Oroco Enters Into EPCM Agreement for Construction of Cerro Prieto Gold Mine
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/30/11 -- Oroco Resource Corp. (TSX VENTURE: OCO)(FRANKFURT: OR6) ('Oroco' or 'the Company') is pleased to announce that it has entered into an engineering, procurement and construction management agreement ('the EPCM Agreement') with Sonoran Resources, LLC ('Sonoran') for the construction of an open pit, heap leach gold mine and refinery at the Company's Cerro Prieto project in Sonora State, Mexico. Oroco obtained a positive Preliminary Economic Assessment for the Cerro Prieto Project in January, 2011, has subsequently advanced the engineering, permitting, and pre-construction for the project, and now has procured the services of Sonoran for the construction of the mine and refinery.
Under the terms of the EPCM Agreement, Sonoran will provide all necessary engineering, procurement and construction management services related to the construction of the mine and refinery through to 'first-pour.' In consideration for these services, the Company will pay Sonoran a monthly fee of US$260,900 to a maximum aggregate of US$3,130,800. In addition, subject to the approval of the TSX-Venture Exchange and the successful completion of a series of construction milestones, the Company intends to issue to Sonoran an aggregate total of 1,000,000 common shares of the Company and 500,000 options to purchase common shares of the Company at a price of $0.30 per share for a period of 3 years from the date of the EPCM Agreement.
Sonoran, based in Arizona, and with offices in Hermosillo, Mexico, is a construction management group with a proven track record in mine construction, including the nearby, recently completed Santa Elena mine owned by SilverCrest Mines Ltd.
Speaking of the EPCM Agreement, Oroco President Craig Dalziel states, 'We are extremely pleased to have Sonoran Resources on board as our construction management group. Their recent experience and central role in bringing the Santa Elena mine into operation on schedule and under budget makes them the ideal management group for Oroco's Cerro Prieto project. We feel very fortunate to have Sonoran's considerable in-country expertise available to Oroco throughout the mine construction and initial production phases at Cerro Prieto.'
Jesse Munoz, President of Sonoran states, 'We are thrilled at the opportunity to work with the team at Oroco and confident in the success that we will achieve given our expertise in bringing a mine through construction and into production. This is a very attractive project from both a logistics and economics perspective.'
About Sonoran
Sonoran Resources, LLC is a management group comprised of accomplished professionals experienced in every stage of mine development, including: exploration, due-diligence, permitting and construction, organizational development, human resources and training, commissioning and production start-up and reclamation. Sonoran maintains a recognized presence in both the U.S. and Mexico, headquartered in Arizona with offices in Hermosillo, Mexico. Sonoran and its subsidiaries utilize expansive strategic alliances and over 100 years of collective mining experience in both underground and surface operations within their multilingual, multi-cultural management team. Sonoran has established a proven track record in mine construction and operation.
Sonoran was the construction management group for the Santa Elena project in Sonora State, Mexico. The Sonoran team played a vital role in the construction of the project from the original ground breaking, to crusher installation, commissioning of the Merrill Crowe plant, first pour and recruitment. Sonoran's expertise and dedication to the project resulted in completing the construction at Santa Elena Mine on schedule and under budget.
More information on Sonoran Resources, LLC can be found at www.sonoranresources.com.
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 Project in northern Sonora State, Mexico. In late 2010, Oroco received a positive Preliminary Economic Assessment for the Cerro Prieto project. 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.
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
www.orocoresourcecorp.com