Oreterra Metals (TSX-V:OTMC) has closed an amending agreement granting Enduro Metals the option to acquire up to 50% of Oreterra’s 2% net smelter returns royalty on the Newmont Lake Project in British Columbia, Canada.
The option consideration includes 3.9 million shares issued on closing and cash payments totalling C$550,000 ($555,502.12) over two years, with C$175,000 paid upfront. The initial consideration is valued at approximately C$1.1 million at current market prices.
Potential future payments total up to C$22 million in staged cash and advance royalty payments.
These include C$500,000 upon delivery of a maiden NI 43-101 resource estimate; C$1.75 million in cash and a C$1.75 million advance royalty upon completion of a feasibility study; and C$10 million upon a decision to proceed toward mine permitting.
A C$8 million buyback payment to acquire 50% of the remaining NSR prior to extraction.
A second amending agreement establishes a deemed floor price of C$0.135 for any future share consideration payable to Oreterra.
Enduro Metals CFO Malcolm Davidson is also a director of Oreterra, with the transaction approved by Oreterra’s disinterested directors.
The company retains a 1% NSR on the Newmont Lake Project, located adjacent to its Trek-Andrei property in BC’s Golden Triangle.
Oreterra Metals is a Canadian mineral exploration company focused on advancing its flagship Trek South porphyry copper‑gold project in the Golden Triangle, alongside a portfolio of gold‑copper‑silver assets in Nevada and Ontario.
Write to JC Villarba at Mining.com.au
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