Oroco Closes Upsized C$23M Bought Deal Financing Led by Canaccord Genuity

Rhea-AI Summary

Oroco Resource (OTCQB: ORRCF) closed an upsized bought deal financing of 60,526,340 units at C$0.38 per unit for aggregate gross proceeds of approximately C$23 million, including full exercise of the over-allotment option, led by Canaccord Genuity and Red Cloud.

Each unit includes one common share and one-half warrant; each whole warrant is exercisable at C$0.53 until Jan 15, 2029. Net proceeds are to fund pre-feasibility drilling at Santo Tomás, baseline environmental and permitting work, and working capital. Warrants are expected to begin trading as OCO.WT on the TSXV on Jan 15, 2026, subject to TSXV approval.

Positive

• Gross proceeds C$23M raised from the bought deal financing
• Financing fully subscribed including exercise of over-allotment option
• Proceeds allocated to PFS drilling, environmental work, and working capital

Negative

• 60.5M units issued create immediate share count increase and dilution
• Warrants exercisable at C$0.53 through Jan 15, 2029, potential future dilution
• Underwriters received a 6.0% cash commission on gross proceeds

News Market Reaction

+19.53%

1 alert

+19.53% News Effect

On the day this news was published, ORRCF gained 19.53%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - January 14, 2026) - Oroco Resource Corp. (TSXV: OCO) (OTCQB: ORRCF) (the "Company" or "Oroco") today announced the closing of its previously announced bought deal public offering of 60,526,340 units of the Company (the "Units") at a price of C$0.38 per Unit (the "Offering Price") for aggregate gross proceeds of approximately C$23 million (the "Offering"), including the exercise in full of the over-allotment option granted by the Company. The Offering was led by Canaccord Genuity Corp. ("Canaccord Genuity"), as lead underwriter and sole bookrunner, and Red Cloud Securities Inc. (together, the "Underwriters").

Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share at an exercise price of C$0.53 until January 15, 2029. The Warrants are governed by a warrant indenture dated January 14, 2026, between the Company and Computer Trust Company of Canada as the warrant agent (the "Warrant Indenture"). Subject to final approval of the TSX Venture Exchange (the "TSXV"), the Warrants are expected to begin trading on the TSXV under the ticker symbol "OCO.WT" and CUSIP number 687033134 as at market open on January 15, 2026. Pursuant to the terms of the Warrant Indenture, no fractional Common Shares will be issued on exercise of a Warrant, and Warrant holders who would otherwise be entitled to receive a fraction of a Common Share will be rounded down to the nearest whole number of Common Shares, and no cash consideration will be paid in respect of fractional shares. Warrant holders are encouraged to read the full text of the Warrant Indenture, which is available on the Company's SEDAR+ profile at www.sedarplus.ca.

In connection with the Offering, the Company paid the Underwriters a cash commission equal to 6.0% of the aggregate gross proceeds of the Offering (including on the exercise of the over-allotment option), subject to a reduced cash commission equal to 3.0% in respect of gross proceeds from the sale of Units to purchasers included on a "President's List" provided by the Company to the Underwriters.

The Offering was completed by way of a prospectus supplement dated January 9, 2026 (the "Prospectus Supplement") to the Company's short form base shelf prospectus dated April 23, 2025 (the "Base Shelf Prospectus"), filed in all provinces of Canada, other than Québec. The Units were also offered in the United States to qualified institutional buyers pursuant to Rule 144A under the United States Securities Act of 1933, as amended (the "1933 Act"), and to accredited investors pursuant to Rule 506 (b) of Regulation D under the 1933 Act, and in certain offshore jurisdictions, in each case in accordance with applicable securities laws.

The Company intends to use the net proceeds from the Offering to fund commencement of Pre-Feasibility Study drilling at the Santo Tomás copper project, advance baseline environmental and permitting work, and for general corporate working capital.

