Sokoman Announces Non-Brokered Flow-Through Private Placement for Gross Proceeds of up to $3M
Sokoman Announces Non-Brokered Flow-Through
Private Placement for Gross Proceeds of up to $3M
St. John’s, NL, December 8, 2022 – Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF)
("Sokoman" or the "Company”) today announced the non-brokered private placement of flow-through
(“FT”) units (the “Private Placement") for gross proceeds of up to $3,000,000. The Private Placement
is expected to close on or before December 28, 2022.
The Private Placement is priced at $0.28 per FT Unit. Each FT Unit consists of one common share of
the Company and one-half of one common share purchase warrant (a “Warrant”), each full Warrant
being exercisable for one additional common share of the Company, each of which will not qualify
as a flow-through share, at an exercise price of $ 0.36 for 18 months from the date of issue . The FT
Units will entitle the holder to receive the tax benefits applicable to flow -through shares, in
accordance with provisions of the Income Tax Act (Canada).
All securities issued pursuant to the Private Placement will be subject to a four-month and one-day
hold period.
In connection with the Private Placement, the Company may pay finders’ fees in cash as permitted by
the policies of the TSX Venture Exchange. The Private Placement is subject to approval by 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 of the Qualifying Expenditures in favour of the subscribers of the FT
Units effective December 31, 2022.
The Company intends to spend approximately 25% of the gross proceeds on the Golden Hope (Kraken
Lithium Pegmatite Field) joint venture project, and the remaining balance on its flagship Moosehead
Gold project.
The Company is well-funded to cover corporate and working capital needs for 2023 with $4.7M in
the treasury.
About Sokoman Minerals Corp.
Sokoman Minerals Corp. is a discovery -oriented company with projects in Newfoundland and
Labrador, Canada. The company’s primary focus is its portfolio of gold projects: flagship, 100% -
owned Moosehead and Crippleback Lake Projects, and East 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 d eposits in Northern Ireland, and Cononish in Scotland. The
Company has also entered into a strategic alliance (the Alliance) with Benton Resources Inc. through
three large-scale joint-venture properties including Grey River Gold, Golden Hope, and Kepenkeck
on the Island of Newfoundland. Sokoman now controls independently and through the Alliance over
150,000 hectares (>6,000 claims – 1,500 sq km), making it one of the largest landholders in
Newfoundland, Canada’s newest and rapidly-emerging gold district. Sokoman also retains a 1% Net
Smelter Return (NSR) royalty in an early-stage antimony/gold project (Startrek) in Newfoundland,
and in Labrador, the company has a 100% interest in the Iron Horse (Fe) project that has Direct
Shipping Ore (DSO) potential.
Mineralization hosted on adjacent and/or nearby properties is n ot necessarily indicative of
mineralization hosted on the Company's property.
The Company would like to thank the government of Newfoundland and Labrador for past financial
support of the Moosehead Project through the Junior Exploration Assistance Program.
For further information, please contact:
Sokoman Minerals
Timothy Froude, P.Geo., President & CEO
Phone: 709-765-1726
Email: [email protected]
CHF Capital Markets
Thomas Do, IR Manager
Phone: 416-868-1079 x 232
Email: [email protected]
Website: www.sokomanmineralscorp.com
Twitter: @SokomanMinerals
Facebook: @SokomanMinerals
LinkedIn: @SokomanMinerals
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Investors are cautioned that trading in the sec urities 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. Sokoma n 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 t o time with the Canadian securities regulatory authorities by Sokoman
Minerals Corp.