"Using the Sarape project in the transaction is a creative solution that demonstrates the ability of Orogen's hybrid prospect generation and royalty business model," Orogen's president and CEO Paddy Nicol said.
Advance president and CEO Allan Barry Laboucan said the company will "move quickly" to test the potential of Sarape.
The project covers 57 square kilometres on the northern end of the Rio Sonora Valley. It hosts the Sarape vein, which has been traced for over 5,000 metres along strike, and the Chiltepin vein, which has a strike of about 2,000 metres, Advance noted.
Having had two drill campaigns by previous operators, Advance said the best results include 3.76g/t Au and 15.3g/t Ag over 2.4 metres; 0.18g/t Au and 8.86g/t Ag over 24.68 metres, including 0.55g/t Au and 31g/t Ag over 1.4 metres; and 0.80g/t Au and 34.1g/t Ag over 1.46 metres.
"Sarape has seen limited drilling historically and the vast majority of the strike extent of both veins remains untested. Our previous work at Tabasquena, as well as the track record of other explorers in the Rio Sonora valley, suggest a more comprehensive drill programme is needed to establish the most prospective zones," Laboucan said.
Meanwhile, upon closing the Agreement, Orogen will hold a 3% net smelter royalty on the Rosterman, Sigalagala, and Bukura licences in the Liranda Corridor, within the northern-most greenstone belt in the Kenyan Lake Victorian Gold Fields.
They cover about 19.75 square kilometres of ground within a larger land package known as the West Kenya Project held by Shanta Gold.
Previous exploration on the Sigalagala license includes 8.74g/t Au over 3 metres from 62 metres, and 4.94g/t Au over 1.2 metres from 221.9 metres. At Bukura, a drillhole showed grades of 7.10g/t over one metre, Orogen said.
Orogen Royalties has a share price of C$0.45 (US$0.35) and market capitalization of C$80.35 million. Advance Lithium's share price and market capitalization are C$0.025 and C$1.88 million, respectively.
