Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) has said it will undertake a non-brokered private placement offering consisting of up to 13,500,000 units at a price of C$0.15 per unit, for gross proceeds of up to C$2,025,000.
The company said net proceeds from the offering will be used to fund the ongoing development of a proposed heap leach mining operation at its Cerro Caliche gold project in Sonora, Mexico.
Each unit in the offering will be composed of one Sonoro common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional Sonoro common share for a period of two years from the closing at an exercise price of C$0.225 per share.
READ: Sonoro Gold continues to report high-grade gold intercepts from outside current resource area at Cerro Caliche
The company said it intends to pay finder's fees, as permitted under the policies of the TSX Venture Exchange, in respect of units placed with the assistance of registered securities dealers.
All securities issued and issuable in connection with the offering will be subject to a four-month hold period in Canada from the closing date
The offering is subject to TSX Venture Exchange acceptance.
Sonoro Gold is an exploration and development company holding the near-development-stage Cerro Caliche project and the exploration-stage San Marcial project in Sonora State, Mexico.
The company has highly experienced operational and management teams with proven track records for the discovery and development of natural resource deposits.
Contact the author at jon.hopkins@proactiveinvestors.com