Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) has locked in $3 million in fresh capital as it looks to push forward development of its flagship gold project in northern Mexico.
The Vancouver-based explorer said Thursday it had completed a fully subscribed private placement, selling 15 million units at 20 cents each.
Each unit includes one share and a warrant that gives investors the right to buy another share at 28 cents, exercisable over three years.
Unlike a public share offering, this non-brokered placement doesn’t go through traditional investment banks.
Sonoro said it may pay finder’s fees where securities dealers helped bring in investors. The deal is expected to close around October 20, subject to final approval from the TSX Venture Exchange.
The funds will support several key milestones at Sonoro’s Cerro Caliche project in Sonora State.
That includes an updated Preliminary Economic Assessment, a type of early-stage economic study, and the final payment under the Rosario option agreement, which will give Sonoro full ownership of the mining concessions.
The company will also allocate capital toward a Change of Land Use payment, a Mexican regulatory step known as “ETJ” that is required to shift land from agricultural to industrial use before full-scale mining can begin.
Sonoro is aiming to move Cerro Caliche from the exploration phase toward production. It also holds the early-stage San Marcial project nearby.
While neither site is producing gold yet, the company’s management team includes veterans of previous resource discoveries and mine development across Mexico.