Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF, FRA:23SP) said it plans to raise C$11 million through a fully committed non-brokered private placement to fund drilling at its Cerro Caliche project in Mexico.
The company said proceeds will be used to complete a two-phase, 50,000-metre drilling program at its flagship Cerro Caliche gold project, located in Sonora state. The campaign will focus on infill drilling in western zones where initial operations are planned, as well as expansion drilling in northern areas following recent land acquisitions.
The offering will consist of 45.8 million units priced at C$0.24 each, with every unit including one common share and one warrant. Each warrant will allow holders to buy an additional share at C$0.32 within three years of closing.
CEO Kenneth MacLeod said the financing would strengthen the company’s balance sheet and support efforts to expand the known mineralized system at Cerro Caliche.
“Our primary objective remains advancing Cerro Caliche into production, and we are excited to start growing the project’s known mineralized system with a targeted drilling campaign,” MacLeod told shareholders.
Sonoro said the drilling program will run alongside development plans for a proposed open-pit, heap leach mining operation currently in the permitting stage, with an initial mine life of 10 years and projected capacity of up to 16,000 tonnes per day.
The offering is expected to close on or about April 30, subject to approval by the TSX Venture Exchange.
Company insiders have committed to subscribe for 15.8 million units, representing C$3.8 million of the total. Sonoro said it is relying on exemptions from formal valuation and minority shareholder approval requirements, as the transaction does not exceed 25% of its market capitalization.