VANCOUVER, May 16, 2024 – Oroco Resource Corp. is gearing up for a C million cash infusion through a bought deal offering, the company announced today. Investors are watching closely to see how this funding will impact the exploration of its promising Cascabel project in Ecuador.
Funding Exploration at Cascabel
The offering will provide Oroco with capital to advance exploration efforts at its key asset.
- Oroco Resource intends to issue 16,666,667 units at a price of C$1.20 per unit.
- Each unit consists of one common share and one half of a common share purchase warrant.
- the offering is being led by PI Financial Corp., acting as the sole bookrunner.
- net proceeds are earmarked for exploration at the cascabel project in Ecuador.
Oroco Resource plans to issue 16,666,667 units at a price of C$1.20 per unit, according to a company statement. Each unit will include one common share and one-half of a common share purchase warrant. This financing strategy is a common method for resource companies to raise capital for exploration and development.
What is a Bought Deal Offering?
A bought deal offering is a type of public offering where a company sells a fixed number of shares to an underwriter, who then resells them to the public. This provides the company with a guaranteed amount of capital, but typically comes with a discount to the current market price.
PI Financial Corp. is acting as the sole bookrunner for this offering. the company anticipates using the net proceeds from the offering to fund ongoing exploration activities at the Cascabel project, located in Ecuador. Cascabel is a large porphyry copper-gold deposit, and Oroco Resource has been actively working to delineate its resource potential.
What does this financing mean for oroco Resource’s future? The C$20 million raised will be crucial for continuing exploration and potentially advancing the cascabel project towards development.
