Orogen Announces Spin Out of the Ball Creek Property

About this update from Orogen Royalties Incorporation

[{"type":"text","content":"Orogen Announces Spin Out of the Ball Creek PropertyVANCOUVER, BC / ACCESSWIRE / August 18, 2021 / (TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. (\"Orogen\" or the \"Company\") is pleased to announce that the Board of Directors have approved the spinout of the Ball Creek copper-gold porphyry target located in the Golden Triangle, British Columbia (the \"Ball Creek Project\"), into a new company (\"SpinCo\") by way of a Plan of Arrangement under the British Columbia Business Corporation Act (the \"Arrangement\").Upon completion of the Arrangement, the Company's shareholders will: (i) maintain their existing ownership of common shares in Orogen Royalties, that will continue to operate as an organic royalty and prospect generator in North America with its flagship Ermitaño and Silicon royalties, and (ii) gain new shares in SpinCo on a ratio to be determined, that will focus on the exploration and advancement of the 100% owned Ball Creek copper-gold porphyry project. Orogen will also retain a minority shareholding interest in SpinCo and a royalty in the Ball Creek Project.The Company expects that the Arrangement will increase shareholder value by allowing capital markets to ascribe full value to the Ball Creek Project independently of the Company's royalty assets, joint ventures, and other mineral properties. The spinout also enables SpinCo to operate under a different business model, with significant exploration and drilling programs planned to advance the Ball Creek Project.The completion of the Arrangement, distribution of SpinCo common shares to the Company's shareholders, and listing of SpinCo's common shares on a recognized Canadian stock exchange are subject to several conditions including the completion of corporate, legal and tax structuring, completion of SpinCo financing, and appointment of a Board of Directors and management team for SpinCo. The Arrangement must also receive Orogen shareholder and regulatory approval. There is no certainty that the spinout transaction will be completed on the terms proposed or at all. The Company will provide additional updates when further details of the Arrangement are determined.Orogen acknowledges that the Ball Creek Project is situated in the traditional territory of the Tahltan Nation with whom the Company has maintained a positive relationship since the project was acquired i...

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