Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF, FRA:23SP) has closed an oversubscribed, non-brokered private placement, raising gross proceeds of C$12.2 million to fund a major drilling campaign at its Cerro Caliche gold project in Sonora, Mexico.
The offering comprised just over 50.8 million units priced at $0.24 per unit, each consisting of one common share and one warrant exercisable at $0.32 for three years from closing. No finder fees were paid in connection with the offering.
Net proceeds will fund a two-phase, 50,000-metre drilling program targeting higher-grade mineralization identified in prior campaigns and expansion drilling at recently acquired northern extensions.
The campaign will run alongside the proposed development of an open-pit, heap leach mining operation, currently in permitting and targeting an initial 10-year production run at up to 16,000 tonnes per day.
Company insiders subscribed for around 15.7 million units for gross proceeds of nearly $3.8 million.