Origen takes back Newfoundland lithium projects

Origen Resources Inc. [ORGN-CSE, 4VX-FSE] said a previously announced agreement involving the sale of its Newfoundland lithium properties has been cancelled.

“These Newfoundland lithium projects are the largest land package assembled in the province targeting lithium-rich pegmatites and will greatly enhance the company’s new lithium-focused mandate,’’ Origen said in a press release.

Back in October, 2022, Origen said it had struck a deal to sell a 100% interest in its substantial Newfoundland lithium project portfolio that covers over 33,000 hectares and 20 highly prospective targets. At the time, Origen said it was selling the lithium projects to a 1345984 B.C. Ltd, (134) a private company that (according to the press release) intended to enter into a transformative transaction within 90 days with a publicly traded entity.

To earn a 100% interest, 134 agreed to make a cash payment of $100,000 and arrange for the delivery of 7.0 million shares of a public company, or soon to be public company within 90 days of signing a definitive agreement. Origen said it must approve the public company from which it agreed to receive the shares.

Under the deal, further cash payment of $150,000 was due within 12 months of signing a definitive agreement. A 1.5% net smelter royalty would also be granted to Origen upon satisfaction of all cash and shares payments.

However, in a press release that was issued after the close of trading on February 27, 2023, Origen said “Nord Battery Resources has agreed to terminate the agreement to purchase all of Origen’s Newfoundland lithium properties.

“We are excited to have these assets back under our direct development control,’’ said Origen CEO Gary Schellenberg.

Prior to the announcement, Origen shares closed at 28 cents. The shares are currently trading in a 52-week range of 33.5 cents and 13 cents.

Origen is a mineral exploration company with a focus on project generation and exploration of key assets that span a variety of commodities and jurisdictions in Canada, including British Columbia and Newfoundland.

One of the world’s leading lithium suppliers – China’s Ganfeng Lithium Corp. — holds a 4.7% equity stake in Origen which previously acquired  a large positioni in a newly identified prospective lithium belt in Newfoundland.

Schellenberg has been a director and officer of numerous publicly traded companies, including Kodiak Copper Corp. [KDK-TSXV], and International Lithium Corp. [ILC-TSXV].

Returning to historically active areas to capitalize on the benefits of new technology, updated deposit models and fresh ideas is a proven strategy used by Origen’s exploration team.

The company’s flagship assets are made up of a dominant 30,742-hectare land package in British Columbia’s mineral-endowed Golden Triangle and the Middle Ridge property in the prolific Exploits subzone gold belt in Newfoundland, home to New Found Gold Corp.’s [NFG-TSXV] Keats Zone discovery at its Queensway project.