3.0% NSR royalty + cash payments and exploration expenditures
The Callaghan project is a Carlin-type gold targets covering a window of lower plate carbonates and siltstones exposed within an anticline. Anomalous gold values and elevated arsenic, antimony and mercury occur within decalcified sandstone, siltstones and jasperoid breccias that occur as outcropping islands along a 7.5 kilometre strike length. Historic drilling intercepted shallow Carlin-style mineralization associated with high angle structures and along the contact between upper and lower Cambrian rocks with drill intercepts up to 1.6 grams per tonne gold over 10 metres. Similar targets exist immediately east and within the untested hinge of the anticline concealed under shallow pediment.
On August 11, 2021, Orogen announced two agreements with Meridian Gold Company (“Meridian”), 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% NSR royalty on the Raven Project and a 3.0% NSR royalty on the Callaghan project, with a buy-down right up to 1.5% on each NSR for up to US$10 million.