Mr. Craig Dalziel reports
OROCO CLOSES NON-BROKERED PRIVATE PLACEMENT
Oroco Resource Corp. has closed a non-brokered private placement, initiated on June 3, 2020, by issuing 5.5 million units at a price of 30 cents per unit, for gross proceeds of $1.65-million. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole share purchase warrant will be exercisable into one additional common share for a period of 24 months from closing at a price of 42 cents per share. The exercise period for the share purchase warrants may be accelerated to 30 days if, at any time after the first four months of the warrant exercise period, the volume-weighted trading average of the company's shares exceeds 60 cents over a period of 20 consecutive trading days.
The proceeds of the financing will be used to advance the Santo Tomas project, including site preparation for an exploration drill program, the acquisition of surface rights and permits, a 3-D induced polarization geophysical survey, and general corporate purposes. In addition, certain contingent legal fees relating to the acquisition of the core Santo Tomas concessions are to be paid.
Pursuant to the policies of the TSX Venture Exchange, all shares issued in this placement, and any shares issued pursuant to the exercise of the share purchase warrants, are subject to a hold period expiring Oct. 30, 2020.
Finders' fees of $19,920 and 40,800 finder's-fee warrants are being paid in connection with the financing. Each finder's-fee warrant will entitle the holder to purchase one common share of the company for a period of 24 months from closing at a price of 42 cents per share. The exercise period for the finder's-fee warrants may be accelerated to 30 days if, at any time after the first four months of the warrant exercise period, the volume-weighted trading average of the company's shares exceeds 60 cents over a period of 20 consecutive trading days.
The company also announces the issuance of 62,500 shares relating to the exercise of 32-cent share purchase warrants issued on Nov. 3, 2018. A total of 1,742,500 share purchase warrants remain exercisable at a price of 32 cents per share on or before Aug. 3, 2020.
About Oroco Resource Corp.
The company holds a net 61.4-per-cent interest in the collective 1,172.9-hectare core concessions of the Santo Tomas project in northwest Mexico, and may increase that majority interest up to an 81.0-per-cent interest with a project investment of up to $30-million. The company also holds a 77.5-per-cent interest in 7,807.9 hectares of mineral concessions surrounding and adjacent to the core concessions (a total project size of 8,980.8 hectares).
We seek Safe Harbor.
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