TSX- and NYSE-listed Triple Flag Precious Metals on Tuesday announced the acquisition of TSX-V-listed Orogen Royalties in a C$421-million transaction that will give the royalty and streaming firm a 1% net smelter return (NSR) royalty on AngloGold Ashanti’s Expanded Silicon gold project, in Nevada.

The transaction consideration comprises about C$171.5-million in cash, an equal amount in Triple Flag shares, and shares in a new spinout company, Orogen Spinco, valued at about C$78-million. Triple Flag will also invest C$10-million in the Spinco upon its public listing, for an 11% interest.

“This is a rare opportunity to acquire a gold asset located in a premier jurisdiction and operated by a top-tier operator, AngloGold Ashanti,” said Triple Flag CEO Sheldon Vanderkooy.

“Given the rapid pace of resource growth demonstrated at Expanded Silicon, we believe that the long-term growth potential of this asset in an emerging new gold camp is unparalleled.”

Expanded Silicon includes the Merlin and Silicon deposits and is described by AngloGold as the largest new gold discovery by resource in the US in over a decade. The asset hosts 12.1-million ounces of inferred gold at Merlin and a further 3.4-million ounces of indicated resources at Silicon.

Under the agreement, Orogen shareholders will receive either C$1.63 in cash or 0.05355 Triple Flag shares for each Orogen share held, plus 0.25 shares in Orogen Spinco. The deal implies a 38% premium to Orogen’s share price as of April 17 and will see Triple Flag finance the cash portion from its $700-million undrawn credit facility.

Orogen Spinco will retain all mineral interests except the 1% NSR royalty on Expanded Silicon and will continue to be led by current CEO Paddy Nicol.

“Today’s announcement validates the tremendous growth in value that our royalty on the Expanded Silicon project has provided our shareholders,” said Nicol. “Triple Flag is exactly the right home for such a royalty asset.”

He added that Orogen Spinco would continue its strategy of organic royalty generation, supported by cash flow from its Ermitaño royalty, a strong treasury, and a pipeline of early-stage royalty interests.

The Expanded Silicon royalty joins other Nevada assets in Triple Flag’s portfolio, including a 2% NSR royalty on the Mother Lode project and a sliding-scale NSR royalty of 0.5% to 5.5% on Augusta Gold’s Bullfrog project. Together, these assets bolster Triple Flag’s exposure to what it describes as North America’s most prospective new gold camp.

Triple Flag said the transaction enhanced its long-term growth outlook beyond 2029, with exploration upside remaining at both Merlin and Silicon. AngloGold’s priorities for 2025 include delivering a prefeasibility study and advancing infill drilling at Merlin to potentially upgrade resources to reserves.