Orogen signs exploration deal with South32 subsidiary

Executive Summary

• Orogen Royalties Inc. entered a multiyear generative exploration alliance with South32 Ltd.’s wholly‑owned subsidiary to target intrusion‑related base metal deposits in western North America.
• South32 will fund an initial $300,000 of exploration and reimburse Orogen for approximately $181,000 of pre‑alliance land acquisition costs.
• Each designated project may be optioned by South32 over five years with up to $5 million of funded exploration expenditures; milestone cash payments total $2 million plus additional payments tied to drilling, resource declaration, prefeasibility, feasibility and investment decisions.

Key Details

• Alliance Scope: Early‑stage generative exploration for base metal targets in underexplored western North America.
• Initial Funding: South32 will provide a $300,000 budget for generative work; Orogen’s pre‑alliance costs of ~$181,000 will be reimbursed.
• Option Structure: For each designated project, South32 can earn 100 % interest by financing $5 million in exploration over five years.
• Milestone Payments (if option exercised):
• $50,000 – completion of 5,000 m drilling
• $100,000 – cumulative 10,000 m drilling
• $150,000 – declaration of an initial mineral resource
• $250,000 – prefeasibility study completion
• $450,000 – feasibility study completion
• $1.0 million – positive board investment decision for mine development
• Royalty Retention: Orogen will retain up to a 2 % NSR royalty on any project South32 fully acquires, subject to a possible buydown of 0.5 % if $5 million is paid.
• Operational Roles: Orogen will manage the alliance, identify targets, and present them to a joint technical committee; South32 bears all exploration, land acquisition, and related costs.
• Qualified Person: Technical data verified by Laurence Pryer, PhD, PGeo, VP Exploration, Orogen (NI 43‑101 qualified person).

Notable Quotes

“The alliance with South32 broadens our scope of exploration for various commodities in western North America… By partnering with South32 at the generative stage, Orogen is able to leverage our expertise and data to further our strategy of organic royalty generation.” – Paddy Nicol, CEO, Orogen Royalties Inc.