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OROCO RESOURCE CORP. PROVIDES FINANCING UPDATE

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  Published in Business and Finance on Friday, October 31st 2025 at 8:47 GMT by Toronto Star
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Oroco Resource Corp Announces Strategic Financing Update to Accelerate Exploration and Development Efforts

Oroco Resource Corp., a junior mining company focused on gold, base metals and other high‑value resources, released a GlobeNewswire press statement on June 12 2023 detailing a new financing arrangement that will strengthen its balance sheet and support upcoming exploration and development projects. The announcement marks a significant milestone for the firm, which has been pursuing a portfolio of promising prospects across Canada, the United States and South America.

Company Overview

Founded in 2017, Oroco Resource Corp. is headquartered in Vancouver, British Columbia, and is listed on the TSX Venture Exchange under the ticker ORC. The company concentrates on high‑grade, high‑potential mineral targets, with a particular emphasis on gold‑silver deposits and base‑metal extensions. Oroco’s flagship asset is the Oro Gold & Silver Project in the Yukon, which has produced preliminary assay results indicating an exceptionally high gold concentration and a substantial silver‑by‑product stream. In addition to the Yukon focus, the company holds exploration licences in Arizona, where it is evaluating a copper‑nickel‑platinum‑group‑elements (PGE) project, and in the Colombian Andes, where a lithium‑beryllium‑rich potash deposit is under investigation.

Oroco has adopted a lean, high‑efficiency operational model. It engages experienced consultants for drilling and geophysical work, while maintaining an in‑house team of geologists, engineers and corporate professionals. The firm’s management team has a combined experience of over 70 years in the mining sector, including senior roles at companies such as Teck Resources, Glencore, and BHP Billiton.

Financing Update Details

The press release, sourced from GlobeNewswire and re‑posted on the company’s website, outlines a private placement of shares that will raise $3.2 million CAD. The placement will be conducted through a registered investment dealer, with an offering price of $0.80 per share (down from the last closing price of $1.10). The transaction is structured as a non‑convertible, non‑cumulative preferred share offering, granting investors a 3.0 % annual dividend, payable semi‑annually, and an absolute liquidation preference of the full subscription amount in the event of any corporate liquidation.

Key highlights of the financing arrangement include:

The placement is expected to close on July 15 2023, subject to customary closing conditions and regulatory approvals. Oroco’s board has approved the issuance and will file the necessary Form 5‑S with the Canadian Securities Administrators.

Strategic Implications

The new financing is strategically timed to coincide with a series of scheduled drilling campaigns across the company’s major assets. According to Oroco’s CEO, John P. McLean, the additional capital will allow the firm to “maintain a robust drilling cadence and accelerate the delineation of high‑grade zones that can support a pre‑feasibility study in the next 12 months.”

The Oro Gold & Silver Project has already produced a high‑grade sample suite, including a 1.8 g/t gold equivalent across a 250 m interval. The company plans to commence Phase 2 drilling in early August, focusing on a 200 m strike length that could potentially increase the resource estimate by up to 25 %. Oroco’s geologist, Dr. Elena Ramirez, notes that “the mineralization appears to be structurally controlled along a series of quartz‑pegmatite veins, which are amenable to long‑run open‑pit or underground development.”

In Arizona, the copper‑nickel‑PGE project is at the pre‑conceptual design stage, with a targeted USD 200 million capital cost for a medium‑scale mine. The newly raised capital will fund a pilot test program to evaluate ore‑processing options, with a view to engaging a large‑scale mining partner by 2025.

The funds earmarked for working capital will also support the company’s ongoing infrastructure upgrades in the Yukon, including a new processing facility that will enable semi‑in‑situ gold recovery. This facility will be critical for maintaining a high cash‑conversion cycle, which is a key metric for junior miners seeking to demonstrate operational discipline.

Investor and Market Reaction

The announcement received a cautiously optimistic response from the market. Oroco’s share price rose by 8.7 % in after‑hours trading on June 12 2023, closing at $1.20 CAD—up from the pre‑announcement level of $1.10 CAD. Institutional investors expressed interest, citing the company’s “solid geology and disciplined capital allocation.” Analyst Michael Chen of Meridian Capital commented that “Oroco’s strategic use of preferred equity could provide a cushion against volatility while the company expands its asset base.”

The use of preferred shares, rather than common shares, has been praised for preserving the voting rights of existing shareholders and providing a more stable dividend structure. The option to convert to common shares after five years aligns the interests of new investors with the long‑term success of the company.

Broader Context

The mining sector is experiencing a resurgence, driven by rising commodity prices, supply chain constraints, and increasing demand for base metals in green technologies. Gold prices have maintained a upward trend, averaging $1,900 per ounce in the past year, while copper and nickel have seen a 15 % and 10 % increase, respectively. In this environment, junior miners with high‑grade prospects are attracting investor attention.

Oroco’s financing aligns with a broader trend of junior resource companies using preferred equity to fund exploration while mitigating dilution. The company’s focus on a mix of gold, copper‑nickel and base‑metal assets positions it well to capitalize on multiple market segments.

Outlook and Next Steps

Looking ahead, Oroco Resource Corp. has outlined a three‑year development plan:

1. 2023 – Finalize Phase 2 drilling at the Yukon project; initiate pilot testing in Arizona; complete pre‑feasibility studies for both projects.
2. 2024 – Secure a mining lease in Arizona; begin construction of the semi‑in‑situ gold processing plant; commence a detailed feasibility study for the Yukon project.
3. 2025 – Evaluate joint‑venture or strategic partnership options; prepare for a potential initial public offering (IPO) if the feasibility studies yield a compelling economics profile.

The company will continue to update shareholders through quarterly reports, investor calls and its corporate website. The next major milestone will be the drilling results from the Yukon project, expected in September 2023, which will likely inform the feasibility study and capital raise decisions for 2024.

Conclusion

Oroco Resource Corp.’s new financing arrangement provides a critical capital infusion that will enable the company to accelerate exploration, move key projects toward development, and strengthen its balance sheet. The strategic deployment of funds across the Yukon, Arizona and Colombian assets positions Oroco to capitalize on favorable commodity markets while maintaining a disciplined, high‑efficiency operating model. Investors and market observers will be watching closely as the company delivers on its exploration commitments and translates high‑grade discoveries into a profitable mining operation.