- Orogen Royalties Inc. (OGN) has closed a purchase and sale agreement to sell its 100 per cent interest in the Kalium Canyon Project to Green Light Metals Inc.
- As such, Orogen’s subsidiary and a subsidiary of Green Light have terminated their option agreement related to the project
- Greenlight paid $30,000 cash and issued one million of its common shares worth $400,000
- Orogen retains a 3.00 net smelter return royalty on 114 claims
- Orogen Royalties Inc. (OGN) is up 2.63 per cent, trading at $0.39 per share as of 2:24 p.m. ET
Orogen Royalties (OGN) has closed a purchase and sale agreement to sell its interest in the Kalium Canyon Project to Green Light Metals Inc. and its subsidiary.
Alongside this agreement, Orogen’s subsidiary, Renaissance, and Badger Minerals LLC, a subsidiary of Green Light, have terminated their option agreement related to the project.
Greenlight paid $30,000 cash and issued one million of its common shares (worth $400,000) for ownership of the project. Orogen stated it will owe a one-time pre-production payment on certain claims for up to US$5 million if the property is placed into commercial production.
The project covers 135 claims in an area where many low sulfidation epithermal gold discoveries in Nevada and lies within the Red Mountain district, where approximately 10 million ounces of silver were produced.
Orogen retained a 3.00 net smelter return (NSR) royalty on 34 KC claims and 80 MS claims, 1.00 per cent of which can be purchased for US$2.0 million. On top of this, Orogen also has a 2.00 per cent NSR royalty on the Marty 8-14 and 30-35 claims.
If the listing price of Green Light ends up as less than $0.40 per common share, it will issue additional top-up shares such that the total share issuance value equals $400,000. Also, if Green Light is not listed on a recognized Canadian exchange within two years, it will owe Orogen an additional $100,000 cash.
Orogen Royalties Inc. (OGN) is up 2.63 per cent, trading at $0.39 per share as of 2:24 p.m. ET.