Sonoran Resources LLC and SR Servicios Mineros, S.A. Commence Legal Action against Oroco Resource Corp., Minas de Oroco Resources, S.A. de C.V. and Goldgroup Mining Inc
Mar 31 14
Oroco Resource Corp. (Oroco) advised that Sonoran Resources LLC and its Mexican subsidiary, SR Servicios Mineros, S.A. de C.V. (jointly, 'Sonoran'), have filed a lawsuit in Arizona against Oroco, Minas de Oroco Resources, S.A. de C.V. (MOR), and Goldgroup Mining Inc. arising from events and services related to the engineering, procurement and construction management agreement (EPCM Agreement) and related service agreements (the jointly, the 'Sonoran Contracts') between Oroco, Minas de Oroco and Sonoran in regard to the mine construction at Cerro Prieto, Sonora State, Mexico (the 'Cerro Prieto Property'). In August of 2013, Oroco sold MOR, the owner of the Cerro Prieto Property, to Goldgroup. In its claim, Sonoran alleges that Oroco (1) breached the Sonoran Contracts; (2) breached its duty of good faith under the Sonoran Contracts; and (3) made fraudulent and/or negligent misrepresentations which harmed Sonoran. Sonoran is seeking damages in an amount to be determined at trial, but claimed to be in excess of $3,000,000, being the fees claimed to be payable to Sonoran pursuant to the Sonoran Contracts if they had been carried out, inclusive of a net amount of $177,066.43 in unpaid invoices, and 250,000 common shares of Oroco. Further, Sonoran has also claimed that Goldgroup breached the Sonoran Contracts, to which Goldgroup was not a party, and that it intentionally interfered with Sonoran's business expectations, causing the loss of at least $3,000,000 of net profits from the fees claimed to be payable pursuant to the Sonoran Contracts if they had been carried out. As a part of the sale of the Cerro Prieto Property, Oroco agreed to indemnify and defend Goldgroup and Minas de Oroco against all claims brought by Sonoran arising from the events or services related to the Sonoran Contracts. It is Goldgroup's and Oroco's opinion that the claims against Goldgroup are completely without merit.
Oroco Resource Corp. Wins Xochipala Appeal
Feb 7 14
Oroco Resource Corp. announced that the Federal Tribunal of Mexico has granted the company's appeal of the decision of the lower Federal District Court and has ordered that all aspects of the 2011 Guerrero State Court auction (the Court Auction) of a 50% interest in the Celia Gene and a 100% interest in the Celia Generosa concessions (the Camacho Interest) be set aside. The decision of the Federal Tribunal confirmed that the company's subsidiary, Minera Xochipala, S.A. de C.V., is the sole registered owner of 100% of each of the Celia Gene and Celia Generosa concessions (the Xochipala Property) and terminated the competing claim of Mr. Avinadain Bautista (Bautista) arising from the Court Auction of the Camacho Interest. The Federal Tribunal also dismissed the appeal by Bautista which sought to enforce his claim to the Camacho Interest. Upon granting the company's amparo and setting aside the entire Court Auction process, the Federal Tribunal determined that Bautista had no legal claim or interest in the concessions and thus had no legal standing to petition the courts. The decision of the Federal Tribunal is final, with no appeal available.
Oroco Resource Corp. Announces Amendment to its Articles
Jan 27 14
Oroco Resource Corp. announced the approval by its shareholders of an amendment to its articles to include advance-notice provisions which will provide shareholders, directors and management of the company with direction on the procedure for shareholder nomination of directors. The purpose of the advance- notice provisions is to ensure that all shareholders, including those participating in a meeting by proxy rather than in person, receive adequate notice of the nominations to be considered at a meeting and can thereby exercise their voting rights in an informed manner. The board of the company believes that the amendments provide a clear and transparent process for all shareholders to follow if they intend to nominate directors. In that regard, the amendments provide a reasonable time frame for shareholders to notify the company of their intention to nominate directors and require shareholders to disclose information concerning the proposed nominees that is mandated by applicable securities laws. The board will be able to evaluate the proposed nominees' qualifications and suitability as directors, and respond as appropriate in the best interests of the company.