Orogen Royalties Inc (CVE:OGN) (OTCMKTS:EMRRF) (FRA:5EV) has revealed that Cranberry Capital Inc is investing C$2.7 million in the company via a placing.
Cranberry Capital is an investment company controlled by Paul van Eeden, Orogen's chairman. Upon closing the private placing, van Eeden will be the beneficial owner of around 14.9% of the company on a partially diluted basis.
In the financing, Cranberry Capital will subscribe for 10 million units at C$0.27 each.
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Each unit consists of one company share and one share purchase warrant. Each warrant is exercisable into one Orogen share at C$0.40 for five years. No commissions or fees will be paid in connection with the private placement.
Orogen also announced that its president and CEO Patrick Nicol had been appointed to its board of directors.
And it said it has granted nine million stock options with an exercise price of C$0.35 per share that vest over four years. The options have a duration of ten years.
Orogen is focused on precious and base metal discoveries in western North America, with a focus on organic royalty creation and royalty acquisitions.
Its portfolio includes the Ermitaño West gold deposit in Sonora, Mexico, where it has a 2% net smelter return royalty (NSR), and which is being developed by First Majestic Silver Corp (TSE:FR) (NYSE:AG) (FRA:FMV). It also has a 1% NSR on the Silicon gold project in Nevada, which is being advanced by AngloGold Ashanti N.A (JSE:ANG).
The company is well-financed with several projects actively being developed by joint venture partners.
Contact the author at giles@proactiveinvestors.com