Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) reported that it has closed its previously announced oversubscribed, non-brokered private placement of 20.5 million company units, priced at C$0.20 per unit, raising gross proceeds of C$4.1 million.
The exploration and development company said net proceeds from the offering will be used primarily to fund ongoing development of its flagship Cerro Caliche gold project in Mexico.
This includes the commissioning of an updated Preliminary Economic Assessment (PEA) and completing the final payment due under the Rosario option agreement, thus securing 100% ownership of the entire Cerro Caliche mining concessions.
Sonoro Gold noted that the funds will also be allocated for the Change of Land Use payment, the regional permit required for mining operations in Mexico, as well as for the proposed spin-off of the San Marcial gold-silver project into Sonoro’s wholly owned Sonoro subsidiary, Oronos Gold Corp.
Each unit of the private placement consists of one Sonoro common share plus one common share purchase warrant, with each warrant entitling the holder to purchase one additional Sonoro Gold common share for a period of three years from the closing of the private placement at an exercise price of C$0.28 per share.
Sonoro Gold insiders participated in the offering by purchasing 2,007,297 company units for gross proceeds of C$401,459.40.
In connection with the offering, Sonoro Gold paid $10,500 in finder’s fees and issued 52,500 non-transferable finder’s warrants for a period of three years at an exercise price of $0.28.
All securities issued and issuable in connection with the offering are subject to a four-month plus one day hold period ending February 23, 2026.