Copies of the applicable offering documents can be obtained free of charge under the Company's profile on SEDAR+ at www.sedarplus.ca . Delivery of the Base Shelf Prospectus and the Prospectus Supplement and any amendments thereto were satisfied in accordance with the "access equals delivery" provisions of applicable Canadian securities legislation. An electronic or paper copy of the Prospectus Supplement and the Base Shelf Prospectus may be obtained, without charge, from Canaccord Genuity by phone at 416-869-3052 or by e-mail at ecm@cgf.com by providing Canaccord Genuity with an email address or address, as applicable.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT OROCO

The Company holds a net 87.0% interest in those central concessions that comprise 1,173 hectares "the Core Concessions" of the Santo Tomas Project, located in northwestern Mexico. The Company also holds an 80% interest in an additional 7,861 hectares of mineral concessions surrounding and adjacent to the Core Concessions (for a total Project area of 9,034 hectares, or 22,324 acres). Following an assessment of one of the non-Core Concession, the Company filed an application to reduce the area of that concession, with the result that the additional concessions will total 4,948.24 hectares, for a total Project area of 6,121.11 hectares or 15,124.47 acres. The Project is situated within the Santo Tomas District, which extends up to the Jinchuan Group's Bahuerachi Project, approximately 14 km to the northeast. The Santo Tomas Project hosts significant copper porphyry mineralization initially defined by prior exploration spanning the period from 1968 to 1994. During that time, the Santo Tomas Project area was tested by over 100 diamond and reverse circulation drill holes, totaling approximately 30,000 meters. Commencing in 2021, Oroco conducted a drill program (Phase 1) at Santo Tomas, with a resulting total of 48,481 meters drilled in 76 diamond drill holes.

The drilling and subsequent resource estimates and engineering studies led to a revised MRE and an updated PEA being published and filed in August of 2024, which studies are available at the Company's website www.orocoresourcecorp.com and by reviewing the Company profile on SEDAR+ at www.sedarplus.ca.

The Santo Tomas Project is located within 170 km of the Pacific deep-water port at Topolobampo and is serviced via highway and proximal rail (and parallel corridors of trunk grid power lines and natural gas) through the city of Los Mochis to the northern city of Choix. The property is reached, in part, by a 32 km access road originally built to service Goldcorp's El Sauzal Mine in Chihuahua State.

Additional information about Oroco can be found on its website and by reviewing its profile on SEDAR+ at www.sedarplus.ca.

For more information, please contact:

Craig Dalziel, Chairman
Oroco Resource Corp.
Tel: 604-688-6200
Email: info@orocoresourcecorp.com
www.orocoresourcecorp.com

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

Cautionary Note Regarding Forward-Looking Information

This news release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact included herein, including, without limitation, statements relating to future events or achievements of the Company, the listing date of the Warrants on the TSXV, and the use of funds from the Offering, are forward-looking statements. There is no assurance that the proceeds of the Offering will be expended as contemplated. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these matters. Oroco does not assume any obligation to update the forward-looking statements should they change, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280344

FAQ

How much did Oroco (ORRCF) raise in the January 14, 2026 bought deal financing?

Oroco raised approximately C$23 million from the offering, including the over-allotment option.

What securities were issued in Oroco's C$23M offering and how many units?

The offering consisted of 60,526,340 units, each with one common share and one-half warrant.

What is the Oroco warrant exercise price and expiry for warrants from the Jan 14, 2026 offering?

Each whole warrant is exercisable at C$0.53 until January 15, 2029.

How will Oroco (ORRCF) use the net proceeds from the C$23M financing?

Proceeds are intended to fund pre-feasibility drilling at Santo Tomás, baseline environmental and permitting work, and general working capital.

When are the warrants from Oroco's offering expected to begin trading on the TSXV?

Warrants are expected to begin trading under OCO.WT on the TSXV at market open on January 15, 2026, subject to TSXV approval.

What fees did Oroco pay in connection with the bought deal offering?

The company paid the underwriters a cash commission equal to 6.0% of aggregate gross proceeds, reduced to 3.0% for President's List purchasers.