Oroco Resource Corp.
TSX VENTURE : OCO

Oroco Resource Corp.

September 28, 2015 21:27 ET

Oroco Negotiates Payment of Goldgroup Mining Inc. Notes

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 28, 2015) - Oroco Resource Corp. (TSX VENTURE:OCO) ("Oroco" or "the Company") announces that, further to its news release of September 16, 2015, it has agreed with Goldgroup Mining Inc. ("Goldgroup") to a revised payment schedule for the US$950,000 outstanding from the two promissory notes issued by Goldgroup to the Company. Pursuant to the agreement, Goldgroup will have until November 16, 2015 to enter into a formal debt payment agreement (the "Payment Agreement") with the Company, pursuant to which it will pay the Company US$300,000 on signing, US$20,000 per month, commencing October 1, 2015 (payments due before signing of the formal agreement to accrue and be paid at signing), until September 15, 2016, with the balance of the remaining principal on or before that date. The outstanding principal will bear 12% interest, payable monthly in arrears. If the Payment Agreement is not signed by November 16, 2015, or if Goldgroup fails to perform all of its obligations under the Payment Agreement, it will pay the Company a C$100,000 break fee. In a related transaction, the Company has also agreed to sell a total of 6 million of its shares of Goldgroup (the "Shares"), at a price of $0.06 per Share to one or more persons introduced by Goldgroup, some of whom may be insiders of Goldgroup. The Company will sell 3 million of the Shares prior to the signing of the Payment Agreement, of which 2.4 million were sold today, and it will grant the purchaser the option to purchase a further 3 million, subject to the Payment Agreement being executed by November 16, 2015 and Goldgroup paying the sums due at the time of execution.

After completion of the sale of the Shares, the Company will hold 14,125,000 Goldgroup shares.

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

Contact Information

  • Oroco Resource Corp.
    Mr. Craig Dalziel
    President and CEO
    604-688-6200