Street Calls of the Week
VANCOUVER - Oroco Resource Corp. (TSX-V:OCO, OTC: ORRCF), a mining company with a market capitalization of $72 million currently trading at $0.29, announced Thursday a non-brokered private placement offering of up to 18 million units priced at $0.20 USD per unit, aiming to raise up to $3.6 million USD.
Each unit will consist of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at $0.30 USD within 24 months of issuance.
The company reported that board member Faysal Rodriguez has committed to purchase 5 million units for $1 million USD.
Proceeds will fund advancement of the Santo Tomás Project in Sinaloa and Chihuahua States, Mexico, along with working capital and general corporate purposes. With a current ratio of 0.88, the additional funding comes at a crucial time for the company’s working capital needs. InvestingPro analysis provides detailed insights into the company’s financial health metrics and growth potential.
The offering requires regulatory approvals, including from the TSX Venture Exchange. Securities issued will be subject to a four-month-plus-one-day hold period in accordance with applicable securities laws.
Oroco holds an 85.5% net interest in the central concessions of the Santo Tomás Project, comprising 1,173 hectares, and an 80% interest in 7,861 hectares of surrounding mineral concessions, totaling 9,034 hectares.
The Santo Tomás Project contains copper porphyry mineralization identified through exploration from 1968 to 1994, which included approximately 30,000 meters of drilling. The company conducted additional drilling in 2021, completing 48,481 meters across 76 diamond drill holes.
According to the press release statement, the project is located 170 km from the Pacific deep-water port at Topolobampo and is accessible via highway and proximal rail.
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