Sokoman raises $4.1 million for lithium-gold projects
Sokoman Minerals Corp. [SIC-TSXV, SICNF-OTCQB] has raised $4.14 million from a flow-through private placement financing. The company said 25% of the net proceeds are earmarked for the Golden Hope [Kraken Lithium Pegmatite Field] joint venture with Benton Resources Inc. [BEX-TSXV]. The balance will fund exploration at Sokoman’s Moosehead gold project. Both projects are located in Newfoundland.
News that that financing is complete came after the close of trading on December 28, 2022. On Thursday, Sokoman shares rose 1.9% or $0.005 to 26.5 cents. The shares are currently trading in a 52-week range of 45 cents and 17 cents.
On December 22, 2022, Sokoman said it had upsized the private placement to $4.14 million from $3.0 million. As a result, it has issued 14.7 million flow-through share units for 28 cents per unit. Each flow through unit consists of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to purchase one non-flow-through common share for 36 cents for 18 months after the closing date.
Sokoman and Benton recently formed an alliance in a bid to share the cost of acquiring and exploring gold opportunities (on a 50-50) basis in Newfoundland.
The aim was to show there is a lot more gold to be found beyond recent discoveries by Sokomon, Marathon Gold Corp. [MOZ-TSX, OTC-MGDPF], New Found Gold Corp. [NFG-TSXV], and others.
However, the alliance made headlines back in August, 2021, when it announced what is believed to be the first discovery of significant lithium mineralization on the island of Newfoundland.
During a trip to the Golden Hope property, one of three gold projects in the alliance’s portfolio, senior executives from both companies identified a swarm of lithium-bearing pegmatite dikes.
The area containing lithium-bearing pegmatite dykes, now known as The Kraken Pegmatite Swarm covers an area measuring approximately 2.2 kilometres long by 0.85 kilometres wide. Assays from rock samples have shown that the dyke system contains economic grades of lithium (including 1.04% Li20), is widespread and open along strike.
Benton President and CEO Stephen Stares described the Kraken dyke system as a large, highly-evolved, pegmatite field. Stares said he is seeing similarities to the geological environment and setting of other large systems in the Appalachian belt, including important deposits held by Piedmont Lithium Inc. in eastern U.S. and Genfeng Lithium’s Avalonia project in Ireland.Dec
Sokoman and Benton recently announced a potentially significant high-grade cesium discovery dubbed the Hydra Zone on the Golden Hope project. The cesium-rich dyke is approximately 5.0 to 6.0 metres wide and has been traced for approximately 100 metres along strike to where it disappears under overburden in both directions. The dyke is located 12 kilometres northeast of the initial Kraken Pegmatite discovery.