Orogen Royalties To Be Acquired For $2.00 Per Share By Triple Flag Precious Metals
Orogen Royalties (TSXV: OGN) has reached an agreement to be acquired by Triple Flag Precious Metals (TSX: TFPM) in a transaction that is being conducted solely for the 1.0% NSR royalty on AngloGold Ashanti’s Expanded Silicon project in Nevada.
The transaction will see Orogen acquired for total consideration of C$421 million, or approximately $2.00 per share. Total consideration under the arrangement will consist of $171.5 million in cash, $171.5 million in Triple Flag common shares, and shares of a new company, Orogen Spinco, which has an implied value of $78 million. Total consideration to be paid out by Triple Flag amounts to $343 million.
Under the terms of the arrangement, Orogen shareholders can choose to receive $1.63 in cash, or 0.05355 of a Triple Flag share for each Orogen share held. Shareholders of Orogen will also receive 0.25 shares in Orogen Spinco for each Orogen share held, which is said to be valued at $0.37 per each.
The price to be paid represents a premium of 38% to yesterdays closing prices of the equities, and a 32% premium based on the 20-day volume weighted average price of the two equities.
The effort being undertaken by Triple Flag is solely for the 1.0% NSR held on the Expanded Silicon gold project, which covers 74 square kilometres including the Merlin and Silicon deposits. The project is said to represent “the largest new gold discovery by resource in the United States in over a decade.” The project currently boasts resources of 3.4 million indicated ounces at 0.87 g/t gold and 0.8 million inferred ounces at 0.70 g/t gold at Silicon and 12.1 million inferred ounces at 1.06 g/t gold at Merlin.
Orogen Spinco meanwhile will be led by the same management team as Orogen currently has, retaining all of its assets, including the 2.0% NSR royalty on the Ermitaño deposit, part of First Majestic Silver’s (TSX: AG) (NYSE: AG) larger Santa Elena Complex.
WATCH: Inside First Majestic’s Santa Elena Silver Mine: The Operation Investors Never See! | DD-On-The-Go
Orogen Spinco is set to have a portfolio of 27 exploration stage royalties in addition to the Ermitaño royalty, and $15 to $20 million in working capital and no debt. Triple Flag has agreed to invest $10 million in the Spinco in exchange for an 11% interest.
The transaction remains subject to shareholder and regulatory approval. Voting support has been obtained from 39.5% of Orogen’s shareholders, and a $12.5 million termination fee is in place in the event the transaction fails to proceed. The transaction is expected to close in the third quarter of 2025.
Orogen Royalties last traded at $1.77 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.