Sokoman Iron Corp. (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 for total proceeds of $3,001,500 consisting of 20,010,000 units at a price of $0.15 per unit. Each unit consists 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 acquisitions 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. 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.
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