Rogue Resources Inc. has entered into agreements to acquire 100% of the Speiran and 85% of the Johnston Farm quarries from Ontario-based private companies. Going forward, Rogue will refer to these as the “Orillia” and “Bobcaygeon” quarries, respectively.
The Speiran Quarry, located east of Orillia, Ontario, Canada, is permitted to produce 20,000 tonnes per year and has been in continuous operation for more than 25 years. The past five years have averaged $131/tonne in revenue and $68/tonne operating expense on average sales of 2,722 tonnes per year.
The Johnston Farm Quarry, located east of Bobcaygeon, Ontario, Canada, is permitted to produce 20,000 tonnes/year.
“Rogue has remained steadfast in its effort to find assets with high rock value, in a good jurisdiction and close to cash flow and these quarries are both great examples of checking each of those boxes. These acquisitions will be a direct result of this focus and will strengthen our project portfolio,” said Sean Samson, president and CEO of Rogue. “Also, acquiring a business with historical cash flow, for which we’ve been able to negotiate purchase orders, allows us to tap into sources of less dilutive financing.”
Rogue is a mining company focused on generating positive cash flow. Not tied to any commodity, it looks at rock value and good grade deposits that can withstand all stages of the commodity price cycle. The company remains focused on advancing its silica/quartz business with the Snow White Project in Ontario and the Silicon Ridge Project in Québec, plus identifying, acquiring, advancing and eventually operating additional projects or mines that meet its criteria.