Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) has announced a non-brokered private placement to raise gross proceeds of up to C$525,000 through the issue of up to 3,500,000 units at C$0.15 each.
Net proceeds from the offering will be used to fund the ongoing development of a proposed heap leach mining operation at the company's Cerro Caliche gold project in Sonora, Mexico, the explorer said.
Each unit will comprise one Sonoro common share and one common share purchase warrant, with each warrant entitling the holder to purchase one additional Sonoro common share within two years from the closing of the offering at an exercise price of C$0.225 per share.
READ: Sonoro Gold sees strong potential for flagship Cerro Caliche project in Mexico
Sonoro said it intends to pay finder's fees, as permitted under the policies of the TSX Venture Exchange, for 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 from the closing date in Canada.
The offering is subject to the acceptance of the TSX Venture Exchange.
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.
Contact the author at jon.hopkins@proactiveinvestors.com