Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) announced that it is increasing the size of its previously announced, non-brokered private placement in response to investor demand.
The exploration and project development firm said it will now issue 10 million company units, at an offering price of C$0.15 per unit, with the intention of raising gross proceeds of C$1.5 million.
Sonoro Gold noted that net proceeds from the offering will be used to fund ongoing development of its Cerro Caliche gold project in Mexico as well as for working capital purposes.
Each unit of the private placement will be comprised of one Sonoro common share plus one common share purchase warrant, with each warrant entitling the holder to purchase one additional Sonoro common share for a period of two years from the closing of the private placement at an exercise price of C$0.22 per share.
All securities issued and issuable in connection with the offering will be subject to a four-month plus one-day hold period in Canada from the closing date, the company added.
Shares of Sonoro added almost 10% premarket on the update.