Sokoman Minerals Corp. Closes First Tranche of Non-Brokered Flow-Through and Hard-Dollar Private Placement Financing

Rhea-AI Summary

Sokoman Minerals Corp. (TSXV:SIC)(OTCQB:SICNF) has closed the first tranche of its non-brokered financing, raising CAD$1,421,250. The company is issuing 35,400,000 flow-through shares at CAD$0.04 per share and 150,000 non-flow-through common shares at CAD$0.035. The financing includes CAD$42,000 in finders' fees, 1,050,000 broker warrants exercisable at CAD$0.06 for one year, and 1,200,000 common shares to finders.

The company plans to allocate CAD$1,000,000 of the flow-through proceeds to the Moosehead gold property, with the remainder going to Fleur de Lys and Crippleback projects. The funds will be used for Canadian exploration expenses qualifying as flow-through mining expenditures, which must be incurred by December 31, 2025.

Positive

• Secured CAD$1,421,250 in new financing
• CAD$1,000,000 allocated for Moosehead gold property exploration
• Flow-through structure provides tax benefits to investors

Negative

• Significant share dilution with issuance of 35,550,000 new shares
• Additional dilution from 1,050,000 broker warrants and 1,200,000 finder shares
• Mandatory exploration spending deadline by December 31, 2025

ST. JOHN'S, NL / ACCESSWIRE / December 17, 2024 / Sokoman Minerals Corp. (TSXV:SIC)(OTCQB:SICNF)("Sokoman" or the "Company") is pleased to announce that further to its December 4, 2024 news release, the Company has received conditional approval from the TSX Venture Exchange (the "Exchange") for its non-brokered flow-through and hard-dollar financing (the "Financing") and will be closing the first tranche of the Financing for aggregate gross proceeds of CAD$1,421,250.

The Company will now issue 35,400,000 CAD$0.04 flow-through shares, with each flow-through common share of the Company entitling the holder to receive the tax benefits applicable to flow-through shares in accordance with provisions of the Income Tax Act (Canada).

The Company is also issuing 150,000 CAD$0.035 non-flow-through common shares.

In connection with the Financings, the Company is paying cash finders' fees totaling CAD$42,000, issuing 1,050,000 non-transferable broker warrants, exercisable at CAD$0.06 for one year. And issuing 1,200,000 common shares to two finders, as permitted by the policies of the Exchange.

All securities issued pursuant to the Financing are subject to a four-month and one-day hold period.

Final approval of the Financing is subject to Exchange approval.

The Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") on or before December 31, 2025, and to renounce all of the Qualifying Expenditures in favour of the subscribers of the FT Units effective December 31, 2024.

The Company intends to spend CAD$1,000,000 of the flow-through proceeds on the Moosehead gold property, the balance on Fleur de Lys and Crippleback, and hard-dollar proceeds for working capital.

About Sokoman Minerals Corp.

Sokoman Minerals Corp. is a discovery-oriented company and one of the largest landholders in the province of Newfoundland and Labrador, Canada's emerging gold district. The Company's primary focus is its portfolio of gold projects; the 100%-owned flagship, advanced-stage Moosehead, Crippleback Lake, and the district-scale Fleur de Lys project near Baie Verte in northwestern Newfoundland, targeting Dalradian-type orogenic gold mineralization similar to the Curraghinalt and Cavanacaw deposits in Northern Ireland. The Company entered a strategic alliance with Benton Resources Inc. through three, large-scale, joint-venture properties including Grey River, Golden Hope, and Kepenkeck in Newfoundland.

In October 2023, Sokoman and Benton completed an agreement with Piedmont Lithium Inc., a major developer of lithium projects and processing plants in the USA, and exactly the right partner to have to advance the lithium project. For full details of the agreement please refer to the Company's press release dated October 11, 2023.

Projects optioned with optionee fully vested are:

• East Alder Project optioned to Canterra Minerals Inc. (SIC retains shares of CTM plus 1% NSR)

• Startrek Project optioned to Thunder Gold (SIC retains shares of TGOL plus 1% NSR)

The Company would like to thank the Government of Newfoundland and Labrador for the financial support of the Moosehead and Fleur de Lys Projects through the Junior Exploration Assistance Program during the past few years.

For more information, please contact:

Timothy Froude, P.Geo., President & CEO 
T: 709-765-1726 
E: tim@sokomanmineralscorp.com

Cathy Hume, VP Corporate Development, Director 
T: 416-868-1079 x 251
E: cathy@chfir.com

Website: www.sokomanmineralscorp.com
Twitter: @SokomanMinerals
Facebook: @SokomanMinerals
LinkedIn: @SokomanMineralsCorp

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.

SOURCE: Sokoman Minerals Corp.

View the original press release on accesswire.com

FAQ

How much did Sokoman Minerals (SICNF) raise in its first tranche of financing?

Sokoman Minerals raised CAD$1,421,250 in the first tranche of its non-brokered financing.

What is the price per share for SICNF's flow-through shares in the December 2024 financing?

The flow-through shares were priced at CAD$0.04 per share.

How will SICNF allocate the proceeds from its December 2024 financing?

SICNF will allocate CAD$1,000,000 to the Moosehead gold property, with the remainder going to Fleur de Lys and Crippleback projects, and hard-dollar proceeds for working capital.

What is the exercise price and term for SICNF's broker warrants issued in the financing?

The broker warrants are exercisable at CAD$0.06 for a one-year term.

When must SICNF spend the flow-through funds from the December 2024 financing?

SICNF must spend the flow-through funds on qualifying expenditures by December 31, 2025.