Sonoro Gold Secures C$500,000 for Project Advancement
Sonoro Gold Successfully Closes C$500,000 Private Placement
Sonoro Gold Corp. (TSXV: SGO | OTCQB: SMOFF | FRA: 23SP), a prominent player in the Canadian mining sector, has recently reported the closure of a significant non-brokered private placement, raising a total of C$500,000. This advancement involved the issuance of 5,555,556 units at a price of C$0.09 per unit, each consisting of one common share and one share purchase warrant.
Details of the Private Placement
The established warrants allow investors to purchase additional shares at an exercise price of C$0.14, valid for two years. The funds raised will significantly contribute to the ongoing developments of Sonoro's flagship venture, the Cerro Caliche gold project located in Sonora, Mexico. In conjunction with the offering, Sonoro Gold disclosed that a portion of the funds raised will be allocated for general working capital, ensuring stable operation and strategic initiatives within the company.
Participation from Insiders
Insiders demonstrated considerable confidence in the company’s future by subscribing for 1,668,906 units, amounting to gross proceeds of C$150,202. This participation is indicative of the strong belief company executives hold in the strategic direction and potential of Sonoro Gold. The involvement of insiders categorized this as a related party transaction which complies with relevant regulations.
Focus on Cerro Caliche Project
The Cerro Caliche project serves as a cornerstone of Sonoro Gold's prospects. Current exploration activities have confirmed the presence of a low-sulphidation epithermal vein structure across a 1,400-hectare expanse. Notably, over 25 zones of gold mineralization have been identified, with only a fraction—about 30%—of these zones drilled and fully assayed.
Recent Updates and Mineral Resource Estimates
In March, Sonoro Gold filed an updated Mineral Resource Estimate (MRE) after drilling 55,360 meters across multiple drill sites. This data supports the development of strategic resource extraction methodologies which are crucial for advancing the project. In October 2023, a Preliminary Economic Assessment (PEA) was also completed, forecasting a favorable economic outlook for a 9-year open pit, heap leach mining operation.
Economic Indicators from the PEA
Particularly exciting are the findings from the PEA which imply an after-tax net present value (NPV5) of US $47.7 million based on a gold price of US $1,800 per ounce. If gold prices were to reach US $2,000 per ounce, this figure would soar to US $77 million, showcasing a high internal rate of return (IRR) of 45% to 63%, thus validating the project’s viability and profitability potential in varying market conditions.
Commitment to Compliance and Strategic Growth
Sonoro Gold is committed to upholding strict compliance with relevant mining regulations, ensuring all activities meet National Instrument 43-101 standards. The assessment and confirmation of resource estimates were conducted by reputable engineering firms, thereby fostering transparency and investor trust.
Future Development Plans
With the recent funds from the private placement, Sonoro Gold intends to expedite the development of the Cerro Caliche gold project. Plans include further exploration and enhancement of infrastructure, which are pivotal in enhancing yield and operational efficiency.
About Sonoro Gold Corp.
With a strategic focus on the development-stage Cerro Caliche project and the San Marcial exploration project, Sonoro Gold is well positioned for future growth. Led by a team of experts in the mining sector, Sonoro Gold continues its commitment to discovering and developing valuable mineral resources.
Frequently Asked Questions
What is the purpose of the private placement?
The private placement aims to raise funds for the development of the Cerro Caliche gold project and for general working capital purposes.
How many units were issued in the private placement?
A total of 5,555,556 units were issued at a unit price of C$0.09 each.
What are the terms of the warrants issued?
Each warrant allows the holder to purchase an additional common share at C$0.14 for a period of two years from the closing of the placement.
How does the PEA impact the future of the Cerro Caliche project?
The PEA outlines a positive economic outlook for the Cerro Caliche project, indicating potentially high profitability and guiding future development decisions.
Who can I contact for more information?
For additional information, you can reach out to Sonoro Gold Corp. at (604) 632-1764 or via email.
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