Eco Oro Completes Second Tranche of US$4.5 Million Financing

Core Viewpoint - Eco Oro Minerals Corp. has completed the second tranche of a private placement of 2025 contingent value rights certificates, raising a total of US$4.5 million to support its arbitration proceedings against the Republic of Colombia [1][5]. Group 1: Private Placement Details - The private placement was completed in two tranches: the first tranche raised US$4,000,000 on August 7, 2025, and the second tranche raised US$500,000 on March 16, 2026 [1]. - The proceeds from the private placement will primarily be used to support the company's application to annul a damages award from an arbitration tribunal that awarded no monetary compensation to the company [1]. Group 2: Contingent Value Rights (CVRs) - The company has issued a new class of contingent value rights certificates (Replacement CVRs) in exchange for previously issued CVRs and promissory notes [2]. - The company is allowed to issue up to US$1,000,000 of additional 2025 CVRs after July 30, 2027, and up to US$7,000,000 of new Resubmission CVRs if additional funds are needed [2]. Group 3: Distribution of Claim Proceeds - Any proceeds from the arbitration proceedings will be distributed in a specific order: first to settle outstanding trade payables and legal fees, then to repay holders of 2025 CVRs and Resubmission CVRs, and finally to residual claimants [3]. - The distribution of the remaining claim proceeds will be allocated as follows: 5% to management incentive plan participants, 85% to 2025 CVR holders, 9.7% to Replacement CVR holders, and 0.3% to the company [3][4]. Group 4: Board Approval and Governance - The board of directors conducted a thorough review of the private placement, considering alternative financing options, and determined that the company was eligible to rely on exemptions from minority approval requirements [5]. Group 5: Company Profile - Eco Oro is a publicly traded company focused on its arbitration case against the Republic of Colombia, which is central to its operations [6].