M&A

Evrim, Renaissance combine in new royalty vehicle

Juniors plan to create new generator/royalty vehicle

Staff Reporter
Evrim Resources and Renaissance Gold will merge to create a new royalty vehicle, Orogen Royalties, with First Majestic's Ermitano mine, in Mexico, part of its portfolio

Evrim Resources and Renaissance Gold will merge to create a new royalty vehicle, Orogen Royalties, with First Majestic's Ermitano mine, in Mexico, part of its portfolio

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).

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.