St. John’s, NL, June 15, 2020 - 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 flow-through shares (the “Private Placement”). The Private Placement is expected to be filed with the Exchange on or around June 19, 2020.
Sokoman intends to issue flow-through shares at a price of $0.115 per flow-through share for gross proceeds of up to $1,500,000. The flow-through shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).
In connection with the private placement, the Company will pay finders’ fees of 6% cash and 6% broker warrants, as permitted by the policies of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a four month and one day hold period. The Private Placement is subject to approval by the TSX Venture Exchange.
Sokoman’s treasury currently sits at around $1.4M cash. The proceeds of this financing will be used to advance Sokoman’s flagship Moosehead Gold Project through a minimum of 10,000 m diamond drill program to focus on deeper testing of the high-grade Eastern Trend to at twice the current tested levels of 200 m vertically (+ 400 m vertical targets), as well as follow-up (including drill testing) of other high priority targets identified by the late 2019 gold in till sampling program (full results expected in Q3) and the recently completed airborne magnetic survey.
About Sokoman Minerals
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 in Central Newfoundland on the structural corridor hosting Marathon Gold’s Valentine Lake project (with measured resources of 1.16 million oz of gold at 2.18 g/t, indicated resources of 1.53 million oz of gold at 1.66 g/t and inferred resources of 1.53 million oz. of gold at 1.77 g/t (Marathon Gold Website) 150 km southwest of the Company’s high-grade Moosehead gold project. The Company also has a 100% interest in an early-stage antimony/gold project recently optioned to White Metal Resources, and two earlier stage gold properties along the Valentine Lake-Moosehead structural corridor. In Labrador, the Company has a 100% interest in the Iron Horse Fe) project which is believed to host potential DSO iron deposits.
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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.