Orogen Royalties sells Los Coyotes project to Fresnillo

Executive Summary

• Orogen Royalties Inc. entered into a Purchase & Sale Agreement with Fresnillo PLC’s subsidiary to sell its 100 % interest in the Los Coyotes silver‑gold project for $1,118,000 total cash consideration.
• Orogen will retain a 1 % Net Smelter Return (NSR) royalty on future production, preserving upside exposure without further capital outlay.
• The transaction brings Fresnillo’s exploration expertise to the undrilled Los Coyotes project, potentially accelerating development of its silver‑gold resources.

Key Details

• Purchase Price: $118,000 payable upon signing (already received) plus $1,000,000 payable at commencement of commercial production.
• Royalty Retention: Orogen retains a 1 % NSR royalty on all future metal sales from Los Coyotes.
• Project Description: Los Coyotes comprises six claims covering >600 ha in Sonora, Mexico, situated within the Laramide porphyry copper belt and proximal to major gold‑silver vein systems (Santa Elena, Ermitano, Las Chispas, Mercedes).
• Historical Surface Sampling: Up to 1.4 m intervals returning 6.81 g/t Au and 927 g/t Ag from channel samples on undrilled mineralized structures.
• Qualified Person: Technical data verified by Dr. Laurence Pryer, PhD, PGeo, Vice‑President of Exploration (NI 43‑101 qualified).
• CEO Comment: Paddy Nicol highlighted the strategic partnership with Fresnillo and the retained royalty as a means to maintain upside while enabling further exploration without additional capital from Orogen.

Notable Quotes

“Los Coyotes is an undrilled silver‑gold‑rich polymetallic project… This transaction brings in Fresnillo, the world’s leading silver producer… Orogen will keep its upside exposure to Los Coyotes though its retained royalty without any further capital contribution.” – Paddy Nicol, CEO, Orogen Royalties Inc.