Oroco Initiates Related Party Transaction
VANCOUVER, British Columbia – (May 19, 2011) Oroco Resource Corp. (TSX-V: OCO) (“Oroco” or “the Company”) announces that it has entered into a loan agreement with ATM Mining Corp. (“ATM”), a related party to the Company, in consideration for which ATM has granted the Company exclusive rights to complete a potential transaction with ATM (the “Transaction”). The loan, in the amount of $255,000, bears interest at the rate of prime plus 1%, and is secured by a pledge of security comprised of a promissory note payable on demand with 30 days notice and a pledge of 1,200,000 common shares of the Company held by ATM and an affiliate.
The Transaction will be subject to a valuation and disinterested shareholder approval.
Oroco is a Canadian-based mineral exploration company with its primary focus on the accelerated development of the gold-bearing oxide zones of its Cerro Prieto Project in northern Sonora State, Mexico. In late 2010, Oroco received a positive Preliminary Economic Assessment for the Cerro Prieto project. The Cerro Prieto Project consists of the San Felix, San Francisco, Elba and Cerro Prieto concessions, totaling 2,729 ha, and the contiguous 4,224 ha Argonauta 6 concession.
For further information, please contact:
Mr. Craig Dalziel, President and CEO
Oroco Resource Corp.
The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law Oroco does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires Oroco to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.