Oroco Resource: Update

The main pending news with Oroco is the finalization of the legal battles. Once this is done then things will really start moving on this asset, mainly management can start talking more about the size of the asset and the potential upside from further drilling.

In the meanwhile there have been couple of updates put out by management. These might not seem major press releases but they are quiet huge in terms of gathering momentum.

Oroco has acquired the Papago 17 mineral concession. This is an adjacent piece of land to Santo Tomas. It looks like mgmt is buying up adjacent land to ST to build a portfolio that they can likely sell once the legal issues are done. The terms of the acquisition don’t show any cash changing hands. So I’m thinking they will likely give away some % of the equity from the combined asset (ST, Papago, ….).

Oroco also acquired historical technical Santo Tomas data. This will help the company put together the material to sell this asset and also to figure out where to drill and prove out the resources. OCO was able to acquire this for $500K in cash pymts and 500K of stock options.

The other piece of information, which is really important, is the company has hired John Thornton as project manager. Thornton knows the ST resource better than anyone. Having worked on the initial 43-101 report. Thornton was retired and has come out of retirement to work on this ST asset. And he is taking lot of equity, 750k options priced at 20 cents, for taking on this role.



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