Mr. Kenneth MacLeod reports
SONORO GOLD ANNOUNCES CLOSING OF OVERSUBSCRIBED $15.5M PRIVATE PLACEMENT
Sonoro Gold Corp. has closed its previously announced oversubscribed, non-brokered private placement of 62 million units at 25 cents per unit for gross proceeds of $15.5-million. Each unit consists of one Sonoro common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional Sonoro common share for a period of three years from the closing of the private placement at an exercise price of 34 cents per share.
In connection with the offering, the company paid $87,450 in finders' fees and issued 349,800 non-transferable finder warrants for a period of three years at an exercise price of 34 cents.
All securities issued and issuable in connection with the offering are subject to a four-month-plus-one-day hold period ending Oct. 11, 2026. The offering has received conditional acceptance from the TSX Venture Exchange but remains subject to receipt of final acceptance from the TSX Venture Exchange.
Insiders of the company participated in the offering by subscribing for 5,524,640 units for gross proceeds of $1,381,160, constituting a related-party transaction pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction did not exceed 25 per cent of the company's market capitalization.
The net proceeds from the offering will be used to finance the continuing development of the company's Cerro Caliche gold project in Sonora, Mexico, and for general working capital purposes. The company recently commenced a 50,000-metre drilling program at Cerro Caliche and significantly expanded the project with the acquisition of 11 additional mineral concessions.
Exploration will proceed alongside the proposed development of an open-pit, heap leach mining operation currently in the permitting phase for an initial 10-year production at a projected capacity of up to 16,000 tonnes per day.
About Sonoro Gold Corp.
Sonoro Gold is a publicly listed exploration and development company holding the development-stage Cerro Caliche project and the exploration-stage San Marcial project in Sonora state, Mexico. The company has highly experienced operational and management teams with proven records for the discovery and development of natural resource deposits.
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