TSX-V: OCO) (“
Oroco” or “
Rodriguez”) of Mexico City to acquire 25 shares of Xochipala Gold, S.A. de C.V. (“
Xochipala Gold”) for US$1.5 million. Xochipala Gold holds 100% of the registered title (85% of the beneficial ownership) to the seven core concessions (the “
Core Concessions”) of the Company’s Santo Tomas Project. The shares of Xochipala Gold being acquired currently represent 8.5% of the beneficial ownership of the Core Concessions.
Background: Prior to reaching the current agreements with Rodriguez, the Company’s held all 180 issued shares of Xochipala Gold (the “
Shares”). Mr. Rodriguez held a right to 50 of the Shares, as well as a 0.5% net smelter royalty in the Core Concessions. The Company held an option, through its wholly owned subsidiary Desarrollos Copper, S.A de C.V., to acquire all of Rodriguez’s rights and interest in the Shares for payments totaling US$16 million (the “