Sokoman Minerals Announces Non-Brokered Private Placement Led by Eric Sprott
Sokoman Minerals Corp. ('Sokoman' or 'the Company') (TSX.V: SIC) (OTCQB: SICNF) today announces that, subject to all regulatory approvals, the Company intends to complete a non-brokered private placement of units (the "Private Placement") for gross proceeds of $6,500,000 with a lead order of $5,000,000 from Eric Sprott. The Company expects to file documents for approval with the TSX Venture Exchange (the "Exchange") next week.
Subject to receipt of all regulatory approvals, Sokoman intends to issue units at a price of $0.26 per unit for gross proceeds of $6,500,000, with each unit consisting of one (1) common share in the capital of the Company and one half (½) of a common share purchase warrant. Each full warrant will be transferable in accordance with applicable Securities Laws and will entitle the holder to purchase one (1) additional share for $0.40 at any time prior to 4:30 p.m. (Vancouver time) on that date which is twenty-four (24) months after the closing date.
In connection with the Private Placement, the Company may pay finders' fees of 5% cash to certain finders, in accordance with Exchange policies. All securities issued pursuant to the Private Placement will be subject to a four month and one day hold period.
The proceeds of this financing will be directed towards advancing the Company's flagship Moosehead Gold Project, which includes increasing the current drill program from 20,000m to 50,000m total with four drill rigs.
About Sokoman Minerals Corp.
Sokoman Minerals Corp. is a discovery-oriented company with projects in Newfoundland & Labrador, Canada. The Company's primary focus is its portfolio of gold projects (Moosehead, Crippleback Lake and East Alder) in central Newfoundland on the structural corridor hosting Marathon Gold's advanced stage Valentine Lake gold project. The 100%-owned Moosehead Gold Project is located along the Trans-Canada Highway in north-central Newfoundland, and adjacent to New Found Gold's Queensway Project. Both the Moosehead and Queensway projects are targeting high-grade, turbidite-hosted, Fosterville-type gold mineralization. The gold mineralization in the Eastern Trend at Moosehead has been defined over a 500 m strike length and a 200 m vertical height and remains open, with high-grade drill results including 5.10 m of 124.20 g/t Au (MH-18-39). The Company is currently in the midst of the Phase 6 drill program.
The Company also retains an interest in an early-stage antimony/gold project in Newfoundland optioned to White Metal Resources Inc. In Labrador, the Company has a 100% interest in the Iron Horse (Fe) project which has Direct Shipping Ore (DSO) potential.
Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company's property.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investors are cautioned that trading in the securities of the Corporation should be considered highly speculative. Except for historical information contained herein, this news release contains forward- looking statements that involve risks and uncertainties. Actual results may differ materially. Sokoman Minerals Corp. will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Sokoman Minerals Corp.
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Contact
Timothy Froude, P. Geo., President & CEO
709-765-1726
tim@sokomanmineralscorp.com
Cathy Hume, Director, Investor Relations
416-868-1079 x251
cathy@chfir.com
Website: www.sokomanmineralscorp.com
Twitter: @SokomanMinerals
Facebook: @SokomanMinerals