Orogen Royalties Inc. (OGN:TSXV; OGNNF:OTC) reported positive exploration results from First Majestic Silver Corp. (AG:TSX; AG:NYSE; FMV:FSE) at its Ermitaño mine, on which Orogen holds a 2% royalty, its only cash-flowing royalty at present.
The Navidad area reported some strong drill holes, and the mineralization is now over 1,200 meters on strike and 400 meters down dip. In addition, resource conversion continues at the Luna area. First Majestic has been making investments in the processing plant and other infrastructure, supporting Orogen’s optimism in “long-term upside” on its royalty ground.
We had been expecting Orogen to see some selling after the Triple Flag Precious Metals Corp. (TFPM:TSX; TFPM:NYSE) transaction, from investors who had purchased it purely for the Arthur Royalty sale, but it has been remarkably resilient as buyers line up.
Orogen is the rare exploration company with long-term cash flow and a very solid balance sheet. It has a strong management and technical team, along with top-notch partners (BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK), South 32 DR (SOUHY:OTCMKTS), Triple Flag, and Altius Minerals Corp. (ALS:TSX)), and numerous projects at various stages, a couple of which could turn into world-class projects.
After a drop this month from $2.60, Orogen is a Buy.
TOP BUYS this week, in addition to the above, include Kingsmen Creatives Ltd. (KMEN:SI), Ares Capital Corp. (ARCC:NASDAQ), Midland Exploration Inc. (MD:TSX.V), and Lara Exploration Ltd. (LRA:TSX.V).
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