- Oroco Resources (OCO) has raised C$15.48 million in a private placement to advance its Santo Tomas Project in northern Sinaloa, Mexico
- The company issued 12.9 million units at a price of $1.20 each, consisting of one common share and one-half of a share purchase warrant
- Each whole warrant will be exercisable at a price of $1.60 per share over a period of 24 months
- The work at Santo Tomas is expected to include the expansion of an infill drilling program and securing environment permits
- Oroco Resources is currently up 0.52 per cent to $1.94 per share
Oroco Resources (OCO) has raised C$15.48 million in a private placement to advance its Santo Tomas Project in northern Sinaloa, Mexico.
Under the terms of the offering, the Vancouver-based company issued 12.9 million units at a price of $1.20 each. These units are comprised of one common share in Oroco and one-half of a common share purchase warrant.
Each whole warrant will be exercisable at a price of $1.60 per share over a period of 24 months from the date of issuance.
Oroco, which holds a 61.4 per cent stake in the 1,173-hectare Santo Tomas Project, says the proceeds will be used to secure environmental permits, advance preliminary engineering studies, and to expand the current definition drilling program, which will include further infill and step-out drilling.
Certain legal costs related to the acquisition of the core Santo Tomas concessions will also be paid.
“We are very pleased that the global investment community has provided such widespread and substantial support for Oroco and its Santo Tomas Project,” said Craig Dalziel, CEO of Oroco Resources.
“This funding will give Oroco the opportunity to more fully exploit the targets identified by its developing 3D IP model, which further de-risks the project and allows Oroco to generate a more thorough and detailed project profile for potential acquisitors,” he added.
Oroco may increase its holding in the Santo Tomas Project’s core concessions to 81 per cent with a $30 million project investment, and also holds a 77.5 per cent interest in almost 7,808 hectares of mineral concessions surrounding the main project.
Oroco Resources is currently up 0.52 per cent to $1.94 per share at 11:50am EST.