Are there any remaining regulatory or permitting risks that could still delay the Santo Tomas Project?

The positive resolution from SEMARNAT removes the most onerous hurdle for the Santo Tomas Project – the need for a formal Environmental Impact Authorization (EIA). In practical terms this means the company can now start the drilling program outlined in its “informe preventivo” without waiting for a separate SEMARNAT permit, which eliminates the primary regulatory bottleneck that analysts have been watching. However, the approval only covers the environmental‑impact notice; the project still requires a mining concession, water‑use permits, and possibly additional approvals from the Ministry of Economy or local municipalities. Until those remaining licences are secured, a residual permitting risk remains, albeit far smaller than before the SEMARNAT decision.

From a trading perspective the news is highly positive for OCO. The stock rallied on the announcement, and the price is now testing the prior high‑volume resistance level around CAD 0.55 (if still relevant). A short‑term bullish bias is supported by a breakout above the 20‑day SMA and an RSI hovering near 60, indicating momentum without being overbought. Traders could consider entering on a pull‑back to the 20‑day EMA with a stop‑loss a few cents below the current support line (~CAD 0.48) to protect against any unexpected regulatory delay. Keep an eye on subsequent filings (e.g., a mining concession award) – a second‑stage approval would reinforce the upside, while a surprise denial or community dispute could re‑introduce risk and trigger a sell‑off. In sum, while residual permitting steps exist, the core regulatory risk has largely been cleared, making the stock more attractive for a risk‑adjusted long position or a short‑term breakout trade.