(Kitco News) - Orogen Royalties (TSXV: OGN) announced Tuesday that the company has signed an option agreement with a wholly-owned U.S. subsidiary of Barrick Gold whereby Barrick can earn a 100% interest in the Pearl String gold project located in the Walker Lane trend in Nevada, USA.
Under the terms of the agreement, Barrick can earn a 100% interest in the Pearl String project by making US$1.5 million in cash payments and incurring US$4.0 million in exploration expenses within five years, with a guaranteed minimum exploration expenditure commitment of US$800,000 by the second anniversary.
According to a news release, once Barrick exercises its option on the agreement, Orogen will retain a 2% net smelter return royalty.
"The Pearl String project contains multiple untested high-sulphidation epithermal targets located in the Walker Lane trend, Nevada. The Walker Lane structural corridor is well known for hosting several low-sulphidation epithermal deposits, but also contains significant high-sulphidation deposits and past producing mines including Borealis, Paradise Peak and the 4.2 million ounce Goldfield camp", commented president and CEO Paddy Nicol. "We look forward to our arrangement with Barrick and welcome their exploration expertise on Pearl String."
Orogen Royalties is focused on organic royalty creation and royalty acquisitions on precious and base metal discoveries in western North America. The company's royalty portfolio includes the Ermitaño gold and silver mine in Sonora, Mexico (2% NSR royalty) being mined by First Majestic Silver and the Silicon gold project (1% NSR royalty) in Nevada, USA, being advanced by AngloGold Ashanti.
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