VANCOUVER, March 11, 2020 /CNW/ - Oroco Resource Corp.
(TSX-V: OCO) ("Oroco" or "the Company") is
pleased to announce that it has closed the first tranche of a
non-brokered private placement, issuing 2,500,000 units at a price
of $0.30 per unit, for gross proceeds
of $750,000 (the "Financing").
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 for a
period of 24 months from closing at a price of $0.42 per share. The exercise period for
the warrants may be accelerated to 30 days if, at any time after
the first four months of the warrant exercise period, the
volume-weighted trading average of the Company's shares exceeds
$0.60 over twenty consecutive trading
days.
The proceeds of the Financing will be used to advance the Santo
Tomas Project, including preparation for an exploration drill
program, acquisition of surface rights and permits, and a 3D IP
geophysical survey, and general corporate purposes.
Pursuant to the policies of the TSX Venture (the "Exchange"),
all shares issued in this first tranche, and any shares issued
pursuant to the exercise of the warrants, are subject to a hold
period expiring July 12, 2020.
Finder's fees of $7,440 and 24,800
warrants are being paid in connection with the Financing.
Each finder's fee warrant will entitle the holder to purchase one
common share of the Company for a period of 24 months from closing
at a price of $0.42 per share.
The exercise period for the warrants may be accelerated to 30 days
if, at any time after the first four months of the warrant exercise
period, the volume-weighted trading average of the Company's shares
exceeds $0.60 over twenty consecutive
trading days.
The Company also announces the cancellation for re-pricing
purposes of 1,650,000 incentive options with an exercise price of
$0.075 per share previously granted
to current management.
ABOUT OROCO:
The Company holds a net 56.7% interest in the collective 1,172.9
ha core concessions of the Santo Tomás Project in NW Mexico, and may increase that majority
interest up to an 81.0% interest with a project investment of up to
CAD$30 million. The Company
also holds a 77.5% interest in 7,807.9 ha of mineral concessions
surrounding and adjacent to the core concessions (a total project
size of 22,192 acres). The Project is situated within the
Santo Tomás District, which extends from Santo Tomás up to the
Jinchuan Group's Bahuerachi project, approximately 14 km to the
north-east. Santo Tomás hosts a significant copper porphyry
deposit defined by prior exploration spanning the period from 1968
to 1994. During that time, the property was tested by over 100
diamond drill and reverse circulation drill holes, totaling
approximately 30,000 meters. Based on data generated by these drill
programs, a resource estimate for the project was calculated by
Mintec, Inc., and metallurgical test work was conducted by Mountain
States Research and Development, Inc. In 1994, a
Prefeasibility Study was completed by Bateman Engineering Inc.
The Santo Tomás Project is located within 160 km of the Pacific
deep-water port at Topolobampo,
and serviced via highway and proximal rail (and parallel corridors
of trunk grid power lines and natural gas) through the city of
Los Mochis to the northern city of
Choix. The property is reached by
a 32 km access road originally built to service the El Sauzal Mine
of Goldcorp in Chihuahua State. The reader is directed to the
Company's August, 2019 Technical Report filed on SEDAR.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Cautionary Note
Regarding Forward Looking Information
This news release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian securities legislation. All statements, other than
statements of historical fact included herein, including without
limitation, statements relating to future events or achievements of
the Company, are forward-looking statements. There can be no
assurance that such forward-looking statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated or implied in such
statements. Many factors, both known and unknown, could cause
actual results, performance or achievements to be materially
different from the results, performance or achievements that are or
may be expressed or implied by such forward-looking
statements. Readers should not place undue reliance on the
forward-looking statements and information contained in this news
release concerning these matters. Oroco does not assume any
obligation to update the forward-looking statements should they
change, except as required by law. Readers are also cautioned that
this news release includes reference to certain historical reports
and studies that are cited in the Report. Cautionary
Note
Regarding Forward Looking Information
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SOURCE Oroco Resource Corp.