Orogen Royalties Inc (CVE:OGN) (OTCMKTS:EMRRF) (FRA:5EV) has optioned its Ecru gold project, which lies in the prolific Cortez camp in Lander County, Nevada, US, to Australia's first all-female-led resources company, Moneghetti Minerals Ltd.
Moneghetti will be able to buy 100% of the asset over six years, by paying US$2.5 million in cash, and spending US$5 million on work. Upon earning all of it, it will grant a 2% net smelter return (NSR) royalty on 112 unpatented claims to Orogen.
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"The Ecru project is a sediment-hosted Carlin-type gold target located in the prolific Cortez camp of world-class gold deposits in Lander County, Nevada," said Orogen CEO Paddy Nicol in a statement.
"We are excited to bring this opportunity to Moneghetti, Australia's first all-female-led resources company focused on gold projects in Nevada and Western Australia. The Moneghetti team plans to IPO on the Australian Securities Exchange (ASX) by mid-2021."
Ecru covers 7.8 square kilometres of lode mining claims on the northeast margin of Nevada Gold Mine's (HV between Barrick and Newmont) Cortez land position.
Historic drilling adjacent to the project has hit multiple zones of intrusion-related mineralization with gold intercepts, including 3.7 metres (m) grading 1.65 grams per ton (g/t) gold and 16.9m at 1.3 g/t gold, noted Orogen.
Under the deal, Moneghetti will also make annual payments to Orogen of US$50,000, starting on the first year of exercising the option until the project is placed into commercial production.
Moneghetti will also pay US$7.50 per ounce to a maximum US$7.5 million on all mineral resources and reserves at the time of a production decision.
Orogen is engaged in project generation for precious and base metal discoveries in western North America and is focused on organic royalty creation and royalty acquisitions.
Contact the author at giles@proactiveinvestors.com