Oro X Completes Coriorcco Gold Project Option Acquisition, Private Placement, Name Change and Board Appointment Completes acquisition of option to acquire two high-grade gold exploration assets, Coriorcco and Las Antas, in southern
Oro X Completes Coriorcco Gold Project
Option Acquisition, Private Placement, Name
Change and Board Appointment
Completes acquisition of option to acquire two high-grade gold exploration assets,
Coriorcco and Las Antas, in southern
Peru
Appoints
Paul Matysek
as lead advisor and
Nick Rowley
to the board of directors
Completes private placement of 15,243,891 Shares at
$0.41
per Share for gross
proceeds of
$6,250,000
Completes name change to Oro X Mining Corp. Expected to start trading under new
TSX-V symbol "OROX" at market open
October 13, 2020
VANCOUVER, BC
,
Oct. 8, 2020
/CNW/ -
ORO
X MINING CORP.
(TSXV: WRP) (the "
Company
")
is pleased to announce that it has completed its acquisition from Titan Minerals Ltd. ("
Titan
") of
options to acquire the Coriorcco and Las Antas gold projects (the "
Properties
") located in
Ayacucho,
Peru
(the "
Transaction
"). As part of the Transaction, the Company also closed a
concurrent private placement of common shares ("
Shares
") for gross proceeds of
$6,250,000
(the
"
Private Placement
") and completed a name change from Western Pacific Resources Corp. to Oro
X Mining Corp., on the terms described in the Company's previous news release dated
August 24,
2020
.
Option Acquisitions
Pursuant to the option acquisition agreement with Titan (the "
Option Acquisition Agreement
"), the
Company through its Peruvian subsidiaries acquired Titan's options to acquire the Properties for
consideration as described in the Company's previous news release dated
August 24, 2020
.
The two contiguous Properties are located in the Ayacucho Region of
Peru
, approximately 80 km
northeast of the city of Nazca. Additional information on the Company's flagship Coriorcco project is
provided in a technical report that is available under the Company's profile at
www.sedar.com
.
The Company also announces that it has entered into an agreement with the underlying owner of the
Coriorcco project to amend the terms of the option to acquire the Coriorcco project (the "
Amending
Agreement
"). The Amending Agreement will require the Company to pay
US$190,000
to the
concession holder following the registration of the Amending Agreement and to make a conditional
payment (in cash or Shares at the concession holder's option) based on the size of the mineral
resource (in the measured and indicated category) defined on the Coriorcco project in a technical
report prepared in accordance with National Instrument 43-101. The payment will equal:
i
.
US$350,000
if a measured and indicated resource of 500,000 to 999,999 ounces of
gold is established;
ii
.
US$450,000
if a measured and indicated resource of 1,000,000 to 1,499,999 ounces
of gold is established; or
iii
.
US$850,000
if a measured and indicated resource in excess of 1,500,000 ounces of
gold is established
In exchange, the parties have agreed to remove the requirement for the Company to make the
Upfront Advance Payment to the concession holder, and the requirement for the Company to
commence small scale mining by
April 2021
has been extended to
April 2022
with the option to
extend a further twelve months to
April 2023
by incurring
US$200,000
in exploration expenditures.
The transactions contemplated in the Amending Agreement are subject to, among other things the
approval of the TSX Venture Exchange (the
"Exchange"
).
Complete details of the Transaction are set out in the Company's news release dated
August 24,
2020
and in the option acquisition agreement, which are available under the Company's profile at
www.sedar.com
. In connection with the Transaction, the Company paid a finder's fee of
629,836 shares to an arm's length third party.
Advisory Board and Board of Advisor Appointments
In connection with the Transaction, Mr.
Paul Matysek
has been appointed as lead advisor and Mr.
Nick Rowley
has been appointed as a director in place of Mr.
Jeff Dare
who resigned as a director
of the Company. The Company thanks Mr. Dare for his years of service and wishes him the all the
best in his future endeavours.
Mr. Matysek is a geologist/geochemist by training, a successful alpha entrepreneur and consistent
creator of shareholder value, with over 40 years of experience in the mining industry. Since 2004 Mr.
