Sonoran Desert Copper Corporation Closes First Tranche of Financing

Rhea-AI Summary

Sonoran Desert Copper Corporation has successfully closed the first tranche of its private placement financing, raising $480,000 through the issuance of 4.8 million Units at $0.10 per Unit. Each Unit comprises one common share and one warrant exercisable at $0.15 for 24 months, with an acceleration clause if shares trade above $0.50 for 10 consecutive days. Notably, four insiders participated in the financing, contributing $213,000 for 2.13 million Units. The company plans to use the proceeds for project payments, development initiatives, and working capital. The remaining financing is expected to close by June 30, 2025. Securities issued are subject to a four-month hold period.

Positive

• Secured $480,000 in initial financing through private placement
• Insider participation of $213,000 demonstrates management confidence
• Warrants provide potential for additional future funding at $0.15 per share

Negative

• Dilution of existing shareholders through issuance of 4.8 million new units
• Relatively small financing amount may indicate limited investor interest
• Warrant exercise price at $0.15 represents potential future dilution

Vancouver, British Columbia--(Newsfile Corp. - June 5, 2025) - Sonoran Desert Copper Corporation (TSXV: SDCU) ("SDCU'' or the "Company") is pleased to announce that the Company has closed the first tranche of its $0.10 unit private placement financing (the "Financing") for gross proceeds of $480,000.

The Company has issued 4,800,000 Units, each Unit consisting of 1 common share of the Company and 1 common share purchase warrant, each warrant being exercisable at $0.15 for 24 months, subject to the right of the Company to accelerate the exercise period to 30 days if, after the expiry of the 4 month hold, shares of the Company close at or above $0.50 for 10 consecutive trading days.

Four insiders subscribed to the Financing for $213,000 or 2,130,000 Units, that portion of the Financing a "related party transaction" as such term is defined under MI 61-101 - Protection of Minority Security Holders in Special Transactions. The Company is relying on exemptions from the formal valuation requirement of MI-61-101 under sections 5.5(a) and (b) of MI 61-101 in respect of the transaction as the fair market value of the transaction, insofar as it involves the interested party, is not more than 25% of the Company's market capitalization.

All securities issued pursuant to the financing will be subject to a four-month hold. Proceeds from the financing will be used for project payments, continuing development of the company's projects and general working capital. The Company intends to close the balance of the Financing by June 30, 2025.

ABOUT SONORAN DESERT COPPER CORPORATION
Sonoran Desert Copper Corporation is focused on securing, developing and monetizing energy materials assets and technologies to build shareholder value.

On behalf of the Board of Directors of
SONORAN DESERT COPPER CORPORATION

"Brian Leeners"

Brian Leeners, CEO & Director
brianleeners@gmail.com / +1 604-862-4184 (WhatsApp)

FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254528

FAQ

How much did Sonoran Desert Copper (PMDRF) raise in its first tranche of financing?

Sonoran Desert Copper raised $480,000 in the first tranche by issuing 4.8 million Units at $0.10 per Unit

What are the terms of PMDRF's warrant acceleration clause?

The company can accelerate the warrant exercise period to 30 days if shares close at or above $0.50 for 10 consecutive trading days after the 4-month hold

How much insider participation was there in Sonoran Desert Copper's financing?

Four insiders participated in the financing for a total of $213,000, subscribing to 2,130,000 Units

When does Sonoran Desert Copper plan to close the remaining financing?

The company intends to close the balance of the financing by June 30, 2025

What will PMDRF use the financing proceeds for?

The proceeds will be used for project payments, continuing development of company projects, and general working capital