VANCOUVER, British Columbia – (October 22, 2012) Oroco Resource Corp. (TSX-V: OCO) (“Oroco” or “the Company”) announces that its wholly-owned subsidiary, Minera Xochipala S.A. de C.V. (“MX”) has been served with notice of an “amparo” petition seeking to overturn the registration to MX by the Mexican Public Registry of Mining (the “PRM”) of an interest in the Celia Gene and Celia Generosa mineral concessions (the “Xochipala Concessions”) located in Guerrero State, Mexico. The registration process in question began with an application by MX in March, 2008 to the PRM for registration of its 2007 acquisition of the Xochipala Concessions, including the interest purchased from the estate of a Mexican citizen, Hector Camacho (the “Camacho Estate”), which constituted fifty percent (50%) of the Celia Gene concession and all (100%) of the Celia Generosa concession (collectively, the “Camacho Interest”).
The PRM initially rejected MX’s application in October, 2009 for reasons which were considered incorrect at law by MX legal counsel. MX then filed an appeal of the PRM decision in November, 2009. In a decision rendered in July, 2011, the Federal Tribunal of Tax and Administrative Justice (the “Federal Tribunal”) nullified the rejection and sent the matter back to the PRM for reconsideration. However, in 2010, while MX’s application was before the Federal Tribunal, a judgment debtor against the Camacho Estate applied to a Guerrero State court (the “State Court”) for enforcement of his judgment. Unaware that the Camacho Estate had sold the Camacho Interest to MX in 2007, and without notice to MX, the State Court attached the Camacho Interest in February of 2010 (when it no longer was an asset of the Camacho Estate), auctioned the Camacho Interest in July, 2011, and subsequently issued an order to the PRM to register the Camacho Interest in the name of the winning bidder. In July, 2012, in possession of both the Federal Tribunal decision to reconsider MX’s application and the State Court’s order to transfer the Camacho Interest to the winning bidder, the PRM registered a 100% interest in the Xochipala Concessions in the name of MX.
Though successful in obtaining PRM registration of its 100% interest in the Xochipala Concessions, MX, for reason of the existence of the State Court order, subsequently took the precautionary step to file its own “amparo” petition with the Federal Court of Mexico to have the State Court’s order struck altogether. As part of that process, MX also obtained an injunction prohibiting the PRM from complying with any order of the State Court with regard to the Camacho Interest.
It is the opinion of the Company’s Mexican legal counsel that MX’s application for registration, dated March 4, 2008, pre-dates the State Court process and, as such, had to be dealt with prior to the State Court’s order. This same opinion was cited by the PRM in its response to the State Court as to why it could not comply with the State Court’s order. Further, the PRM’s approval of MX’s application for registration is effective recognition and validation of MX’s title to the Xochipala Concessions and that the Camacho Interest was no longer an asset of the Camacho Estate at the time that the State Court attached the Camacho Interest and offered it for sale at auction. The Company’s legal counsel is also of the opinion that there are compelling legal grounds for the court to dismiss the winning bidder’s amparo petition. The Company is confident that it will prevail on the merits of both “amparo” petitions currently pending, which will result in the State Court’s order being struck and MX remaining as the sole, legitimate and registered owner of the Xochipala Concessions.
The Company also announces that Roger Scammell has resigned as Vice-President of the Company in order to pursue other activities. The Company thanks Mr. Scammell for his work and wishes him great success in his other ventures.
Kenneth R. Thorsen, B.Sc., P. Eng., is a director of the company and is a ‘qualified person’ for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators. He has verified the data (including sampling, analytical and test data) and prepared or supervised the preparation of the information contained in this news release.
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. The Cerro Prieto Project consists of a group of 100% owned concessions comprising over 7,000 ha. Oroco also owns a 100% interest in the 193 ha Xochipala Property, contained within the original Morelos National Mining Reserve in Guerrero State, Mexico.
For further information, please contact:
Mr. Craig Dalziel, President and CEO
Oroco Resource Corp.
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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.