Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF, FRA:23SP) has announced plans for a non-brokered private placement aimed at raising approximately C$10 million to support development activities at its Cerro Caliche gold project in Sonora, Mexico.
The offering will consist of 40 million units priced at C$0.25 each. Every unit will include one common share and one common share purchase warrant.
Each warrant will allow the holder to purchase an additional common share at C$0.34 for a period of three years following the closing of the financing.
Company insiders are expected to participate in the financing by purchasing approximately 4 million units for gross proceeds of about C$1 million.
The company said proceeds from the financing will be used to advance ongoing development at Cerro Caliche, as well as for general working capital purposes.