Oroco Closes Non-Brokered Private Placement
Oroco Closes Non-Brokered Private Placement
VANCOUVER, BC,
June 30, 2020
/CNW/ - Oroco Resource Corp. (TSX-V: OCO) ("
Oroco
" or "
the
Company
") is pleased to announce that it has closed a non-brokered private placement, initiated on
June
3, 2020
, by issuing 5,500,000 units at a price of
$0.30
per unit, for gross proceeds of
$1,650,000
(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 share
purchase warrants may be accelerated to 30 days if, at any time after the first 4 months of the warrant
exercise period, the volume-weighted trading average of the Company's shares exceeds
$0.60
over a
period of 20 consecutive trading days.
The proceeds of the Financing will be used to advance the Santo Tomas Project, including site
preparation for an exploration drill program, the acquisition of surface rights and permits, a 3D IP
geophysical survey, and general corporate purposes. In addition, certain contingent legal fees relating to
the acquisition of the core
Santo Tomas
concessions are to be paid.
Pursuant to the policies of the TSX Venture Exchange, all shares issued in this placement, and any shares
issued pursuant to the exercise of the share purchase warrants, are subject to a hold period expiring
October 30, 2020
.
Finder's fees of
$19,920
and 40,800 finder's fee 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 finder's fee warrants may be accelerated to 30 days if, at any time after the first 4 months of the
warrant exercise period, the volume-weighted trading average of the Company's shares exceeds
$0.60
over a period of 20 consecutive trading days.
The Company also announces the issuance of 62,500 shares relating to the exercise of
$0.32
share
purchase warrants issued on
November 3
, 2018. A total of 1,742,500 share purchase warrants remain
exercisable at a price of
$0.32
per share on or before
August 3, 2020
.
ABOUT OROCO:
The Company holds a net 61.4% 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 8,980.8
hectares). 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 Goldcorp's El Sauzal Mine 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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http://www.prnewswire.com/news-releases/oroco-closes-non-brokered-private-placement-301086444.html
SOURCE
Oroco Resource Corp.
View original content:
http://www.newswire.ca/en/releases/archive/June2020/30/c3643.html
%SEDAR: 00026117E
For further information:
Mr. Craig Dalziel, CEO, Oroco Resource Corp., Tel: 604-688-6200,
www.orocoresourcecorp.com
CO: Oroco Resource Corp.
CNW 20:59e 30-JUN-20