Oroco Receives Cash Payout From Goldgroup Mining Inc.

September 22, 2016

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:

  1. the first 90,000 ounces of gold produced from the Property; or
  2. 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.

For further information, please contact:

Mr. Craig Dalziel, President and CEO
Oroco Resource Corp.
Tel: 604-688-6200

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.

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These historical resource estimate models are based upon historical resource estimates prepared by John Thornton in 2011. While, in the opinion of Dane A. Bridge, author of the revised NI 43-101 standard technical report, Geology, Mineralization and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit, Sinaloa, Mexico dated April 21, 2020 (the “Report”), reliable estimation practices were used, in order to upgrade or verify the historical estimations, resampling and assay of historical drill samples, twinning of historical drill holes, and a new program of regularly spaced drilling is required. No qualified person has undertaken sufficient work to classify the current mineral resources or mineral reserves upon which these models are based and the Company is not treating the estimates as current estimates of the mineral resources. The Company gives no assurance that either these models or the historical resource estimates upon which they are based are accurate, and does not undertake any obligation to update the models or to release publicly any update or revisions of the resource estimates except as required by applicable securities law. The reader is cautioned not to rely upon these models or the historical resource estimates upon which they are based.

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