Oroco Resource Corp V.OCO

Another Raise Following Drill Permits

[jwall34]

In the last corporate update, Adam said they "wouldn't rule out another raise at this market cap". Personally, I would LOVE to see the company do another private placement after they announce drilling permits, which will likely send the stock higher.

Why? Imagine they issue 10 million shares at $3.5 (if this is the price once drilling starts). A dilution if less than 5% would net them $35 million, which would give them more than enough runway to go all the way to the end of pre-feasibility as well as expand the drilling. With this much money they could likely get 6-8 drills turning at once, which means the resource gets defined even faster.

Don't be surprised if we see another raise from here, and know that if we do that it's in shareholder's best interest.

[AnchorValue]

I fully believe that OCO management will do right by the shareholders. That being said, if they do an offering at a steep discount again + just throw in .5 warrant, it's gonna look ugly. Please drop the warrant, Adam! I get that the discount is going to to be hard given how quickly the stock has been rising.

[aYozzz]

Why raise money when they dont need it right now? They've got a big treasury with ITM warrants. Call the warrants before a raise. Why raise in $3-4 when it could be $6-7+?

[auricgold]

I agree 200%. they have 20 million, then the warrants expiring this year and next. Originally I heard they need 30 mill and they are good. Raising money for them should ONLY be once we START TO DRILL. Not even permit, DRILLING, then they can get 20 million in a week I bet at 5$. 

[cranskin]

It;s nice to know we have such experts on how to run a junior mining company on this board. I am just happy to sit back and watch the stock price action.

[MikPrecious]

From what I have been informed, they would entertain a major strategic investor if it came to pass.  It's not that they need fund, but a nice strategic investor would only push it that much higher after they do their due diligence.  It's always on the table as our prices are quite good now.   I don't foresee it for a little while though but who knows I have been wrong

[auricgold]

Hi Mik, you may be right, but no strategic investor is coming in before seeing some drilling first. By the time we drill we could be at 5$ in this market, who knows. I would not want the company to do any more raises under 4$. They have PLENTY of cash to do some drilling first. We are in a sellers market as far as copper goes, so we can certainly wait a little and wait to get a bit higher prices

[Overertune]

What do they need that much money for?

[auricgold]

Overtune, I dont know, I am assuming drilling. First i heard 30 to 40 mill will do the trick, now I hear AnOTHER 30 million. The property IS LARGE so I am not surprised. The more we drill with high tech equipment, the more we can unlock the potential for a buyer eventually. I am definitely not against rasing more cash. My point was to wait till drilling, which they will because the institutions

[Overertune]

Thanks!  I think there has to be a limit how much they can sell for. 1B/2B might be easy to find a buyer. 10B how many majors can afford? Also, does grade really matter with this copper price level? Even low grades can be economic.

[sweetbabyjesus]

I think I may have just shat myself

[auricgold]

Overtune, a LOT of miners can spend 10B US$. They made Billions lately, and they can borrow at 1% interest these days. If it makes money, they will pay big time.

[MikPrecious]

Totally agree with you $5 is very conceivable with the 3DIP on Brasiles coming and also permits around the corner.  Ian being down there shows the seriousness of work on its way.  This month will be the transition of a new beginning.  

[NeftyIvan]

Precious, my OCO investment model --- barring any major catastrophes --- agrees very much with your comments, particularly where you wrote that ... "This month will be the transition of a new beginning." Before the end of this month, according to Ian's reporting in recent YT video: [1] Braziles report will be coming out; [2] Permits will follow ... very possibly before EOM; [3

[auricgold]

Agreed. And I think Ian is a rock star, I mean to move there in the middle of it with his wife and in the heat for a whole YEAR! That shows commitment I have NEVER seen in any mining company of this size.  always got ripped off by other mining companies. The last one was a lithium and the only mexico trip the guy took was month long resort vacation with his family in the winter, on company