Oroco Signs Definitive Cerro Prieto Surface Rights Agreement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/27/11 -- Oroco Resource Corp. (TSX VENTURE: OCO) ('Oroco' or 'the Company') is pleased to announce that it has executed a definitive agreement securing the surface rights in relation to its Cerro Prieto Oxide Gold Project in Sonora State, Mexico. This agreement, between Minas de Oroco Resources, S.A. de C.V. ('MOR'), the Company's wholly-owned Mexican subsidiary, and the owner of the surface rights, provides for the lease of 1,000 hectares for an initial term of seven years, with MOR having a right of renewal for two consecutive five year terms. The Cerro Prieto Project is situated within a privately owned ranch, approximately 28 km southeast of the town of Magdalena de Kino, Sonora State, Mexico.
Upon execution of the surface rights agreement Oroco completed an initial payment to the landowner. Funds for the payment were provided by way of a bridge loan from the New York based institutional investor with whom the Company has recently entered into an indicative term sheet in regard to an $18-million (U.S.) gold prepayment agreement (see Oroco News Release dated June 17, 2011). Repayment of the bridge loan will be made from proceeds from the gold prepayment agreement at the time its closing, currently anticipated to occur in late August, 2011.
About Oroco:
Oroco is a Canadian-based mineral exploration company with its primary focus on the accelerated development of the gold-bearing oxide zones of its Cerro Prieto Oxide Gold Project in Sonora State, Mexico. The Cerro Prieto Project consists of the San Felix, San Francisco, Elba and Cerro Prieto concessions, totaling 2,729 ha, and the contiguous 4,224 ha Argonauta 6 concession. A Preliminary Economic Assessment relating to the Cerro Prieto Project, filed by the Company on January 29, 2011, cited a Capital Cost (including working capital) of US $22.2 million, an IRR of over 90%, and a Payback Period of less than one year at $1,000 per ounce gold.
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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