Oroco, Disbelief creates Opportunity
Many people think that micro cap Oroco Resource OCO.v is too small a David to slay Goliath. I have an entirely different view. This isn’t a war story its a procedural drama.
The common belief is that there is a fight to be won and that is not entirely true. The antagonist in this story has left the building..what he has left in his wake is decades of lawsuits and ill will that need to be dealt with. This is where Oroco comes in.
The world goes around on relationships (it’s not so much what you know, as who you know). Oroco has been involved with the landowner for years. He is the same gentleman that sold them their prior deal, subsequently advanced and sold to Goldgroup last cycle. The original harm in this story was done to him. He was never fully compensated for the property he sold and has been trying to get it back through multiple courts in several countries ever since. The contract was clear, it would be returned if payment was not made. Seems simple right? The issue has been obfuscated for years and Oroco is determined to make things right.
Santo Tomas is a world-class deposit discovered 40 years ago and buried in paperwork until now. With the world about to binge on copper, projects like this are not only sought after but will be highly valued going forward. Assets like Santo Tomas will make their way to the forefront when the time is right and that time is now. Copper prices are rising and Oroco believes it is well worth the time and effort to reboot this deposit.
The market is beginning to pick up on the opportunity here. Oroco disclosed its accomplishments and intentions in its Feb 23 news release “Oroco Acquires interest in Santo Tomas Properties”. It was less than an easy read but filled with essential information on the project and Oroco’s determination to secure control. They already have a strong foothold acquiring the surrounding properties and a geographic percentage of the main deposit through the Papago claim, so little can happen without significant upside for Oroco. This news should have dispelled doubt of their ability to get this deal done but I feel the market is still firmly in “show me” mode.
For those astute investors the disconnect between disclosure (now months old) and the market accepting what they have been shown can be very profitable. The share price has indeed tripled and money has been raised in anticipation of completion of the acquisition. Until the deal is complete there will again be a massive opportunity to profit from those that still disbelieve it can happen. These next days/weeks/months (however long it takes to close) will be the only speculation cycle in this story, once done, valuation will be taken over by numbers guys with sharp pencils and you can bet it will be significantly higher than prices today… do you believe?
