Oroco and Goldgroup Sign Formal Sale Agreement for Cerro Prieto
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/10/13 -- Oroco Resource Corp ("Oroco") (TSX VENTURE: OCO)(FRANKFURT: OR6) and Goldgroup Mining Inc. ("Goldgroup") (TSX VENTURE: GGA)(OTC: GGAZF)(BMV SIC: GGAN.MX) (the "Companies") are pleased to announce that, further to the binding letter agreement between them (see News Release dated January 28, 2013), the Companies have now signed a formal agreement whereby Goldgroup will effectively purchase from Oroco a 100% interest in Oroco's Cerro Prieto Project, located in Sonora State, Mexico.
The closing of the transaction is subject to approval by the shareholders of Oroco and the TSX Venture Exchange as well as standard closing conditions. Oroco will seek the approval of its shareholders at a general meeting of its shareholders expected to be held in June, 2013. Oroco also announces that it has obtained binding lock-up agreements in support of the transaction from shareholders representing not less than 22% of the outstanding shares of the Company.
The Company also wishes to announce that it has terminated the agreement with Waterton Global Value L.P. ("Waterton") whereby Waterton was committed to provide a secured $5 million convertible debt facility to Oroco (see news release dated November 19, 2012).
About Oroco
Oroco is a Canadian-based mineral exploration company with its primary focus on the identification and development of precious metal properties in Mexico. Oroco has an agreement in place for the sale of its Cerro Prieto Project to Goldgroup Mining Inc. for total consideration of US $18 million. Oroco also owns a 100% interest in the 193 ha Xochipala Property, located within the Guerrero Gold Belt in the Morelos region of Guerrero State in central Mexico (the "GGB"). The GGB consists of a series of gold-bearing iron skarn and disseminated intrusion-hosted deposits which contain a current inventory of over 20 million NI 43-101 compliant ounces of gold in all categories (excluding Inferred). Each of these identified deposits has a geophysical signature consisting of a strong high magnetic anomaly caused by iron mineralization produced in the mineralizing process. The Xochipala Property is underlain by such a magnetic anomaly and exhibits geological characteristics similar to known deposits in the Guerrero Gold Belt. The Xochipala anomaly includes the existence of a strong magnetic signature and extensive areas of alteration associated with the contact between the intrusive and overlying sediments, and is also the last such anomaly in the Guerrero Gold Belt which remains untested by modern exploration methods.
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.
Contacts:
Oroco Resource Corp.
Mr. Craig Dalziel
President and CEO
604-688-6200
604-688-6260 (FAX)
www.orocoresourcecorp.com