Oroco announces US$3.6 million private placement for Santo Tomás project

Oroco Resource Corp. (TSX-V: OCO, OTC: ORRCF) announced a non-brokered private placement of up to 18 million units priced at US$0.20 per unit, targeting gross proceeds of up to US$3.6 million.

Each unit consists of one common share and one half common share purchase warrant. The warrants allow holders to purchase one common share at US$0.30 within 24 months of the issue date.

Board member Faysal Rodriguez committed to purchase 5 million units for US$1 million as part of the offering.

The company plans to use proceeds for advancing the Santo Tomás Project in Mexico's Sinaloa and Chihuahua states, along with working capital and general corporate purposes.

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 under applicable securities laws.

Oroco holds an 85.5% interest in the 1,173-hectare core concessions of the Santo Tomás Project and an 80% interest in an additional 7,861 hectares of surrounding mineral concessions. The total project area spans 9,034 hectares in northwestern Mexico.

The project contains copper porphyry mineralization originally explored between 1968 and 1994 through more than 100 drill holes totaling approximately 30,000 meters. Starting in 2021, Oroco conducted additional drilling with 76 diamond drill holes covering 48,481 meters.

The company published an updated mineral resource estimate and preliminary economic assessment in August 2024. The project is located within 170 kilometers of the Pacific port at Topolobampo and is accessible via highway and rail infrastructure through Los Mochis.

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