Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) announced that it has closed an oversubscribed non-brokered private placement, issuing 17.5 million units at $0.05 each for gross proceeds of $875,000.
Each unit consisted of a share and a share purchase warrant entitling the holder to purchase an additional share for $0.07 for three years from closing.
In connection with the offering, the company paid $6,720 in finders fees and issued 134,000 in non-transferable finder’s warrants, which can be exercised for $0.07 for three years.
The funds raised will be used for the ongoing development of Sonoro Gold’s Cerro Caliche gold project in Sonora, Mexico, and for general working capital purposes.
The Cerro Caliche gold project spans 1,400 hectares and hosts a low-sulphidation epithermal vein system with over 25 gold-mineralized zones, most near surface.
As of March 2023, only 30% of these zones have been drilled, with 55,360 meters of drilling completed, including 498 drill holes and 17 trenches.
In October 2023, a Preliminary Economic Assessment (PEA) was filed, showcasing the potential for a 9-year open-pit, heap leach mining operation.
At a gold price of $1,800 per ounce, the project’s after-tax net present value discounted at 5% (NPV5) is $47.7 million, with a 45% internal rate of return (IRR). At $2,000 per ounce, the NPV5 rises to $77 million, with a 63% IRR.