- Origen Resources (CSE:ORGN) has made a strategic C$100,000 investment in privately-owned exploration company Exploits Gold
- Exploits currently holds a 100 per cent interest in two promising projects that have, to date, seen little modern exploration
- In connection with the placement, Origen has been granted first refusal to acquire any of the new projects generated by Exploits
- Exploits intends to list on the Canadian Stock Exchange later this year
- Origen Resources (ORGN) is up 3.23 per cent and is trading 16 cents per share at 1:01pm EDT
Origen Resources (CSE:ORGN) has made a strategic C$100,000 investment in privately-owned exploration company Exploits Gold.
Exploits is focused on identifying high-grade deposits in the emerging Central Newfoundland Gold Belt and holds a 100 per cent interest in two projects covering a total of 167 square kilometres.
These projects are thought to host similar geological, geochemical and structural features as the adjacent Queensway discovery, which is currently owned by New Found Gold.
To date, the projects have been the subject limited modern exploration activities and are therefore considered to pose a significant opportunity for new discoveries.
In exchange for the investment, which will be carried out at a price of 15 cents per Exploits share, Origen has been granted an exclusive one-year right of first refusal to acquire any of the new projects generated by Exploits.
Pursuant to the deal, Michael Collins, a Director of Origen, has identified himself as an Officer and Director of Exploits. As such, the agreement is considered to be a non-arm’s length transaction.
Blake Morgan, President of Origen Resources, said he is excited to be involved in a burgeoning gold region.
“We are pleased and excited to make a strategic investment in an active and emerging gold district highlighted by the recent success of New Found Gold.
“This investment compliments the Company’s project generation business model by providing it access to additional opportunities throughout the district,” he said.
Exploits Gold plans to list on the Canadian Stock Exchange later this year.
Origen Resources (ORGN) is up 3.23 per cent and is trading at 16 cents per share at 1:01pm EDT.