OROCO RESOURCE CORP. RAISES $4.4 MILLION THROUGH INITIAL PUBLIC OFFERING
March 17, 2008
Oroco Resource Corp. (the "Company") is pleased to announce that on March 12, 2008, it successfully completed its initial public offering (the "Offering") by way of Prospectus dated effective February 14, 2008.
The Company issued a total of 8,000,000 units at a price of $0.55 per unit for gross proceeds of $4,400,000. Each unit is comprised of one common share and one-half of one transferable share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share of the Company upon payment of the exercise price of $0.90 for 18 months after the closing of the Offering (the "Closing Date").
PI Financial Corp. ("PI") acted as agent in connection with the Offering. In consideration for its services, PI received a commission equal to 8% of the gross proceeds raised under the Offering. PI elected to receive a portion of the cash commission and corporate finance fee in the form of 203,520 agent's units valued at $0.55 per unit. Each agent's unit is comprised of one common share and one-half of one non-transferable share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.90 for 18 months after the Closing Date. In addition, the Company issued 800,000 compensation options to PI. Each compensation option entitles the holder to purchase one common share of the Company at a price of $0.55 for 18 months after the Closing Date.
Proceeds from the Offering will be used to advance the Company's mineral exploration properties in Mexico, particularly the Cerro Prieto project, and for general working capital purposes.
On March 18, 2008, the Company's common shares will commence trading on the TSX Venture Exchange under the trading symbol "OCO". Concurrently, the 4,000,000 warrants issued to purchasers under the Offering will commence trading under the symbol "OCO.WT".
Oroco is a Canadian mineral exploration company which holds a 100% interest in six mineral concessions in Mexico. The company's primary focus is the Cerro Prieto project, a historic polymetallic deposit in Sonora, Mexico and the nearby 2,508 hectare Cerro Prieto North concession. In addition Oroco holds two mining concessions in Guerrero, Mexico totaling 193 hectares and together called the Xochipala project.
Stephen Leahy
President and Chief Executive Officer
Forward Looking Statements: This news release contains certain forward looking information concerning the business of the Company. These forward looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward looking statements. These risks are further described in the Company's prospectus dated February 12, 2008, which is available at www.sedar.com.
The Company is under no obligation to updated forward looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward looking statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.
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