Orogen Royalties Inc. Makes Strategic Move with Los Coyotes Sale
In a decisive move that underscores its strategic focus on optimizing its portfolio, Orogen Royalties Inc. has sold its Los Coyotes silver-gold project to Fresnillo, a leading global mining company. This transaction, announced on August 5, 2025, marks a significant shift in Orogen’s asset management strategy, reflecting its commitment to refining its focus on high-potential projects.
The Los Coyotes project, located in Sonora, Mexico, was part of Orogen’s larger, un-optioned Suanse porphyry copper project. Despite its potential, the project remained undrilled, prompting Orogen to seek a buyer who could unlock its value. Fresnillo, with its extensive expertise and resources, emerged as the ideal partner. Under the terms of the agreement, Fresnillo acquired a 100% interest in the project, paying Orogen US$118,000 upon signing and an additional US$1 million upon the commencement of commercial production. Notably, Orogen retains a 1% net smelter return (NSR) royalty, ensuring continued revenue from the project’s success.
Paddy Nicol, CEO of Orogen, highlighted the strategic rationale behind the sale, stating, “Los Coyotes is an undrilled silver-gold rich poly-metallic project that was part of Orogen’s larger and un-optioned Suanse porphyry copper project. This transaction allows us to reallocate resources towards more immediate opportunities within our existing portfolio.”
This sale is part of a broader trend within the mining sector, where companies are increasingly focusing on core assets and divesting non-core or undeveloped projects. Orogen’s decision to sell Los Coyotes aligns with its strategy of concentrating on organic royalty creation and acquisitions of precious and base metal discoveries in western North America. The company’s portfolio, which includes significant assets like the Ermitano gold and silver mine in Sonora, Mexico, and a geological database spanning multiple regions, positions it well to capitalize on emerging opportunities.
Financially, Orogen’s move comes at a time when the company is navigating a challenging market environment. With a close price of 1.79 CAD as of August 4, 2025, and a market cap of 102.1 million CAD, the company has a price-to-earnings ratio of 96.958, indicating a market perception of high growth potential despite current earnings. The sale of Los Coyotes provides a much-needed cash infusion, enhancing Orogen’s liquidity and enabling further strategic investments.
In contrast, the broader market has seen other notable transactions, such as Franco-Nevada Corp.’s acquisition of a 1% royalty on Altius Minerals Corp.’s AngloGold’s Arthur deposit for US$250 million. This transaction underscores the competitive landscape in which Orogen operates, where strategic asset reallocation and partnerships are crucial for maintaining a competitive edge.
As Orogen continues to refine its portfolio, the sale of Los Coyotes to Fresnillo represents a calculated step towards strengthening its position in the mining sector. By focusing on high-potential projects and leveraging strategic partnerships, Orogen aims to enhance shareholder value and drive sustainable growth in the years to come.