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Oroco Resource Corp., a prominent player in the mining sector, has announced a bought deal public offering aimed at securing approximately C$20 million in funding. This initiative highlights the company’s commitment to enhancing its operational capabilities.
The offering, as detailed in a prospectus supplement dated January 9, is designed to facilitate the distribution of 52,631,600 units at a price of C$0.38 each. Each unit comprises one common share and half of a common share purchase warrant, allowing investors to acquire additional shares at an exercise price of C$0.53 for three years following the offering’s closing date.
Table of Contents:
Understanding the offering structure
The public offering is structured with the assistance of a syndicate of underwriters, led by Canaccord Genuity Corp.. The underwriters have the option to purchase an additional 7,894,740 units under the same terms within 30 days post-closing, potentially increasing the total capital raised.
Expected to close around January 14, the offering is contingent upon obtaining necessary regulatory approvals, including those from the TSX Venture Exchange. This regulatory scrutiny ensures adherence to legal standards, ultimately protecting investors.
Accessing the prospectus
Investors interested in the offering can find the prospectus supplement, along with the base shelf prospectus dated April 23, available on SEDAR+. This platform provides essential insights into the company’s financial position and specifics of the offering.
For convenience, potential investors can request an electronic or paper copy of the prospectus by emailing Canaccord Genuity Corp. at [email protected]. The information contained in the prospectus is crucial for making informed investment decisions.
About Oroco Resource Corp.
Oroco Resource Corp. holds an impressive 87% stake in the Core Concessions of the Santo Tomas Project, spanning 1,173 hectares in northwestern Mexico. Additionally, the company possesses an 80% interest in surrounding mineral concessions, expanding the total project area to approximately 9,034 hectares.
After a recent assessment, Oroco filed for a reduction in one of its non-Core Concessions, resulting in an adjusted project area of 6,121 hectares. The Santo Tomas Project is strategically located near significant mining operations, including the Jinchuan Group’s Bahuerachi Project, enhancing its potential for exploration and resource extraction.
Exploration history and future prospects
The project has a rich exploration history, having undergone extensive drilling between 1968 and 1994, with over 30,000 meters drilled across more than 100 holes. This historical data laid the groundwork for current evaluations and resource estimates.
Recently, Oroco launched a new drilling program, resulting in an impressive 48,481 meters of drilling conducted across 76 diamond drill holes. These efforts have contributed to revised mineral resource estimates (MRE) and an updated preliminary economic assessment (PEA), published in August. Detailed reports of these studies can be accessed through Oroco’s official website.
The offering, as detailed in a prospectus supplement dated January 9, is designed to facilitate the distribution of 52,631,600 units at a price of C$0.38 each. Each unit comprises one common share and half of a common share purchase warrant, allowing investors to acquire additional shares at an exercise price of C$0.53 for three years following the offering’s closing date.0
The offering, as detailed in a prospectus supplement dated January 9, is designed to facilitate the distribution of 52,631,600 units at a price of C$0.38 each. Each unit comprises one common share and half of a common share purchase warrant, allowing investors to acquire additional shares at an exercise price of C$0.53 for three years following the offering’s closing date.1
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