Oroco Resource increases private placement to $750,000
2018-10-25 11:41 ET – News Release
Mr. Craig Dalziel reports
OROCO ANNOUNCES INCREASE IN PRIVATE PLACEMENT
Due to the private placement previously announced on Oct. 9, 2018, being oversubscribed, Oroco Resource Corp. is increasing the private placement by an additional 750,000 units. The increased private placement will now comprise to 3.75 million units at a price of 20 cents per unit to raise gross proceeds of up to $750,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole share purchase warrant will be exercisable into one additional common share for a period of 18 months from closing at a price of 32 cents per share.
The company is also amending the private placement from a “part and parcel” private placement (requiring the use of proceeds to be constrained to the Altamura transaction) to an ordinary private placement, allowing the company greater flexibility in the use of the proceeds. The net proceeds will now be used for loans to Altamura pursuant to the loan agreement also announced on Oct. 9, 2018, the costs and expenses related to obtaining TSX Venture Exchange and shareholder approvals, those expenses necessary to the company’s obligations to maintain the Santo Tomas concessions, costs associated with intended acquisitions as the company continues to pursue its land assembly of the Santo Tomas project, and general and administrative expenses.
The company also announces that it has granted 1.5 million incentive stock options in varying amounts to five consultants to the company, with each option granting the holder the right to purchase common shares at a price of 22.5 cents per share for three years. The options shall vest in five equal instalments over the next year.
