Oroco Resource Corp. Announces Initial Closing of Private Placement and Increase in the Number of Units
Oroco Resource Corp. announce that it intends to increase the size of the non-brokered private placement of $0.225 units announced November 13, 2009 from six million units to seven million units, thereby increasing the funds raised from $1,350,000 to $1,575,000.
The Company is also pleased to announce that it has closed the first tranche of 5,720,500 units of the Private Placement at a price of $0.225 per unit to raise gross proceeds of $1,287,112.50. Each unit consists of one common share and one-half of one non-transferable common share purchase warrant. Each whole warrant is exercisable into one additional common share for a period of eighteen months at a price of $0.30 per share.
In connection with this tranche of the Private Placement, the Company is paying cash finder’s fees of $7,425 to Canaccord Capital Corporation and $7,500 to Haywood Securities Inc., and issuing 176,700 finder’s fee units to Mark Vanry with each such unit being the same as those issued in the Private Placement.
All securities issued in this financing will be subject to a hold period which for this tranche will expire on March 18, 2010.
The proceeds of the Private Placement will be used for Oroco’s Phase Two exploration program and general working capital.
