Oroco Resource Corp. (TSX-V: OCO) (OTC: ORRCF) is pleased to announce that it has closed a fully subscribed non-brokered private placement raising gross proceeds of $1,750,000 through the sale of 2,692,308 units at a price of $0.65 per unit. Each unit consists of one share and one share purchase warrant. Each share purchase warrant entitles the holder to purchase one share for a period of 24 months from closing at a price of $0.90 per share.
The shares and any shares issued pursuant to the exercise of the warrants are subject to a hold period expiring December 15, 2023. The Company has received conditional approval from the TSX Venture Exchange for the Private Placement but has yet to receive final approval.
ATM Mining Corp. a company controlled by Craig Dalziel, Executive Chairman of the Company, and Richard Lock, CEO and a director of the Company, participated in the Private Placement. ATM purchased 130,308 units and Mr. Lock purchased 40,026 units. ATM’s and Mr. Lock’s participation in the Private Placement are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 as the fair market value of their respective participation is less than 25% of the market capitalization of the Company.
No finder’s fees were paid in connection with the Private Placement.
The proceeds of the financing will be used for exploration and development activities, working capital and corporate overhead.
The Company holds a net 85.5% interest in those central concessions which comprise 1,172.9 hectares “the Core Concessions” of the Santo Tomas Project, located in northwestern Mexico. The Company also holds an 80% interest in an additional 7,861.3 hectares of mineral concessions surrounding and adjacent to the Core Concessions (for a total project area of 9,034.2 hectares, or 22,324.4 acres). The Santo Tomas Project is situated within the Santo Tomas District, which extends up to the Jinchuan Group’s Bahuerachi Project, approximately 14 km to the northeast. Santo Tomas hosts significant copper porphyry mineralization defined by prior exploration spanning the period from 1968 to 1994. During that time, the project area was tested by over 100 diamond and reverse circulation drill holes, totalling approximately 30,000 meters. Commencing in 2021, Oroco conducted a drill program (Phase 1) at Santo Tomas, with a resulting total of 48,481 meters drilled in 76 diamond drill holes. In May of 2023 the Company completed a Mineral Resource Estimate for the Core Concessions which identified an Indicated and Inferred resource totalling 1.087 billion tonnes of 0.36% CuEq.
The Santo Tomas Project is located within 160 km of the Pacific deep-water port at Topolobampo and is 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 Goldcorp’s El Sauzal Mine in Chihuahua State.
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