This article is 4 years old. Images might not display.
Orogen will focus on mineral project generation with a view to creating organic royalty opportunities.
Orogen's starting portfolio will include a 2% net smelter royalty (NSR) on First Majestic Silver's Ermitano West gold deposit in Sonora, Mexico, a 1% NSR on the Silicon gold project in Nevada that is optioned to AngloGold Ashanti, and others such as a 1.5% NSR on the Cumobabi project next to Ermitano and four precious metal exploration projects in Argentina.
The proposed company had pro forma cash of US$13.5 million at the end of May.
Under terms of merger, Renaissance shares are being exchanged for 1.2448 Evrim shares to leave each company's shareholders holding an equal stake in Orogen.
"Bringing together two very successful and well-funded prospect generators with meaningful royalties creates a very strong platform from which to advance and grow our business," said Renaissance CEO Robert Felder.
Felder will become the senior VP of Orogen, with Evrim CEO Paddy Nicol assuming the CEO position. A new board will comprise four directors, two each from Evrim and Renaissance.
Both Renaissance and Evrim's board of directors have unanimously approved the transaction. Renaissance and Evrim's shareholders will vote on the deal at a special meeting to be held in the September quarter.
The proposed company's headquarters will be in Vancouver, with operational offices in Reno, Nevada, and Hermosillo, Mexico.
Evrim shares (TSXV:EVM) closed nearly 3% or C1c lower on Wednesday at 35.5c, which capitalises it at $30 million (US$22.4 million). Shares in Renaissance (TSXV:REN) gained 8% or 3c to 41c, which gives it a market vale of $28 million (US$21 million).
