Earn in agreement with Meridian Gold (Yamana subsidiary)
Located in Nevada
Carlin-type gold mineralization in a classical Carlin-type setting hosted in Roberts Mountains Formation exposed through an upper plate window with a Mesozoic stock at the center of the district.
The Raven Project is located in the Rabbit Trend in Nevada near the town of Austin, Nevada
On August 11th, 2021, Orogen announced two agreements with Meridian Gold Company, a wholly owned subsidiary of Yamana Gold Inc., for the option of the Raven and Callaghan gold projects, and a three-year partner-funded generative exploration alliance in Nevada.
Under the terms of the Option Agreement, Meridian can earn up to a 100% interest in the Raven and Callaghan projects by making cash payments totaling US$300,000 and exploration expenditures of US$4.625 million over a five-year period. Orogen will retain a 2.5% net smelter return (“NSR”) royalty on the Raven Project and a 3% NSR royalty on the Callaghan project, with a buy-down right up to 1.5% on each NSR for up to US$10 million.
Terms of the Option Agreement and Alliance Agreement
Under the terms of the Option Agreement, Meridian can earn a 100% interest in the Raven and Callaghan projects by making cash payments of US$300,000 and US$4.625 million in exploration expenditures subject the following schedule:
· $50,000 cash on the date of signing the Option Agreement;
· $50,000 cash and $375,000 in exploration with a minimum $100,000 spend on each project on or before the first anniversary;
· $50,000 cash and $500,000 in exploration on or before the second anniversary;
· $50,000 cash and $750,000 in exploration on or before the third anniversary;
· $50,000 cash and $1,000,000 in exploration on or before the fourth anniversary; and
· $50,000 cash and $2,000,000 in exploration on or before the fifth anniversary.
Orogen will retain respective 3% and 2.5% NSR royalties on the Callaghan and Raven projects. In the case of each project, Meridian has a buy-down right of up to 1.5% which can be purchased for up to US$10 million.
Under the terms of the Alliance Agreement, Meridian, at its discretion, will fund generative exploration programs operated by Orogen within a 4,000 square kilometre AOI in Nevada, for a three -year period. Properties staked by Orogen and selected by Meridian will be subject to the same earn-in terms as described in the Option Agreement. Orogen will retain a 1% NSR royalty on all ground acquired within the Alliance AOI, with no buy-down.
About Callaghan and Raven
The Callaghan and Raven projects are Carlin-type gold targets covering multiple windows of prospective lower plate carbonate host rocks and Paleozoic normal faults, including extensions of the Roberts Mountain thrust. Both projects are within 25 kilometres of the town of Austin in Lander County, Nevada.
At the Raven Project, the southern claim block covers a mineralized body hosted by an upper-plate Ordovician calcareous siltstone. Thirty-six drill holes have tested this target with intercepts up to 9.96 grams per tonne (“g/t”) gold over three metres. The lower plate target below this high-grade gold cell remains largely untested.
The northern claim block at Raven has seen limited exploration. Recent mapping by Orogen geologists combined with conodont ages have refined the stratigraphy and identified favorable lower plate horizons in multiple locations. Soil samples taken at Raven display a large arsenic, antimony and mercury anomaly across the area. Multiple shallow (30 to 180 metre) drill targets exist below these gold-in-soil anomalies.