Private Placement to Boost Sonoro’s Cerro Caliche Project

To conclude the drilling program and continue developing its Cerro Caliche Gold Project located in Sonora, Sonoro Gold Corp. (Sonoro) will take a non-brokered private placement offering.

The company announced in a press release that this offer consists “of up to 11,111,111 units at a price of CA$0.18 (US$ 0.14) per unit, with gross proceeds of up to CA$2 million (US$1.585 million).” The company explained that each unit will have one Sonoro common share and a common share purchase guarantee, in which it will allow the holder to buy an additional Sonoro common share for two years from the closing at a price of CA$0.30 (US$0.24) per share.

Sonoro plans to pay finder’s fees in accordance with TSX Venture Exchange’s policies regarding the units placed with the guidance of registered securities dealers. Sonoro explained that all securities issued and issuable related to the offer “will be subject to a four-month hold period in Canada from the closing date” and that the offer is still subject to approval by the TSX Venture Exchange.

In a press release, the company explained that the net proceeds from the offering will be used primarily to finance Sonoro's development program at its Cerro Caliche Project and its property maintenance payments. The rest of the money will be allocated to corporate and general administrative expenses. “The private placement will provide enough capital to conclude the current phase of the drilling program and complete the independent technical reports, positioning the company for the next phase of development as we advance toward a production decision at Cerro Caliche,” said Kenneth MacLeod, President and CEO of Sonoro.

Sonoro recently told MBN that Cerro Caliche is the company’s cash machine opportunity since at the Japoneses drilling zone, the company has identified several mineralized intersections and the extension of the zone’s western boundary where there may be a pit optimization due to the potential convergence of the Japoneses and Buena Suerte open pits.  This potential coverage will not only increase the size of the project but will also optimize its economics.

Sonoro also expects its shares to trade with a market capitalization of at least US$86 million, which is a significant increase from its current US$16 million. In addition, Cerro Caliche also has an exceptional exploration potential, which could bring its gold resources to 2Moz. “It would not be a surprise if Cerro Caliche is another of the dozen gold deposits to be discovered, developed or mined in the region," Sonoro told MBN.

MacLeod highlighted that McClelland Laboratories’ metallurgical tests are on schedule and announced that the completion of the column leach tests will be ready in July, along with the updated resource report 43-101 and a PEA for its Cerro Caliche project.