Gold Boom Fuels Big Move, Triple Flag Buys Orogen Royalties

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Tuesday, April 22, 2025

As gold continues its record-setting run, companies of all sizes are flocking to the market’s hottest sector. Today, news of a major mining acquisition is driving a significant surge in a small-cap miner’s stock.

Triple Flag Precious Metals Corp. (TSX: TFPM) (NYSE: TFPM) announced this morning that they have entered into a definitive agreement to acquire all outstanding shares of Orogen Royalties Inc. (TSX-Venture: OGN) (OTCQX: OGNRF) for approximately C$421 million, or C$2.00 per share, through a combination of cash, Triple Flag shares, and shares of a new entity, Orogen Spinco. 

The acquisition includes Orogen’s valuable 1.0% NSR royalty on the Expanded Silicon gold project, while Orogen Spinco will retain all other mineral interests and be led by Orogen’s current CEO, Paddy Nicol. Triple Flag will also invest C$10 million in Orogen Spinco once it goes public, securing an approximate 11% stake in the company.

Triple Flag CEO Sheldon Vanderkooy praised the transaction as a strategic acquisition of a high-quality royalty on a rapidly growing gold asset in Nevada, operated by top-tier miner AngloGold Ashanti. He emphasized the exceptional growth potential of Expanded Silicon, the value accretive nature of the royalty model, and the strategic benefits of partnering with Orogen Spinco. Vanderkooy also expressed confidence in the Orogen team’s track record in grassroots exploration and royalty creation.

Orogen CEO Paddy Nicol echoed this sentiment, stating that the deal recognizes the significant value growth delivered by the Expanded Silicon royalty and aligns with Orogen’s long-term strategy. The spin-out company, Orogen Spinco, will continue to focus on organic royalty generation and acquisitions, supported by the cash-flowing Ermitaño royalty and a strong exploration pipeline. Nicol highlighted the importance of retaining the experienced Orogen team and welcomed the new partnership with Triple Flag.

Under the transaction terms, Orogen shareholders can elect to receive either C$1.63 in cash or 0.05355 of a Triple Flag share per Orogen share, plus 0.25 shares in Orogen Spinco, bringing total consideration to C$2.00 per share. The cash portion will be funded from Triple Flag’s $700 million undrawn credit facility, and upon closing, Orogen shareholders will own approximately 3% of Triple Flag. The acquisition significantly enhances Triple Flag’s long-term portfolio with a life-of-mine royalty on one of North America's most promising gold development assets.

Shares of OGN were currently up 24.14% at $1.80 while U.S. listed shares (OGNRF) were rallying 23.29% at $1.2945 in mid-morning trading.

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