Sokoman Minerals Corp. Files for Conditional Approval, Closes First Tranche of Non-Brokered Flow-Through Private-Placement Financing

Rhea-AI Summary

Sokoman Minerals Corp. (SICNF) has filed for conditional approval with the TSX Venture Exchange for a CAD$400,000 non-brokered flow-through private placement financing. The company has closed the first tranche, issuing 6 million common shares at CAD$0.05, raising CAD$300,000. The company will pay CAD$18,000 in cash finders' fees and issue 360,000 non-transferable broker warrants exercisable at CAD$0.07 for one year. The securities have a four-month and one-day hold period. The proceeds will be used for eligible Canadian exploration expenses on the company's projects, with a commitment to incur these expenses by December 31, 2026.

Positive

• Secured CAD$300,000 in initial funding through flow-through financing
• Additional CAD$100,000 financing still available in the second tranche
• Funds earmarked for exploration projects, potentially advancing company's assets

Negative

• Share dilution through issuance of 6 million new common shares
• Additional dilution potential from 360,000 broker warrants
• Financing at a relatively low share price of CAD$0.05

St. John's, Newfoundland and Labrador--(Newsfile Corp. - May 1, 2025) - Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) ("Sokoman" or the "Company") is pleased to announce that, further to its April 25, 2025, news release, the Company has filed documents with the TSX Venture Exchange (the "Exchange") seeking conditional approval for its CAD$400,000 non-brokered flow-through private-placement financing (the "FT Financing").

The Company is also seeking approval to close the first tranche of the FT Financing, issuing 6,000,000 common shares at CAD$0.05, for aggregate gross proceeds of CAD$300,000.

In connection with the first tranche of the FT Financing, the Company will pay cash finders' fees totalling CAD$18,000 and 360,000 non-transferable broker warrants exercisable at CAD$0.07 for one year as permitted by the policies of the Exchange.

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

Final approval of the FT 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 flow-through shares (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) on or before December 31, 2026, and to renounce all of the qualifying expenditures in favour of the subscribers of the FT Shares.

The Company intends to spend the flow-through proceeds on the Company's exploration projects.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250516

FAQ

What is the size of Sokoman Minerals' (SICNF) flow-through financing announced on May 1, 2025?

Sokoman Minerals announced a CAD$400,000 non-brokered flow-through private placement financing, with CAD$300,000 already raised in the first tranche.

How many shares did Sokoman Minerals (SICNF) issue in the first tranche of its May 2025 financing?

Sokoman Minerals issued 6 million common shares at CAD$0.05 per share in the first tranche of the financing.

What are the terms of the broker warrants issued in Sokoman's May 2025 financing?

The company issued 360,000 non-transferable broker warrants exercisable at CAD$0.07 for one year.

How will Sokoman Minerals (SICNF) use the proceeds from its May 2025 flow-through financing?

The proceeds will be used for eligible Canadian exploration expenses that qualify as flow-through mining expenditures on the company's exploration projects, to be incurred by December 31, 2026.