Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) announced that it has received final acceptance from the TSX Venture Exchange for its surface rights lease agreement covering the Cerro Caliche gold project located in Sonora, Mexico.
With the approval, the company said it now controls 100% of both surface and mineral rights for the project, including exclusive access for exploration, development, extraction, and construction of mining infrastructure.
Sonoro also announced that it has completed first-year financial obligations under the agreement, including cash payments totaling US$3.125 million and the issuance of 5 million common shares at a deemed price of C$0.15.
Funding for the cash payments was supported by US$2.9 million in unsecured loans from company directors, bearing 10% annual interest and a 7% lending fee, repayable from future project financing or production revenues.
The lease agreement covers a surface area exceeding current operational requirements, which Sonoro said allows for future growth.
The agreement has a term of up to 25 years, comprising an initial 12.5-year period with an option to renew for an additional 12.5 years.
Sonoro noted that the Cerro Caliche project is nearing completion of the permitting process for a planned open-pit, heap leach mine, following four drilling programs and comprehensive technical and environmental evaluations.
The company plans to begin with an initial 12,000 tonnes per day operation to generate cash flow and fund further exploration.
To date, only 30% of the project’s identified mineralized zones have been drilled and assayed, with results supporting the potential for resource and mine expansion.
Exploration at the property has confirmed multiple near-surface, low-sulphidation epithermal gold-bearing zones.
A 2023 Preliminary Economic Assessment outlined a potential nine-year mine life with an after-tax net present value discounted at 5% (NPV5) of US$47.7 million and a 45% IRR at a gold price of US$1,800 per ounce. At US$2,000 per ounce, the project’s after-tax NPV5 increases to US$77 million with a 63% IRR.