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Orogen Royalties inks deal to option the Lemon Lake project in British Columbia to Acme Gold

Published: 09:20 01 Mar 2021 EST

Orogen Royalties Inc. -
The Lemon Lake project is a 26 square kilometre land package located near Imperial Metals' Mt. Polley mine

Orogen Royalties Inc (CVE:OGN) (OTCMKTS:EMRRF) (FRA:5EV) said it has agreed to option the Lemon Lake copper-gold project in British Columbia to privately-held Acme Gold Company Limited.

The royalties company said Acme Gold can acquire a 100% interest in the Lemon Lake project by making cash payments of $575,000 and work expenditures of $3 million over a five-year period, as well as granting a 1% net smelter return (NSR) royalty to Orogen.

“The Lemon Lake property is the product of several individually owned claims that are now united under one group,” Orogen Royalties CEO Paddy Nicol said in a statement.

READ: Orogen Royalties eyeing more organic royalty growth in 2021 as it updates on activity

He added: “This unification also brings together historic drilling, mapping, sampling and geophysics that collectively present an attractive drill target. Orogen is pleased to have Acme explore this exciting property.”

The Lemon Lake project is a 26 square kilometre (km) land package located 34 km southeast of Imperial Metals' Mt. Polley mine and 13 km northeast of Consolidated Woodjam Copper Corp's Woodjam project in central British Columbia.

Orogen Royalties added that a “compelling” copper-gold porphyry target on Lemon Lake was defined by coincident soil geochemical and geophysical anomalies, which have not been explored with modern drilling.

Both companies acknowledged that Lemon Lake is situated within the traditional territory of the Williams Lake Indian Band, Xatsull First Nation and the Neskonlith Indian Band, and are committed to developing positive and mutually beneficial relationships with First Nations based on trust and respect and a foundation of open and honest communications.

Orogen Royalties also noted that 0.25% of the NSR can be purchased for $1.5 million and if Acme Gold exercises the option, beginning on the fifth anniversary of the effective date of the Lemon Lake agreement, Acme will also make annual advance cash payments of $50,000 to Orogen to be set off against the 0.25% royalty buyback.

Orogen Royalties is focused on precious and base metal discoveries in western North America, with a focus on organic royalty creation and royalty acquisitions. Its portfolio includes the Ermitaño West gold deposit in Sonora, Mexico, where it has a 2% NSR, and which is being developed by First Majestic Silver Corp. It also has a 1% NSR on the Silicon gold project in Nevada, which is being advanced by AngloGold Ashanti N.A.

Contact Sean at sean@proactiveinvestors.com

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