VANCOUVER, Canada, November 10, 2014, Sonoro Metals Corp., (“Sonoro”) (TSXV: SMO), announces that it has entered into an option agreement with Eagle Putt Ventures Inc. (“Eagle Putt”) whereby Sonoro can earn a 50% interest in the 1,282 hectare Monroe Property located in the Fort Steele Mining Division in southeastern British Columbia (the “Option”). The Monroe Property is located approximately 20 km south of Cranbrook, British Columbia and 40 km south of the former giant class Sullivan Zinc-Lead-Silver mine. Eagle Putt is a private company, arm’s length to Sonoro, and managed by noted Vancouver-based geologists, Gordon and John Leask, who are acting as technical advisors for the Monroe exploration program.
In conjunction with the Option agreement, Sonoro proposes to undertake a private placement of up to $700,000, comprised of up to $500,000 of Non-Flow-Through (“NFT”) units at a price of $0.10 per unit and up to $200,000 of Flow-Through units at a price of $0.12 per unit. Each NFT and Flow-Through unit will consist of one share and one share purchase warrant exercisable for a term of 3 years (the “Warrants”). Each Warrant will entitle the holder thereof to purchase one common share of Sonoro at an exercise price of $0.15 per Warrant share during the first year following the closing of the private placement, escalating to $0.20 in the second year and $0.25 in the third year, subject to the right of Sonoro to accelerate the expiry of the Warrants, if at any time after four months and one day from the issue date of the Warrants, during the term of the Warrants, the common shares of Sonoro close at a price at or above $0.40 per share for more than 20 consecutive trading days.
The net proceeds from the offering will be primarily used by Sonoro for expenditures on the Monroe Property and for general working capital purposes. All securities issued in connection with the private placement will be subject to a hold period expiring four months and one day following the closing date. The private placement is subject to acceptance by the TSX Venture Exchange.
To exercise the Option, Sonoro must expend $2,500,000 on exploration and development on the Monroe Property over 4 years and pay Eagle Putt $400,000 in staged option payments over that same 4-year period. First-year commitments amount to $250,000 of exploration expenditures and a $50,000 cash payment. Following exercise of the Option, the parties anticipate that they will enter into a 50/50 joint venture to further advance the exploration and development of the Monroe Property.
“The Monroe option enables Sonoro to diversify its exploration portfolio to incorporate a base metal component in a region with a rich mining history,” said Kenneth MacLeod, President and CEO of Sonoro. “We are especially pleased to draw upon the geological expertise of Gordon and John Leask and their history of involvement with the Monroe project.”
The Monroe Property is situated at the intersection of two major Proterozoic aged crustal structures, specifically the Moyie Fault and the Sullivan Corridor. The Sullivan deposit is hosted in a similar geologic setting. Past work on the Monroe project dates from the discovery of the adjacent Fors Zinc-Lead-Silver massive sulphide prospect in 1966. The most recent investigation comprised a major drill campaign in 1997.
The Sullivan mine operated continuously from 1900 to 2001, yielding 160 million tons of ore grading 6.5% lead, 5.6% zinc and 2 oz/ton silver with a gross metal value at today’s prices of approximately CAD$45 billion.
In 2007, following the closure of the Sullivan Mine, the Geological Survey of Canada published an extensive volume including detailed geological studies related to the Sullivan ore body. This information provided the impetus for a re-evaluation of the previous Monroe Property drilling. The property hosts a large volume of Sullivan-type alteration and a gabbro sill-dyke complex fringing a third-order basin, which is developed at the Sullivan Time interval. The depocentre is a 1 km-by-1 km sub-basin which has not been previously evaluated by drilling.
Sonoro proposes to drill to a depth of approximately 1,200 meters to test two specific stratigraphic intervals within the sub-basin, namely the Sullivan Time interval and the Sullivan Footwall Quartzite interval.
Stephen Kenwood, P. Geo. is a qualified person within the context of National Instrument 43-101 and has read and takes responsibility for this news release.
On behalf of the Board of SONORO METALS CORP.
Per: “Kenneth MacLeod”
President & CEO
About Sonoro Metals Corp.
Sonoro Metals Corp. is an exploration and development company with a portfolio of exploration-stage properties located in the Mexican state of Sonora and in British Columbia, Canada. Sonoro has a skilled exploration team in Mexico, headed by Hermosillo-based Chief Geologist Melvin Herdrick, a professional geologist with over 35 years experience, including 9 years as the Chief Geologist for Phelps Dodge in Mexico from 1994 to 2003 and 5 years as Vice President of Exploration for Pediment Gold Corp. until its takeover by Argonaut Gold Inc. in 2011. Sonoro’s technical team in Canada is spearheaded by professional geologist Stephen Kenwood, with over 20 years experience in mineral exploration and development in British Columbia.
Forward-Looking Statement Cautions:
This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, relating to, among other things, preliminary plans for a consolidation of the Company’s Common Shares. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the possibility that the TSX Venture Exchange or the Company’s shareholders will not approve the proposed share consolidation, and that the Company may not be able to raise sufficient additional capital to continue its business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.