Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) announced that it will raise up to $1 million through a non-brokered private placement to fund the ongoing development of its Cerro Caliche gold project located in Sonora, Mexico, and for working capital.
“We are accelerating the resumption of drilling at Cerro Caliche to take advantage of the time remaining before the project receives approval for its Environmental Impact Statement, which has been under review by the Mexican government’s federal permitting authority, SEMARNAT, since May 2022,” Sonoro Gold CEO Kenneth MacLeod said in a statement.
“The upcoming drilling campaign is designed to increase the size of the resource and extend the currently estimated life of mine.”
Sonoro VP of Exploration Melvin Herdrick said the expansion drill program would initially focus on the western mineralized zone where the company plans to commence mining operations and where prior drilling has returned multiple high-grade ore shoots.
“Drilling is also planned in the northern mineralized zones to potentially increase and upgrade the resource as well as in the central mineralized zones to potentially increase the pit shell resource and reduce the strip ratio,” Herdrick said.
For the non-brokered private placement, Sonoro will issue up to 22,222,222 units at $0.045 apiece.
Each unit will consist of a share and a share purchase warrant entitling the holder to purchase an additional share for three years from the date of closing at $0.07 each.
Sonoro 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.