Oroco Resource agreement for Rossy concessionOroco Resource Corp...

Oroco Resource agreement for Rossy concession

Oroco Resource Corp (C:OCO)
Shares Issued 97,867,405
Last Close 7/26/2019 $0.46
Friday July 26 2019

- Property Agreement

The TSX Venture Exchange has accepted for expedited filing documentation pertaining to a letter agreement dated July 11, 2019, between Minera Xochipala S.A. de C.V., a wholly owned subsidiary of Oroco Resource Corp., as a purchaser, and Santo Tomas Metals S.A. de C.V. (Ubaldo Trevizo Ledezma), as vendor, pursuant to which the company has an option to purchase an 80-per-cent interest in a 766.7143-hectare mineral concession in Sinaloa state, Mexico, known as the Rossy concession. In consideration, the company will make payments totalling $125,000 (U.S.), issue 300,000 shares over an 18-month period and make continuing yearly payments of $25,000 from July, 2020, onward. The acquisition is subject to a 1.5-per-cent net smelter royalty.

The Rossy concession straddles the NE trend of Laramide intrusions, hydrothermal alterations and sulphide mineralization extending northeast from the Santo Tomas North Zone into the Brasiles Zone. Historical drilling at Santo Tomas extends to within 100 meters of the western boundary of the Rossy concession.

Commenting on the Rossy acquisition, Craig Dalziel, Oroco's CEO, stated: "Acquiring the Rossy concession is a big step forward in Oroco's land assembly initiatives at Santo Tomas. The Rossy concession has long been an acqu isition target for Oroco for reason of its favourable geology and proximity to the Brasiles Zone."

Mineral concessions that make up the Santo Tomas Project and controlled by Oroco now total approximately 8,980.8 ha (22,192 ac).