Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) has said that it is increasing its previously announced non-brokered private placement to 16,000,000 units from 13,500,000 units for gross proceeds of up to C$2,400,000 in response to strong investor demand.
The exploration and development company said the offer price remains C$0.15 per unit, each comprised of one Sonoro common share and one common share purchase warrant, which entitles 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.
Sonoro Gold previously 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.
READ: Sonoro Gold unveils final drill results from Phase 4 campaign at Cerro Caliche gold project in Mexico
Directors and officers of the company are expected to participate in the offering by subscribing for 4,516,828 units for gross proceeds of C$677,524, constituting a related party transaction under TSX Venture Exchange rules, Sonoro Gold said.
To the extent that the transactions constitute a related party transaction, it added that it intends to rely on exemptions from the associated formal valuation and shareholder approval requirements.
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