Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) said it will raise up to C$3 million through a non-brokered private placement offering comprising up to 30 million units at C$0.10 per unit.
The proceeds from the offering will be used for the ongoing development of a proposed heap leach mining operation at Sonoro’s Cerro Caliche gold project in Sonoro, Mexico.
The majority of the funds will be used to advance Cerro Caliche toward production, according to Sonoro CEO Kenneth MacLeod. Around 30% of the financing will be used for targeted infill drilling at the El Colorado and Guadalupe vein zones, the CEO added.
“As previously announced, our drilling campaign completed in May 2022 demonstrated multiple high-grade ore shoots within these vein zones returning intercepts as high as 46.5 grams of gold per tonne over 1.53 meters within a larger intercept of 27.43 meters averaging 5.36 grams of gold per tonne," MacLeod said in a statement. "Increasing the average grade at the El Colorado and Guadalupe vein zones may enhance the overall economics of the project.”
Each unit in the offering will be made up of one share and one share purchase warrant, with each warrant entitling the holder to purchase an additional share at a price of C$0.15 for a period of two years from closing.
The company said it intends to pay finder’s fees related to the offering.
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.
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