp. (ALS:TSX), Lara Exploration Ltd. (LRA:TSX.V), Midland Exploration Inc. (MD:TSX.V), and Fox River Resources Corp. (FOX:CSE).