Sokoman Announces Closing of Non-brokered Private Placement with Eric Sprott as Lead Investor
Sokoman Announces Closing of Non-brokered
Private Placement with Eric Sprott as Lead Investor
St. John’s, NL, March 21, 2022 - Sokoman Minerals Corp. (‘Sokoman’ or ‘the Company’)
(TSX.V: SIC) (OTCQB: SICNF) is pleased to announce that, further to its March 7, 2022 news
release, it has received approval from the TSX Venture Exchange (the “Exchange”) to close its
non-brokered private placement of flow-through units (the ‘Private Placement’) for gross proceeds
of $5,000,000, with $4,000,000 allocated to Mr. Sprott, a strategic, long-term investor.
The Company will now issue 12,500,000 flow-through shares units (“FT Units”) each FT Unit
consisting of one (1) common share of the Company and one common share purchase warrant (a
"Warrant"), each Warrant being exercisable for an additional common share of the Company, each
of which will not qualify as a flow-through share, at an exercise price of $0.45 for 24 months from
the date of issue.
All securities issued pursuant to the Pri vate Placement will be subject to a four -month-and-a-day
hold period, expiring July 22, 2022.
In connection with the Private Placement, the Company is paying $47,250 in cash finders’ fees to
various finders, as permitted by the policies of the TSX Venture Exchange.
The Company will use an amount equal to the gross proceeds received by the Company from the
sale of the FT Units, 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, 2023, and to renounce all the Qualifying Expenditures in favour of the subscribers
of the FT Units effective December 31, 2022. The proceeds from the sale of the Units will be used
to advance Sokoman's various exploration projects.
Mr. Sprott acquired 10,000,000 FT Units pursuant to the Private Placement for total consideration
of $4,000,000. Subsequent to the Private placement, Mr. Sprott beneficially owns and controls
60,414,465 Shares and 19,615,385 Warrants, representing approximately 28.2% of the issued and
outstanding Shares on a non -diluted basis, and approximately 34.3% on a partially d iluted basis
assuming exercise of the Warrants. Prior to the Private Placement, Mr. Sprott beneficially owns
and controls 50,414,465 Shares and 9,615,385 Warrants, representing approximately 25.0% of the
issued and outstanding Shares on a non -diluted basi s, and approximately 28.4% on a partially
diluted basis assuming exercise of the Warrants
The FT Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long -term
view of the investment and may acquire additional securities of the Comp any including on the
open market or through private acquisitions or sell securities of the Company including on the
open market or through private dispositions in the future depending on market conditions,
reformulation of plans and/or other relevant factors.
A copy of Eric Sprott’s early warning report will appear on the Company's profile on SEDAR and
may also be obtained by calling (416) 945 -3294 (200 Bay Street, Suite 2600, Royal Bank Plaza,
South Tower, Toronto, Ontario M5J 2J1).
Tim Froude, President and CEO stated “I would like to thank Mr. Spro tt and our other loyal
investors for their continuous support of the Company . 2022 will be an exciting year for our
shareholders.”
About Sokoman Minerals Corp.
Sokoman Minerals Corp. is a discovery -oriented company with projects in the province of
Newfoundland and Labrador, Canada. The Company's primary focus is its portfolio of gold
projects; flagship, advanced-stage Moosehead, Crippleback Lake (optioned to Trans Canada Gold
Corp.) and E ast Alder (optioned to Canterra Minerals Corporation) along the Central
Newfoundland Gold Belt, and the district -scale Fleur de Lys project in northwestern
Newfoundland, that is targeting Dalradian -type orogenic gold mineralization similar to the
Curraghinalt and Cavanacaw deposits in Northern Ireland. The Company also recently entered
into a strategic alliance with Benton Resources Inc. through three, large -scale, joint -venture
properties including Grey River, Golden Hope and Kepenkeck in Newfoundland.
Sokoman now controls, independently and through the Benton alliance, over 150,000 hectares
(>6,000 claims – 1500 sq. km), making it one of the largest landholders in Newfoundland, in
Canada’s newest and rapidly-emerging gold districts. The Company also retains an interest in an
early-stage antimony/gold project (Startrek) in Newfoundland, optioned to White Metal Resources
Inc., and 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.
To learn more, please contact:
Timothy Froude, P.Geo.,
President & CEO
Cathy Hume, Director,
Investor Relations
Website:
www.sokomanmineralscorp.com
709-765-1726 416-868-1079 x 251 Twitter: @SokomanMinerals
[email protected] [email protected] Facebook: @SokomanMinerals
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 se curities 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.