Sokoman Iron Corp. Closes $3 Million Non-Brokered Private Placement
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Sokoman Iron Corp. Closes $3 Million Non-Brokered Private Placement
Puslinch, ON, August 15, 2018 - Sokoman Iron Corp. (‘Sokoman’ or ‘the Company’) (TSX-V: SIC) is pleased
to announce that the TSX Venture Exchange has accepted for filing documents to close the previously
announced non- brokered private placement (the "Placement") for total proceeds of $3,001,500 consisting of
20,010,000 units at a price of $0.15 per unit. Each unit consist s of one common share and one common
share purchase warrant. Each warrant is exercisable into one common share at a price of 25 cents per
share for a period of two years from closing. There are three placees, Eric Sprott , through his holding
company 2176423 Ontario Ltd subscribed for 13.35 million Units ($2.0 million) , Palisade Global
subscribed for 4.1 million Units ($0.6 million), and Venture Ad Network subscribed for 2.56 million
Units ($0.4 million) . All securities issued pursuant to the Placement are subject to a 4 -month hold
period. There are no finders’ fees associated with the transaction.
The proceeds of the financing will be used to advance the Company’s flagship Moosehead Gold
Project where multiple targets remain untested as well as follow up drilling following a successful
Phase I program. A portion of the funds will be directed to the Company’s other gold properties in
Newfoundland, and for general working capital purposes.
As of the date hereof, after giving effect to this acquisition, Mr. Sprott beneficially owns and controls
13,350,000 shares and 13,350,000 Warrants of Sokoman, representing approximately 16.0% of the
issued and outstanding shares on a non- diluted basis, and approximately 27.6% on a partially diluted
basis. Prior to the date hereof, Mr. Sprott did not beneficially own any securities of Sokoman.
The Units were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr.
Sprott has a long-term view of the investment and may acquire additional securities of Sokoman either
on the open market or through private acqui sitions or sell securities of Sokoman either on the open
market or through private dispositions in the future depending on market conditions, reformulation of
plans and/or other relevant factors.
About Sokoman Iron Corp.
Sokoman Iron Corp. (TSXV: SIC) is a discovery-focused company with projects in Newfoundland &
Labrador, Canada. The Company’s primary focus is its Moosehead Gold project in central
Newfoundland where recent drilling in the Eastern Trend area has returned high- grade gold results
from MH-18-01 highlighted by 11.90 m @ 44.96 g/t Au including 5.65 m @ 93.56 g/t Au released on
July 24, 2018. (Note: reported intersection is a core length, true thickness estimated to be 80% of core
length). The Company’s other assets include a portfolio of early stage gold projects in Central
Newfoundland and a 100% interest in the Iron Horse (Fe/V/REE) project in Western Labrador.
Contact:
Timothy Froude, P. Geo., CEO
Phone: 709-765-1726
Email: [email protected]
Cathy Hume, Director
Phone: 416-868-1079
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Email: [email protected]
Website: www.sokomaniron.com
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 Iron 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 r esults is included in the documents filed from time to time with the Canadian securities
regulatory authorities by Sokoman Iron Corp.