I am so happy to see today’s press release from Oroco. The company said,
“The Company is pleased to also announce the 50 year extension of the term of the Bob and Roberto Verde concessions, which constitute 2 of the 7 core concessions of the Santo Tomas Project. The resolution of the extension application for these two concessions completes the final pre-requisite to the transfer of the 7 core Santo Tomas concessions to Altamura’s subsidiary, Xochipala Gold, S.A. de C.V.”
I have been waiting for this for many months. This is the last hurdle before the final registration of Santo Tomas concession to Xochipala Gold can take place. In other words, the registration will come very quickly.
There are seven concessions and two of them expired in 2018.
The reason why the renewal for these two concession for another 50 years is important is because they represent about half of the mineralization which presents a huge risk if for some reason they were not renewed. Yes, the mining registry was required by law to renew them, but so what. What if they did not renew them? What if they took years to renew them? What if Oroco had to go to court to force the renewal? This would waste a lot of time and money. Of course, investors would lose patience and the stock price would eventually collapse.
With this renewal, the risk is completely gone. The registration is next. The other day, I was talking with an investor who asked me about registration. I said, “Right now, I don’t care about registration. I care about renewal because without renewal, there will be no registration. Once we get renewal, we will get registration very quickly.”
The last hurdle has been crossed. The finish line (registration) is next.
Disclosure: Long Oroco