Introduction to Oroco Resource and the Vainilla Concession
Oroco Resource Corp., a Canadian mineral exploration company, has recently announced the signing of an option agreement with Aztec Zinc de Mexico for acquiring up to 100% of the Vainilla mineral concession. The concession is situated in the Santo Tomás district, within the Choix region, located north of Sinaloa, Mexico.
Background on Oroco Resource Corp.
Oroco Resource Corp. is a junior Canadian mining company focused on exploring and developing mineral properties in Mexico. The company’s portfolio includes various projects with potential for copper, zinc, gold, and silver deposits. Oroco’s strategy revolves around identifying and advancing high-potential mineral projects with the aim of finding economically viable deposits.
The Vainilla Mineral Concession
The Vainilla mineral concession, located in the Santo Tomás district, is a strategic acquisition for Oroco due to its proximity to their existing projects and the potential it holds for copper-zinc porphyry exploration. The district has shown promising results in previous explorations, making it an attractive area for further investigation.
Details of the Option Agreement
Under the terms of the option agreement, Oroco will make initial payments and issue shares to Aztec Zinc de Mexico. The initial consideration includes a cash payment of USD 75,000 and the issuance of 100,000 Oroco shares. The option will be maintained through subsequent semi-annual payments of USD 25,000 in cash and the issuance of 100,000 Oroco shares.
To exercise the full option and acquire 100% of the Vainilla concession, Oroco will need to make additional payments totaling USD 500,000 in cash and issue two million Oroco shares.
Strategic Importance of the Acquisition
According to Oroco’s President, Ian Graham, the Vainilla option acquisition strengthens Oroco’s control over the Santo Tomás copper-zinc porphyry district. This strategic move offers immediate exploration potential and the possibility of achieving significant short-term results across multiple porphyry, skarn, and breccia targets.
Graham further emphasized that the Vainilla concession complements Oroco’s Santo Tomás development both geologically and potentially economically. The company views this acquisition as crucial for its future growth.
Market Reaction
Following the announcement, Oroco’s stock price increased by 9.43% or CAD 0.025 on the Toronto Stock Exchange, trading at CAD 0.29 per share.
Key Questions and Answers
- What is Oroco Resource Corp.? Oroco Resource Corp. is a Canadian mineral exploration company focused on identifying and advancing high-potential mineral projects in Mexico, primarily targeting copper, zinc, gold, and silver deposits.
- What is the Vainilla mineral concession? The Vainilla mineral concession is a property located in the Santo Tomás district, within the Choix region of Sinaloa, Mexico. It holds potential for copper-zinc porphyry exploration and has shown promising results in previous explorations.
- What are the terms of the option agreement? Oroco will make initial payments of USD 75,000 in cash and issue 100,000 shares. The option will be maintained through semi-annual payments of USD 25,000 in cash and the issuance of 100,000 shares. To acquire 100% of the concession, Oroco will make additional cash payments totaling USD 500,000 and issue two million shares.
- Why is this acquisition significant for Oroco? The Vainilla concession complements Oroco’s existing Santo Tomás projects both geologically and economically. This strategic move strengthens Oroco’s control over the Santo Tomás copper-zinc porphyry district, offering immediate exploration potential and the possibility of achieving significant short-term results.
- How did the market react to the news? Following the announcement, Oroco’s stock price increased by 9.43% or CAD 0.025 on the Toronto Stock Exchange, trading at CAD 0.29 per share.