Matysek has sold five publicly listed exploration and development companies, in aggregate worth
over
$2 billion
. Currently, Mr. Matysek is the CEO of Gold X Mining Corp., which is advancing the
Toroparu Project in
Guyana
.
Mr. Rowley is an experienced corporate executive with a strong financial background with over 15
years' experience specialising in corporate advisory, M&A transactions and equities markets. He has
advised on the equity financings of numerous ASX and TSX listed companies predominantly in the
mining and resources sector. Mr. Rowley currently serves as Non-Executive Director of Titan
Minerals (ASX:TTM) and holds an executive role at Galaxy Resources Ltd (ASX:GXY). He was also
founder and Non-Executive Director of Cobalt One Ltd (ASX:CO1) which was acquired by Canadian
listed First Cobalt Corporation (TSX:FCC) in 2017.
Private Placement
Concurrent with the closing of the Transaction, the Company completed the Private Placement of
15,243,891 Shares at
$0.41
per Share for gross proceeds of
$6,250,000
.
The Company paid finders fees of
$152,188.07
to eligible finders in connection with the Private
Placement. The securities distributed pursuant the Private Placement are subject to a hold period of
four months and one day from the date of issuance.
Name and Trading Symbol Change
Pursuant to the policies of the TSX Venture Exchange, the Company's common shares were halted
pending completion of the Transaction. Trading is expected to resume on
October 13, 2020
under
the Company's new name "Oro X Mining Corp." and new trading symbol "OROX", following the
issuance of the Exchange's final bulletin in respect to the Transaction.
Market Maker Engagement
The Company also announces it has retained Generation IACP Inc. ("Generation") to provide market
making services with the objective of maintaining a reasonable market and improving the liquidity of
its Common Shares. Under the agreement between Generation and the Company (the
"Generation
Agreement"
), the Company has agreed to initially pay Generation a fee of
$7,500
plus applicable
taxes, per month. Generation will not receive any Common Shares or options as compensation.
Generation does not currently own any securities of Oro X; however, Generation and its clients may
acquire a direct interest in the securities of the Company. Oro X and Generation are unrelated and
unaffiliated entities. Generation is a member of the Investment Industry Regulatory Organization of
Canada
and a member firm of the Toronto Stock Exchange and the TSX Venture Exchange. The
initial term of the Generation Agreement will last 6 months, and such term will be automatically
renewed for subsequent 6-month periods unless terminated earlier by 30 days' prior written notice.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities described in this news release in
the United States
. Such securities have not been, and
will not be, registered under the United States Securities Act of 1933, as amended (the "
U.S.
Securities Act
"), or any state securities laws, and, accordingly, may not be offered or sold within
the United States
, or to or for the account or benefit of persons in
the United States
or "U.S.
Persons", as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless
registered under the U.S. Securities Act and applicable state securities laws or pursuant to an
exemption from such registration requirements.
ON BEHALF OF THE BOARD
Luis Zapata
CEO & Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Statement Regarding "Forward-Looking" Information
Some of the statements contained in this news release are forward-looking statements and
information within the meaning of applicable securities laws. Forward-looking statements and
information can be identified by the use of words such as "expects", "intends", "is expected",
"potential", "suggests" or variations of such words or phrases, or statements that certain actions,
events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements in this news release include statement in respect of amendments to the
option to acquire the Coriorcco project and the resumption of trading of the Shares on the Exchange.
Forward-looking statements and information are not historical facts and are subject to a number of
risks and uncertainties beyond the Company's control. Actual results and developments are likely to
differ, and may differ materially, from those expressed or implied by the forward-looking statements
contained in this news release. Accordingly, readers should not place undue reliance on forward-
looking statements. the Company undertakes no obligation to update publicly or otherwise revise any
forward-looking statements, except as may be required by law.
SOURCE
Oro X Mining Corp.
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For further information:
please contact: Oro X Mining Corp., Luis Zapata, CEO, +1 236 858 9593,
CO: Oro X Mining Corp.
CNW 08:45e 08-OCT-20