Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) said it has closed an oversubscribed, non-brokered private placement, raising gross proceeds of C$4.9 million to advance development of its Cerro Caliche gold project in Mexico.
The Canada-listed company issued 24.5 million units at C$0.20 each. Each unit consists of one common share and one warrant, with each warrant exercisable to purchase an additional common share at C$0.28 for a period of three years.
Company insiders participated in the financing, subscribing for 2.215 million units for gross proceeds of C$443,000.
Sonoro said net proceeds from the financing will be used to fund ongoing development of the Cerro Caliche gold project in Sonora, Mexico, as well as for general working capital. The project is in the final permitting stage for a proposed open-pit, heap leach mining operation.
Sonoro Gold is a publicly listed exploration and development company with projects in Sonora State, Mexico.