(MENAFN- GlobeNewsWire - Nasdaq) VANCOUVER, British Columbia – (March 17, 2023), March 17, 2023 (GLOBE NEWSWIRE) -- March 17, 2023 NEWS RELEASE
OROCO CLOSES NON-BROKERED PRIVATE PLACEMENT
VANCOUVER, British Columbia – (March 17, 2023) Oroco Resource Corp. (TSX-V: OCO, OTC: ORRCF) (“Oroco” or“the Company”) is pleased to announce that it has closed a non-brokered private placement (the“ Private Placement ”) raising gross proceeds of $4,758,727.55 through the sale of a total of 6,344,970 units at a price of $0.75 per unit. Each unit consists of one share and one-half of one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one share for a period of 24 months from closing at a price of $1.05 per share.
The shares and any shares issued pursuant to the exercise of the warrants are subject to a hold period expiring July 18, 2023.
ATM Mining Corp. (ATM”), a company controlled by Craig Dalziel, Executive Chairman of the Company, participated in the Private Placement, purchasing 200,000 units. ATM's participation in the Private Placement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 as the fair market value of it's participation is less than 25% of the market capitalization of the Company.
The Company paid a total of: (i) $78,500 cash; (ii) 60,000 common shares: (iii) 10,000 share purchase warrants which entitle the holder to purchase one share for two years at a price of $0.75; and (iv) 50,000 share purchase warrants which entitle the holder to purchase one share for two years at a price of $1.05 per share, in finder's fees to RFC Ambrian Limited and Vertigo Partners Ltd. in connection with the Private Placement.
The proceeds of the financing will be used for exploration and development activities, working capital and corporate overhead.
ABOUT OROCO:
The Company holds a net 85.5% interest in the collective 1,172.9 ha Core Concessions of the Santo Tomas Project in NW Mexico. The Company also holds an 80% interest in 8,154.3 ha of mineral concessions surrounding and adjacent to the Core Concessions (for a total project area of 23,048 acres). The Project is situated within the Santo Tomas District, which extends from Santo Tomas up to the Jinchuan Group's Bahuerachi project, approximately 14 km to the northeast. Santo Tomas 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 and reverse circulation drill holes, totalling approximately 30,000 meters. Based on data generated by these drill programs, a historical Prefeasibility Study was completed by Bateman Engineering Inc. in 1994. The Company is nearing the completion of its 2021-2023 drill program at Santo Tomas with a total of approximately 49,000 meters drilled in 76 diamond drill holes.
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.