Oroco Resource closes $15.48 million private placement
Oroco Resource Corp. [OCO-TSXV; ORRCF-OTCQB; OR6-FSE] closed a non-brokered private placement of 12.9 million units at a price of $1.20 per unit for gross proceeds of $15.48 million. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole share purchase warrant will be exercisable into one additional common share of Oroco for a period of 24 months from closing at a price of $1.60 per share.
“We are very pleased that the global investment community has provided such widespread and substantial support for Oroco and its Santo Tomas Project,” stated Craig Dalziel, Oroco’s CEO. “This funding will give Oroco the opportunity to more fully exploit the targets identified by its developing 3-D IP model, which further de-risks the project and allows Oroco to generate a more thorough and detailed project profile for potential acquisitors.”
Proceeds of the financing will be used to advance the Santo Tomas Project, including the environmental permits, expansion of the company’s definition drill program, which will include both additional infill and stepout drilling, preliminary engineering studies, and general corporate purposes. In addition, certain contingent legal costs relating to the acquisition of the core Santo Tomas concessions are to be paid. The financing is subject to TSX-V final approval.
Oroco has a net 61.4% interest in the collective, 1,172.9-hectare core concessions of the Santo Tomas Project in northwest Mexico, and may increase that majority interest up to an 81% interest with a project investment of up to $30 million. The company also holds a 77.5% interest in 7,807.9 hectares of mineral concessions surrounding and adjacent to the core concessions (a total project size of 8,980.8 hectares). Santo Tomas hosts a significant copper porphyry deposit defined by prior exploration from 1968 to 1994.
During that time, over 100 diamond and reverse-circulation drill holes were drilled, totalling approximately 30,000 metres. Based on data generated by these drill programs, a prefeasibility study was completed by Bateman Engineering in 1994. The property is reached by a 32-km access road originally built to service Goldcorp’s El Sauzal mine in Chihuahua.