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Sonoro Gold Corp V.SGO

Alternate Symbol(s):  SMOFF

Sonoro Gold Corp is a Canada-based exploration and development company. The Company is engaged in holding the development- stage Cerro Caliche project and the exploration-stage San Marcial project in Sonora State, Mexico. The Cerro Caliche Project is located in the Cucurpe Municipality of Sonora State in northwestern Mexico and is comprised of 15 contiguous mining concessions covering a total area of 1,350.10 hectares (ha). The San Marcial Project is located in the Santa Ana Municipality of Sonora State in northwestern Mexico and is comprised of four contiguous mining concessions held by the Company’s wholly owned Mexican subsidiary Minera Breco, S.A. de C.V. (Breco). The 1,015.80-ha project is situated at the southern end of the prolific Sonora-Mojave Megashear, a regional scale structural system measuring approximately 50 kilometers in width and 500 kilometers in length.


TSXV:SGO - Post by User

Post by drunk@noonon Apr 22, 2021 9:51am
138 Views
Post# 33043902

swedeprof:given the financial metrics of the project

swedeprof:given the financial metrics of the project the low risk executioin, given the straight forward nature of oxide ore heap leach along with the shallow open pit extraction and low strip ratio I love this project. And I am a shareholder. But there will be further dilution when they raise cap ex for the project itself. It is just the way it is. ORE has a similar project and management bragged about having a great debt lending sheet lined up for the better part of a year before the finial project financng for the project was announced. The stockhouse BB was full of posters who claimed management had advised them theire would be no stock issued.  I pointed out they were wrong.  Turns out between the new shares and dillutive converibles half the cap ex was new shares. With the straight eqiuty 10% lowewr than the sp at the time. they didnt even bother doing a streaming deal to tredcce dillution. this after stating they would do what they  could to keep dilution to a minimum.
the reason i want to know cap ex is any astute investor will assume 50/50 split  between debt and equity for cap ex raise. Notice they issued half warrants-- if they do the same for project financing it will increase dilution even more.
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