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Oroco Resource Corp ORRCF


Primary Symbol: V.OCO

Oroco Resource Corp. is a Canadian mineral exploration company. The Company is engaged in the acquisition and exploration of mineral properties in Mexico. It holds a net 85.5% interest in those central concessions that comprise 1,173 hectares (ha) (the Core Concessions) of The Santo Tomas Project, located in northwestern Mexico. It also holds an 80% interest in an additional 7,861 ha of mineral concessions surrounding and adjacent to the Core Concessions (for a total Project area of 9,034 hectares, or 22,324 acres). The Project hosts a large, outcropping porphyry copper deposit comprised of fracture-hosted and disseminated copper and molybdenum sulphides with significant gold and silver credits. Its Xochipala Property is comprised of the Celia Gene (100 ha) and the contiguous Celia Generosa (93 ha) concessions. Its Salvador Property is a 100-hectare mining concession, which lies around 25 kilometers (kms) to the west of the Xochipala Property and 30 kms west of Chilpancingo, Guerrero.


TSXV:OCO - Post by User

Comment by jwall34on Jul 29, 2022 8:31am
338 Views
Post# 34859478

RE:RE:RE:RE:RE:Geologist discussing drill results

RE:RE:RE:RE:RE:Geologist discussing drill results

From their website: 

"While this work has not yet concluded, the Company expects the initial capital expenditure estimate of the project to be greater than $4 billion. Effective post-closing, the Company intends to spend up to $300 million to advance the project ahead of a construction decision in the second half of 2022"
 

Capex is MASSIVE which is a huge risk for an acquirer. Remember that NPV assumes everything goes well; that they're able to process on schedule, without protests, or problems, or delays.  So the low buyout price is in exchange 

Also, using a pre-tax NPV doesn't make much sense, because the majors won't be using that. They have to pay taxes, after all.

Capex at Santo Tomas would be much lower due to the strip ratio, existing infrastructure, and near-surface resource. So it's less risky for a major. 

 

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