OROCO RECEIVES CASH PAYOUT FROM GOLDGROUP MINING INC.
VANCOUVER, British Columbia – (September 22, 2016) Oroco Resource Corp. (TSX-V: OCO) ("Oroco" or "the Company") announces that it has received US$811,690 from Goldgroup Mining Inc. ("Goldgroup") in settlement of the outstanding balance of all debts due from Goldgroup, being the remaining principal and accrued interest from (a) the US$1,500,000 promissory note, as amended (the "Note"), issued to the Company by Goldgroup pursuant to the terms of the Cerro Prieto property sale (see the Company’s news release dated September 3, 2013); (b) the Value Added Tax refund due to Oroco pursuant to a debt assignment agreement (see the Company’s news release dated September 22, 2014); and (c) a break fee payable to Oroco pursuant to an agreement with Goldgroup dated September 28, 2015 (see the Company’s news release dated September 28, 2015).
The Company continues to hold a royalty on gold production from the Cerro Prieto mine payable for each month in which the monthly average of the daily PM London gold fix is in excess of $1,250 per ounce, calculated at the rate of 20% of the dollar value of that excess for each ounce of gold produced from the property, to a maximum royalty of US$90 per ounce. The royalty will be payable on the greater of:
- the first 90,000 ounces of gold produced from the Property; or
- all ounces of gold produced from the Property until the completion of five full years of Commercial Production, which period commenced on March 1, 2014.