Business
Evrim Resources and Renaissance Gold Combine to Form New Royalty/Prospect Generator Company
Organically created royalty assets to provide a long-term sustainable business model VA...
About this update from Orogen Royalties Incorporation
[{"type":"text","content":"Evrim Resources and Renaissance Gold Combine to Form New Royalty/Prospect Generator CompanyOrganically created royalty assets to provide a long-term sustainable business model VANCOUVER, BC / ACCESSWIRE / June 10, 2020 / (TSX-V: EVM) Evrim Resources Corp. (\"Evrim\" or the \"Company\") and Renaissance Gold Inc. (TSX.V:REN, OTCQB:RNSGF) (\"Renaissance\") are pleased to announce that they have entered into an agreement (the \"Arrangement Agreement\") to combine in a merger-of-equals (the \"Transaction\") in which Evrim will acquire all of the outstanding common shares of Renaissance through a share exchange transaction to create a new company, to be named Orogen Royalties Inc. Orogen will focus on project generation as has been the history of both Evrim and Renaissance but with a renewed focus on organic royalty creation and royalty acquisition. Under the terms of the Arrangement Agreement, each Renaissance share will be exchanged for 1.2448 Evrim shares, which will result in Renaissance and Evrim shareholders each holding 50% of the issued and outstanding shares of Orogen Royalties Inc.Board of Directors' RecommendationsThe Boards of Directors of both Evrim and Renaissance have unanimously approved the Transaction and recommend that shareholders vote in favour of the Transaction. Dundee Goodman Merchant Partners has provided a fairness opinion dated June 9, 2020 to the Board of Directors and the Special Committee of independent directors of Renaissance, stating that as of the date of such opinion and based upon and subject to the assumptions, limitations and qualifications stated in such opinion, the consideration to be received by the shareholders of Renaissance under the Transaction is fair, from a financial point of view, to the shareholders of Renaissance.Highlights of the Combined Company Organically Generated Royalty PortfolioErmitaño West gold deposit in Sonora, Mexico (2% net smelter royalty (\"NSR\")), being developed by First Majestic Silver Corp. and planned to be in production in 20211Silicon gold project (1% NSR) in Nevada, USA, being advanced by AngloGold Ashanti NACumobabi project (1.5% NSR), adjacent to the Ermitaño propertyFour precious metal exploration-stage projects in Argentina, each with a minimum 1% NSRFinancial StrengthNear term cash flow potential from the Ermitaño West Ro...