Oroco Resource Corp. Announces Private Placement
May 25, 2009
VANCOUVER, British Columbia – (May 25, 2009) Oroco Resource Corp. (TSX-V:OCO) (“Oroco” or “the Company”) is pleased to announce that it intends to complete, a non-brokered private placement (the “Private Placement”) of up to 8,000,000 units at a price of $0.15 per unit to raise gross proceeds of $1,200,000. Each unit will consist of one common share and one common share purchase warrant. Each share purchase warrant will be exercisable into one additional common share for a period of 12 months at a price of $0.35 per share. The warrants will be subject to an accelerated exercise provision if the share price of the Company trades at or above $0.50 for 10 or more trading days.
In connection with the Private Placement, the Company will pay to Axemen Resource Capital, a limited market dealer, and other eligible finders, a cash finders fee of up to 6% of the gross proceeds of the Private Placement or a portion thereof and it will grant common share purchase warrants of up to 7% of the number of units issued in the Private Placement. The cash finder’s fee may be taken in units in addition to the 8,000,000 units issued in the Private Placement. Each such finder’s fee unit will consist of one common share and one common share purchase warrant. Each of these share purchase warrants will be exercisable at a price of $0.40 per share, but will otherwise have the same terms as the Private Placement unit warrants.
The proceeds of the Private Placement will be used for the second phase drill program on the Company’s Cerro Prieto project in Sonora, Mexico and for general working capital. The Private Placement is subject to TSX Venture Exchange approval.
Oroco is a Canadian based mineral exploration company with primary focus on the accelerated development of the gold bearing zones of its Cerro Prieto project, a polymetallic (Au-Ag-Pb-Zn) project in Sonora State, Mexico.
The Cerro Prieto project consists of the 100% owned, 2,723 total ha, San Felix, San Francisco and Cerro Prieto concessions and 4,120 ha of the connecting Argonauta 5 Fraccion 1 concession to which the Company holds an option to purchase (see May 14, 2009 news release). During the first field season in 2008, the Company drilled 5,975 metres of core and tabled a NI 43-101 compliant resource estimate and the results of a preliminary metallurgical study (See May 11, 2009 news release). The Company is moving the Cerro Prieto project forward with the rapid development of mineral resources, further metallurgy studies and the development of a preliminary assessment by an independent mining engineering services firm.
For further information, please contact:
Mr. Ken Thorsen, President and CEO
Oroco Resource Corp.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.