Oroco closes $1.53M (U.S.) first tranche of financing

Executive Summary

• Oroco Resource Corp. has closed the first tranche of its non-brokered private placement, raising gross proceeds of $1,530,999 USD.
• The financing was subscribed by Mexico-based investors, including new independent director Faysal Rodriguez and two strategic investors.
• Proceeds will be used to advance the Santo Tomas project toward a prefeasibility study and for general corporate purposes.

Key Details

• Gross Proceeds: $1,530,999 (U.S.)
• Units Sold: 7,654,995 units
• Price Per Unit: 20 U.S. cents
• Warrant Terms: Each unit includes one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one share for 30 U.S. cents for a period of 24 months from closing.
• Subscription Details:
  • Subscribed by Mexico-based investors.
  • New independent director Faysal Rodriguez subscribed for 5,000,000 units.
  • Two additional Mexico-based strategic investors participated.
• Use of Proceeds: Advancing the Santo Tomas project toward its planned prefeasibility study and for general corporate purposes.
• Regulatory Status: Closing carried out pursuant to prospectus exemptions of applicable securities law; subject to final acceptance by the TSX Venture Exchange.
• Hold Period: Shares and warrant shares are subject to a hold period expiring on March 6, 2026.
• Related Party Transaction: Participation by Mr. Rodriguez is considered a related party transaction under National Instrument 61-101. The company relies on exemptions from formal valuation and minority shareholder approval requirements as the fair market value of the related party participation does not exceed 25% of the company's market capitalization.

Notable Quotes

• "We appreciate the considerable impact Faysal Rodriguez continues to have on Oroco. Most recently, his contribution is most evident through his substantial personal financial participation, along with members of his professional network from Mexico's mining and construction sectors. Their support reflects a growing recognition within Mexico's business community of the importance of the Santo Tomas project and the development opportunities it represents for northern Sinaloa. We see this as further validation of the company's plans to continue the advancement of the Santo Tomas project toward prefeasibility and beyond." — Craig Dalziel, Chairman