Orogen Royalties Inc (CVE:OGN) told investors on Tuesday that it has optioned out its TREK-31 gold asset in British Columbia to Pacific Imperial Mines Inc (TSE:PPM), which will advance the project.
TREK 31 lies in the Nechako Plateau and is a gold-in-till anomaly situated 30 kilometres (km) northeast of Artemis Gold's Blackwater gold-silver deposit.
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It covers 'Target 31' which was identified by a C$4million exploration program undertaken by Geoscience BC, which identified a strong, continuous area of anomalism.
"Orogen's generative exploration programs utilize government-funded exploration including those from Geoscience BC to identify projects like TREK-31," Orogen CEO Paddy Nicol said in a statement.
"The Nechako region is an underexplored area of British Columbia that has been validated by Artemis Gold's Blackwater gold-silver deposit with reserves of 8.0 million ounces of gold and 62.3 million ounces silver. We are pleased to have Pacific Imperial Mines advance exploration at the TREK-31 project," he added.
Early exploration by Orogen at the project outlined a 2.3km by 900 metre gold-in-till anomaly. Pacific Imperial can earn up to a 100% interest in TREK-31 by making cash payments totaling C$1.3 million and spending C$3 million in exploration over five years.
Once Pacific Imperial has obtained 100%, Orogen will retain a 3% net smelter return royalty (NSR) on the TREK-31 claims of which 1% can be purchased for C$3 million. Pacific Imperial will also make annual advance cash payments of $50,000 to Orogen to be set off against the 1% 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.
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