simple summary in German / translatedOriginal here :
https://www.sharewise.com/de/news_articles/Tatort_Mexiko__IngridHeinritzi_20190426_0421 with Translater :
Crime scene Mexico
When it comes to large mining projects, there are sometimes fights with hard bandages. In Mexico, Oroco Resource could be at the top of the list.
It goes back to 1968. The Santo Toms copper project thus had its 50th birthday last year. Today Oroco Resource (WPKN: A0Q2HB; ISIN: CA6870331007) owns the Santo Toms Porphyry Copper Project. But that is not the end of the story. Because there are opponents who make demands. It's like the best whodunit. It's about lies and fraud, court decisions and finding the truth. Last but not least, Oroco Resource should emerge as the big winner in the lawsuit. That would at least triple the value of the company, more than tenfold, say industry experts. Due to the remaining risks, however, the Oroco share still stands at around 30 Canadian cents (just under EUR 0.20).
What is so interesting about Santo Toms? As early as 1994, the former owners (Exall) carried out a preliminary economic feasibility study with a renowned company (Bateman). Scenarios with 60,000, 80,000 and 120,000 tons of rock processing per day were run through and recognized as economic. These are rocks with mainly copper and the by-products molybdenum, silver and gold. The property covers 6,978 hectares and, according to 1994 data, hosts over 950 million tonnes of rock with an expected 7.4 billion pounds copper equivalent (by-products are converted to copper) therein.
The Santo Toms project was put on hold after the copper price plummeted dramatically in 1997 to a low of approximately US$0.60 per pound (454 grams) and did not recover significantly by 2004. This enabled Compania Minera Ruero (CMR) to acquire the project at a favourable price. In 2002, the owner of CMR, Rodriquez, optioned Santo Toms to another company (Fierce) for a good eight million US dollars in five tranches. Since the money of the last four parts, 7.76 million dollars, did not flow, Rodriquez received his Santo Toms property back without restriction.
But today, copper is about five times higher and the Santo Toms project has an enormous value. The group behind Fierce now denies that Santo Toms does not belong to them. Now it comes: In addition, forgeries and lies were even presented, even before courts. Oroco Resource is now trying to clarify the legal situation with the former owner Rodriquez. This should be completed in the next few months. From today's point of view, the courts in Mexico should decide in favour of Oroco.
In legal matters in emerging markets, there are always uncertainties. However, the risk-opportunity ratio clearly beats for Oroco Resource (WPKN: A0Q2HB; ISIN: CA6870331007). Investors willing to take risks can bet on the Canadian company's stock and include it in their speculative portfolio. Once the ownership rights over Santo Toms are clearly visible in black and white, the sheer size of the project is likely to cause large copper companies to queue up to either take on the project, part of the production, or all of Oroco. In these cases, the Oroco share would yield a good return. As mentioned earlier, market analysts estimate the value of Oroco with Santo Toms to be three to ten times today's market capitalisation.