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Be the first with the news that moves the market- Origen Resources (CSE:ORGN) has signed an agreement to grant Tearlach Resources a potential 75 per cent interest in its Bonanza Mountain project
- Under the deal, Tearlach may acquire the stake by funding C$500,000 in exploration, paying the Origen $210,000 in cash and issuing 500,000 shares over a three-year period
- Origen will also be granted a 1.5 per cent net smelter royalty on the property
- The agreement forms part of the company’s strategy of identifying high-quality assets and partnering with other parties capable of advancing them
- Origen Resources (ORGN) is currently steady and is trading at 16 cents per share
Origen Resources (CSE:ORGN) has signed an agreement to grant Tearlach Resources a potential 75 per cent interest in its Bonanza Mountain project.
Under the terms of the option agreement, Tearlach may acquire up to a 75 per cent stake in the project through the issuance of C$210,000 in cash and 500,000 common shares over a three-year period, along with incurring $500,000 in exploration expenses.
Following the exercise of the option, Origen will receive a 1.5 per cent net smelter return royalty on the Bonanza Mountain project.
However, Tearlach may repurchase one per cent of this royalty within 12 moths of the start of commercial production for a $1 million fee.
Blake Morgan, President of Origen Resources, said the agreement was a substantial achievement for an early-stage company.
“This is another significant milestone for our very young company and we welcome Tearlach as a partner in exploring our Bonanza Mountain project.
“This follows the company’s business model of generating quality projects and partnering with highly capable groups to advance our assets,” he added.
Covering a total of 1,603 hectares, the Bonanza Mountain project comprises four claims, and sits 20 kilometres north of Grand Forks, British Columbia, on the eastern slope of the Granby River.
According to the results of a field program carried out last year, the project hosts three separate styles of mineralisation.
Grab sample grading includes 2.44 per cent copper, 4.41 per cent zinc and 53 grams per tonne of gold, as well as epithermal quartz vein-hosted mineralisation grading 19.7 grams per tonne of gold and 28 grams per tonne of gold.
Origen Resources (ORGN) is holding steady and is trading at 16 cents per share at 12:42pm EDT.
