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VANCOUVER - Oroco Resource Corp. (TSX-V:OCO, OTCQB:ORRCF) has closed the initial tranche of its non-brokered private placement, raising US$1.53 million through the sale of 7.65 million units at US$0.20 per unit, the company announced Thursday. The financing comes as Oroco’s shares trade at $0.23, with a market capitalization of approximately $59.42 million. According to InvestingPro analysis, the company appears undervalued based on Fair Value estimates.
Each unit consists of one common share and one-half of a share purchase warrant, with each whole warrant allowing the holder to purchase one share at US$0.30 for 24 months from closing.
The financing was subscribed to by Mexico-based investors, including newly appointed independent director Faysal Rodriguez, who subscribed for 5 million units, along with two strategic investors from Mexico.
Proceeds will be used to advance the Santo Tomas copper project toward a planned pre-feasibility study and for general corporate purposes, according to the company’s press release statement.
The shares and any shares issued upon exercise of warrants are subject to a hold period expiring on March 6, 2026. The transaction remains subject to final acceptance by the TSX Venture Exchange.
Rodriguez’s participation in the private placement is considered a related-party transaction under Canadian securities regulations. The company stated it is relying on exemptions from formal valuation requirements and minority shareholder approval as the fair market value of Rodriguez’s participation does not exceed 25% of the company’s market capitalization.
Oroco holds a net 85.5% interest in the central concessions of the Santo Tomas Project in northwestern Mexico, comprising 1,173 hectares, and an 80% interest in an additional 7,861 hectares of surrounding mineral concessions.
The Santo Tomas Project is located 170 km from the Pacific deep-water port at Topolobampo and is accessible via highway and proximal rail. The company maintains a "FAIR" overall financial health score of 2.39 according to InvestingPro metrics, with its next earnings report expected on January 29, 2026.
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