Oroco Resource Corp., which has an approximate 13% equity interest in Altamura Copper Corp., secured a definitive option agreement to acquire the rest of the company.
The company said Oct. 9 that it can exercise the option within three years by issuing 39.8 million shares in exchange for the Altamura Copper shares, subject to various conditions including approval from shareholders and the TSX Venture Exchange.
Altamura Copper holds a controlling 65% interest in Xochipala Gold SA de CV, which in turn holds rights to acquire up to a 90% interest in the Santo Tomas copper property in Sinaloa, Mexico.
The registration of Xochipala Gold's concession rights is subject to a legal dispute. Oroco Resource believes the dispute involves an unenforceable judgement and that the concession titles will be registered to Xochipala Gold.
Oroco Resource also agreed to loan Altamura Copper US$600,000, with the 90-day loan bearing interest at a rate of 12% per annum. The company has the right to convert the loan into common Altamura Copper shares at a price of 5.7 cents apiece within six months of the expiry or termination of the option.