- Oroco Resource Corp (OCO) has raised C$7.26 million in a private placement to fund a number of initiatives at its Santo Tomas Project in Mexico
- The company issued 12.1 million units at a price of 60 cents each, consisting of one common share and half of one common share purchase warrant
- Each whole warrant will be exercisable at a price of 90 cents per share for a period of 24 months
- The proceeds will be used to acquire surface rights and permits, and prepare the site for a proposed definition drilling program
- Oroco Resource Corp (OCO) is currently up 10.34 per cent and is trading at 96 cents per share
Oroco Resource Corp (OCO) has raised C$7.26 million in a private placement to fund the development of its Santo Tomas Project in Mexico.
Under the terms of the placement, the Vancouver-based mineral exploration company issued a total of 12,100,000 units at a price of $0.60 each. These units are comprised of one common share in Oroco and half of one common share purchase warrant.
Each whole warrant will be exercisable at a price of $0.90 for a period of 24 months from the date of issuance. However, should the company’s shares trade at or a move a price of $1.50 for 20 consecutive trading days, the expiry date of the warrants may be brought forward.
The proceeds raised will be used to fund various work programs at the Santo Tomas Project, which sits within 160 kilometres of the Pacific deep-water port at Topolobampo in Sinaloa.
This includes the acquisition of surface rights and permits, site preparations for a proposed definition drilling program, and the program itself, which is expected to focus on the central area of the project’s North Zone.
A portion of the proceeds will also be used for general corporate purposes, as well as certain legal and data acquisition costs relating to the acquisition of the core Santo Tomas concessions.
Craig Dalziel, CEO of Oroco Resource, said there is no question that the financing represents a transformative opportunity for the company and the Santo Tomas Project.
“With the company’s 3D IP program now underway and that program’s funding already in hand, Oroco is now in position to undertake its full Phase I definition drill program which is intended to confirm certain historical drilling data.
“Thereafter, Oroco expects to initiate selective step-out drill targeting, with the overall objective being resource expansion and studies to demonstrate project viability,” he added.
Oroco Resource Corp (OCO) is currently up 10.34 per cent and is trading at 96 cents per share at 12:08pm EDT.