OROCO ISSUES INCENTIVE OPTIONS

Rhea-AI Summary

Oroco Resource Corp. (OTC: ORRCF) announced the issuance of 6,850,000 incentive stock options at an exercise price of $2.05 per share, pending TSX Venture Exchange approval. Of these, 3,425,000 were allocated to officers and directors. The company is also canceling 4,475,000 options, resulting in 11,757,000 options outstanding, which is 57% of the allowable total. Oroco holds a 73.2% interest in the Santo Tomas Project in Mexico, with the potential to increase this to 85.5% through a CAD$30 million investment, encompassing significant copper resources.

Positive

• Issuance of 6,850,000 stock options could align management's interests with shareholders.
• Potential increase of interest in the Santo Tomas Project to 85.5% demonstrates commitment to growth.
• Santo Tomas hosts a significant copper deposit with historical exploration backing.

Negative

• Cancellation of 4,475,000 options may signal previous over-allocation or potential management issues.
• The reliance on TSX-V approval could delay the execution of the stock option plan.

Vancouver, Canada, May 03, 2022 (GLOBE NEWSWIRE) -- Oroco Resource Corp. (TSX-V: OCO, OTC: ORRCF) (“Oroco” or “the Company”) announces that pursuant to the Company's Stock Option Plan and subject to approval by the TSX Venture Exchange, the Company has issued a total of 6,850,000 incentive stock options at an exercise price of $2.05 per share with a term of three years.  Of that total, 3,425,000 incentive options have been issued to officers and directors of the Company.  In addition, the Company is cancelling 4,475,000 incentive options, leaving the Company with 11,757,000 incentive options issued and outstanding, that being 57% of the number allowed by TSX-V policies and the Company’s Stock Option Plan.

ABOUT OROCO:

The Company holds a net 73.2% interest in the collective 1,172.9 ha Core Concessions of the Santo Tomas Project in NW Mexico and may increase that majority interest up to an 85.5% interest with a project investment of up to CAD$30 million.  The Company also holds a 77.5% interest in 7,807.9 ha of mineral concessions surrounding and adjacent to the Core Concessions (for a total project area of 22,192 acres).  The Project is situated within the Santo Tomas District, which extends from Santo Tomas up to the Jinchuan Group’s Bahuerachi project, approximately 14 km to the northeast.  Santo Tomas hosts a significant copper porphyry deposit defined by prior exploration spanning the period from 1968 to 1994. During that time, the property was tested by over 100 diamond and reverse circulation drill holes, totalling approximately 30,000 meters. Based on data generated by these drill programs, a historical Prefeasibility Study was completed by Bateman Engineering Inc. in 1994.

The Santo Tomas Project is located within 160 km of the Pacific deep-water port at Topolobampo and is serviced via highway and proximal rail (and parallel corridors of trunk grid power lines and natural gas) through the city of Los Mochis to the northern city of Choix. The property is reached by a 32 km access road originally built to service Goldcorp’s El Sauzal Mine in Chihuahua State.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

FAQ

What is the significance of Oroco's stock option issuance on May 3, 2022?

Oroco Resource Corp. issued 6,850,000 stock options to align management interests with shareholders, pending TSX Venture approval.

How many stock options does Oroco have outstanding after the recent announcement?

After the cancellation of 4,475,000 options, Oroco has 11,757,000 stock options outstanding.

What is the current interest of Oroco in the Santo Tomas Project?

Oroco currently holds a 73.2% interest in the Santo Tomas Project, which can potentially increase to 85.5% with further investment.

What is the exercise price for the stock options issued by Oroco?

The exercise price for the newly issued stock options is $2.05 per share.

When will the stock option issuance be effective for Oroco?

The stock option issuance is subject to approval by the TSX Venture Exchange.