Oroco Resource closes first tranche of private placement for $1.5M

Oroco Resource Corp. (TSX-V: OCO, OTCQB: ORRCF) completed the first portion of its non-brokered private placement, raising gross proceeds of $1,530,999 through the sale of 7,654,995 units at $0.20 per unit.

Each unit includes one common share and one-half of a share purchase warrant. Each full warrant allows the holder to purchase one share for $0.30 within 24 months of closing.

Mexico-based investors subscribed to this portion of the financing, including newly appointed independent director Faysal Rodriguez, who purchased 5 million units. Two Mexico-based strategic investors also participated in the placement.

The company plans to use proceeds to advance the Santo Tomas Project toward a planned Pre-Feasibility Study and for general corporate purposes. The closing requires final acceptance by the TSX Venture Exchange.

The shares and any shares issued upon warrant exercise are subject to a hold period expiring March 6, 2026. Rodriguez's participation constitutes a related-party transaction under National Instrument 61-101, though the company relies on exemptions as the fair market value does not exceed 25% of its market capitalization.

Oroco holds an 85.5% interest in the 1,173-hectare Core Concessions of the Santo Tomas Project in northwestern Mexico, plus an 80% interest in an additional 7,861 hectares of surrounding mineral concessions. The project hosts copper porphyry mineralization and is located within 170 kilometers of the Pacific deep-water port at Topolobampo.

The company published a revised mineral resource estimate and updated preliminary economic assessment in August 2024 following drilling programs that totaled 48,481 meters across 76 diamond drill holes since 2021.

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