Oroco Resource Corp (OCO.V) has recently closed another placement at the same terms as the previous financing which was completed in the final quarter of last year. The company has now issued 3.64 million units priced at C$0.40 with each unit consisting of one common share and a full warrant allowing each warrant holder to acquire an additional share at C$0.65 during an 18 month period. It feels like the company had to weigh its options between issuing a half warrant with a longer duration and a full warrant exercisable during a relatively short period. Electing to offer the same terms as the financing that closed in November likely was the easiest solution.
Just like in the November financing, there was a decent insider participation. In the November financing, insiders spent C$308,000 while ATM Mining, the company of Craig Dalziel, the chairman of Oroco, spent another C$60,000 to participate in the financing that closed this week.
Although the outcome of the company’s PEA in Q4 2023 was somewhat disappointing, it is encouraging to see the insiders are stepping up the place and have spent an additional C$0.5M on stock purchases ahead of optimizing the economics of the project.
Disclosure: The author has a long position in Oroco Resource Corp. Oroco is a sponsor of the website again. Please read the disclaimer.
