Oroco Resource Corp. Raises $4.4 Million Through Initial Public Offering
March 12, 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
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