Sonoro Gold advances on $4.9 million financing news
Sonoro Gold Corp. [SGO-TSXV, SMOFF-OTCQB, 23SP] has raised $4.9 million from an oversubscribed non-brokered private placement financing and will use the proceeds for ongoing development at its Cerro Caliche gold project in Sonora, Mexico. The project is in the final permitting stage for a proposed open-pit, heap leach mining operation.
The private placement consisted of 24.5 million units priced at 20 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share for three years after closing at an exercise price of 28 cents per share. Company insiders participated in the offering, subscribing for 2.2 million units, generating gross proceeds of $443,000.
Sonoro Gold shares advanced on the news, rising 4.7% or $0.015 to 33 cents. The shares trade in a 52-week range of 33.5 cents and $0.07.
Sonoro said it plans to commission an updated preliminary economic assessment for its flagship Cerro Caliche project. The project’s current PEA was filed on August 2023 and contemplates an initial nine-year mining operation at 12,000 tonnes per day with economic parameters based on a gold price of US$1,800 per ounce.
The updated PEA will reflect an increased gold price as well as higher capital costs and operating cost estimates. The PEA will also include a revised mine plan to align with recent updates to the project’s Environmental Impact Statement. Sonoro holds 100% of the surface rights to the Cerro Caliche concessions and surrounding area covering an initial 3,908 hectares.
Commencing September 1, 2028, Sonoro’s surface rights will expand to encompass the entire 5,007-hectare Cerro Prieto Ranch, including the surface rights to the neighbouring Cerro Prieto mine.
The updated PEA will be based on data derived from 55,360 metres of drilling, together with trenching, supporting assays reporting on approximately 30% of the Cerro Calich gold project’s identified mineral zones.
In January, 2018, Sonoro struck the first of five option agreements enabling it to acquire 100% interest in the Cerro Caliche group of concessions. The 1,400-hectare property is surrounded by several gold-silver mining operations, including Equinox Gold Corp’s [EQX-TSX, EQX-NYSE] Mercedes mine and Agnico-Eagle Mines Ltd.’s (AEM-TSX, AEM-NYSE) advanced Santa Gertrudis project.
The Cerro Caliche property contains low sulphidation epithermal gold-silver deposits in and around northwestern oriented vein-structural zones containing precious metals within veins, veinlets and fractures.
The project contains an indicated resource of 19.9 million tonnes at 0.44 g/t and 3.5/t silver or 290,000 ounces of gold equivalent (AuEq) within an optimized pit shell
On top of that is an inferred resource of 10.5 million tonnes at 0.42 g/t gold and 4.0 g/t silver or 150,000 ounces of AuEq). The company’s objective is to bring the project into production to fund ongoing exploration and mine expansion.
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