Eco Oro Completes Second Tranche of US$4.5 Million Financing

Executive Summary

• Eco Oro Minerals Corp. completed the second tranche of its private placement, raising US $500,000 in 2025 Contingent Value Rights (CVRs) after an initial US $4 million tranche.
• Proceeds will be used primarily to fund the company’s effort to annul a July 15 2024 damages award from an ICSID arbitration against Colombia.
• The company disclosed a revised CVR distribution waterfall and its ability to issue additional CVRs, senior debt up to US $6 million and subordinated debt up to US $4 million.

Key Details

• Private Placement Tranches:
• First tranche – US $4,000,000 of 2025 CVRs closed on August 7 2025.

• Second tranche – US $500,000 of 2025 CVRs closed on March 16 2026.

• Use of Proceeds:

• Primarily to support the application to annul the July 15 2024 arbitration damages award (ICSID Case No. ARB/16/41) against the Republic of Colombia.

• Revised Distribution Waterfall for Claim Proceeds:
  1. 100% of any claim proceeds first used to settle outstanding trade payables and legal fees, and to repay permitted senior and subordinated debt.
  2. 100% thereafter paid pro‑rata to holders of 2025 CVRs and any Resubmission CVRs until their principal amounts are fully repaid.
  3. Remaining proceeds (“Remainder”) distributed as follows:

  • Up to 8% to Company arbitration counsel (after step 1 payments).
  • Of the balance:
  • 5% to Management Incentive Plan participants.
  • 85% to 2025 CVR holders.
  • 9.7% to Replacement CVR holders.
  • 0.3% to the Company itself.

• Additional Financing Capacity:

• Up to US $1,000,000 of extra 2025 CVRs may be issued on or after July 30 2027 at the board’s discretion.
• Board may issue up to US $7,000,000 of “Resubmission CVRs” (entitling holders to up to 20% of the Remainder) if additional funds are needed for resubmission or collection costs.

• Company may incur up to US $6,000,000 senior debt and US $4,000,000 subordinated debt.

• Board Approval & Minority Exemption:

• The board relied on exemption under MI 61‑101 Subsection 5.7(e) after confirming that the transaction involved significant shareholders/directors (e.g., Courtenay Wolfe of GrayWolfe Capital).

• Risk Disclosure:

• No certainty that any claim proceeds will be received; amounts, if any, may be insufficient to satisfy step 3(b)(iii) distributions.

Notable Quotes

(No direct quotes were provided in the release.)