Sokoman Minerals Closes Financing and Announces Exercise of Warrants
2021-06-04 07:05 ET - News Release ST. JOHN’S, Newfoundland and Labrador -- (Business Wire)
Sokoman Minerals Corp. (“Sokoman” or “the Company”) (TSXV: SIC) (OTCQB: SICNF) is pleased to announce that, further to its April 13, 2021 news release, it has now closed its private placement and issued 3,770,592 units of the Company to Eric Sprott for gross proceeds of $980,354 (the “Financing”).
Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 3,770,592 units under the offering for total consideration of $980,354. Subsequent to the closing of the Financing, approved at a Special Meeting of Shareholders held on May 18, 2021, Mr. Sprott beneficially owns or controls 50,414,465 common shares of the Company and 9,615,385 warrants, representing approximately 26.1% of the issued and outstanding common shares of the Company on a non-diluted basis and approximately 29.6% of the issued and outstanding common shares of the Company on a partially diluted basis, assuming exercise of the warrants acquired hereunder and forming part of the units.
Prior to the offering, Mr. Sprott beneficially owned or controlled 46,643,873 common shares of the Company and 7,730,089 warrants, representing approximately 24.6% of the issued and outstanding common shares of the Company on a non-diluted basis and approximately 27.6% of the issued and outstanding common shares of the Company on a partially diluted basis.
The Financing was effected with one (1) insider of the Company, Eric Sprott, subscribing for $980,354 for 3,770,592 Units, that portion of the Financing being a “related party transaction” within the meaning of Policy 5.9 of the Exchange and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). In connection with the participation of the insiders, the Company intends to rely upon the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 set forth in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that the fair market value (as determined under MI 61-101) of the participation does not exceed twenty-five percent (25%) of the market capitalization of the Company (as determined under MI 61-101).
In connection with the Financing and in accordance with the TSX Venture Exchange policies, the Company will pay a $24,509 finder’s fee.
The proceeds of the Financing allow Sokoman to increase the current Phase 6 drill program at the flagship Moosehead Gold Project from 20,000 m to 50,000 m total with four drill rigs. Recent highlights from Phase 6 include significant intercepts from MH-21-141 of 4.20 m @ 64.0 g/t Au at South Pond; and from MH-21-115 of 4.60 m @ 47.0 g/t Au at Footwall Splay, and 8.10 m @ 68.70 g/t Au in the Eastern Trend Main zone. All zones remain open.
Sokoman also announces that, for the period between April 1 and May 31, 2021, the Company has seen a total of 23,691,000 warrants exercised for $5,921,570. The Company’s current cash position is approximately $15 million, making it fully funded for the activities planned for the remainder of 2021
just a little news on a Friday
Take Care, Year of the Profit, Oilseeker