The Prospector News

Orocco Signs Agreement to Sell Cerro Prieto for US$ 18 Million

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Orocco Signs Agreement to Sell Cerro Prieto for US$ 18 Million

 

 

 

 

Oroco Resource Corp (TSXV:OCO; Frankfurt: OR6) announce that it has entered into a binding agreement with Goldgroup Mining Inc. (TSX:GGA, OTC:GGAZF, BMV SIC:GGAN.MX) pursuant to which Oroco will sell to Goldgroup a 100% interest in Minas de Oroco Resources, S.A. de C.V., Oroco’s Mexican subsidiary which holds a 100% interest in the Company’s Cerro Prieto Project in Sonora State, Mexico.

 

 

 

Total consideration for the acquisition will be US$18 million, which shall be comprised of an initial payment of US$4,500,000 on closing and quarterly payments based on a calculation of US$150 per ounce for each ounce of gold produced from the Properties, subject to minimum quarterly payments (the “Minimum Payments”) of US$625,000 (for a total of US$2,500,000 per year) commencing one year after closing.  Quarterly payments shall be made until either the full purchase price of US$18,000,000 is paid, representing 90,000 ounces of production, or Goldgroup permanently ceases production from the Properties.  If commercial production does not commence at Cerro Prieto prior to January 1, 2014, the first two quarterly payments shall be reduced to US$250,000, with the annual minimum to be fulfilled by the fourth quarterly payment and the minimum quarterly payments maintained thereafter.

 

 

 

In addition, under the terms of the agreement, and subject to the approval of the TSX Venture Exchange, Goldgroup shall subscribe within seven days for a private placement of five million units in Oroco at a price of CAD$0.20 per unit, with each unit being comprised of one common share and one non-transferable share purchase warrant entitling Goldgroup to purchase one common share of Oroco for CAD$0.25 for a period of two years from the date of closing of the private placement.

 

 

 

The closing of the sale is subject to Oroco obtaining binding lock-up agreements from shareholders representing not less than 22% of the outstanding shares of the Company, the approval of the shareholders of the Company, the approval of the TSX Venture and the Toronto Stock Exchange, and material adverse change exceptions.  In addition, the parties have agreed that Oroco will pay Goldgroup a US$500,000 break fee if Oroco does not complete the transaction by June 30, 2013.

 

 

 

Craig Dalziel, President & CEO of Oroco, commented, “This transaction very importantly eliminates Oroco’s current debt obligations and provides Oroco with cash sufficient to allow the Company to focus on its newly-registered Xochipala property in the Guerrero Gold Belt.  The prospect of sustained working capital should minimize near-term share dilution and provide Oroco with the opportunity to more aggressively pursue its highly-prospective target at Xochipala.”

 

 

 

The Cerro Prieto Project is a permitted gold and silver project located in northern Sonora State, Mexico, comprised of mineral concessions totaling approximately 7,000 hectares and containing approximately 17.5 kilometers of strike length of the mineralized structure hosting the current resource.  In December of 2010, Oroco announced a positive preliminary economic assessment highlighting an open pit gold-silver mining operation at Cerro Prieto and in early 2012 Oroco announced the receipt of the Environment Impact Statement (Manifestacion de Impacto Ambiental) and the Authorization of Change of Land Use (Estudio Tecnico Justificativo para Cambio de Uso de Suelo) for the Cerro Prieto Project.

 

 

 

About Oroco

 

 

 

Oroco is a Canadian-based mineral exploration company focused on its two Mexican gold projects, the 7000 ha Cerro Prieto Project in northern Sonora State, Mexico and the 193 ha Xochipala Property, lying within the original Morelos National Mining Reserve in Guerrero State, Mexico.

Posted January 28, 2013

Share this news article

MORE or "UNCATEGORIZED"


4.0 Metres Grading 16.15 Grams per Tonne Gold Returned from Initial Assay Results from New Drilling at Transition Metals Highland Gold Project

Transition Metals Corp (TSX-V: XTM) is pleased to announce initia... READ MORE

July 15, 2019

Nickel Creek Platinum Announces Closing of Tranche 1 Private Placement

Nickel Creek Platinum Corp. (TSX:NCP) is pleased to announce that... READ MORE

July 15, 2019

Jaguar Mining Announces Full Repayment of USD$7.85 Million Secured Bridge Facility

Jaguar Mining Inc. (TSX: JAG) is pleased to announce that it has ... READ MORE

July 15, 2019

Orla Mining Raises $3.6 Million Through Early Warrant Exercise Incentive Program

Orla Mining Ltd. (TSX: OLA) is pleased to report that its previou... READ MORE

July 15, 2019

Roxgold Announces High Grade Drilling Results from the Séguéla Gold Project

Roxgold Inc. (TSX: ROXG) (OTC: ROGFF) is pleased to announce dril... READ MORE

July 15, 2019

Copyright 2019 The Prospector News - Site design by Spyderbaby Productions