- Triple Flag Precious Metals Corp. (TFPM, Financial) completes acquisition of Orogen Royalties Inc., strengthening its portfolio with a 1.0% NSR royalty on the Arthur Gold Project.
- The deal involved C$171.5 million in cash and 5,633,629 Triple Flag shares, with additional investment in Orogen Spinco.
- Triple Flag now also holds an 11% equity interest in Orogen Spinco, reflecting confidence in its early-stage royalties and exploration projects.
Triple Flag Precious Metals Corp. (TFPM) has successfully completed the acquisition of Orogen Royalties Inc., signaling an expansion in its royalty portfolio through this strategic transaction. The deal secures a 1.0% net smelter returns (NSR) royalty on the Arthur Gold Project in Nevada, developed by AngloGold Ashanti plc. This acquisition is expected to enhance Triple Flag's asset base with a high-quality gold asset located in a prime jurisdiction.
The transaction allowed Orogen shareholders the option to receive either C$1.63 in cash or 0.05355 of a Triple Flag share per Orogen share. In addition, they received 0.25 shares in a newly formed company, Orogen Spinco, per Orogen share. The total consideration was equitably divided between cash and shares, excluding the value of Orogen Spinco.
In total, Triple Flag disbursed C$171.5 million in cash alongside issuing 5,633,629 common shares to Orogen shareholders. Furthermore, Triple Flag expanded its influence by investing C$10 million to acquire 6,756,757 common shares in Orogen Spinco, representing an 11% equity interest in the newly created company.
Sheldon Vanderkooy, CEO of Triple Flag, expressed his enthusiasm for the acquisition, emphasizing the long-term growth potential of the Arthur Gold Project under the operation of a leading producer, AngloGold Ashanti. Vanderkooy also noted the importance of supporting Orogen Spinco through strategic investments, as it holds a portfolio of early-stage royalties and benefits from a capable management team experienced in grassroots exploration.
