- Sonoro Metals (SMO) is set to raise up to C$5 million in a private placement to fund exploration work at its Cerro Caliche Project in Sonora, Mexico
- Under the terms of the placement, the company intends to issue up to 22.7 million units at a price of 22 cents each
- Each unit will be comprised of one common share and one common share purchase warrant, exercisable at a price of 30 cents
- The proceeds raised will be used to fund a deep-drilling program, as well as property maintenance payments, at the Cerro Caliche Project
- Sonoro Metals (SMO) is currently down 3.7 per cent and is trading at 26 cents per share
Sonoro Metals (SMO) is set to raise up to C$5 million to fund exploration at its Cerro Caliche Project in Mexico.
Under the terms of the placement, the Vancouver-based company intends to issue up to 22.7 million units at a price of 22 cents each. These units will be comprised of one common share in Sonoro and one common share purchase warrant.
Each warrant will entitle the holder to acquire an additional common share at a price of 30 cents, exercisable over a period of three years from the date of issuance.
Sonoro Metals intends to use proceeds raised under the placement primarily to fund exploration and development work at its Cerro Caliche Project, which is expected to include a variety of property maintenance payments. A portion of the proceeds will also go towards general corporate and administrative expenses.
Kenneth MacLeod, President and CEO of Sonoro Metals, noted that the proposed work is fully permitted.
“Upon completion of the financing, we intend to immediately commence the deeper drill program, as the requisite permits are in place and both our technical team and the drill crews are based in Hermosillo and do not require any cross-border travel,” he added.
In January 2018, the company, through its wholly owned Mexican subsidiary, Minera Mar De Plata, entered into the first of five option agreements to acquire a 100 per cent stake in the project, which consists of eight historic gold mining sites.
Historical data, in combination with the results from Sonoro’s own previous work, point to the existence of a widely mineralised low-sulphidation, epithermal vein system with substantial potential to develop a significant resource suitable for open pit mining.
Sonoro Metals (SMO) is currently down 3.7 per cent and is trading at 26 cents per share at 11:31am EDT.