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8/16/13

Mining PRs and the Ottotrans™, part 74



We're back! To be straight with you, all post factum and stuff like, there were about four thousand opportunities during the 2q reports season just done when the "Aha! That's Ottotrans™ material!" crawled through your author's cobwebbed grey matter, but an executive decision had already been made not to do any of these until it was all over....basically because the targets were too freakin' easy.

But now it's all done let's crank up our occasional series again, as once again we take the news releases of junior mining companies and translate the gobbledygook into a form of Shakespeare's tongue that is easier to intellectually digest. Today we go with Oroco Resource Corp (OCO.v) and this NR:

This is what they wrote:
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 16, 2013) - Oroco Resource Corp. ("Oroco") (TSX VENTURE:OCO)(OR6.F) announces that they have agreed to extend the closing of Goldgroup Mining Inc.'s acquisition of the Cerro Prieto project (the "Cerro Prieto project") to August 30, 2013. 

Goldgroup has made a further deposit of US $40,000 to Oroco, in addition to the US $100,000 deposited on July 15, 2013, which will be applied against the US $4.5 million initial payment due to Oroco on the closing of the acquisition of the Cerro Prieto project. The closing has been extended to allow Goldgroup time to complete the CDN $4 million senior secured loan facility announced in its news release of July 16, 2013. Goldgroup and Oroco remain committed to the Cerro Prieto transaction and they intend to close the transaction simultaneously with Goldgroup's closing of the related senior secured loan facility.

And this is what it means:
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 16, 2013) - Oroco Resource Corp. ("Oroco") (TSX VENTURE:OCO)(OR6.F) announces that they have agreed to extend the closing of Goldgroup Mining Inc.'s acquisition of the Cerro Prieto project (the "Cerro Prieto project") to August 30, 2013. 
Goldgroup's Keith Piggott has recently found out that he's burned the moneyed guys in Toronto once too often and can't raise any cash. So he's lent $40,000 to us so they we can pay ourselves, because we're in such a state that he's our only salvation, which gives you an idea of just how desperate we are and why we're keen on banking an extra month of salaries instead of converting them into share options or deferring payment or something that's more shareholder friendly. The closing has been extended because nobody in their right mind will lend Goldgroup the CDN $4 million after the way they've burned through investor cash in previous Piggott -inspired flights of fancy such as Sierra and Caballo Blanco. Goldgroup and Oroco remain committed to the Cerro Prieto transaction and feel it's a fucking shame nobody else believes them.