Mr. Kenneth MacLeod reports
SONORO GOLD ANNOUNCES FULLY-COMMITTED $700,000 PRIVATE PLACEMENT
Sonoro Gold Corp. has arranged a fully committed, non-brokered private placement offering consisting of 14 million units at a price of five cents per unit for gross proceeds of $700,000.
Each unit will comprise one Sonoro common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional Sonoro common share for a period of three years from the closing of the private placement at an exercise price of seven cents.
The offering is subject to TSX Venture Exchange acceptance. All securities issued and issuable in connection with the offering will be subject to a four-month-and-one-day hold period in Canada from the closing date. No finders' fees are expected to be paid from this offering, and no new control person will be created. The offering is fully committed and is expected to be fully subscribed.
The company also anticipates that certain directors and officers of the company will participate in the offering. The participation will constitute a related party transaction, pursuant to TSX-V Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company will rely on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101, as the fair market value of the transaction will not exceed 25 per cent of the company's market capitalization.
The net proceeds from the offering will be used to finance the continuing development of the company's Cerro Caliche gold project in Sonora, Mexico, as well as for working capital.
About Sonoro Gold Corp.
Sonoro Gold is a publicly listed exploration and development company holding the 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 records for the discovery and development of natural resource deposits.
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