- Origen Resources (ORGN) has signed a definitive agreement to wholly acquire the 7,875-hectare Middle Ridge property in Newfoundland
- Under there terms of the agreement, the company will issue C$116,000 in cash and 1,100,000 shares to the vendor, and will assume $750,000 in exploration expenses over a four-year period
- The vendor will also retain a two per cent royalty on the property, half of which may be purchased by Origen for $1 million
- The company is currently compiling previously collected data with the aim of implementing an exploration program later this year
- Origen Resources (ORGN) is currently steady at $0.14 per share
Origen Resources (ORGN) has signed a definitive agreement to wholly acquire the 7,875-hectare Middle Ridge property in Newfoundland.
Located within the prolific Exploits Subzone, the property sits approximately 50 kilometres south of New Found Gold’s Queensway Project, which has returned a number of significant drilling results so far this year.
Under the terms of the agreement, Origen will issue C$116,000 in cash and 1,100,000 shares to the vendor, and will assume $750,000 in exploration expenses over a four-year period.
The vendor will also retain a two per cent net smelter royalty on the Middle Ridge property, half of which – or one per cent – may be purchased by Origen for $1 million.
Blake Morgan, President of Origen Resources, said he is pleased to be acquiring such a promising land package.
“This acquisition along with our significant equity stake in Exploits Discovery Inc. positions Origen as a significant player in the region,” he added.
The company is now working to compile previously collected data regarding the property, with a view to planning and implementing an exploration program later this year.
Between 1970 and 1971, Noranda Exploration undertook an airborne electromagnetic and magnetic survey on a portion of the property, which was followed up by ground geophysics and drilling work. Two diamond drill holes were completed, one of which contained several sulphide-rich quartz veins that were never assayed.
“This region has always been a highly prospective area geologically but due to the lack of outcrop very few ‘easy’ discoveries were made,” Blake continued.
Origen Resources (ORGN) is currently steady at $0.14 per share, as of 12:21pm EDT.
